Determinants of organic wine production: An application in the DOC Rioja wine industry

Abstract

Aim of study: To analyse the role that valuable resources and agglomeration would play in the decision to produce organic wines. Area of study: The Controlled Designation of Origin (DOC) Rioja wine industry in Spain, the leading qualified denomination of origin of Spain. Material and methods: Taking into account the nature of the dependent variable, a binomial logit model was used. Main results: This paper confirms the significance of valuable resources such as financial resources and human resources, but also of knowledge-based spillovers from proximate organic wineries in improving the probability of producing organic wines. Contrary to expectations, technological resources and experience in the wine industry have no significant effect. Research highlights: The resource based-view and the cluster approach are complementary to improving the predictive elements of producing organic wine in the DOC Rioja wine industry. The authors were unable to pre-register the analysis involving primary data collection before the data collection exercise starts. This requirement is from January 2022 and the survey period of this paper was on 2017. According to the editorial policy of the journal this analysis should be considered exploratory.