This paper aims to understand how institutions influence a Geographical Indication (GI) region to create value over time. The study examines a Brazilian wine industry that has lasted for about a century, using ten recent years of primary data collection (2012–2022).
This paper developed a qualitative study that looks at coopetition and institutions and considers the GI as an institution. It collected the data from 33 representatives of the Brazilian wine industry in three stages (2012–2013, 2017 and 2022).
The results show that coopetitive strategies between Brazilian wineries are encouraged by both formal and informal institutions, which results in a GI becoming a collective institution. Value creation, however, drives new entrants aiming to achieve gains, and this risks destroying the GI due to the perception of lack of balance on value capture over time.
This study describes the creation and evolution of a GI for developing wine production in a particular grape-growing region in Brazil, which has, consequently, encouraged coopetition between supply chain agents leading to value creation. Most wineries, however, lack a value capture perception, which has resulted in the risk of value being destroyed by allowing new entrants into the cluster. The three stages of data collection and analysis provide an understanding of coopetitive strategies over the long term.
