Fault Lines: Emerging Domains of Inertia within the Australian Wine Industry

It is common knowledge that the Australian wine industry has enjoyed remarkable success over the past three decades in terms of production and export growth, innovation and reputation for consistent quality. The centralisation of resources and infrastructure, as well as the nationally-oriented funding and R&D agendas, are usually cited as providing the foundation for this success. Yet in more recent years it is this same nationally-focused centralisation that is increasingly at odds with a rapidly changing international wine landscape and therefore, the organisational and innovation requirements of the firms that must respond to these changes. This paper explores these issues within the theoretical context of what it has termed domain inertia—an industry-level dislocation between organisation and firm imperatives. Arguing that neither traditional organisational nor innovation-based change theories deal with the complexities of industry-level inertia, the paper attempts to move beyond orthodox theoretical parameters. In so doing, it adopts a somewhat unique theory that places organisational and innovation inertia within a widening domain of discordant industry-level imperatives.