Linking ownership structure and branding strategy to financial performance and stability: case of French wine cooperatives

Sandra Challita (), Philippe Aurier () and Patrick Sentis ()
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Philippe Aurier: MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier
Patrick Sentis: MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier

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Abstract: This research explores the impact of branding on financial performance of a firm while taking into account its ownership structure. Using the decisional theory, we apply a normative approach to better explain the incentives and constraints of branding in two types of firms: Cooperatives and Investor Owned Firms (IOFs). We adopt a quantitative analysis, using a survey of 207 French firms in the wine sector, combing its data with financial information. We show that cooperatives are more constrained to brand, therefore, they invest more in collective branding whereas IOFs are more likely to invest in specific branding. Additionally, we find that branded firms have lower financial and commercial performance. Finally, we find that the main factor contributing to the stability of financial performance is the cooperative ownership structure rather than the creation of a brand.

Keywords: coopératives; Financial Performance; Decision Theory; Wine Industry; Création d'une Marque; Performance Financière; Théorie de la décision; Secteur Viti-vinicole (search for similar items in EconPapers)
Date: 2016-01
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Published in The first International workshop on Innovations in Wine Business, Jan 2016, Montpellier, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02081344

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