Innovation in wine SMEs: the Douro Boys informal network

Globalisation needs to be perceived by wine small and medium enterprises (SMEs) located in wine regions characterised by a terroir model as a challenge and an opportunity to innovate. The aim of this paper is to present a business strategy that can be adopted by wine SMEs located in regions with high production costs and where tradition and innovation are relevant factors to be introduced in the decision process. To achieve this goal, the case of five small wine producers (Douro Boys), located in the Portuguese conservative Douro Demarcated Region (DDR) that are adopting an informal horizontal network is presented. The conducted analysis allows us to conclude that Douro Boys is a very simple and informal structure of prospectors, with a high culture of innovation, searching for niches in international wine markets.