A model for understanding industry cluster development among New World wineries

Abstract

This paper proposes a cluster management model that is grounded in Porter's diamond framework and cluster thinking. This exploratory research examines secondary sources to understand the presence and development of clusters in two New World wine regions over two time periods (2000-2008 and 2009-2014). Whilst different in development trajectories and focus, and impacted by very different legislative frameworks, both wine regions displayed high quality strategic alignment during their inception stage but this deteriorated over time. The authors suggest that if the emerging lack of strategic alignment had been identified early, addressing it may have limited or halted the deterioration. This research introduces a pragmatic tool for industry assessment of cluster strength and decision making that is easy to use for regional development practitioners. Such an applied tool is valuable in agricultural clusters where challenges posed by climate change, the globalisation of markets, or the massive disruption caused by a global pandemic requires increasingly rapid cluster adaptation.