Large firms, legitimation and industry identity: The growth of the North Carolina wine industry

This paper examines the recent rapid growth of wineries in North Carolina and the role that a few large wineries have played in establishing efficiency parameters for small wineries. Specifically, we argue capital intensive wineries have subsidized institutional changes and promoted operational procedures that have improved quality and reputation of the embryonic industry. In establishing efficiency mandates they have helped incipient industry identity and also provided an important benchmark for industry newcomers, thus facilitating further entrepreneurial growth.