Digitalisation and sustainability in the Armenian wine sector: challenges and opportunities

Abstract

Armenia’s wine sector, steeped in a 6000-year-old vinicultural heritage, is undergoing a profound shift as it contends with modern-day pressures of sustainability and digitalization. This article examines the sector through the lens of “digitainability,” exploring how emerging technologies from IoT sensors to Artificial Intelligence to blockchain-based traceability can address systemic issues, including fragmented supply chains, financial constraints, and inconsistent quality standards. The research incorporates survey responses from 35 wineries and 20 in-depth interviews with industry stakeholders, ensuring a robust assessment of digital adoption trends and barriers. The quantitative analysis employs descriptive statistics, correlation analysis, and multiple regression modeling, while qualitative data are examined using thematic analysis. Findings reveal significant disparities in digital literacy and resource availability between large and small producers. While larger wineries exhibit higher adoption rates of digital tools, smaller producers face considerable financial and infrastructural barriers. The study also highlights opportunities for wineries to leverage digital solutions for enhanced resource efficiency, market differentiation, and sustainable growth. However, challenges remain, including limited policy support, inadequate technical knowledge, and concerns over the return on investment in digital infrastructure. This research contributes to both academic and practical discussions. From a theoretical perspective, it enriches the understanding of digital transformation in transitioning economies, drawing on concepts from the Resource-Based View and Dynamic Capabilities frameworks. For industry practitioners and policymakers, it provides actionable recommendations such as investing in digital literacy programs, fostering collaborative knowledge-sharing platforms, and integrating digital solutions with global sustainability initiatives like the European Green Deal. By illustrating how Armenian wineries navigate the intersection of tradition, economic transition, and technological innovation, we shed light on broader lessons in the global agri-food domain.