The value of trading relationships between buyers and sellers of wine grapes in Australia

The following dissertation uses an exploratory and confirmatory approach to explain relationship value within the grape and wine industry in Australia. Specifically, the research develops and empirically captures and compares buyers’ and sellers’ perceptions pertaining to relationship value. A three phase model was developed from a comprehensive literature review and further enriched through a qualitative field study involving sixteen in-depth interviews with wineries and their grape suppliers in Western Australia. The hypothesised structural equation models were tested using data gathered from a comprehensive survey of 175 wineries and 400 wine grape suppliers located in South Australia, Victoria, New South Wales and Western Australia. Research findings highlight the similarities and differences in relationship value antecedents and outcomes for wineries and grape suppliers. In Phase One, it was evident from the working relationships studied that partner attributes included in the model – conflict resolution, communication, performance satisfaction, trust and cooperation - all made an important contribution towards the realisation of relationship value for both parties. A restrained use of power was found to be critical to avoid a reduction in the ability to resolve conflict, the level of performance satisfaction and trust in the relationship.