The Sketchbook of an Urban Winery: Building Legitimacy and Establishing Uniqueness in Diverging Business Models

Abstract

This study explores the process of balancing between building legitimacy and establishing uniqueness in new ventures engaged in business model innovation. To analyze this phenomenon, a qualitative single-case study was conducted with the case organization Wine Mechanics, who claims to be the first urban winery in Scandinavia. The chosen case is extreme as the urban winery business models introduce innovation to an industry characterized by respect for history and traditions. Also, the venture is founded in a market that lacks a long history of wine production and consumption. Data was collected through eight semi-structured interviews and organizational documents. The study found that the organizational actors in Wine Mechanics balanced between building legitimacy and establishing uniqueness in actions of communicative nature anchored in different organizational identities. By showcasing how organizational actors balance between building legitimacy and establishing uniqueness when developing a business model that diverges from the predominant model, this study provides insights to entrepreneurship and organizational identity research.