Strategic outsourcing pathways for sustainable growth: insights from artisan vinegar producers

This study examines the scalability challenges faced by artisan vinegar producers and evaluates whether outsourcing can support growth without compromising product authenticity. Drawing on Transaction Cost Economics (TCE), the research investigates how asset specificity, uncertainty and governance choices shape outsourcing decisions in craft-based food production. Empirically, the study uses a structured survey of 152 consumers, measuring perceptions of product quality, authenticity, health benefits, willingness to pay and preferences for handmade versus mass-produced goods. Quantitative analysis, including chi-square tests, cross-tabulations and correlation analysis, is complemented by thematic coding of open-ended responses. The findings show that consumers strongly prioritise quality and craftsmanship, and that preferences for handmade production significantly influence willingness to pay, thereby reinforcing the high asset specificity associated with artisanal methods. While outsourcing non-core, low-specificity activities appears acceptable to consumers, outsourcing core fermentation or handcrafted processes increases perceived behavioural uncertainty and risks weakening authenticity signals. The study contributes to TCE by demonstrating the presence of consumer-driven relational transaction costs – arising from authenticity concerns – that constrain outsourcing options in artisanal markets. These insights refine theoretical assumptions about efficiency-seeking behaviour in small-scale food production and provide an empirical basis for understanding how craft producers balance quality preservation with operational scalability.