A CONCEPTUAL FRAMEWORK TOWARDS SUCCESSION EFFECTIVENESS IN FAMILY WINERIES THE “WINESUCCESS” CONCEPTUAL FRAMEWORK THOUKIS GEORGIOU A thesis submitted to The University of Gloucestershire In accordance with the requirements of the degree of Doctor of Philosophy In the Business School February, 2018 ABSTRACT Succesion effectiveness in family wineries is considered critical for the incumbents and the owning families looking forward to assure winery success and transgenerational continuity, as this endeavour requires substantial commitment, social skills, financial health, and idiosyncratic considerations that are more often than not unstable. Therefore, this thesis provides a platform of critical reflection and theoretical development upon the findings of a doctoral research on the topic of effective succession in family wineries for bringing further and closer theory and professional practice. Systematic literature review of the best available sources of knowledge served as a starting point. It was shown that there is a plethora of academic research on effective family business succession that makes available useful insights into this important process. The review has identified the major theories, models, and frameworks, and provided information on different factors and variables that are believed appropriate to foster succession process further. However, the review findings are often fragmented and subjective which makes it difficult to draw valid conclusions that can be representative for family wineries. Moreover, the review revealed certain gaps and uncertainties in the research that this thesis has aimed to bridge, and allowed the development of a preliminary conceptual framework (version one) with the testable research hypotheses. A primary research that followed in the organizational context of Cypriot family wineries made use of both quantitative and qualitative approaches, at a greater and lesser extent, respectively. These approaches were put forward based on the researcher’s ontological, epistemological and axiological assumptions. The numeric data were largely generated from a self-completed questionnaire survey that was comprehensive with an open aspect. The questionaire was mailed to the entire population of fifty-four family wineries inclusive with hundred participants. The statistical analysis was undertaken using SPSS software. Pearson correlation analysis was the foremost statistical device used in the direction of establishment significant relationships among different succession factors. In order to enrich the meaning of statistical analysis with wine-specific insights, the researcher made further use of illustrative evidence collected from the survey open aspect. i The major research findings have suggested that all succession factors revealed from the existing theory are empirically valid for family wineries. Particularly, the factor that is named “Incumbent-Succesor Pre-contractual Expectations” has been found very fundamental and provided significant links with different factors under examination. Moreover, the detailed quantitative analysis allowed a relevant modification of the conceptual framework developed from the existing theory (version two). With the aim of additional wine-specific support to the numerical findings, the researcher took further action in six willing family wineries inclusive with sixteen informants. The exploration was mainly made via individual semi-structured conversations. Throughout thematic analysis, the researcher discussed the revealed trends in family winery research and the prospective meaning of two new and specific “wine factors”. Subsequently, a central idea named “Winery-Specific Ground Rules” was perceived essential to moderate the influential socio-political role which may employed by the incumbent, the owning family, and other stakeholders. It was also perceived that the “Institutional Role” in the wine sector would be a positive channel for succession process through implementation of a series of well targeted support measures. Moreover, the detailed qualitative analysis allowed a final modification of the conceptual framework developed (version three). In the light of the above, the original and substantial contribution to knowledge of this thesis is ascertained by the empirically validated conceptual framework for effective family winery succession. Consequently, the adapted WineSucess Framework® (WSF) developed that joins sixteen succession factors together would give valid prospects to the family wineries and eventually to other family businesses. Lastly, the WSF could be seen by academics and researchers as a subject matter for further comparative study in other European-Meditteranean wine regions with similar management culture. Consultants and policy makers could yet make use of this evidence-based WSF as a competitive enhancer of the wine sector as it provides good opportunities for extensive exploitation and value through effective application on a particular basis. ii AUTHOR’S DECLARATION I declare that the work in this thesis was carried out in accordance with the regulations of the University of Gloucestershire and is original except where indicated by specific reference in the text. No part of the thesis has been submitted as part of any other academic award. The thesis has not been presented to any other educational institution in the United Kingdom or overseas. Any views expressed in the thesis are those of the author and in no way represent those of the University. Signed: Thoukis Georgiou Date: 28th February, 2018 iii DEDICATION I have dedicated this doctoral thesis to my beloved parents Panicos and Kety. They have given me the life and the light! This thesis has also been dedidated to my newborn successor Panos Thoukis Georgiou He has given me the strength and determination to continue my life odyssey With pride! iv ACKNOWLEDGEMENTS I would like to express my sincere gratitude to professor Demetris Vrontis, Dean of Distance Learning Studies at the University of Nicosia, in Cyprus. As first supervisor, professor Vrontis has been a role model, a guide and a lasting companion for the entire doctoral journey. He has never given me up! Instead, as a true friend, he has led me to see the right way to move on with my research in really hard personal times and extensive periods of inertia. I would like to extend my appreciation to the second supervisor Dr. Robin Bown, professor at the University of Gloucestershire, in the UK. Even in a longer distance from my research empirical setting, he has offered valuable assistance and taken a critical stance during the thesis writing process and submission. Particular appreciation is also expressed to a research advisor, expert in the area of family business. This is Dr. Panikos Poutziouris, professor at the Uclan University Cyprus. He has grafted me with the enthusiasm to follow such a vital research topic. Exceptional recognition is expressed to Dr. Philippa Ward, Reader in Services Marketing at the University of Gloucestershire. She has played a fundamental role during the taught phase of the doctoral journey, a valuable coach who was always ready to make clear of the various concepts and showed a secure pathway towards final destination. Of course, I am grateful to the entire research administrational team at the University of Gloucestershire: Dr. Sharon Brookshaw, Mrs. Sabina Fiebig, Mrs. Charley Cooney and Mr. Niki Savage for all the assistance and support. I would like to express my sincere appreciation to Mr. Christoforos Christoforou, Information Technology expert at the University of Nicosia for the long discussions about statistical models and clarification of relevant choices. None of us knows all issues, writes and expresses perfectly! Therefore, I am extremely grateful to the many people who I have collaborated with and learnt from. I hope that they, in turn, receive satisfaction from helping me to become a better researcher and writer. One of them is Dr. Marios Georgiou, a colleague who has been sufficiently able to exchange views, share personal experiences and truly support. v TABLE OF CONTENTS Chapter Page Abstract i Author’s Declaration iii Dedication iv Acknowledgements v Table of Contents vi List of Tables ix List of Figures xi List of Appendices xii List of Abbreviations xii Author’s Publications xiv 1. Introduction and Background 1 1.0 Introduction 1 1.1 Research Background 1 1.1.1 The Challenge of Effective Succession in the Cypriot Family Wineries 1 1.1.2 The Wine Sector of Cyprus 2 1.1.2.1 Development of the Wine Sector 3 1.1.2.2 Historical Evidence 4 1.1.2.3 Environmental Audit 7 1.1.2.3.1 Viticultural Zones 7 1.1.2.3.2 Production Potential 7 1.1.2.3.3 The Local Wine Market 8 1.1.2.3.4 The Major Stakeholders 9 1.1.2.3.5 Opportunities and Threats 11 1.2 Justification of Conducting the Research 16 1.3 Research Questions 19 1.4 Research Aim and Objectives 20 1.5 Thesis Structure 21 1.6 Conclusion 24 2. Literature Review 25 2.0 Introduction 25 2.1 Introduction to the Research Topic and Formulation of Primary 25 Hypothesis 2.2 Systematic Review Methodology 28 2.3 Systematic Review of Studies on Family Business Succession 31 2.3.1 Systematic Review Aim and Objectives 32 2.3.2 Search Strategy 33 2.3.2.1 Literature Scoping 33 2.3.2.2 Search Outline 33 2.3.2.3 Search Results 34 2.4 Inclusion-Exclusion Criteria 35 2.5 Quality Assessment of Selected Studies 38 2.6 Mapping the Research 39 2.7 Descriptive and Thematic Analysis of Research 44 2.7.1 Descriptive Analysis 45 2.7.2 Thematic Analysis