Industrial integration and growth of firm in transition economies: the case of a French multinational company

In the last decade, the prospect of accession of Central and East European countries (CEECs) to the European Union has given momentum to the discussion of their economic integration into the EU. Thus, academic studies have generally focused on variables at the macro level and are conducted in the light of quantitative methodologies in social sciences. This paper instead focuses mainly on the industrial integration of the CEECs into the EU at the firm and inter-organisational level, and uses in-depth, face-to-face interview techniques. Examining the growth of a multinational firm that operates in CEE in the context of networks help us to determine the depth of east-west industrial networks. In this light, the aim of this paper is to contribute to the development of the 'network alignment' framework from the perspective of the multinational companies located and operating in CEE. The growth of the French Soufflet Group in CEECs is taken as an exemplar to demonstrate the need to link the elements of the existing literature on foreign direct investment (multinational companies) with an evolutionary approach, through consideration of evolving and multiple networks

Crafting Growth : Exploring the Emerging Potential & Challenges for Scotland's Craft Beer Sector

This White Paper reports on the findings of a Scottish Universities Insights Institute (SUII) funded project, which brought together leading European craft brewers, and academics studying the sector, from eight countries, led by a team from the University of Strathclyde and Heriot-Watt University. The aim of the project was to collectively explore barriers to growth, as well as development opportunities, for craft brewing at firm, sectoral, regional, national, and international levels. The White Paper first sets out the six key areas of challenge which emerged from the study, namely: resourcing growth, marketing communications, market expansion, building skills, working with the value chain, and, crucially, legislation and support structures. Key recommendations to emerge from the workshop-driven study are discussed in detail

Small and Medium Enterprises in Mexico and the Craft Beer Sector in Baja California: Dynamic Capabilities, Culture, and Innovation

This article studies how Small and Medium Enterprises (SMEs) operating in emerging economies implement adaptative strategies to respond to constant changes in demand and global uncertainties, such as those stemming from the current SARS-COV2 pandemic. In this study the knowledge management capabilities used by SMEs in the craft beer sector in a region of northern Mexico are the focus of analysis. The objective is to present the competitive capabilities that craft beer sector has demonstrated in Baja California region and how small companies compete with the national industrial brewery and survive. Sources are data from a sample of companies and interviews with brewery owners, with which the analysis approaches, also, the Baja California business environment. The article highlights the routes of creativity, innovation, and symbolic capital of the companies in the region, and uses ideas from dynamic capabilities and knowledge management theoretical frameworks, to understand the craft brewery milieu. The conclusions in this article include the confirmation about the usefulness of these analytical frameworks based in the capabilities approach and the territorial knowledge. Also, the description of the existence of a complex Baja Californian milieu, where a multimodal scheme of craft beer characterized by different places of distribution and types of beer container, food-districts, at Mexicali, Tijuana, and Ensenada and a second generation of entrepreneur groups leading local business, is identified

Identification of the factors influencing the profitability of the Hungarian beer industry

Beer consumption and beer industry is an important beverage sector in Hungary because the beer is the most consumed alcoholic beverage in the country according to WHO studies. During history, breweries developed in different size and different values. The Hungarian beer industry can be divided into three groups of breweries: old large scale breweries, old microbreweries and new wave microbreweries. In this paper, we examine the factors influencing the economic performance of the Hungarian beer industry based on panel data of all active Hungarian breweries in 2018 (121 breweries), for the period of 2009-2017. The study applied panel-data linear models by using feasible generalized least squares with error structure with no cross-sectional correlation option.  The economic performance is measured by companies’ turnover, EBIT and profit, which were used as dependent variables. The following explanatory variables were applied in the model: age of brewery (number of closed business years), Social Media activity (FB likes of company page), geographical location (distance from Budapest in km), direct sales (represent own pub/direct sales channel), impact of tax reduction (small beer companies pay 50% less tax since 2012). Regression results have shown a number of determinants of the economic performance of Hungarian breweries, and the estimations are valid for all profitability indicators included (turnover, EBIT and profit). As in previous research, we have come to the conclusion that if the company survives the early years of operation, we can expect profitable activity. Since the ratio of early bankruptcy among Hungarian brewers is still very high, the fluctuation between smaller breweries strongly determines the industry.The benefits of short food supply chains (both physical distance and number of intermediaries) are also prevalent in the beer industry. Breweries with direct sales channels (mostly their own pubs) showed significantly higher sales, EBIT and profits compared to those selling their products by third parties. Breweries situated in Budapest are the most profitable, because the capital city provides a higher demand for high-quality beer, in contrast, the distance from the capital city has a negative impact on the firm’s success.The Social Media activity, often used as the only promotion channel for the microbreweries, has a positive impact on the brewery’s profitability. Finally, tax reduction for small breweries introduced in 2012 by the Hungarian government had the most important positive impact on industrial profitability, especially in the case of microbreweries. It seems the government aim to support small scale beer production has been successful because it helped the survival of the Hungarian microbreweries

Microbrewing in Madison County Alabama: Exploring Business Formation Strategies and Regulatory Compliance

Business leaders venturing in the microbrewing business sector experience long delays due to federal, state, and city requirements unique to this industry. The purpose of this multiple case study was to explore strategies used by microbrewers in cases bounded by the fulfillment of the same licensing requirements to launch a microbrewery in Madison County, Alabama. The dynamic capabilities framework served as the conceptual framework for this study. A purposive sampling of 4 microbrewers who possessed tacit knowledge about the microbrewery licensure process participated in face-to-face semistructured interviews providing in-depth information about their strategic approaches. The overarching research question addressed the strategic approaches microbrewers used to complete the microbrewery licensure process. Data analysis included the verbatim transcription of interviews coded for common patterns and themes. The following themes emerged from the data analysis: learning from other brewers, flexible strategic approach, establishing a brewery first, attaining licensing second, business planning strategies, and regulatory echelons for microbrewing licensing. The 4 participants reported that learning from other brewers and applying a flexible strategic approach were the preferred strategies to navigate the licensure process in becoming a commercial microbrewer. The implications for social change include reduction in gap between understanding and effective strategies to fulfill microbrewing licensing that could benefit communities by promoting business creation, employment, and added taxation revenue from craft beers produced, sold, and consumed locally

Ontario's Craft Beer Industry: Current Assessment and Future Directions

The micro-brewing, or craft brewing industry, is a rapidly emerging section of Ontario's economy and local food system (Agriculture & Agri-Food Canada, 2015; Beer Canada, 2016). Since the late 1980s, over 300 breweries have opened shop in Ontario. The growth of the industry is interesting for a number of reasons. The government control of beer and alcohol sales in the province has created a number of challenges for small scale brewers, challenges only now beginning to shift. Historically, the beer industry has been defined by the consolidation of three major industrial scale brewers who control at least 80% of the market. The growing craft sector has pulled local agriculture toward commercial hop production, and opened up discussion of grain sourcing and processing. The trend toward local consumption has created a broader dialogue that questions the dominant corporate and government controlled framework of beer and alcohol sales in Ontario. The industry's recent growth also appears to, in part, be related to the broader local food movement. This paper offers an interdisciplinary discussion on the emerging industry. It relies on three major lenses to offer a current assessment of the industry and the experience a brewing entrepreneur has in Ontario at present. First, it looks at the craft brewing industry within the framework of the local food network in Ontario. Second, this paper places the small to medium enterprise (SME) network of the micro-brewing industry within the framework of the Green Economy, which sees SMEs as having a pivotal role. It also seeks to understand the role of SMEs in contributing to a low-growth, or steady-state economy as outlined by Victor, 2008. Finally, this paper approaches the industry at the individual company level, examining business practices and sustainability therein. The approach taken by this paper is useful in understanding the functional and operational challenges and successes food SMEs have in carrying out their place within the green economy and local food system. This paper contributes a new perspective to the limited existing literature on the craft beer industry in Ontario, and by extension the emerging role of SMEs in the growing local food sector. By undertaking analysis of four distinct breweries of various life-spans and scale, it assumes some common challenges or successes the brewing entrepreneur would find in this sector. The major questions addressed in this paper are: what role do SMEs have to play in the local food movement in Ontario; what are their entrepreneurial limitations or strengths under the current system, and by extension, what are their capabilities in integrating sustainability into their business practices? Lastly, the findings highlight patterns and trends, and offer some recommendations regarding the future of craft in the Province and some speculations on leveling the playing field of the retail sales channels systems. Results show that craft brewing entrepreneurs are committed to maintaining independence and autonomy over their businesses, are driven by passion for the craft and are mindful of growing their businesses responsibly. Many of these entrepreneurs are highly conscientious and critical of growing too large, and aim to integrate ethics and sustainability into their business practices in response to the glaring issues corporate consolidation has created for themselves and the economy

Occupational injuries among craft brewery workers in Colorado

2021 Spring.Includes bibliographical references.Workers at craft breweries in the U.S. are an understudied occupational cohort in a rapidly growing industry. Between 2015 and 2019, the number of craft breweries in Colorado grew 120% (Brewers Association, 2020). At the start of 2020, Colorado had more than 420 craft breweries with more than 9,100 workers. California is the only state with more craft breweries than Colorado. In the U.S., 8,000 craft breweries employed 161,000 workers (Brewers Association, 2020). As craft brewery workers produce beer through manufacturing processes, they are exposed to numerous occupational hazards that have been associated with injuries. These hazards include awkward body postures, lifting/carrying heavy loads, highly repetitive activities, sharp edges on materials and equipment, hot surfaces, and high levels of noise. According to national injury surveillance data, occupational injury rates are higher among brewery workers compared to all industries including private, state, and local government. Unfortunately, the national injury surveillance data do not differentiate between large and craft breweries. Craft breweries are substantially smaller than large industrialized breweries. An analysis of national injury data that includes all sizes of breweries may lead to erroneous perceptions of injuries affecting craft brewery workers. To date, no published studies have specifically outlined occupational hazards and injuries associated with craft brewing tasks. To effectively improve safety among craft brewery workers, it is critical that researchers and industry stakeholders have a better understanding of the occupational exposures related to injuries specific to craft brewery workers. The purpose of the present study was to characterize injuries specific to craft brewery workers and to identify their contributing factors in order to inform practitioners tasked with directing intervention resources. Researchers used data from workers' compensation to analyze injuries among Colorado craft brewery workers from 2013 to 2018. Researchers then analyzed accident narratives using the revised agent-host-environment epidemiologic model to better understand the relationship between the reported injury claim and the contributing factors to the agent, host, environment, and vehicle. Informal interviews with subject matter experts supplemented the workers' compensation analysis. Due to restrictions caused by the COVID-19 Pandemic, qualitative data were collected through virtual informal interviews with subject matter experts. Researchers developed a series of injury process models to highlight the relationship between injury characteristics and contributing factors that resulted in an injury nature. These models included information on how an injury nature was the result of an injury event when energy was transferred from the environment or vehicle to the injured workers' anatomical region. Researchers analyzed 570 claims. Results of the present study indicated that new workers experience occupational injuries, as more than 60% of claimants had less than two years of tenure at the time of injury. Among claims that incurred costs, the median total claim cost was $680 and the mean total claim cost was$2,100. Claims associated with sprains/strains incurred the highest costs per claim and the highest cumulative cost. Sprains/strains and contusions were the most frequent injury natures. The low back, hands, and fingers were the most frequently injured body parts. By analyzing accident narratives, researchers determined that injuries in craft breweries were typically associated with claimants either carrying items or performing cleaning tasks. The majority of injuries occurred in the packaging hall area of the craft brewery. Subject matter experts described how the packaging hall typically had the highest number of workers and the greatest proportion of new workers compared to other regions of the craft brewery. Contusions, lacerations, and burns affected the hands/fingers whereas sprains/strains predominately affected the low back. Sprains/strains and contusions both typically occurred in the packaging area of the craft brewery while the claimant carried an item. Lacerations typically occurred in the packaging area or kitchen. Burns typically occurred in the brewery or kitchen. Both burns and lacerations occurred while the worker performed maintenance work, cleaning activities, or food preparation tasks. Findings from this study (including the injury process models) can help guide practitioners tasked with developing interventions to reduce injuries and improve the quality of work life among craft brewery workers

The Role of Social Media in Artisanal Production : A Case of Craft Beer

We present craft beer as part of an artisan industry case study that demonstrates how the use of social media creates a community narrative that engages both producer and consumer around the artisanal produce and its values. In contrast to mass drinks production, the past decade has seen a resurgence in specialist artisan ‘craft beer’ producers, making niche, high-quality products. Specifically, we examine the craft beer industry’s use of digital technologies as a way of engendering bilateral consumer engagement with their products, and how it can influence brewing practices and support in-the-field quality control. A qualitative approach, using grounded theory, was undertaken to understand the digital relationships between key stakeholders in the craft beer community, including craft brewers, retailers, bloggers, and fans, through a series of interviews, ethnographies, focus groups, and public events. Our analysis reveals future design considerations for these stakeholders, with findings supporting the design of future interactions that can further strengthen the relationship between small, artisan industries and their consumers