Product-market adjustment and wine export performance

Abstract This paper analyzes the impact of product-market fit on firms’ export performance, focusing specifically on the case of wineries. To this end, we use a representative sample of Spanish wineries and data on 49 export markets. The empirical analysis is based on a firm heterogeneity model that integrates both macroeconomic and firm-level factors influencing wine export performance. Our findings indicate that a good product–market match facilitates export activity and can mitigate traditional barriers to international trade, such as geographic or political distance. When a winery conducts effective market research and identify markets where consumer preferences align closely with the characteristics of its products, its export performance improves significantly.