EXPRESS: The Best Broths are Cooked in the Oldest Pans: An Empirical Test of the Practice-based View in the Wine Industry
The practice-based view (PBV) has recently been proposed as a counter to the resource-based view of the firm (RBV). Unlike the RBV, the PBV contends that performance differences among firms can accrue from readily available practices. Using a large sample of wines over a 20-year period, I find evidence of a significant relationship between the implementation of practices and performance. Findings also indicate that the strength of this relationship is contingent on the possession of valuable, rare, inimitable and non-substitutable (VRIN) resources (a firm-level moderator) and the prevalence of practices (an industry-level moderator). The impact of practices on performance is less pronounced when firms possess VRIN resources. It also declines as they become more widespread in an industry.