Contents
Volume 21, Number 1, January 2016
Editorial Letter
Marianne Hoeltgebaum and Gérson Tontini__________________________________________________5
Articles
A study of management of steel parts leftover generated by the maintenance of heavy vehicles
_____________________________________________________________________________________7
Pedro Henrique de Oliveira Buono, Karina Tonelli Silveira Dias, Sergio Silva Braga Junior, Eduardo Guilherme Satolo
The Advertising Challenges of the Internet: the strategic perception of Florianópolis agencies___16
Mário Cesar Barreto Moraes, Mariana Fraga Moreira, Guilherme Felipe Kalnin³
Managing essential inputs: the case of methanol supply in biodiesel industry ______________________31
Daniel Franco Goulart
An organizational perspective of values ___________________________________________________44
Fernanda Geremias Leal¹ Mário César Barreto Moraes
PRESENTATION g
anizations. It is welcome scholars particularly
wor
king on such topics to submit theoretical es-
Revista de Negócios is located in Blumenau, state
says, empirical studies, and case studies. The Re-
of Santa Catarina, Brazil, in the campus of Uni-
vista de Negócios is open to different methodolo-
versidade Regional de Blumenau—FURB, post-g
ical perspectives and innovative approaches on
graduate programme in Business Administration. how
to understand the role of organizations from
Revista de Negócios is published quarterly in Ja-
emerging countries.
nuary, April, July and October on the website
furb.br/rn. TARGET AUDIENCE
POSTMASTER: Universidade Regional de Blu-The target audience of Revista de Negócios is the
menau—FURB, Rua Antônio da Veiga, 140 - Brazilian international academic community in
Victor Konder, Blumenau - SC, 89012-900 . De-related fields of knowledge on business manage-
partment: PPGAD/FURB - D102. ment.
MISSION EDITORIAL STRUCTURE
The Editor
Revista de Negócios advances the knowledge and
practice of management learning and education. It
Marianne Hoeltgebaum, Prof. Dr. rer. pol.
does it by publishing theoretical models and re-
Postgraduate Program of Business Administration
views, mainly quantitative research, critique, ex-
Regional University of Blumenau - FURB
changes and retrospectives on any substantive top-
marianne@furb.br
ic that is conceived with studies on emerging
countries. Revista de Negócios is an interdiscipli-
The Coeditor
nary journal that broadly defines its constituents to
include different methodological perspectives and
Gérson Tontini, Prof, Dr.
innovative approach on how to understand the role
Postgraduate Program of Business Administration
of organizations from emerging countries in a
egional University of Blumenau - FURB
globalized market. R
ini@furb.br
tont
SCOPE AND FOCUS
DITORIAL COMPOSAL BOARD
E
Revista de Negócios aims to create an intellectual
Executive Board
and academic platform, under the perspective of
Strategic Management Organization, to promote
Editor
studies on Emerging Countries. The Journal looks
Marianne Hoeltgebaum, Prof. Dr. rer. pol.
and reviews for contributions to the debate about
Postgraduate Program of Business Administration
researches on two specific topics: innovation and
Regional University of Blumenau - FURB
competitiveness and strategic organization in
marianne@furb.br
emerging countries. The topic of innovation and
competitiveness covers all studies and researches
Coeditor
related to how organizations can sustain their
Gérson Tontini, Prof, Dr.
competitiveness, particularly focusing on innova-
Postgraduate Program of Business Administration
tions, entrepreneurship and performance. The
Regional University of Blumenau - FURB
second topic covers studies and researches on stra-
tontini@furb.br
tegic management of organizations, more specifi-
cally on how companies can or should act at stra-
ommunication Editor
tegic level looking mainly but not only to external C
Barbara Kobuszewski Volles, Msc.,
context, supply chain, competitive strategies in
Postgraduate Program of Business Administration
international market, and marketing approach. The
Regional University of Blumenau - FURB
editorial policy is based on promoting articles
barbarakvolles@gmail.com
with critical perspectives seeking for the unders-
tanding of the differences and similarities among
emerging countries and in comparison with expe-
English Language Editor
riences and theories on strategic management in
Marta Helena Caetano, Ms.
developed countries. It intends to promote specific
FURB Language Center
contributions of how theoretical and empirical stu-
Regional University of Blumenau - FURB
dies on emerging economies may contribute to the
mhelena@furb.br
advance of theories related to innovations and
competitiveness and strategic management of or-
System Suport Gérson Tontini, Prof., Dr.
Marcos Rogério Cardoso, Coordinator of the Postgraduate Program of Busi-
University Library Prof. Martin Cardoso da Veiga ness Administration
Regional University of Blumenau - FURB Regional University of Blumenau - FURB
mcardoso@furb.br lleomar@furb.br
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iel Antunes de Oliveira Filho, Prof, Dr.
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ad of Business Administration Department
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egional University of Blumenau - FURB
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veira@furb.br
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rlan Jevaer Schmitt, Ms.
Dire
ctor of University Library Prof. Martin Car-
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Veiga
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egional University of Blumenau - FURB
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amal@furb.br
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lci Rostirolla, Ms.
Shaker A. Zahra, Prof, Dr. P
eriodicals Support
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Carlson School of management - University of
Minnessota Da
vid Colin Morton Bilsland, Prof.
zahra004@umn.edu He
ad of International Relations Office - FURB
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egional University of Blumenau - FURB
Tales Andreassi, Dr. c
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Postgraduate Program of Business Administration
cia Regina Bronnemann, Prof.
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ad of Marketing and Communication - FURB
tales.andreassi@fgv.br He
egional University of Blumenau - FURB
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cm@furb.br
Institutional Board c
Past Editors
The Institutional Board is consisted of responsible
academic community of Regional University of
- 2016 Marianne Hoeltgebaum
Blumenau - FURB. 2014
- 2015 Edson Roberto Scharf and Marianne
2014
Hoeltgebaum
João Natel Pollonio Machado , Prof, Dr.
2012 - 2013 Edson Roberto Scharf
Rector of Regional University of Blumenau -
- 2011 Leomar dos Santos
FURB 2010
- 2009 Denise del Prá Netto
reitoria@furb.br 2008
- 2007 Mohamed Amal
2006
- 2005 Gerson Tontini
Udo Schroeder 2004
2002 - 2003 Emerson Maccari. Valeria Riscarolli,
Vice - Rector of Regional University of Blumenau
Luciano Rosa and Paloma Zimmer
- FURB
- 2001 Emerson Maccari
reitoria@furb.br 2000
- 1999 Gérson Tontini, Denise Del Prá Netto
1998
and Valeria Riscarolli
Alexander Christian Vibrans, Prof. Dr.
1996 - 1997 Denise Del Prá Netto
Dean of Postgraduate Studies, Research and Cul-
ture - PROPEX
Regional University of Blumenau - FURB
propex@furb.br
Valter Augusto Krauss , Prof.
Director of Applied Social Sciences
Regional University of Blumenau - FURB
csa@furb.br
c
Editorial Letter
The main objective of our Journal is to create an intellectual and academic platform, under the perspective
of strategic management of organization, in order to promote studies in emerging countries. It looks for-
ward to contribute to the debate regarding researches on two specific topics: innovation and competitive-
ness, and strategic organization in emerging countries.
We understand that the topic of innovation and competitiveness covers several studies and researches relat-
ed on how the organizations are capable to sustain their competitiveness, particularly focusing on innova-
tions, entrepreneurship, and performance. The second topic covers studies and researches regarding strate-
gic management of organizations. More specifically it focuses on how companies can or should act at a
strategic level, examining mainly but not only to the external context, supply chain, competitive strategies
in international markets, and marketing approach.
We will continue accepting articles for both Portuguese and Spanish, but the most part of the publications
and our website will be published in the English language.
The present issue is divided into two sections, Research; Reviews and Books; Resources Reviews, focusing
on context effects and contextualization in entrepreneurship, governance and sales in management. In this
issue, begins with a study of management of steel parts leftover generated by the maintenance of heavy ve-
hicle. The objective of this study was to analyze the waste management in a maintenance workshop for
heavy vehicles. To achieve this, purpose a study in the state of São Paulo - Brazil was conducted in a
maintenance workshop for heavy vehicles providing services for the major plants of this sector in the re-
gion. Data were collected over a period of 18 months, using the Wuppertal method to measure the environ-
mental gains. It was observed that more than 245 tons of abiotic materials are no longer generated by the
practice of reuse in the steel production chain. Moreover, 2,000 tons of water and 20 tons of air no longer
were used to process the same steel amount that is sent for reuse in the production chain.
The second article is about the Challenges of Internet Advertising: the strategic perception of the agencies
of Florianópolis. This research aims at proposing strategic actions in order to increase the development of
internet communication vehicles in the context of Florianópolis based on the perception of its advertising
agencies, including the factors that influence the purchase of media, the relationship between vehicle and
Agency and the challenges to be faced for the rise of the internet as advertising media. The research was
divided into an exploratory stage, in which documentary and bibliographic research is convenient, and a
descriptive step, conducted through in-depth interviews with agency leaders. As a result, separate proposals
were structured in four different perspectives, in relation to the relationship, capacity, regulation and results
of the agencies, as well as to observe as a preponderant problem the lack of capacity building, lack of cus-
tomer knowledge and low profitability from the Internet in the Advertising environment.
The third article is about management essential inputs, that were about the case of methanol supply in bio-
diesel industry. This paper aims to discuss the ways that biodiesel producers manage the supply chain of
methanol, an indispensable input obtained almost exclusively through importation. To build this discus-
it was firstly drawn the main features of the Brazilian biodiesel industry and, after that, it was de-
sion,
scribed the main methanol’s origins, applications and market. It was identified two ways on which bio-
diesel companies acquire methanol: a) via long-term contracts or b) in the spot market. If the first option
means supply safety, the second one means more competitive prices. This qualitative study was built from
two different data collection steps: a) participant observation and b) semi-structured interviews.
To finish this edition the article study about an organizational perspective of values. The studies on organi-
zational values have acquired centrality in the Business Administration field within a functionalist perspec-
tive, based on the evidence that organizations with strong cultures achieve better global results. The belief
in the potentiality of this resource, especially in regard to behavior alignment aimed for goal achievement,
has prompted the quest for a theoretical structure of the concept and development of different ways of as-
sessment. More contemporary perspectives, however, have come across significant constraints within the
existing framework, especially the ones that disregard the dynamics of this concept. Such views provoke
debates about the practical capacity of the instruments used for assessing the basis of values that govern
organizations. The present study seeks to present a contemporary theoretical review on organizational val-
ues. Methodologically, it is a qualitative study that brings back to light the theory of value and its applica-
bility to the organizational sphere, based on a survey of a literature review of empirical articles published
on the subject between the period of 2000 and 2016.
Marianne Hoeltgebaum e Gerson Tontini
Editor and Coeditor
EDITORIAL LETTER
The main objective of our Journal is to create an intellectual and academic platform, under the perspective
of strategic management of organization, in order to promote studies in emerging countries. It looks for-
ward to contribute to the debate regarding researches on two specific topics: innovation and competitive-
ness, and strategic organization in emerging countries.
We understand that the topic of innovation and competitiveness covers several studies and researches relat-
ed on how the organizations are capable to sustain their competitiveness, particularly focusing on innova-
tions, entrepreneurship, and performance. The second topic covers studies and researches regarding strate-
gic management of organizations. More specifically it focuses on how companies can or should act at a
strategic level, examining mainly but not only to the external context, supply chain, competitive strategies
in international markets, and marketing approach.
We will continue accepting articles for both Portuguese and Spanish, but the most part of the publications
and our website will be published in the English language.
The present issue is divided into two sections, Research; Reviews and Books; Resources Reviews, focusing
on context effects and contextualization in entrepreneurship, governance and sales in management. In this
issue, begins with a study of management of steel parts leftover generated by the maintenance of heavy ve-
hicle. The objective of this study was to analyze the waste management in a maintenance workshop for
heavy vehicles. To achieve this, purpose a study in the state of São Paulo - Brazil was conducted in a
maintenance workshop for heavy vehicles providing services for the major plants of this sector in the re-
gion. Data were collected over a period of 18 months, using the Wuppertal method to measure the environ-
mental gains. It was observed that more than 245 tons of abiotic materials are no longer generated by the
practice of reuse in the steel production chain. Moreover, 2,000 tons of water and 20 tons of air no longer
were used to process the same steel amount that is sent for reuse in the production chain.
The second article is about the Challenges of Internet Advertising: the strategic perception of the agencies
of Florianópolis. This research aims at proposing strategic actions in order to increase the development of
internet communication vehicles in the context of Florianópolis based on the perception of its advertising
agencies, including the factors that influence the purchase of media, the relationship between vehicle and
Agency and the challenges to be faced for the rise of the internet as advertising media. The research was
divided into an exploratory stage, in which documentary and bibliographic research is convenient, and a
descriptive step, conducted through in-depth interviews with agency leaders. As a result, separate proposals
were structured in four different perspectives, in relation to the relationship, capacity, regulation and results
of the agencies, as well as to observe as a preponderant problem the lack of capacity building, lack of cus-
tomer knowledge and low profitability from the Internet in the Advertising environment.
The third article is about management essential inputs, that were about the case of methanol supply in bio-
diesel industry. This paper aims to discuss the ways that biodiesel producers manage the supply chain of
methanol, an indispensable input obtained almost exclusively through importation. To build this discus-
sion, it was firstly drawn the main features of the Brazilian biodiesel industry and, after that, it was de-
scribed the main methanol’s origins, applications and market. It was identified two ways on which bio-
diesel companies acquire methanol: a) via long-term contracts or b) in the spot market. If the first option means supply safety, the second one means more competitive prices. This qualitative study was built from
two different data collection steps: a) participant observation and b) semi-structured interviews.
To finish this edition the article study about an organizational perspective of values. The studies on organi-
zational values have acquired centrality in the Business Administration field within a functionalist perspec-
tive, based on the evidence that organizations with strong cultures achieve better global results. The belief
in the potentiality of this resource, especially in regard to behavior alignment aimed for goal achievement,
has prompted the quest for a theoretical structure of the concept and development of different ways of as-
sessment. More contemporary perspectives, however, have come across significant constraints within the
existing framework, especially the ones that disregard the dynamics of this concept. Such views provoke
debates about the practical capacity of the instruments used for assessing the basis of values that govern
organizations. The present study seeks to present a contemporary theoretical review on organizational val-
ues. Methodologically, it is a qualitative study that brings back to light the theory of value and its applica-
bility to the organizational sphere, based on a survey of a literature review of empirical articles published
on the subject between the period of 2000 and 2016.
Marianne Hoeltgebaum and Gérson Tontini
Editor and Coeditor
1
A study of management of steel parts leftover
generated by the maintenance of heavy
vehicles
Pedro Henrique de Oliveira Buono¹ Karina Tonelli Silveira Dias² Sergio Silva Braga Junior³ Eduardo
Guilherme Satolo4
Universidade Estadual Paulista - p.buono@hotmail.com
Universidade Estadual Paulista – kaasdias@live.com
Universidade Estadual Paulista – sergio@tupa.unesp.br
Universidade Estadual Paulista eduardo@tupa.unesp.br
KEYWORDS ABSTRACT
¹UniversidadeSustainability; Paulista - UNIP, e-mail: leandrofor7@hotmail.comThe objective of this study was to analyze the waste management in a
Automotive industry; maintenance workshop for heavy vehicles. To achieve this, purpose a study in
²Ibmec,Environmental e-mail: hashi.marcos@gmail.com performance; the state of São Paulo - Brazil was conducted in a maintenance workshop for
Solid waste; heavy vehicles providing services for the major plants of this sector in the
Waste management; region. Data were collected over a period of 18 months, using the Wuppertal
method to measure the environmental gains. It was observed that more than
Steel
245 tons of abiotic materials are no longer generated by the practice of reuse in
the steel production chain. Moreover, 2,000 tons of water and 20 tons of air no
Received 27.09..2016
R longer were used to process the same steel amount that is sent for reuse in the
evised 17.10.2016
Accepted 18.10. 2016 production chain.
ISSN 1980-4431
Double blind review
Guest Article Fat Track SIMPOI 2016
1 Introduction
The occurrence of environmental accidents According to the Ministry of the
like the explosion of a nuclear reactor at Environment (2015) after the approval of the
Chernobyl in the Soviet Union in 1986; the oil National Policy for Solid Waste in August 2010,
spill in 1990 from the oil tanker Exxon Valdez, the society as a whole has become responsible for
among other episodes, forced companies to the environmentally adequate management of
shoulder high costs in damages, environmental solid waste. If managed properly, it acquires
recovery, damage control, in addition to the commercial value and can be used in the form of
negative image generated by the environmental new raw materials or new inputs. The
damage. In response, companies with pollution implementation of a management plan will result
potential began to develop and implement positively in the social, environmental, and
environmental management in order to contribute economic scope, as well as reducing the
to reduce the risk of environmental incidents and consumption of natural resources, providing new
accidents without reducing their competitiveness markets, generating labor, employment and
(Barata, 2007). income, and decreasing the environmental impacts
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 8
caused by improper disposal of residues. total manufacturing employment. It is estimated
The activities carried out by maintenance that each direct auto job supports at least another 5
companies related to the automotive sector, indirect jobs in the community, resulting in more
generate different types of solid waste and than 50 million jobs owed to the auto industry.
effluents. Thus, for the disposal be suitable for Brazil has a great potential and effective domestic
new destinations appropriate treatment which does market, competent industrial park, both vehicles
not cause damage to the environment and public and part systems, solid base of automotive
health is necessary. Among services such as: engineering and structured dealer network with
change of lubricating oil, coolants and hydraulic national coverage.
fluids, spare parts, overhaul of engines, fuel Brazil is among the largest vehicle
injection, suspension, brakes, engine tuning, producers in the world. In 2016 it was the ninth
alignment and balancing, among others, large largest producer (OICA, 2016b). The country has
amounts of solid waste are generated. Among this 31 different manufacturers supplied by more than
solid waste the main ones are: used parts, tires, 620 auto parts companies. There are 65
tins, flannel, cotton waste, cardboard and manufacturing plants considering automobile
packaging of lubricating oils and parts pieces manufacturers, automotive agricultural machinery,
(Nunes and Barbosa, 2012). engines and components spread across eleven
According to Lacourt (2012) for the disposal states and more than 50 municipalities. It is an
of solid waste it is advisable a waste management industrial complex with an installed capacity to
logistics once it is necessary the waste to be produce 4.5 million vehicles per year
placed in locations that ensure the preservation of (ANFAVEA, 2016).
the environment, or depending on the material a With the potential automotive market, there
treatment such as recycling, incinerating or is the concern with waste management and
composting is needed. This treatment aims to environmental problems. As Sebrae (2015), a
reuse or destroy it in order not to harm the small vehicle during their first year of life,
environment and the people's health. generates on average 12 liters of used oil, five
In this context, this study analyzes the kilograms of waste as cotton waste, packaging, oil
following problem: How is the management of filter, fuel and air and inputs used in car checkups.
steel parts leftover generated by the maintenance Vigsø (2004) most of the wastes generated at
of heavy vehicles? Thus, the objective of the dealerships do not have adequate final destination.
research was to analyze the waste management in In general, companies are concerned with
a maintenance workshop for heavy vehicles. environmental issues, but do not know what fate
Guided by a qualitative methodology of to give to these wastes. Disposing waste
exploratory nature, the data analyzed correspond improperly results in several problems such as
to a period of 18 months. As a result, it was depletion of landfill, clogging elements of the
observed an average of 1.4 tons of steel parts urban drainage system and groundwater
leftover per month that are sold to other contamination, among others.
companies using the material that would be The CONAMA (National Environment
disposed of in ordinary trash but were able to Council) established by resolution 275 that all
generate income and environmental gain in the waste from the mechanic workshop activities,
chain; furthermore, about 2 million liters of water office and cafeteria should follow a color-coded
were not spent for production of new products as for different types of waste, as well as the
well as 20 tons of air were no longer polluted. identification of collectors and transporters. It is a
form of easy viewing of waste segregation at
2 Theoretical Framework source, thus being able to enormously reduce the
2.1 Automotive Industry provision in landfill the materials which can be
recycled.
The automotive industry has great relevance For some waste disposal, such as lubricating
in the world economy. According to OICA oil from garages CONAMA 362/2005 says that
(2016a), the sector employ about 9 million people external transport must be performed by licensed
directly in making the vehicles and the parts that company for this purpose. Companies that make
go into them. This is over 5 percent of the world’s this transport must be registered with the
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 9
Regulator Authority of Petroleum Industry and production targets and cleaner production
licensed by the competent environmental agency. processes initially employed by the industry and
today have been adopted by various business
2.2 Recycling and Solid Waste Reuse sectors.
To meet the demands imposed by the
Since the Industrial Revolution large-scale National Policy on Solid Waste - NPSW, Law No.
production has made the volume and diversity of 12,305 / 2010, increased investment in technology
waste generated in urban areas increase. Humans is needed in education and knowledge
are experiencing the era of disposability (Fehr, management. The NPSW sets standards requiring
2014). Most products are used and then thrown major market players to provide a suitable
away or incinerated, causing considerable damage destination for solid waste that is generated in the
to the environment. Currently, more stringent laws manufacturing process and after consumption of
and growing consumer awareness are driving various goods. Thus, one must have a means that
companies to think about their responsibility for enables the return of products and post-consumer
their products after use (Veiga, 2013). packaging for the industry to adopt the processes
Recycling is defined as returning waste and the most suitable procedures to recover waste
materials to the processing line in order to reduce components with the lowest environmental
process costs and open up new possibilities (Braga impact. In this sense, Dowlatshahi (2000)
Junior & Rizzo, 2010; Veiga, 2013). According to explained that reverse logistics can be a tool in
Motta (2011), the word recycling was introduced waste management because it is a process in
to the international vocabulary when it was found which the manufacturer receives the waste
that the sources of oil and other nonrenewable raw generated after the consumption of products and
materials were (and are) running out. To this may thus recycle, remanufacture, or dispose of.
author, recycling is a reverse channel revaluation, Dias and Braga Junior (2015) explain that
where materials discarded from post-consumer the National Policy for Solid Waste sets standards
products are extracted industrially, turned into requiring major market players to provide a
secondary raw materials, not directly taken from suitable destination for solid waste that is
nature or recycled and are then incorporated into generated in the manufacturing process and after
the manufacture of new products. Recycling saves consumption of various goods. Thus, one must
energy, saves natural resources, and brings have an environmental management that enables
materials back to the productive cycle that were the return of products and post-consumer
thrown out or discarded. packaging for the industry to adopt the processes
For Mano, Pacheco, and Bonelli (2005), the and the most suitable procedures to recover waste
potential benefits of recycling include: a) components with the lowest environmental
“Reduction in the consumption of non-renewable impact.
natural resources, when replaced by recycled According to the ISO 14000 (2004),
waste; b) Reduction of consumption of the virgin environmental management can be understood as
material for production process; c) Reduction of a set of well-defined steps and procedures which,
pollution” (John, 2000); and d) “Reduction of if applied correctly, can reduce and control the
areas required to landfill as waste is used again as impact on the environment.
consumer goods” (Pinto, 1999). The NBR 10004 - Solid Waste -
The recycling and reuse of materials that Classification, revised in 2004, defines solid waste
would be discarded and the remains that arise over as:
the activities of the grocery retail create a reverse
flow (Braga Junior et al., 2009). The reverse flow "Residues in solid and semi-solid state
of goods that were not consumed becomes an that result from industrial and domestic
important tool for the sustainability of origin, hospital, commerce, agriculture,
organizations (Braga Junior & Rizzo, 2010). service and sweeping. In this definition it
Authors such as Gonçalves (2003) and is also included the sludge from water
Mano et al. (2005) explained that reducing the treatment systems, those generated in
generation of waste, and instead reusing, and equipment and pollution control facilities
recycling these materials, are parts of the clean as well as certain liquids whose
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 10
characteristics make it impossible to be resources, bringing materials that were thrown out
launched in the public sewage system or or discarded back to the productive cycle
water bodies, or require for it technical
solutions and economically unviable in (Brogaard and Christensen, 2012; Dias and Braga
the face to the best available technology." Junior, 2015).
Taking into account the environmental
The NBR 10004 divides waste into two issues that are involved in the automotive sector,
classes, being: waste Class I - Hazardous waste specifically in the maintenance sector of heavy
and Class II - Non-hazardous (II A - Not inert and vehicles, which generate different types of solid
IIB - Inerts). Class I Waste - Hazardous have waste and effluents, it is necessary to define
physical, chemical or infectious properties, which practices that reduce the generation of solid waste,
can cause risks to public health and the separating it at the source, properly disposing the
environment. Class II Wastes - Not Hazardous are waste as well as reducing its generation and its
divided into inert and non-inert. treatment before being released into the sewage
system (Paulino, 2009).
The non-inert one’s exhibit properties such
as: biodegradability, combustibility or solubility Motor vehicle maintenance companies
in water. Inert ones are any waste that, being consume large volumes of water for cleaning of
sampled in a representative way and subjected to employees, floor and parts. The effluents
dynamic and static contact with distilled or generated in these enterprises have potentially
deionized water at room temperature, do not have polluting characteristics due to the presence of
any of its constituent solubilized at concentrations used lubricating oil, grease and solvents (Paulino,
higher than the standards for water portability, 2009).
except for appearance, color, turbidity, hardness
and flavor. 3 Method
According to the new law no. 12.305 of 2
August 2010, the preliminary provisions for solid As the aim of the research was to analyze
waste, described in Chapter I of Title III, set in the waste management in a maintenance
Art.9 the order of priority of solid waste workshop for heavy vehicles, the research was
management that are the not generation of solid carried out along with a workshop for
waste, its reduction, reuse, recycling, treatment maintenance of heavy vehicles which provides
and environmentally final disposal. services for major plants in the sugar and alcohol
The management plan is a tool that helps the sector in the State of São Paulo /Brazil.
company to achieve an improvement in the The exploratory and qualitative character of
environmental aspect, facilitating its consistency research sought to quantify the volume of waste
in legal requirements. The RMP (Risk that cease to be discarded in the environment in a
Management Plan) should ensure that all waste workshop of heavy vehicles. As the automotive
will be managed properly and safely, from industry has a high profile of the types and
generation to final disposal. The correct handling volumes of waste it generates, as a matter of
and packaging of waste will enable the access and availability of the company in
maximization of opportunities to reuse and participating in the research making available its
recycling (Lopes and Kemerich, 2007). data so that the analysis could be performed, it
Develop and implement a waste was possible to measure the amount and the main
management plan is essential for any company wastes generated in the process.
that wants to maximize opportunities and reduce To analyze the environmental benefits
costs and risks associated with solid waste generated by the waste management, the
management (Paes et al, 2014; Maroun, 2006). Wuppertal Institute developed an analysis method
According to Liu et al (2010), to proper for environmental benefits that can assess the
management of solid waste take place is necessary environmental changes associated with resource
the correct segregation, conditioning, temporary extraction from the natural ecosystems based on
storage, external transport, treatment or final the life cycle of products (Ritthoff, Rohn &
disposal of waste generated by each project. Thus, Liedtke, 2002).
Recycling and reuse saves energy and natural This method uses the calculation of Material
Input Per Service unit (MIPS), in short it means
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 11
input material per unit of service. Its function is to accessories
estimate the environmental impact caused by the Hauling service and alignment
production of a product or service, and indicate Support and truck springs
the amount of resources used for this product or Bushing shaft sleeve
Installing bumpers
service. This calculation can be done at the Commerce of parts
organizational, regional, national and global level Modification Service for rear suspension
(Ritthoff, Rohn & Liedtke, 2002). Source: research data
Indirectly MIPS calculation says that all
material input becomes an output: waste or The studied company receives distinction
emissions. If each input becomes an output, it for its main services both in its regional and
follows that through the measurement of the inlet nationwide scope, serving almost all the sugarcane
it is possible to estimate the potential mills of Alta Paulista region, providing
environmental impact. By measuring the inputs, maintenance service on their trucks. It is also
we cannot come to an impact assessment nationwide remarkable in services of axle
(qualitative), but a valuable indicator installation, chassis stretching and wheelbase. In
(quantitative) of the potential environmental this segment the company receives clients from all
impact on the environment of a product or service over Brazil.
(Ritthoff, Rohn & Liedtke, 2002). Whereas the company has a significant
number of products and services, it is observed
Table 1. Data for steel conversion – MIPS (kilograms) that in this regard the services and products
Abiotic Biotic offered generate wastes during the transformation
Material Material Water Air process. In this context, one of the main services
Steel 9.32 81.86 0.77 of the company is the installation process of the
2nd and 3rd axles and maintenance of truck
Note. Adapted from “Calculating MIPS: Resource
suspension, which are presented in Figure 1.
productivity of products and services”, by Ritthoff, Rohn, &
Liedtke (2002) As shown in Figure 1, the processes
generate waste from leftover material of the
In the case of this research the MIPS services performed in the company under study, a
calculation was used to measure the selection of waste is carried to its destination;
environmental benefits of management for steel scrap metal, in the case of the company the
remains of steel parts, are intended to wholesale
pieces’ leftover generated in the maintenance of
heavy vehicles. For the calculation a period of 18 and retail.
months (October 2013 to March 2015) was
considered and, based on the conversion table
(Table 1) data relating to steel sent for recycling The wholesaling is made to companies
were measured as the compartments analyzed by working in the scrap metal marketing and retailing
the method. sector is made for metalwork companies that look
for the company in order to buy the material.
4 Results
Figure 1. Flow of maintenance process/axle installation.
The company subject of study has been on
the market for about 60 years in the automotive
industry, specifically in the maintenance of heavy
vehicles and has a diversification of products and
services that are showing in Table 2.
Table 2. Products and Services in the company subject of
study
Products and Services
Installation of 2nd steering axle
Installation of 3rd axle ( approved)
Chassis stretching and wheelbase
Suspension – exchange of springs and
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 12
The volumes of steel scraps generated is the company's opportunity not to miss it
during the period of analysis are presented in economically and apply the reverse logistics of the
Table 3. In this table the data are consolidated into analyzed residue (steel) to generate value on what
two periods totaling 18 months, once the studied would be considered disposal. With this result, the
company uses a strategy of waiting to have a company has invested in activities for the
significant amount of pieces of steel scraps in development of the business and the people who
order to have a greater bargaining power at the work in it.
time of sale. This volume corresponds in the first
Steel selling
period to an amount of 12,800 kg and in the Table 5. Financial results –
second period an amount of 13,500 kg. This data Period Kind of Amount Value Total
will be showing in the Table 3. sale
After the MIPS calculations it was possible Oct/13 - Wholesale 9,000.00 0.38 3,420.00
to measure the economic and environmental Jul/14
Retail 3,800.00 0.80 3,040.00
benefits of managing leftover of steel pieces
generated by the maintenance of heavy vehicles Aug/14 - Wholesale 9,500.00 0.35 3,325.00
made by the company studied. The following Mar/15 Retail 4,000.00 0.85 3,400.00
table presents the environmental gains made by Source: Research data
this administration.
6 Conclusion
Table 3 - Consolidated amount of steel scraps (kilograms)
Period Steel With the occurrence of environmental
Oct/13 - Jul/14 12,800.00 accidents and their impacts on the environment,
Aug/14 - Mar/15 13,500.00
the companies have been considered responsible
Source: research data
and shouldered with financial losses caused by
As shown in Table 4, considering the them, once besides the negative image generated
analyzed period 245 tons of abiotic materials were from the occurring, it is remarkable that these
generated and no more than 2,000 tons of water episodes unleash reactions to develop and
have been used for the production of this new implement environmental management, aiming at
material, and more than 20 tons of air was no reducing the risk of incidents and accidents
longer polluted. Accordingly, when the values are without reducing their competitiveness.
distributed per month (considering the 18-month In this context, laws were created for a
period analysis) reducing abiotic material correct management of waste which, besides
generated is more than 13 tones, and more than avoiding environmental risks, can be analyzed
119 tons of water not used for the production of a with an economic view, as if performed a
new product and over 1 ton of air is no longer planning and an efficient implementation can
polluted. achieve financial gains that can be invested in the
development of business or persons involved in
such business.
Table 4. MIPS calculation for the total amount of steel
generated by the company - (kilograms) As for the provided environmental benefits,
the implementation of waste management can be
Abiotic Biotic Water Air
Material Material performed at the organizational, regional, national
Steel and global levels, once recycling the material it is
(kg/kg) 245,116.00 2,152,918.00 20,251.00 possible to reduce the environmental impact
avoiding the production of new products and thus
Total 245,116.00 0.00 2,152,918.00 20,251.00
reducing the generation of abiotic materials, water
Source: Research data and air pollution.
In the present study it was possible to
Considering the data in Table 5, the demonstrate that the management of steel parts
economic gains made in the period of analysis leftover made by the company studied had
may not pose a significant amount for such a significant environmental and economic benefits,
period once it was obtained R$ 13,185.00 with a once more than cooperating with the environment,
monthly average value of R$ 732.50. But this gain reducing polluting effect and negative impact, the
Revista de Negócios, v. 21, n. 1, p. 7-15, January, 2016. 13
company can obtain financial gains that can be (UNICAMP), 4(2), 108-125.
invested in the development of your business and Braga Junior, S. S. B., Merlo, E. M., &
the people who work in it. Nagano, M. S. (2009). Um estudo comparativo
It is noteworthy that as a consequence of the das práticas de logística reversa no varejo de
strategy adopted for the management of scraps of médio porte. Revista da Micro e Pequena
steel parts the company is able to quantify its Empresa, 3(2), 64–81.
environmental records in addition to winning in Braga Junior, S. S., & Santos, R. B. M.
bargaining power when selling these materials. (2015). Environmental gains from the practice of
A limitation presented by this study lies in reverse logistics retail supermarket. [Ganhos
the fact of the Wuppertal Institute to explain that ambientais com a Prática da Logística Reversa no
conversion data of biotic and abiotic materials, Varejo Supermercadista] Espacios, 36(5), 14.
water and air are very close to real and that there BRASIL. PNRS – Política Nacional de
is no way to show accuracy, but it is an Resíduos Sólidos. Subemenda Substitutiva Global
appropriate way to quantify the environmental de Plenário ao Projeto de Lei nº 203, de 1991, e
advantages being very important for the scientific seus apensos. Disponível em:
context. <http://www.revistasustentabilidade.com.br/recicl
Finally, a contribution of this study is the agem/reciclagem/documentosinteressante/relatori
knowledge of how the solid waste generated in the o-final-da-politica-de-residuos>. Acesso em: 28
heavy automotive sector can be treated using the mar, 2014.
concept of reverse logistics demonstrating that Brogaard, L. K., & T. H. Christensen.
this can be an alternative to direct economic gains (2012). Quantifying capital goods for collection
and environmental benefits for society in search and transport of waste. Waste Management &
for sustainability. Research 30(12): 1243–1250.
doi:10.1177/0734242x12462279
6 Acknowledgement Casotti, B. P., & Goldenstein, M. (2008)
Panorama do Setor Automotivo: as mudanças
São Paulo Research Foundation – FAPESP. estruturais da indústria e as perspectivas para o
Process nº 2016/01328-8. Brasil (Panorama of the automotive sector:
The National Council for Scientific and structural changes of the industry and prospects
Technological Development (CNPq) for Brazil). BNDES Setorial, Rio de Janeiro, (28),
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The Advertising Challenges of the Internet: the
strategic perception of Florianópolis agencies
Mário Cesar Barreto Moraes¹, Mariana Fraga Moreira², Guilherme Felipe Kalnin³
Escola Superior de Administração e Gerência - ESAG/UDESC - mcbmstrategos@gmail.com
cola Superior de Administração e Gerência - ESAG/UDESC - mari.fragamoreira@gmail.com
Es
Escola Superior de Administração e Gerência - ESAG/UDESC - gfkalnin@gmail.com
KEY WORDS SUMMARY
Strategy; This research aims to propose strategic actions in order to increase the
Advertising; development of the Internet communication vehicles in the context of
Internet advertising; Florianópolis from the perception of its advertising agencies, including the
Communication vehicles; factors that influence media buying, the relationship between vehicle and
Publicity agencies agency and the challenges to be faced to the rise of the internet as advertising
media.The research was divided into exploratory stage, in which befits
Received 04.07.2016 documentary and bibliographic research, and descriptive stage, conducted
Revised 05.10.2016 through in-depth interviews with agency leaders. As a result, separate
Accepted 05.10.2016 proposals were structured into four different perspectives regarding the
relationship, training, regulation and results of agencies, and observe how
ISSN 1980-4431 major problem the difficulty of training, lack of knowledge of clients and low
profitability coming from the internet in Featured advertising environment.
ouble blind review
D
1 Introduction that 48% of the largest Brazilian population 16
years has the habit of accessing the internet 55%
Advertising face several challenges in recent has as usual the use of radio and 95% use the TV
decades, which, according Bringgs and Burke as the primary means of communication, however,
(2004) is marked by both the domain period of the also points out that socio-demographic
mass media, where newspapers, radio and TV characteristics, such as income and education,
appear and predominate over the communication have high impact on the use of communication
market, shifting part of the advertising budget media to create social gaps depending on the
business, as the rise of the internet, which turns technology. At the same time points as the main
the media consumption mode, opposing the mass public internet user the young high family income.
media, now consolidated, decentralized and When we look at the media investment on
diverse. (Castells, 2002) the Internet in 2014, according to Inter-Media
According to the Brazilian media research Project (2015) a partnership between the Medium
(BRAZIL, 2015), held across the country by and Message group with Princewaterhouse
IBOPE institute with a sample of 18,312 Coopers consultancy operating since 1990 in the
respondents of different characteristics, it appears measurement of Brazilian advertising
Revista de Negócios, v. 21, n. 1, p. 16-30, January, 2016.
17
investmentsOnly 7.6% of advertising revenue media buying the particular contextAnd the
cake are destined to the Internet, while 58.5% are relation between vehicle and agency and
for television, representing a total of R $ 39.97 challenges faced by them due to the rise of the
billion recorded in the survey. Despite being Internet as advertising media. In for it, it will first
considered the main source of information in outline the theoretical framework on the subject.
relation to advertising investments, Inter-Media
Project underestimates the internet layer to 2 theoretical framework
disregard important players such as Google and
Facebook. Since the data submitted in 2014 by the It is intended to elucidate this topic on the
Interactive Advertising Bureau (IAB Brazil), the seven themes that make up this research:
main representative body of the Brazilian digital Marketing; Communication, advertising and
interactive segment about Brazilian advertising marketing; Internet advertising; Publicity
revenue on the internet, in partnership to agencies; communication vehicles; The relation
comScore, finds the amount of R $ 8.3 billion. between vehicle and agency; and Strategy.
Thus, there has been a high distance between the
two investments in Brazil. In the case of Santa 2.1 Marketing
Catarina, the revenue for the Internet are even Organizations have always found in
lower because, according to Advertising marketing a source of differentiation attributes to
Placement Market Research Santa Catarina survive in the market. As a definition, the
(2013), conducted by the Institute Map, only 0.6% American Marketing Association (AMA, 2016),
of revenue from advertising placement are sent to presents marketing as "[...] the activity, set of
Internet. institutions and processes of creating,
The changes of technological paradigms, communicating, delivering and exchanging
emerging from an era focused on the product for customer value offers, partners and society in
an era focused on the consumer, who now general". Already Kotler and Keller (. 2012, p 3)
demadna flexibility and interaction is governed by defined as: "[...] activity, the body of knowledge
changes in the market, reflected in increasing and the processes of creating, communicating,
communication, as well as its segmentation and delivering and exchanging offerings that have
individuality ( OKADA, SOUZA, 2011). It is value for customers, clients, partners and society
therefore necessary, according to Shimp (2009), a as a whole ", so that the definitions given to the
stream of change and constant updating by term differ with social and managerial
advertising agencies, requiring experimentation perspective, with the applicationmanagement of
and adaptation of specialists, especially in the exchange of goods, services, events, experiences,
digital advertising market. people, places, properties, organizations,
Advertising agencies play a decisive role in information and ideas. Where the marketer always
the choice of media used by their advertiser seeks a response from your customer, stimulating
clients. Adler and Firestone (2002) report that the the demand for their products (Kotler and Keller,
advertising market is sustained mainly in the 2012). Thus, Kotler and Keller (2012) divide
relationship between: vehicle (producing content), marketing under a holistic looking into four main
public (consuming this content) and advertisers components originally used by McCarthy (1976)
often represented by advertising agencies (who as a compound marketing (model the 4P):
"buy" the associated hearing the vehicle). And
Product: the product or service are said to
secondO'Guinn, Allen and Semenik (2008) Media certain when they meet and or exceed consumer
fragmentation is a major headache for advertising expectations, thus meeting some of the basic
agencies, who are still struggling to figure out requirements of the product: size, quality and
how to enter, and also the trademarks of their design.
clients in this new environment.
Price: the target consumer must feel that
Faced with the scenario presented, this study you are paying a fair price for the product, the
aims to propose strategic actions for the price corresponding to the needs and the consumer
communication vehicles that use the internet, desire to own the product or service.
specifically in the city of Florianópolis, which
Square: It should be located next to the
examined the perception of advertising agencies,
desired and advantageous market at the time of
in order to understand the factors that influence
distribution, transport, storage and packaging. 18
Promotion:It is a set of actions that begins The advertising business is established on
in advertising spends for public relations, sales the triad: the advertiser, the agency and the
promotion, personal selling and merchandising, communication vehicle in which the owner starts
which used the right way are able to stimulate the the process by asking the service to the agency,
realization of sales. (COBRA, 2007) which designs and supervises the placement of the
These "4P's" serve as support for the vehicle (Cappo, 2003). This ratio must follow the
marketing mix, seeking harmony and balance rules presented by CENP (1998), in which:
between the elements that compose it, which Relations between Agencies, Advertisers and Media
second Peci and Sobral (2013, p. 476) comment are at the same time, professional, commercial and have
compose "[...] the set of variables on which the presupposed the need to reach technical excellence through
rofessional qualification and the reduction of transaction
marketing manager will take decisions. " The "P" pcosts among themselves, observing the principles of this
promotion, leading to this research encompasses instrument, ethics and good market practices by encouraging
all communication tools between organization and full competition in each of these segments. (CENP, 1998,
its public, something that gets specific space and p.6)
expanded this research. It is to emphasize the cultural and
2.2 Communication, marketing and technological changes have transformed various
advertising aspects of society, encouraging new challenges to
The specific subject of this research, advertising inserted contemporaneously with Lévy
advertising, it should first clarify what comes to (2010, p. 17) contextualized as cyberculture a
communication, which, according to Sant'Anna "[...] set of techniques (material and intellectual),
(2002) is a process of three main structures: practices, attitudes, modes of thought and values
sender, message and receiver. Designed in the that develop in a cyberspace "that is located in the
marketing context, to persuade, or to seek an world and global interconnection of computers
effect calculated in attitudes and target audience (Lévy, 2010). These changes that also set in
behavior in function and a specific product, either Lipovetsky (2007)calls hyperconsumption society,
by personal selling, promotion, merchandising, characterized by a greater democratization of
public relations, packaging, direct marketing, comfort and leisure, attached to a trivialization of
advertising or advertising. The last two, although access to new and growing diversification of
commonly used interchangeably, they differ in offers and products. In this new phase, new media
concept. Advertising public drift (publicus Latin), are consolidated, decentralized and diversified,
which means the quality of what is public, making which take advantage of new technologies to
public a fact or idea. Propaganda (Latin provide new choices and individualized
(propagare) indicates the spread of principles, consumption. (Castells, 2002)
theories, relating specifically to the sale, the According Lapolli and Gauthier (2008), the
rhetoric at the idea. In this research, we opt for the main argument for the areas of sales were the
use of advertising term, focusing on structuring numbers of the audience, especially in the case of
disclosure in the case, specific research TV. However, public engagement in online
agencies.(SANT'ANNA, 2002) platforms and social networks becomes
According to the standard rules of increasingly interesting. This situation intensified
advertising activity presented by CENP (1998), from the web 2.0, as the twenty-first century, they
the body that regulates these activities in Brazil, began to massively be available systems,
we have that much advertising as advertising, applications and tools that offer the possibility of
pursuant to art. 2 of Decree No. 57,690 / 66, is joint actions to users. These aspects result in the
taken as any paid form of dissemination of ideas, emergence of an individual with greater
goods, products or services by an identified autonomy, situated on a context of rapidly
advertiser. Gomes (2003) outlines advertising as a changing technology and communication. This
form of communication that uses a set of paid phenomenon was called "Culture Convergence"
media, and that affects the public and persuades to and is explained by Jenkins ideas (2008), which
purchase goods or services andSant'Anna (2002) comes in two different models media, corporate or
It defines the term as a mass communication alternative, in which power production and
technique, and pay with the purpose of providing distribution of content becomes technically
information, develop attitudes and actions cause accessible all.
beneficial to advertisers. then questions the convergence towards the
public's attention through the many 19
communication options, as well as delete the
Tracking - track how users interact with
remuneration obtained through traditional brands;
communication vehicles. Thus, it emphasizes
Flexibility - you can monitor and adjust
creativity as a crucial point, no longer seen as just the campaign at any time;
the creative department function, but all
Accessibility - available to users 24 hours
previously bureaucratic sectors such as the media, a day; and
for example. (Cappo, 2003)
Interactivity - the user can talk to the
2.3 Communication and Internet company to make the purchase. (PINE, 2008)
Vehicles
2.4 Publicity agencies
In contemporary times, where is the media
worldwide proliferation (O'Guinn, ALLEN and Regarding the regulation, which defines the
Semenik, 2008), companies use is a high variety advertising agencies, according to Law No. 4,680,
of communication vehicles to get their message to of June 18, 1965, duly regulated by Decree No.
the target audience, thus compounding the media, 57,690, of February 1, 1966 has that in its Art. 6
as radio, newspaper, magazine, television and the to advertising[...] Specialized agency in is: corporate methods in art and
internet, for example. However, it is observed that advertising technique, which through professionals at your
there is no ideal media, depending on the choice service, studies, designs, executes and distributes advertising
of that the objective of the advertiser, the creative to Disclosure Vehicles, order and account advertiser clients
needs, the competitive challenge and the with the purpose of promoting the sale of goods, products
d services, disseminate ideas or inform the public about
availability of financial resources in addition to anorganizations or institutions they serve. (BRAZIL, 1966)
considering the nature of the product or service As for its operation, Shimp (2009)
being advertised attached to communication comments that advertisers have three alternatives
vehicle characteristics. (Shimp, 2009) to perform the same advertising function: hold
For a long time, radio was the primary internally; buy single services, as needed,
means of mass communication, offering programs specialized companies; or select a full advertising
for all public profiles, but with the growth of agency for its accomplishment, as regards the
television, from the 50, it creates a new latter, advertising agencies, four are its main
communication universe, which caused the functions: creative services; media services;
restructuring of existing resources, structured on research services; and account management. Thus,
television. Similarly occurs contemporary change it is observed that an advertising agency has the
to internet television, embodied advertising main function planning advertising
maneia in electronic banners (O'Guinn, ALLEN communication of its customers and the creation
and Semenik, 2008). This technological evolution and subsequent production of advertising
provides the gain of other features, making them production, study and determination of the best
more attractive and enabling a more efficient alternatives in the selection of media vehicles,
interaction with the user, stratified according to referral for placement production and final
Gabriel (2010), according to the strategies used by assessment of the results to the client who hires
companies: online presence; e-mail marketing; the service (PINE, 2008). To Shimp (2009) four
social networks; and search marketing. are the functions of an advertising agency:
Thus, the target audience of the marketing creative services; media services; research
campaign is not only designed as a 'target', but as services; and account management.
a media generator and transmitter of it. Gabriel With the dramatic changes that have taken
(2010, p.109), "[...] we can not assume that our place in the sector in recent years, Cappo (2003)
audience behaves like a" target "waiting to be" hit states that traditional advertising agencies lost
"- that is more appropriate for consumers highly space. When most of the marketing costs were for
controlled traditional media." Therefore, some television, the agencies have a clear role: doing
advantages presented by the use of the Internet as research on mass audiences, create compelling
advertising media are highlighted: and put these commercials commercials on TV.
Driveability - direct messages to specific Everything else was just an addition to basic
targets; television campaign. This simple solution for
advertisement does not exist because the TV does 20
not dominate the whole way scenario, as before, Other work to be noted is the Mintzberg
so the use of neutral media strategies is necessary (1987), which presents five "P's" strategy: plan
to advance in all positions to grope the market and (plan); pattern (default); position (position); ploy
win customers. (maneuver); and perspective (perspective).
Similarly, we have also the classic definition of
2.5 The relation between vehicle and Snow and Hambrick (1980), where the strategy is
agency a pattern of making important decisions for the
maintenance and organizational alignment with
The body that regulates the advertising the context in which it operates, as well as
market in Brazil is the CENP (Executive Board of management needs internal organization.
Standard Norms), an entity created and From the foregoing, it can be said that
maintained by the private sector to ensure good advertising agencies need strategies to address
practice among advertisers, advertising agencies customers the best possible information of the
and media, whose "Standards-standard vehicle, in line with market rules granted by
Advertising activity "1998 currently apply. external mediators and adapting to the rapidly
Operates to ensure the technical quality of changing industry.
advertising agencies, ensuring their physical and
personnel structure, accrediting the various 3 Methodological procedures
services, maintaining a deposit of the price lists of
the various instruments and media at the same This research is classified as exploratory and
time acts as a permanent forum for technical descriptive. Exploitative by providing greater
discussion the advertising-commercial area. familiarity to the topic, analyzing it and making it
(CENP, 2016) more explicit, for this step,It was used
The agency, according to the CENP (1998) bibliographical and documentary research. And
should use the absolute impartiality in the also descriptive when you want to describe
selection of suitable vehicles for advertising specific characteristics of a given population, this
communication of its customers; on the other step took place multicases study Florianópolis
hand, it is for vehicles comply with the agency as advertising agencies, seeking an in-depth details
intermediary legitimizes the process, whose of the study object. (GIL, 2010)
performance will result in benefits for the According to the nature of the data
advertiser as to the vehicle. (PINE, 2008) collected, the research is characterized as
qualitative, such that consider communication
2.6 Strategy researcher in the field with the explicit part of
knowledge production, showing variety of
A term widely used strategy as defined by perspectives on the subject, from social meanings
Mintzberg and Quinn (2001), it is consistent path and subjective related to it . (FLICK, 2009)
determinations for the organization to act on the The research universe consists of the
external environment obtaining competitive advertising agencies in Florianópolis / SC
advantages for the same (Barney, Hesterly, 2007). registered in CENP (National Council for
However, it is noted that this concept has several Standard Norms), which regulates advertising
approaches, a multitude of settings for each activity in Brazil. The list was generated through
situation in which it is referenced. As an example, the website of CENP (2015), held on 7 March
there is the definition of Chandler (1962), where 2015 and follows represented by Table 1, totaling
the strategy is the determination of long-term 30 branches of possible observation. One has to
organizational goals, as well as the allocation of point out that this universe was excluded Koerich
resources needed to achieve this goal. Ansoff Advertising agency because it is a "house",
(1990) expands the definition of Chandler (1962) meaning that there is to meet an exclusive
to include in its strategic planning model two key company.
concepts: analysis of deviations, ie a check
between planned and carried out; and synergy, as Frame 1 - Florianopolis agencies certified by the CENP
regards use of combined powers of two or more On one. Fantasy name
departments or organizations. 1 Neovox
2 squeeze Communication 21
3 agency Mob In the second phase, interviews were
4 model Propaganda conducted in depth with leaders of Florianópolis
5 BZZ MultiComunicação advertising agencies contacted, using a
6 Strategy Marketing Mix semistructured script It builds on the theoretical
7 9MM foundation. For the structuring of choosing a
8 Advertising market vehicle of communication factors used in
Question 2, they were used as the basis
9 D / Araujo
dimensions presented by Fahey and Randall
10 Quadra Communication (1999) that support the competitive position of a
11 Onewg MultiComunicação company.In other issues, he sought to observe the
12 Creation agency proximity of advertising, regarding the changes in
13 Communication intelligence the media with the agency strategy actions, taking
14 interactive communication the bases, or "P's" of Mintzberg (1987), later
15 propagate translated into four points addressed by the
16 Formula Communication authors of the advertising and marketing industry:
relationship, training, regulation and result
17 Novita Communications And Marketing
(Castells, 2002; Cappo, 2003; Santaella, 2003;
18 DBS Multi
Jenkins, 2008; PINHO, 2008; shimp, 2009). For
19 Sambba the script validation was performed a pretest to the
20 Gr Communication director of an agency in Joinville on March 2,
21 Toro Communication 2015.
22 Air Advertising And Propaganda Data collection took place from March 13 to
23 Marcca Communication May 13, 2015. Interviews were conducted
24 Qing Communication individually,in room reserved in their own
agencies, and are recorded for later transcription.
25 Ezcuze Advertising
Respondents were able to discuss their ideas
26 Gas multi-agency
spontaneously, leaving the researcher just listen
27 Tutano Communication and conduct the interview as structured script.
28 decision Communication Importantly, the data represent the perceptions of
29 Koerich Advertising respondents at that particular time.
30 Sonata and Advertising The recordings of the interviews were
Source: Adapted from CENP (2015) transcribed and the data were analyzed
qualitatively taking into account the views and
The agencies were then contacted via email comments of respondents. Data analysis
or phone, allowing the scheduling of interviews summarized in a process of verification and
with eleven (11) representatives, these two had interpretation of the information collected,
post of president, seven direction and two followed by reduction, preparation and
management. The sample was therefore not presentation. In analyzing the issue that contained
probabilistic and mainly defined by access, in planning factors, the factors that had the minimum
order to interview owners, partners, presidents, coincidence of at least five equal responses,
directors or managers of agencies, focusing on the representing almost half of the respondents were
areas of care, planning and media. highlighted.
Thus, this study is divided into two steps. As the research limitation for only address
The first comprises the secondary data obtained the region of Florianópolis / SC because of
through bibliographical and documentary analysis convenience features and availability of
in books, journals, newspapers, magazines, researchers, it has been the inability to generalize
websites, research and industry information the results at the state or national level. However,
related to the national advertising market, state it should be noted that there is no impediment to
and local levels, formulating the basis for the use of data or research results as a basis for
structuring the problem situation, theoretical basis, future research, carried out in a similar way to
objectives and the creation of the collection other markets.
instrument. 22
4 Presentation and Analysis of Results thousand), the "Image and Reputation" of the
vehicle and even the "Content", a factor that He
In Question 1, respondents indicated the ranked second in the ranking. That is, the "price"
estimated percentage media on the Internet factors, "Image and Reputation" and "Content"
authorized by your agency in the year 2014. With can influence the choice of other vehicles even if
the exception of the Agency 6, the others are they are not leaders in audience.
between 5 to 15%, showing the little On the "Content", many respondents
representation of this medium in advertising justified as the second most important factor
campaigns through agencies consulted. However, because it is very tied to "rating" because it is the
there is the Agency's information 3 that has a right content that attracts the audience with the
percentage of around 50%, demonstrating a point profile you want. The interviewee of the agency
outside of the curve. In such a confirming is 10 states that "the main criterion is the suitability
operated, there is a case of the effectively of vehicle strategy, so Audience / Content are
perceived reality the target market. However, the first." So once defined choice of vehicle
percentage authorized media on the internet by the depending on the audience, you have to match the
agencies consulted therefore presents a fashion of media proposal convergent mode with the content.
10%. On the other hand, at the other end of the
evaluated factors, "Opec" was identified as a
4.1 Factors for choosing a factor that little influence on the decision to be
communication channel more linked to internal procedures and as shown
by the respondent of the Agency 1, "in general,
In Question 2 was prompted respondents to there are no large issues regarding this market. "
draw up a ranking of 1 to 10, 1 being the most On the "Bonus", some respondents recognize its
important, of influencing more factors when importance for the agency, but all claim that it
choosing a communication vehicle for media should not influence the choice of the vehicle
campaign and to justify the choices of the first and process. According to the interviewee of the
last factors. Most respondents made the proviso agency 10, "BV is last because it has to be the
that the weights of these factors vary widely consequence of making a statement, not the
according to the customer or the purpose of the cause."
campaign, but was oriented to respond according Being "Opec" and "Bonus" less relevant
to what occurs more frequently in your agency. factors among the alternatives described, it can
Most of the factors did not show a pattern of not also be identified as serious impediments to
responses. Considering an acceptable standard the growth of the internet representation in the
those factors that had at least five responses equal media by the total authorized agencies. This is
among respondents, the factors "Audience" and because some of these vehicles have no Opec and
"Content" were elected the most important in do not offer bonuses, and sometimes even the
choosing a communication vehicle, and on the discount standard agency.
other hand, "Opec"(Business Operations) and Question 3 also uses the factors set forth in
"Bonus" were the least relevant. Question 2, but requested that the respondents do
The choice of "Audience" as the most a comparative analysis of the factors that stand out
important factor in choosing a vehicle of in traditional media (such as TV, radio,
communication explains the TV share of the lead newspaper) and those who stand out in vehicles
in advertising revenue cake presented by Inter-on the Internet. The most frequently cited factors
Media Project (2015), considering that it is the in relation to traditional vehicles were "Image and
medium most used by the population Brazil, Reputation," "Sales and Relationship" and
according to Brazilian media research (2015). "Audience". The interviewee of the agency 7
Respondents who justified the choice of this factor made a statement which helps explain this
showed that the leadership in audience indicates scenario:
the vehicle can send the message to more people, Traditional vehicles have more organization, more
but that should not be considered alone. Some relationships, size, and this gives a security. Because the
respondents suggested that when assessing the internet have very new things, have the insecurity of income
audience, it is also necessary to evaluate the customer.(AGENCY 7)
"price" (and thus obtain the CPM, or cost per Compared to traditional vehicles when
considered the main factor derived from research 23
to "Image and Reputation," followed by "Sales Internet as the "Content". This runs counter to the
and Relationship", evidence of the strategy the results presented in the ranking of factors, the
standard and defined position by Mintzberg most relevant factors should be elected
(1987). Whereas traditional vehicles make up the "Audience" and "Content". In the context of the
largest slice of the pie of advertising revenue, marketing mix, presented by Cobra (2007), the
according to Inter-media (2015), it is clear that the Internet as advertising media needs to develop its
factors of "Image and Reputation" and "Sales and "promotion", in order to match the image and
Relationship" are more relevant to the choice of a reputation presented by the mainstream media, as
vehicle than indicated by the responses Question the respondents have pointed out positive features
2. These factors could therefore gain more weight about " price "and" product ".
in the ranking.
Already the most cited factors for vehicles 4.2 The relationship with the media
on the Internet were: "Content" and "flexibility".
The first factor is cited because of the diversity of Addressing the relationship between media
channels that the internet has, making it possible and agencies, Question 4 asked the respondents
to offer different content and targeting of pointed that strategic actions are carried out by
campaigns. This really is one of the great their agencies to maximize the relationship with
advantages of the Internet. But even that the media gains. The most frequent response was
respondents consider the "Content" as the second related to the provocation meetings with the
most important factor in choosing a vehicle of vehicles, in order to carry out creations together
communication, it seems that this spread of and build custom formats. It is observed from the
internet has not proved sufficient to boost their answers that most agencies are open and willing
revenues on advertising. to approach and generate business. Respondents
On the "flexibility" he was cited ease of said that this approach is essential to know more
creating different shapes and the smooth exchange about the vehicle, understand the possibilities and
materials at any time, characteristics which are discuss new ideas.
more restricted in traditional media. With the ease Question 5 also addresses the relationship
of measurement that the internet provides, it is between vehicle and agency, but questions
much easier to evaluate a campaign and make the whether there are differences in this relationship
necessary adjustments at any time. However, when comparing traditional vehicles and vehicles
although it seems an advantage for this flexibility on the Internet. All respondents stated that there
agency also means increased efforts to create and are differences in this respect, except the Agency
media. It takes even more exercise creativity, 11. The main difference is the more pointed
increase knowledge and measure results. relationship "cold" when it comes to vehicles on
Therefore, this factor is also not enough to the Internet. On this issue, the interviewee of the
leverage the media investment on the Internet. agency 8 explains:
It notes that only when referring to vehicles There are some differences. Traditional vehicles are
on the internet is the "price" factor was cited. expensive and it helps in that regard. But if you will buy
Whereas this is a very relative factor, as it must be Google / Facebook, does not have the same service. Or
analyzed as the audience, you can say the invoice. This impersonality is bad. In traditional vehicles,
there is a partnership, joint construction.(AGENCY 11)
interviewees consider the vehicles on the Internet Still on Question 5, the interviewee of the
with relatively better price than traditional agency 5 makes a statement that also addresses
vehicles. But just as "Content" and "flexibility", the most distant relationship of the vehicles on the
the "price" was also not enough to increase the Internet, deepening the sense of lack of direction
representativeness of the internet in the for building a more effective campaign.
composition of the media agencies consulted. In the case of the Internet, not so much (the
When considering the advantage presented relationship with the agency). It is a means underutilized in
by the mainstream media in the cake composition terms of creation. Speaking in terms of media, I am clear
of advertising investments compared to the that I must put, I know it works. But I think it lacks a little
internet, it can be concluded that the on the vehicle, which has all the technological expertise,
tools, knowledge of what can be done, move on to the part
characteristics presented as highlighting the of the creation of the agencies. It is no use just make a
traditional, such as "Image and Reputation" are banner that is a "partizinha" newspaper ad.(AGENCY 5)
preponderant the highlighted features on the 24
Two other responses that draw attention, of internet, it is clear that fall criticism of the
despite not being the most cited, is on legislation model of traditional media like TV, which owns
and the commission (the discount standard the preference of Brazilians. They present the
agency). The relationship between advertiser, various contributions and challenges that the
agency and vehicles follows a clear regulation and Internet has brought to the field of
widespread in the market, which is not always communication.
followed by vehicles on the Internet. interviewee Continuing this theme, Question 7 asked the
of the agency 10 talks about this point: respondents to report what the main challenges
It's very different, because the vehicles on the facing his agency with the growth of the internet
Internet, most of them do not fit or the law governing the
relationship between vehicle and agency and advertiser. as a communication medium. The most frequent
They are more informal relationships are relationships that response was the challenge of investing in
have not yet defined rules, then no doubt is a relationship employee training constantly. They cited the
that one hand is more flexible, free, but on the other it is less importance of having a technically qualified team
clear.(AGENCY 10) that knows how to deal with so many new features
Even if the less attention has been appointed that appear every day in this medium. Some
to the factors "Bonus" and "Opec" by respondents agencies admit that when they lack the
in Question 2, emphasis is placed on this topic a knowledge, resort to third parties, as pointed out
lack of clarity for trade relations with the vehicles by the Agency 8:
on the Internet. When I started working with advertising, I got a
promotion and event agency in Sao Paulo. At the time, we
4.3 The challenges faced were the "below the line" and almost 15 or 20% of the
budget went to promotion. Over the years, the division has
In Question 6, all respondents stated that become 50%. At this time, the large advertising agencies
have started buying the promotion agencies. And today this
there were changes in advertising with the arrival movement happens. Arises a legal digital agency, begins to
of the internet. The main changes mentioned were grow, it is a large group and purchase not to lose money. At
the increased possibility of targeting, increased the agency, we do little because, managerially speaking,
media options / vehicles and consumer interaction. little is invested in what has little volume. So, we prefer to
Below is described a review of the Agency work with partners, which has been our practice, than to
develop internally.(AGENCY 8)
interviewed 8 on this issue: Another challenge was also mentioned in
Another point is about the thousands of options that
exist today to invest your campaign. On the one hand it is relation to the lack of knowledge, but this time the
legal, on the other hand is complicated because the line cake customer. The interviewee of the agency said that
is almost the same. The first problem is that you think you 1 on this subject:
have to be in all of them. Second is that the customer think We feel a very great difficulty in getting our
you have to be in all of them, but can not afford to be in all customers understand what we are proposing. We have had
of them, or do not have enough money to have a reasonable a series of campaigns that present we focus a lot on the
frequency in all of them, to bring results. This year the Internet, with relatively complex strategies, with a number
advertising pie will shrink, it becomes a great game of of things that we realized it was beyond the capacity of
puzzle for the media professional how to ride with these understanding the customer. We are having to simplify, or
millions of possibilities with the money he has. Now, there's do things without the customer know.(AGENCY 1)
more to say "take the money and puts all on TV"; for now It is common understanding that the distance
the TV does not talk to the public and I have to start to of the agencies with the internet is due to a
understand how to use the internet to talk to this audience, if
only to draw their attention to the TV somehow.(AGENCY relative lack of this type of media and its
8) potential, but is perceived lack of interest of some
Another interesting statement on this issue agencies to "embrace this cause." Limited to the
was the interviewee of the agency 10, which internal training and using third-party palliative
addresses the improvement of consumer way, there is evidence of a reactive posture of
involvement: some agencies the profound changes that the
The consumer is no longer passive and became active Internet has brought to advertising, cited in the
in brand communication and business. There is no longer a previous question, letting them stay in their
one-way street, it is now two-way. This greatly changed the traditional style.
way that businesses communicate with their consumers. No
use I say my product is good, is the best, is the cheapest, and Another challenge addressed and that
find that no one will answer that it is not true.(AGENCY 10) contributes to this accommodation state, it is the
When checking the reports of respondents in difficulty to monetize more with the internet.
relation to changes in advertising with the advent Again, it was mentioned the lack of definition of 25
agency commission for all vehicles on the media. The internet requires different expertise,
Internet, according to comments the Agency 3: analytical view of data and different formats that
"Our regulators have not established a form of are worked in traditional media, as they must be
commission on all internet vehicles." In this less interruptive. Perhaps the questions regarding
regard, the Agency 2 points to the issue of low the outcome of the Internet have been made based
profitability: on the lack of ability to build a campaign that
Today as I have many other options, the amount of meets these specifications.
stuff I have to create is very large, with lower costs. So the
challenge for us as an agency, it's like I monetize this, Then it was appointed on the remuneration
because it has no pattern. Before I had half a page, a page, of the agencies with these vehicles. The
30 seconds. And with these other various formats and interviewee of the agency said that 7
possibilities, I can not pass it to the client. And the ease of The question of agency remuneration is still a matter
exchange of content on the Internet, the client wants me to to be discussed as well. There are many issues in setting.
change even more.(AGENCY 2) Lack a way to make the agencies realize how much they can
Therefore, the difficulty of constant training, earn, lack thinking about how agencies can be better
lack of knowledge of advertiser clients and the paid.(AGENCY 7)
low profitability of internet configure the However, these claims are contrary to what
challenges that the agencies consulted more have was indicated on the low influence of the "Bonus"
faced with the growth of the internet as a in choosing a vehicle of communication. Although
communication medium. As mentioned, these it was cited by only two agencies in question 8, it
challenges have proved major barriers to update is necessary that this factor is observed more
the advertising business model, leaving the relevant to Internet growth in advertising
agencies attached to the traditional model. investments.
Question 8 asked respondents to indicate
what challenges the media outlets on the Internet 4.4 The advertising market of
have to face to gain more importance in Florianópolis
customers' campaigns your agency. The most
frequent response was related to better reflect the Finally, Question 9 is broader questioning
return of possibilities for customers. This issue about the timing of the advertising market of
also goes through what was mentioned in the Florianópolis. All said that the market is going
previous question, about the lack of market through a difficult time, some have more
knowledge on this type of media. So, to show the pessimistic, as the respondent of the Agency 2:
possibility of return to customers, they will feel It is a gigantic crisis. We're in a business model
exhausted and the crisis of the economy I think it's much
more secure in hiring this type of media. worse ... I have talked to other owners of agencies and they
It was also questioned by the interviewees are terrified, laying off many people, I'm thinking where
the actual return that the internet offers as will it arrive, if it's time to separate those who will survive
advertising media. Some said that it's not a similar and who will not. Many will leave the market.(AGENCY 2)
result to which the traditional media often The interviewee of the agency 10 also
provide. The interviewee of the agency 8 further passes a more optimistic message, believing in
complements and reinforces the importance of evolution of Santa Catarina market as a whole,
showing the "return": despite the economic crisis in the country. She
Two things are basic: the first is you can prove that says:
people really pay attention to advertising on the Internet. Despite the difficult economic times, the willingness
They provide, as we have several cases of companies that of advertisers, the Santa Catarina market has grown a lot.
grew based on this type of advertising. The advertiser has And will continue to grow, not only in mathematical terms,
doubt on the effectiveness of the banner. I sell 1 billion but in terms of maturing, with conditions provide better
views, but is watched? Do they not bother? The second is service, better advise their customers with more strategic
conversion. The customer wants to see the sale. But do these concern, more foundations, more focus on results.
actions generate results? Sell more? This is the great (AGENCY 10)
difficulty. I think the biggest mistake of a vehicle is trying to On the other hand, the interviewee Agency
prove that is a leader in something. He has to prove that 8 has a description even broader market the time
gives return.(AGENCY 8) of this state, showing concern with excess
However, it is questionable this kind of "regionalismo".
statement when confronted with the question of Our market is very regional, different from Curitiba
previous answers, pointing to the lack of expertise and Porto Alegre who can get national customer accounts.
of some of the agencies consulted in this type of So, we started to have some problems, how to work with
very little information, very with "guesses", all with 26
common information. How do you define a strategy without Santaella (2003) state that new technologies have
relevant information? If you do not have these data, no
planning. Thus, we can not have a relevance to the client's enabled consumers to take a more active stance
business. The agencies are beginning to get very similar to regarding communication with brands and
each other. If I'm not relevant, the negotiation of agencies need to adjust their strategies to adapt to
compensation with the customer becomes more difficult, these changes. Therefore, the main challenge
enter the monthly fee model, which is interesting for the pointed out by the agencies is to maintain their
cash flow, but is not consistent with my production. Thus,
the agency lives tight, with little time, with volume giant often trained teams to work with the internet, and
work, and there the quality is pushed down. This becomes a face the lack of training of its customers. At the
vicious circle. We have in SC is much to question the same time, the agencies expect from the Internet
"owner of the agency." This ends up pulling for non communication vehicles is just better reflect the
professional. If not in the professionalization and not seek return that offer as advertising media to facilitate
this relevance, we will continue limited to our
regionalism.(AGENCY 8) this understanding of the market. The training
Ratifying the characterization of agencies and clients is vital if they are able to
Florianópolis market placed by the respondent as build and understand effective strategies and to
"regional", there is, from the considerations and break their insecurities when it comes to the
views expressed, the existence of a certain digital universe.
empiricism and cronyism in relations between Another challenge is whether regulatory
clients and agencies, giving rise to a lack of adherence of vehicles on the Internet. This is
relevance agency's role in the business customer. essential to address the barriers that still show
undefined in its relationship with agencies and
4.5 Consolidation of strategic actions advertisers, as the remuneration of the agency,
pricing and billing forms. clear rules in this regard
As a result of the research, the main points would facilitate the creation of a more cost-
discussed were organized according to the effective and transparent business model for
following perspectives: relationships, training, everyone involved. The fact is that this issue is
regulation and result. very well designed for traditional vehicles,
The relationship perspective stands in the especially in the remuneration issue. In this sense,
disadvantage that the internet medium is related to Pine (2008) Cappo (2003) point out that this
the factors "Image and Reputation" and "Sales and situation results in a dependency on agencies over
Relationship" compared with traditional means. traditional vehicles.
Despite the many advantages of using the Internet In addition, to follow this regulation, the
as advertising media, as shown by Pine (2008), partnership between vehicles on the internet and
little development factors linked ahead of sales agency would be made official by avoiding the
and marketing are weighing negatively on the side direct purchase by the advertiser, which makes
of the vehicles on the Internet. As a result, the this means of communication outside the general
agencies interviewed point out the relationship strategy developed by his agency. With this, more
"cold" vehicles on the Internet, making the joint businesses could be promoted through the agency,
construction of solutions and the promotion of including allowing BV institution to compete
business. In addition, one of the main advantages more equally with the model used by traditional
cited for the internet is the "flexibility", indicated media. As pointed out by the survey, despite the
by the agencies as essential in the relationship "Bonus" to be one of the least important factors
with the vehicles. However, the lack of a close for choosing a vehicle of communication in many
relationship of the vehicles on the Internet appears other answers and comments, this query was
as a barrier to further exploit this feature. Thus, considered important by respondents to the
the relationship with the agencies needs to be vehicles on the internet to gain more
developed by the vehicles on the Internet, leaving representation in media investments.
aside the impersonality currently the distance Regarding the result, only saying that has
agencies and advertisers. audience is no longer enough. Despite being the
The training perspective stands out when most important factor that influences the choice of
respondents recognize the potential of the Internet, a vehicle, the internet has been questioned about
but take the lack of market knowledge on how to its effective results as advertising media, as has
use it in the most appropriate way in an been pointed out by Cappo (2003) and Shimp
advertising campaign. Castells (2002) and (2009). So one of the main challenges identified 27
by the agencies for the development of vehicles disruptive and are mixed with the content they get
on the internet is better translate the results they the attention of consumers;
can offer customers. However, we need to h) Reposition the digital media within
translate these results through the plethora of data the advertising to be considered as favorable for
that the Internet has, indicating the return that can advertisers and agencies as to traditional media.
be measured far beyond just "clicks".
For this it is necessary to go beyond the 5 Conclusions
banner advertising format commonly used on the
Internet that is measured by impressions and Considering the overall objective proposed
clicks. We must understand that it has created a for this research, regarding characterization of the
new culture from the new media, as pointed out perceptions of advertising agencies in
by Jenkins (2008) on the convergence culture, Florianópolis on the development of
where corporate media and alternative act communication media on the Internet, if feasible
simultaneously. Another important feature goes from the strategic actions previously proposed
against the main feature of traditional advertising, based on four perspectives derived search:
the interruption. On the internet, this advertising relationship, training, regulation and result. This
format is hardly accepted by users: advertising context was derived from the understanding of the
content must be "disguised" editorial content. perceptions of the agencies in their relationship
Thus, the outlook observed in the field of with the vehicles on the Internet and analysis
research (relationship, training, regulation and based on the specific theoretical framework.
result), when collated with the theoretical In summary, the research shows that
framework on marketing, advertising and strategy, vehicles on the internet need to have a close
give off are the following possible strategic relationship, maintain qualified market have a
actions to internet communication vehicles: regulated relationship with key influencers in this
a) Promote professional relationships market, advertising agencies, and show results.
with advertising agencies and advertisers in order The internet gains more importance in people's
to improve their commercial services and perform lives and therefore gain more representation in
the joint construction of the campaigns on the advertising, to the extent that will be required such
Internet; adjustments in trade relations, the advertising
b) Present digital media as an practices in professional and business models.
alternative to advertising agencies based on the On the factors that influence the
relationship with traditional media, especially in Florianópolis advertising agencies in the choice of
terms of agency remuneration and volume vehicles used in a communication plan, it was
incentive plans; found that the order of importance of these factors
c) Create vehicle networks on the is quite relative, but when it comes to the most
Internet, for example networks of blogs, in order and least influential factors was possible to
to gain relevance and to unify its business establish a standard answers. The most influential
operations; elected were "Audience" and "content", and the
d) Create doubts care for channels and less influential "Opec" and "Bonus". It is
promote training to advertisers and agencies par important to highlight the various reservations
reduce uncertainty to invest in new media; about these factors presented in this work. Factors
e) Work together to advertising "Image and Reputation" and "Sales and
students to be formed more skilled professionals Relationship" highlighted prominently in
to work with digital media; traditional vehicles could have been presented
f) Acting through professional bodies with more relevance in the rankings, as they are
in regulating the digital advertising market so that features that differentiate the means with greater
the business models and actors involved not fall representation in advertising revenue. Likewise,
within the law and can act with clearer rules; one must also question the factor of the "Content",
g) Offer advertising formats that have because even being touted as the most relevant
more return on the Internet as an alternative to second to choosing a vehicle and appointed as a
banner, which has been widely criticized for differential to the internet, this could not raise the
advertisers and users - offer formats that are less productivity of this type of media the agencies.
Finally, despite the "bonus" was less relevant 28
elected, he appears as an important point in the described above (relationship, training, regulation
relationship between vehicle and agency in and result) in order to break down the barriers that
various other responses and comments of hold its development as advertising media.
respondents, and therefore should not be Highlights the need for more effective action
overlooked. regarding these points mainly by entities
To characterize the strategic actions of representing this class, directing discussions on
Florianópolis advertising agencies in their these guidelines and contributing to increase the
relationship with the media, most of the competitiveness of the medium in advertising.
respondents said they are active in this process, This study also provides contributions to
choosing to lead meetings with vehicles for joint advertising agencies that, through discourse of the
construction of solutions to customers. However, interviewees present themselves comfortable in
when making the comparison between traditional the traditional model. However, from the rise of
media and the Internet, respondents said that the internet representation in people's lives, the
vehicles on the internet are more "cold" and they agencies will no longer be shown unwilling to
often do not follow the rules governing the develop in this direction. Increasingly, these new
relationship between agency and vehicle, unlike opportunities will arise, so agencies need to
traditional vehicles that have this issue very well understand this moment and prepare to exploit
settled. Thus it was found that the aforementioned more efficiently all the possibilities of
meetings are held most commonly with traditional communication with consumers. In this sense, it is
vehicles, which makes this distance with the the contribution also to advertisers, to be vigilant
vehicles on the Internet impede the construction in choosing their agencies and the development of
and implementation business. their communication objectives.
The main challenges faced by Florianópolis You can also observe contributions to
advertising agencies with the growth of the traditional vehicles. Supported a regulatory model
Internet as a means of communication are: the and very well established remuneration in the
difficulty of constant training of its staff, the lack Brazilian market and is condemned by other
of knowledge of advertiser clients and the low markets in the world, it is the recommendation
profitability of the Internet. The constant changes also to adapt to new technologies. Many vehicles
in technology and the numerous possibilities already have their digital platform, but still is the
offered by the Internet hamper the learning challenge to become as relevant as the Internet are
market, which feels insecure in using this type of on your media source. In the same way that has
media. On profitability, he cited is the lack of been described in relation to advertising agencies,
definition of the remuneration of the agency and traditional media need to be prepared for the best
the increased workload due to the ease of broadband infrastructure in Brazil, the digital
exchanging material and increase options to be culture that new generations are being submitted
worked. and the strong growth of search platforms, social
However, it was concluded that one of the and Mobile.
main barriers to the development of the Internet as For future studies, it is suggested as a
advertising media is also in the lack of interest or possibility a theme with further research in other
willingness of agencies to make it happen. contexts and places, amplifying the perception
Although they stated that there were changes in analysis of the front advertising agencies online
advertising with the advent of the Internet, the challenges, see that this research was limited only
agencies have become rooted in the traditional to the city of Florianópolis.
model of advertising, more profitable, and mostly
limited to the internal training for its development
in the market. 6 References
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31
Managing essential inputs: the case of
methanol supply in biodiesel industry
Daniel Franco Goulart ¹
¹Mackenzie Presbiterian University - goulartdf@gmail.com
KEYWORDS ABSTRACT
Thi
Supply chain management, s paper aims to discuss the ways that biodiesel producers manage the
biodiesel, supply chain of methanol, an indispensable input obtained almost exclusively
methanol, through importation. To build this discussion, it was firstly drawn the main
spot market, features of the Brazilian biodiesel industry and, after that, it was described the
in methanol’s origins, applications and market. It was identified two ways
long-term contracts.
ma
on which biodiesel companies acquire methanol: a) via long-term contracts or
b)
in the spot market. If the first option means supply safety, the second one
Received 18.12.2014
means more competitive prices. This qualitative study was built from two
Accepted 10.10.2016
different data collection steps: a) participant observation and b) semi-
DOI 10.7867/1980-431.2015v20n2p4-14 structured interviews.
ISSN 1980-4431
Double blind review
1 Introduction jatropha into cropping systems in Malawi.
In spite of the increase number of studies
est Article Fat Track SIMPOI 2016
Gu
1 Introduction
The interest for the research in biofuels,
especially in biodiesel, has grown significantly in mentioned right above, few papers have
the last few years. That reflects in an increase in been addressed internal competitiveness of the
biofuels articles published in scholarly journals. biodiesel producers. It is especially rare to see
Some examples might be mentioned such Jupesta, papers that discuss strategies on the supply chain
Harayama and Parayil (2011), that build an management in this industry. Some samples might
analysis on the design a sustainable business be mentioned like César and Batalha (2011), that
model on the development of a biofuel industry in describe each competitiveness driver and presents
Indonesia; Babcock (2012), that discusses the a picture of the competitiveness of agricultural
market impacts of US biofuels and biofuel production and industrial production of the
policies; Mcphail and Maimunah (2012), that biodiesel supply chain and Sartori et al. (2009)
bring to the light an important discussion about that assess the implementation of crushing plants
the challenge of producing biofuels and keep focused on the oil supply to small farmer’s
producing food in Malaysia and Maonga et al. biodiesel facilities. None of them, however,
(2015), that analyzes the critical and discuss the day-to-day of decision process inside a
socioeconomic factors that leverage smallholder biodiesel production company. This paper comes
farmer’s decision and willingness to adopt to start filling this gap.
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 32
The Brazilian biodiesel industry is very (2013, p. 442) say that a linear approach of SCM
competitive. Since its creation by the government as a dyadic relationship “grossly oversimplifies
up to current days, yearly production soared from and distorts the realities of the modern supply
nearly 70.000 m³ in 2006 to approximately chains. Choi et al. (2001) defend the same, saying
3.400.000 m³ in 2014, according to the National that the linear view using dyadic analysis fails to
Agency of Petroleum, Natural Gas and Biofuels adequately account for the interdependence
(2015). To be profitable in a tough business between numerous heterogeneous firms present in
environment as biodiesel’s companies have to be supply chain systems.
diligent in cost control, supply chain management Evolving the concept of interrelations
and logistics management. A company that is a among the players that compound a supply chain,
leader in costs has the opportunity to catch higher Choi and Wu (2009) approach this as a joint of
margins. triadic relationships. This authors specifies nine
The set of arguments above presented build buyer-supplier-supplier archetypes. Wu et al.
the scenario to propose a study that focus on (2010) say that in a buyer-supplier-supplier
discuss the ways biodiesel companies in Brazil relationship triad, the buyer, as a contracting
manage their essential inputs. It is put in the entity, influences the supplier’s behaviors and the
center of the discussion the supply chain relationship between them. Still according the
management of methanol, an indispensable input authors, by considering the relationships in such a
to the biodiesel production that is almost totally triad, it is possible to gain a richer and more
imported. To address this objective, it was firstly realistic perspective of buyer-supplier
described the biodiesel supply chain and secondly relationship. Hitt (2011) endorses the argument of
clarified the main methanol’s origins, applications supply chain as a complex joint of relation
and markets. It was employed qualitative research discussing its management covered by resource
methodology to perform the analysis of data based view of the firm, transaction cost
collected in two different procedures steps: economics, organization learning theory and
participative observations and semi-structured social capital approaches. In spite of being largely
interviews. discussed in literature, Thomas et al. (2011) point
out that a common accepted definition of SCM is
2 Theoretical Framework: supply chain still lacking.
management (SCM) and supply chain Other important point to be considered in
disruption the conceptualization of SCM is the issue
disruption. The concept of disruption of a supply
Gibson et al. (2005, p. 17) say that the chain is linked to the idea of risk management in
concept of SCM is a disparate set of descriptions. supply chains. In this sense, Hendricks and
According to the authors, definitions may vary Singhal (2005a, p. 696) mention that disruptions
from narrow and functionally based perspective, or, in their terms, glitches in supply chain are
such as regarding the management and control of likely to adversely affect the short and long-term
materials, information and logistics, to broadly profitability of the firm. According to the authors,
definitions that reach the integration of business supply chain glitches can lead to loss in sales and
processes from end users to original suppliers. market share, lower sales price due to markdowns
Burgess et al. (2006, p. 703) go in the same way of excess inventories and could prevent the firm
saying that, while interest in SCM is immense, it from capitalizing on strong market demand due to
is clear that much of the knowledge about SCM unavailability of products. To avoid this kind of
resides in narrow functional silos such as disruption or glitches, a diligent supply chain risk
purchasing, logistics, IT and marketing. management is required. Ouabouch and Paché
Boone et al. (2007, p. 594) affirm that SCM (2014) defend it saying that a multitude of more or
strategies and techniques are as varied as the less critical incidents along any supply chain may
disciplines from which they originate and the prevent a company from obtaining the expected
customers they are to serve. The complexity of level of logistics performance. Still according the
relationships among the authors opens the authors, knowing how to anticipate and manage
opportunity to discuss SCM from a non-linear supply chain risks is therefore an important
perspective. In this sense, Hearnshaw and Wilson approach to maintain a competitive advantage.
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 33
Cousins et al. (2004, p. 556) argue that a authors, it provides insights that would be hardly
firm part of a supply chain might be exposed to reached by quantitative method, giving the chance
two particular risks: technological and strategic. to understand the social processes that underlie
The former is related to over-reliance in a single management field.
or limited source of a product, process or Sutton (1997) advises that a qualitative
technology. The latter reflects the danger of being research has to be conducted with rigor and
over-reliant on a single or limited number of criterion. This way, say the author, qualitative
suppliers. One case or another, Hendricks and research will enjoy its legitimacy. Aiming to meet
Singhal (2005b) state that the risk of supply chain this requirement, it is presented right below a
disruption is an indication of a firm’s inability to chart that brings the main characteristics of each
match demand and supply. of two steps that composed data collection
procedures, as well as sort of information
3 Methodology collected in each process. It will not be revealed
the name of the companies or interviewees that
The data collection procedures were divided kindly participated as data supplier to this study
into two parts: a) participant observation, due to a matter of academic ethics.
according to Guercini (2014) and b) semi-
structured interviews. The first part was Table 1. Characterization of data collection procedures and
performed from January 2013 up to December sort of information collected in each.
2014 and was realized within a biodiesel producer Data collection Main features Sort of
company. During this stage, the author had the procedure company
chance to see how decision taker built and execute Observation of six
purchase processes
methanol purchase strategy. The author kept up Active at the spot market Biodiesel
with six processes of purchases in the spot market observation with one producer (1)
during this period of time. The main concern in commercial
this case was to get the best price at the spot manager.
market and, at the same time, assure a constant Free conversation
ith seven
supply flow. wcommercial
Being inside a biodiesel company has Semi-structured managers from Methanol
allowed the author to get in touch with managers interviews methanol supplier supplier
companies (3).
of methanol supply companies. Because of this companies that
relationship rapprochement, it was possible to serve Brazilian
iodiesel industry.
perform the second part of data collection. This b
urce: Elaborated by the author.
stage, that happened between March 2014 and So
February 2015, was compounded by seven semi-
Each of data collection procedure was
structured interviews with three methanol supplier
elaborated taking into consideration target
companies. The interviews approached global
information to be captured. The topics used to
methanol origins and destinations, international
drive data collection in each kind of procedure is
and inland logistics and sales models applied in
described below:
the Brazilian biodiesel market.
All the analysis performed on primary data
Active observation: strategy of purchasing
were qualitative. The collection data procedures
at the methanol spot market; important logistics
were rich of details and quality due to the fact that
factors to be considered when building purchasing
the author could be following activities inside a
strategy; importance to have more than one
biodiesel company and because of the access to
methanol supplier when buying in the spot
important methanol merchants that this
market; participation of methanol on total and
opportunity gave to him. Beyond the robustness of
variable costs of biodiesel production.
primary data, the research question, focused on
Semi-structured interviews: the main
descriptive analysis, would be better answered by
methanol origin areas; fundamentals of a long-
qualitative methodology. In this sense, Rynes and
term contract of methanol supply; the port
Gephart Jr. (2004) are assertive when defining
logistics infrastructure needed to operate methanol
qualitative research as method. According to this
in Brazil; the main concerns of biodiesel
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 34
producers when they look for methanol supply. variable costs (inputs + raw-material).
4 Analysis 4.2 Characterizing methanol origin,
applications and market.
4.1 Characterizing Brazilian biodiesel
supply chain Methanol or methyl alcohol is a colorless
liquid produced from synthesis gas (a mixture of
Brazilian biodiesel supply chain is highly carbon monoxide, carbon dioxide and hydrogen)
controlled by government. Commercially, the (Pereira and Andrade, 1998; Cummins et al.,
Ministry of Mines and Energy (MME), via 2010). This product is widely used in chemical
Petrobras, control the whole contractual system industry as raw-material (Pereira and Andrade,
between biodiesel producers and fuel blenders. 1998), feeding in special formaldehyde production
Concerning to industrial aspects, MME apply its process. Cummins et al. (2010) and the Brazilian
control through the National Agency of Agency of Industrial Development (2012) say that
Petroleum, Natural Gas and Biofuels (ANP). This formaldehyde is basic raw-material used in the
agency takes care of aspects related to production of common products such as particle
specification, quality, biodiesel x diesel boards, medium density fiberboard, plywood,
mandatory blending attendance, among others. paints, foams, rubbers, solvents, fuels and
With regard to the social aspect, exclusive of pesticides. In addition to the applications
Brazilian biodiesel industry comparing with the mentioned above, it might be pointed out other
similar from other countries, the Ministry of kind of application as additives for gasoline,
Agrarian Development (MDA) names through the solvents and anti-freezes, or in the biodiesel
Fuel Social Stamp those companies that are small production process (IEA-ETSAP, 2013).
farming friend. The figure below illustrates the In 2012 global methanol production was
Brazilian biodiesel supply chain. about 45 million ton, strongly based on fossil
fuels, mainly natural gas (IEA-ETSAP, 2013).
Figure 1. Brazilian biodiesel supply chain. However, this product may also be produced from
MME, MDA and
REGULATORY ENVIRONMENT –other carbon-containing feedstock such as biogas,
ANP biomass, waste streams and CO2 (IEA-ETSAP,
2013). Coal is pointed out as an important raw
Raw-material for methanol production as well (EPA,
material 2010; National Energy Technology Laboratory,
supplier
A 2014).
According to Dolan (2013), geographical
Inputs Biodiesel concentration of methanol production plants
suppliers plant Petrobras changed drastically from 1999 and 2010.
Production capacity in North America and
Fuel Blenders Western Europe fell down from 13,3 million ton
Services in 1999 to just 900.000 ton in 2010. In the same
providers time, still according to Dolan (2013), production
capacity jumped from 13,1 million ton to over 24
Source: elaborated by the author. million ton in South America, mainly in Trinidad
and Tobago and in the Middle East. However,
In this paper it will be focus the relationship nothing is similar to the increase in production
between biodiesel plants and their input suppliers, capacity seen in China. From 1999 to 2011,
highlighted above by the green dashed line (letter Chinese production capacity grew up from 1,2
A). Specifically, it will be approached the million ton to roughly 40 million ton (Dolan,
strategies that the formers adopt to manage the 2013). This movement was driven by the fast
supply of one of the most important inputs to the increase in natural gas feedstock costs in the
production: methanol. According to primary data, pioneering industrial regions.
methanol corresponds to 60% of the total inputs Farias (2014, p. 54) says that Brazil is a net
used in biodiesel production or 8,5% of total importer of methanol by having a demand of
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 35
952.000 ton versus a production of 206.000. production. It is remarkable the importance of this
According Rodrigues (2011) and the National input to biodiesel production. Table below shows
Agency of Petroleum, Natural Gas and Biofuels the estimated consumption of methanol by
(2012), the annual production capacity of the biodiesel industry and total demand vis-a-vis
country in 2012 was 309.500 ton divided amongst internal production and imports of this input.
three companies, namely GPC Química (220.000
ton), Companhia Petroquímica do Nordeste
(2008 to
(COPENOR) (82.500 ton) and Vale Fertilizantes Table 2. Methanol Supply and Demand in Brazil –
and participation of biodiesel in total demand.
(7.000). Interviewees consulted during primary 2013) –
data collection process confirmed that national Item 2010 2011 2012 2013
production capacity has not changed from 2012 to Internal 206.000 206.000 206.000 206.000
2015. According to the Ministry of Development, Production t t t t
Industry and International Trade (2016), it was 563.193 671.428 637.869 750.338
mports
imported in 2015 US$ 288.374.778,00 or almost It t t t
842.000 ton. Still according to that Ministry, from Total 769.193 877.428 843.869 956.338
this total, 353.574 ton was brought from Trinidad Supply t t t t
and Tobago, 152.324 ton was shipped from Total 769.200 877.400 843.600 952.800
Venezuela and 143.700 ton was imported from Demand t t t t
Chile. The three countries latter mentioned have Net result
-7 t +28 t +269 t +3.538 t
production plants of two of the biggest players in (supply –
the global market, namely Methanex and demand)
Mitsubishi. Figure below brings participation of % Biodiesel
n total 27% 27% 28% 27%
the main supplier countries in Brazilian exports oDemand
since 2010 Source: adapted from and Farias (2014), National Agency of
Petroleum, Natural Gas and Biofuels (2016) and the
Figure 2. Main Brazilian methanol suppliers (2010 – 2015) Ministry of Development, Industry and International Trade
in ton. (2016).
600.000,004.3 How do biodiesel companies manage
500.000,00methanol supply chain?
400.000,00
The huge amount of methanol used to feed
300.000,00biodiesel industry comes from Santos (SP) and
200.000,00Paranaguá (PR) ports. It means that the most part
of this input is brought from international markets.
100.000,00Some exceptions are seen in the case of biodiesel
-producers placed in North and Northeast Brazil
201020112012201320142015that take methanol from domestic suppliers as
ChileVenezuelaCopenor in Camaçari (BA). These biodiesel
Trinidad and TobagoSaudi Arabiaplayers are PBio (Bahia), PBio (Ceará) and
Oleoplan (BA). The following discussions will be
European Union (EU)
focus on the contractual relationship between
Source: adapted from the Ministry of Development, Industry
and International Trade (2016). biodiesel players and methanol suppliers import
this input through the two ports above pointed out.
The Methanol Institute (2013) shows that it Five important companies prevail in
is needed around 10% of methanol to produce Brazilian methanol supply chain dedicated to
100% of biodiesel. Taking into account that in biodiesel production, namely Methanex,
2015 biodiesel plants sold 4.054.667 m³ of Mitsubishi, QuantiQ, Tricon Energy and Copenor.
biodiesel to meet internal market demand and The two former companies are two of the most
considering the methanol yield above mentioned, important methanol producers and trading
it is possible to deduce that it was used around company globally. QuantiQ is a Brazilian trading
356.810 ton of this product only to feed biodiesel owned by Braskem holding. This company
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 36
operates methanol only in Brazil. Tricon Energy is of this important input. To deal with this, a
a global trading company focused on biodiesel player has basically two options: a)
Petrochemical products, among them methanol. Buying methanol via long-term contract or b)
This company don’t produce methanol. And Buying methanol in the spot market. Eventually, a
Copenor, as per mentioned, is a Brazilian biodiesel player might mix both strategies, but, in
producer. In Paranaguá (PR) and Santos (SP) this case, long-term contract sellers tend to
ports they operates with their own product increase the parameters used to build de price. In
produced in Camaçari (BA) or with imported this case, then, methanol price get higher. This
product. mixed strategy is not common.
Methanex, the world’s largest methanol In a long-term contract, offered by
producer and supplier (Methanex, 2014; methanol Methanex and Mitsubishi, a biodiesel player finds
institute, 2015), makes business in Brazil only in supply safety. As both companies have facilities
two ways: a) selling in the spot market through in South America and have good tank space in the
intermediate players/distributors companies, like port, they may give the purchases this guarantee.
QuantiQ and Copenor, or b) selling via long-term These contracts might have from one to three
contract directly to the biodiesel producer. In the years duration. Sale price is defined by a formula
first option, the intermediaries are responsible for that takes into consideration an international price
all customs procedures to nationalize product in reference plus international logistics and port
Brazil and make it free for loading by biodiesel costs.
purchasers. In the second option, Methanex In the spot market, biodiesel players have to
deliver the product inside tanks rented by itself be in straight contact with the suppliers to
and the biodiesel player takes care on the customs understand product availability and to try to catch
procedures. some opportunity to buy a lower-price product as
On the other hand, Methanex’s most well. The critical point here is supply safety. An
important competitor, namely Mitsubishi, offers important event that happened first half 2015 may
the two ways of commercialization as Methanex illustrate this point: in April 2015, an Ultracargo
does, but, in case of spot market, with no liquid terminal burned on fire in Santos due to and
intermediaries. Mitsubishi, differently from leakage. This incident caused serious damage to
Methanex, has a subsidiary in Brazil. It allows the the supply of methanol to biodiesel industry. In
company to deal by itself the full custom that case, those who were used to operate in spot
procedures and deliver product nationalized to the market suffered with supply chain disruption,
biodiesel producer. while those that held long-term contracts had their
QuantiQ, Tricon Energy and Copenor only flows kept by product coming from Paranaguá
offer product in the spot market. Being (PR).
Methanex’s distributor, QuantiQ and Copenor An important competitive advantage of
count with huge confidence in terms of supply operating in spot market is, undoubtedly, the
guarantees. On the other hand, Tricon Energy is a capacity to get very good opportunities in prices,
pure trading company with no liaison with mainly playing with competitive suppliers as
methanol’s suppliers. This company tries to catch Tricon Energy. But, on the other hand, if biodiesel
purchase opportunities in the Middle East and player chooses this way, it is necessary to bear in
Asia and bring this product to Brazil. If in one mind that it needs both good tank storage capacity
hand they are very competitive in prices, on the and an accurate logistics planning and execution.
other hand they eventually might disrupt methanol Figure below shows possible contract’s flows
supply in Brazil due to problems on the from biodiesel player’s point of view.
origination side.
The annexes 1 and 2 brings in a Figure 2. Possibilities of contract per supplier.
systematically way each of the mentioned
companies work and a scheme that shows how
Methanex
each of the companies manages their methanol
supply chains
It is in that methanol supply scenario that a Long-term
ontract
biodiesel producer has to manage the supply chain c
Supply safety
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016.
Mitsubishi
Biodiesel
Player
Mitsubishi 37
or another depending on their interests and needs.
Methanex and Mitsubishi have very similar
ways to manage business in Brazil. Both work
with the two commercialization modalities. The
erence between them is that the former doesn’t
diff
have subsidiaries in Brazil and, because of that,
only deals in the spot market via distributors and
the latter do have subsidiary in the country. It
means that Mitsubishi is ready offer nationalized
product to purchasers when the sale is done in the
spot market, while Methanex has to use QuantiQ
or Copenor to participate in this modality.
Both purchasing modalities have pros and
cons. Buying in a long-term contract will give to
Source: elaborated by the author. biodiesel producer the guarantee of supply.
5 Conclusion Mitsubishi and Methanex are two of the largest
methanol producers worldwide. This position
This paper aims to discuss the ways that gives them flexibility to bring product from a set
biodiesel producers manage the supply chain of of facilities. If safety is guaranteed, it is not
methanol, an indispensable input obtained almost possible to say the same about competitive prices.
exclusively through importation. To do so, it was On the other hand, operating in the spot market
firstly described the biodiesel supply chain and gives to the biodiesel producer the possibility of
secondly clarified the main metanol’s origins, getting better prices. Tricon, for example, use its
applications and markets. It was employed know-how as petrochemical trading company to
qualitative research methodology to perform the find out cheaper methanol resources all around the
analysis of data collected in two collection world and offer its product to the Brazilian
procedures steps: active observations and semi-biodiesel companies. In this case, biodiesel
structured interviews. producer must be aware about the eventual supply
Methanol is an important input to biodiesel disruption risk and execute a diligent supply chain
industry. It represents 60% of cost spent with management to avoid this situation.
inputs and 8,5% of total variable costs. This This paper brings to the light the approach
numbers show the importance of this input that is of supply chain management and supply chain
almost totally imported. Biodiesel companies have disruption to an industry that is poorly explored
to be diligent on supply chain management to on this: Brazilian biodiesel industry. Other inputs
avoid supply disruption or glitches (Cousins et al. and even raw-materials would be approached in
2004; Hendricks and Singhal, 2005b; Ouabouch the same conceptual background, but none of
and Paché, 2014). Hendricks and Singhal (2005a) them would represent in the clearest way the risks
highlight the importance of a diligent supply chain of disruption in supply chain than methanol. This
management saying that supply chain glitches can input arises with two important issues: it is
lead to loss in sales and market share, lower sales essential and cost-representative to the biodiesel
price due to markdowns of excess inventories and industry and it is almost fully imported.
could prevent the firm from capitalizing on strong Studies that address discussions on supply
market demand due to unavailability of products. chain management and supply chain disruption on
It was identified basically two ways to the sort of raw-material used to feed biodiesel
purchase methanol in Brazil: a) via long-term industry would help to evolve supply chain
contracts or b) in the spot market. Five companies management and supply chain risk management to
are on the spotlight when the subject is methanol this important industry in Brazil. In the same way,
supply to Brazilian biodiesel industry: Methanex, studies that address deeply the origins,
Mitsubishi, Tricon Energy, QuantiQ and Copenor. applications and global flows of methanol would
These companies have different ways to act in the help to discuss the risks involved with this input
Brazilian methanol market. These differences will not only in the Brazilian biodiesel industry, but in
induce biodiesel producers to purchase from one other important sectors as well.
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 38
Análise dos direcionadores de competitividade
6 Implications and Further Research sobre a cadeia produtiva de biodiesel: o caso da
497.
mamona. Produção, 21(3), 484–
Academically, the findings of this study http://doi.org/10.1590/S0103-
contributes to add one more piece on the concept 65132011005000039
of supply chain management regarded to biodiesel
industry. Studies on this industry having SCM as
theoretical background are much more focused in Choi, T. Y.; Dooley, K. J.; Rungtusanatham,
raw material supply chain issues, putting aside the M. (2001). Supply networks and complex
important strategic group of inputs supply. adaptive systems: Control versus emergence.
This paper also brings important Journal of Operations Management, (19)3, 351-
contribution to the professionals that deal with 366.
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operations, it is important to have a better networks: theorizing buyer-supplier-supplier
understanding on how methanol supply chain is relationships. Journal of Supply Chain
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deal with Merger and Acquisitions (M&A) in Cousins, P. D.; Lamming, R. C.; Bowen, F.
companies that are willing to embark in biodiesel The role of risk in environment-related supplier
market, this work may be helpful in addressing in initiatives (2004). International Journal of
details the risks and traps of inputs strategic Operations & Production Management, (24)5,
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Annex 1. Features of the main methanol suppliers to Brazilian biodiesel market.
Methanol Supplier Main features How does each company manage supply Advantages Disadvantages
chain?
Largest world’s producer and supplier.
Strong position in South America due to its
Methanex industrial plant in Chile and in Trinidad and Operates in spot market via distributors or in a) Guarantee of supply. Prices are not very
Tobago. long-term contracts directly with end-users. competitive.
Doesn’t have subsidiary in Brazil.
One of the largest world’s producer and
suppliers.
Mitsubishi Strong position in South America due to its Operates in spot market or in long-term a) Guarantee of supply. Tough process of credit
industrial plant in Venezuela and in contracts with end-users both directly. analysis.
construction plant in Trinidad and Tobago.
Holds a subsidiary in Brazil.
QuantiQ National company that deal with methanol 100% Methanex distributor a) Guarantee of supply. Prices are not very
exclusively in Brazil. competitive.
International trading company that trading
petrochemicals and fuels globally, among them Looks for purchasing opportunities all
Tricon Energy methanol. around the world, mainly Middle East and a) Prices are competitive. Risk of disruption in
Asia, and ship the product to Brazil. supply.
Does not have industrial plant.
It may operates both sides, i.e., distributing
its own methanol (generally in North and a) Prices are competitive.
Copenor Brazilian methanol producer. Northeast Brazil) and distributing
Methanex’s methanol via Paranaguá and b) Guarantee of supply.
Santos ports.
Source: elaborated by the author.
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 42
Annex 2. Methanol supply chain focused on Brazilian biodiesel industry.
Source End clients
Mitsubishi
Via Paranaguá/Santos port
Main production Methanex
Copenor
Brazilian biodiesel
Middle East QuantiQ
market
Tricon Energy
Asia
Source: elaborated by the author.
Revista de Negócios, v. 21, n. 1, p. 31- 43, January, 2016. 1
An organizational perspective of values
Fern
anda Geremias Leal¹ Mário César Barreto Moraes ²
Universidade do Estado de Santa Catarina –
UDESC - fernanda.leal@ufsc.br
Universidade do Estado de Santa Catarina – UDESC - mestrado.esag@udesc.br
KEYWORDS ABSTRACT
Values, The studies on organizational values have acquired centrality in the Business
Administration field within a functionalist perspective, based on the evidence that
Organizational values, organizations with strong cultures achieve better global results. The belief in the
potentiality of this resource, especially in regard to behavior alignment aimed for goal
Organizational culture. achievement, has prompted the quest for a theoretical structure of the concept and
development of different ways of assessment. More contemporary perspectives,
Received 15.09.2016
Revised 20.09.2016 however, have come across significant constraints within the existing framework,
Accepted05.10. 2016 especially the ones that disregard the dynamics of this concept. Such views provoke
ISSN 1980-4431 debates about the practical capacity of the instruments used for assessing the basis of
values that govern organizations. The present study seeks to present a contemporary
Double blind review theoretical review on organizational values. Methodologically, it is a qualitative study
that brings back to light the theory of value and its applicability to the organizational
sphere, based on a survey of a literature review of empirical articles published on the
subject between the period of 2000 and 2016.
1 Introduction
The studies of values do not constitute ENZ, 1986). This way, the literature
themselves as recent in organizational theory. considers that an appropriate combination of values
From the late 1970s an increasing interest in the will influence the level of results of organizations
subject has been noticed, which is directly related significantly, being an alternative to bureaucratic
to the popularization of works on organizational control (BOURNE; JENKINS, 2013;
culture conducted by Pettigrew (1979), Hofstede MALBASIC; REY; POTOCAN, 2015).
(1981), Schwartz and Davis (1981), and Schein Conceived as the cornerstone of
(1985, 1990, 1999). organizational culture (DEAL; KENNEDY, 1982),
The underlying assumption is that organizational values have acquired centrality in
organizations with strong cultures achieve better Management area within a functionalist
global results (COLLINS; PORRAS, 1996; perspective. From the theoretical structures of
STRIDE; HIGGS, 2014). Just like personal values individual human values and cultural values, one of
guide actions and individual judgments, which is the proposal by Rokeach (1973) and, more
organizational values play a relevant guiding role recently, Schwartz’s models (1992-1999), a
in the function of organizations. significant number of researchers has focused on
Apart from expressing the justifications and the construction of assessment instruments of the
more generalized ideological aspirations, they intrinsic values to organizations. On an
represent an integrating element as they are shared international level, there is some outstanding
among their members (KATZ; KAHN, 1978; development of scales such as the Organizational
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 45
Culture Profile (OCP), by O’Reilly, Chatman and Another common form of assessment of
Coldwell (1991); Competing Values Framework organizational values is the one based on
(CVF), by Cameron and Quinn (1991) and managers’ perception, by the consensus that they
Organizational Values Questionnaire (OVQ), by have strong influence over the prevailing values
Reino by Vadi (2010). In Brazil, the Inventário de and culture in organizations (SCHEIN, 1985), due
Valores Organizacionais (IVO), by Tamayo, to their ability to judge espoused values, as well as
Mendes and Paz (2000) and Inventário de Perfis de shared ones (BOURNE; JENKINS, 2013). Such
Valores Organizacionais (IPVO), by Oliveira and are the cases of researches carried out by Helmig,
Tamayo (2004) are the scales most largely used for Hinz and Ingerfurth (2014), on hospital managers
this purpose. in Germany; by Leung and Chartuvedi (2011), on
An analysis of the national and international high-tech company managers in Singapore; and by
empirical articles on the subject, published Day and Hugson (2011), on north-American small-
between 2000 and 2016, allowed the inference that business managers.
the most recurrent interest in such issue has been Therefore, it is known that organizational
the assessment of the level of rapport between values have been studied in governmental, private
individuals in organizations, becoming a general and third-sector organizations of different areas
consensus to call it Person-Organization fit (P-O and in relation to different constructs. In general,
fit) (KRISTOF, 1996; CABLE; EDWARDS, 2004; investigations do not seek to assess organizational
DE CLERCQ; FONTAINE; ANSEEL, 2008). In values per se, but they aim at assessing their impact
order to apply P-O fit, the same instrument is in relation to other relevant phenomena in the
answered twice by the members of organizations, function of the organization. And, as concluded by
through which they first describe the important Bourne and Jenkins (2013, p. 496), “values have a
values for themselves and then, a second time, they long reach and a wide span of influence on critical
mention the values they find relevant to the processes and characteristics in organizations”.
organization they work at. Despite the interest in the subject and
Other constructs constantly related to existence of a significant number of empirical
organizational values are productivity and researches, there are not sufficient, especially in
performance, as shown in the research by Dobni, national context, studies that are concerned about
Ritchie and Zerbe (2000), Henri (2006), Leung and providing a theoretical thought on inherent
Chaturvedi (2011); Melo and Domenico (2012); dynamics of this concept and consequent
Yusof and Jamil (2013) and Riveira, Domenico and possibility that the adopted theoretical
Sauaia (2014); resistance to change, as shown in constructions used for its assessment may be
the research by Neiva and Paz (2012), Johansson et limited. Likewise, such studies do not seem to
al. (2014) and Towne Jr. et al. (2015); and consider the existence of an alternative model of
compromise and engagement at work, as shown man, one that questions the legitimacy of
in the research by Vuuren et al. (2007), Natarajan functional rationality within organization spheres
(2012), Sortheix et al. (2013) and Stride and Higgs and, thus, bring about embarrassment as for the
(2014). concrete possibilities of behavior alignment
Complementary studies aim at comparative according to standard instruments.
analyses among existing values in different types Under this scenario, the present study seeks
of organizations. Such are the cases of, for instance, to present a contemporary theoretical review on
Porto and Tamayo (2005), that investigate the organizational values. Methodologically, it is a
relationship between organizational values and qualitative study that brings back to light the theory
civics in two governmental companies, a private of values and its applicability to the organizational
one and a Brazilian cooperative; by Van Der Wal, sphere, based on a literature review of empirical
Graaf and Lasthuizen (2008), that comparatively articles published on the subject between the period
assess organizational values of different of 2000 and 2016.
governmental and private organizations in Specifically, the research surveyed a
Holland; and by Glomseth and Gottschalk (2009), literature review of national and international
that look into the differences in organizational empirical articles on Portal Capes and the
values of criminal investigation and antiterrorism electronic library Spell, with time restriction
police stations in Norway. including only the years between 2000 and 2016,
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 46
and which allowed the identification of 54 the populations under scrutiny. Rokeach (1973), in
quantitative studies on the subject, of which 15 particular, was the one who provided the first most
were national and 39, international. relevant data to the theory of values, with
systematic studies of the phenomenon and
2 Theoretical framework establishment of the connection between values
and behavior and the causes of value changes. The
2.1 Values author developed The Value Survey instrument,
which can assess 18 values considered terminal
The first significant contributions to the (such as liberty and equality), with all the refined
functionalist theory of values were provided by the and tested categories for its purpose of reliability
work “Towards a General Theory of Action”, and validity (ROKEACH, 1973; DE CLERCQ;
published in 1951 by sociologists, psychologists FONTAINE; ANSEEL, 2008; MALBASIC; REY;
and social anthropologists. Some authors such as POTOCAN, 2015).
Kluckhohn (1951) and Parsons and Shils (1951), For Rokeach (1973), values are durable
particularly, provided fundamental elaborations of beliefs about abstracts of existence or specific
the construction of the concept. Such conceptions forms of social behavior. In his words
are to do with the aspirational that influence human (ROKEACH, 1973, p. 5), the concept refers to the
choice. Based on that, life would hardly be "enduring belief that a specific mode of conduct or
possible without common social values: there are end-state of existence is personally or socially
value systems in society or in individuals to which preferable to its opposite". Therefore, in his
fidelity is expected (SPATES, 1983). perception, the knowledge of an individual’s
The perception that the institutionalization of values will make it possible to predict how he will
values within a group produces a ‘perfect’ social behave in experimental situations and real life.
effect has led to the objectification of the concept Schwartz and Bilski (1987, p. 551), on their
as a conditioning of a certain society. Its main turn, have conceptualized values as “(1) concepts
characteristics under this particular formulation or beliefs, (2) pertain to aspirational end states or
were the hierarchical organization and limited behaviors, (3) transcend specific situations, (4)
variability, which distinguished norm values guide selection or evaluation of behaviors and
related to specific situations and functions. This events, and (5) are ordered by relative importance”.
way, values were supposed to be abstract concepts A more contemporary definition is given by
that, from a systematic orientation, would provide Bourne and Jenkins (2013, p. 497), to whom values
reference to thought and action (SPATES, 1983). are “enduring beliefs that are personally or socially
In regard to the relevance of the studies on preferable to converse beliefs, which transcend
values carried out back then in order to understand specific situations, and which guide selection or
human orientation, the high level of abstraction of evaluation of behavior”, referring to, thus, what
the concept, the deductive imposition and lack of really matters to people’s lives. Each individual has
empirical support led to a kind of atrophy of its different values with different levels of relevance,
interest in the 1960s. The empirical works that in a way that a specific value may be important for
provided interesting data, but were hindered by its one person but irrelevant for another.
own nature ad hoc and by idiosyncratic Schwartz (1992), responsible for the Theory
construction of the adopted methods, which of Universal Basic Human Values, largely used
constrained systematic comparison of the nowadays, presents six fundamental characteristics
developed studies, were what have kept the field of for values, which are equally implicit in the
research alive up until mid-1970s. No work sought definitions of different theoreticians: (1) values are
to, in any way, interconnect with existing intrinsic beliefs to affection. When activated, they
theoretical approaches. As a consequence, the mix in with feelings; (2) values are related to
derived data were merely descriptive (SPATES, aspirational aims that motivate action; (3) values
1983). transcend actions and specific situations, becoming
A revitalization of the field took place in the different from norms and attitudes; (4) values can
1970s with the studies by Rokeach (1973) and be used as standards or criteria, in a way that people
Kohn (1977), who made an attempt to construct make their decisions based on possible
their assessment based on the data collected from consequences for their values; (5) values are
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 47
established according to their value in relation to Source: Elaborated by the authors based on Schwartz (1992)
others. Thus, a person’s values make up a set of and De Clercq, Fontaine & Anseel (2008).
priorities that characterize one as such; and (6)
relative importance of multiple values guides The values described in Table 1 fit in two
action (SCHWARTZ, 1992, 2012). dimensions and four moral typologies: open to
changes versus conservatism and self-
Schwartz’s (1992) theoretical construction
deals with basic values that people from all cultures transcendence versus self-realization. While some
recognize. According to the author, they are of the values are compatible (with conformity and
considered universal because they meet at least one security) and are found horizontally, others are
of the three basic needs of human existence: adverse (such as benevolence and power) and are
biological needs; social interaction needs and found transversally, which produces conflict for
institutional and social needs aimed at the welfare the individual. This dynamic relationship that is
of groups. Based on Rokeach (1973) and on two established among different types of values is
scales – Schwartz Value Survey (SVS) and Portrait illustrated by the continuum of Figure 1:
Value Questionnaire (PVQ) – applied in samples in
82 countries, Schwartz (1992) identified ten Figure 1. Universal basic human values
different types of motivational values1, defined as
shown in table 1:
Table 1. Definition of the motivational types of values
identified by Schwartz (1992)
Objective Definition
Universalism Understanding, appreciation,
(welfare of all) tolerance, and protection for the
welfare of all people and nature.
Benevolence Preservation and enhancement of the
(welfare of close welfare of people with whom one is
others) in frequent personal contact.
Tradition Respect, commitment, and
(commitment to acceptance of the customs and ideas
tradition) that traditional culture or religion
provide the self.
Conformity Restraint of actions, inclinations, and
(social impulses likely to upset or harm Source: Adapted by Schwartz (1992).
expectations) others and violate social expectations
or norms.
Security Safety, harmony, and stability of It is important to mention that social groups
(safety and society, of relationships, and of self. have different hierarchy of values. For Schwartz
authority) (1999), individual values distinguish themselves
Power Social status and prestige, control or from the cultural ones, once the value priorities of
(wealth & dominance over people and an individual are the product of the shared culture
authority) resources.
Achievement Personal success through and of singular personal experience, whereas
(personal and demonstrating competence cultural values help society build the contingencies
organizational according to social standards. to which people should adapt to. Bourne and
success) Jenkins (2013) demonstrate that the standards of
Hedonism Pleasure and sensuous gratification decision of an individual may vary according to the
(pleasure) for oneself.
s. In Rohan word’s (2000, p.
Stimulation Excitement, novelty, and challenge context in which he i
(excitement & in life. 266), the difference between values among people
novelty) and the various groups to which they belong show
hat they “must decide whether to behave in line
Self direction Independent thought and action: t
(freedom & choosing, creating, and exploring. w
ith others’ expectations, consistent with social
independence)
1
More recently, Schwartz (2012) refined his theory to 19
values and, nowadays, he recommends the use of the Portrait
Values Questionnaire – Revised (PVQ-Revised).
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 48
value priorities, or their own value priorities”. This justifications and ideological aspirations, as well as
is due to the fact that in specific contexts values are they determine which actions and objectives are
subject to judgments. preferred in comparison to alternative actions and
One of these specific contexts in which objectives (KATZ; KAHN, 1978; ENZ, 1988).
values are structured is the organizational. That is, they provide implicit norms regarding how
Malbasic, Rey and Potocan (2015) note that the members of organizations should behave
organizations per se do not hold any values, but, themselves and how organizational resources
instead, they are made up by humans whose values should allocated (EDWARDS; CABLE, 2009).
shape them. Oliveira and Tamayo’s (2004) Organizational values are, thus, “a form of
research demonstrated that the structure of consensus regarding the values that a social group
organizational values correspond to the structure of or organization consider important for its aims and
personal values proposed by Schwartz (1992). collective welfare” (BOURNE; JENKINS, 2013, p.
Based on such grounds, it is possible to claim that 497). They are stables and durable, neither totally
an organization will be based on the values of fixed because there would be no possibility of
society and its members, especially on the founders change, or very fluid because there would be no
and those who hold more power and influence continuity, and they are particularly connected with
(TAMAYO, 2007). cultural and institutional phenomena (BOURNE;
JENKINS, 2013).
2.2 Organizational values In considering that individuals tend to select
groups with similar values to theirs, the same way
The literature considers that organizational as they avoid different values (SCHNEIDER;
values are the cornerstone of organizational GOLDSTEIN; SMITH, 1995), an emerging
culture. Kroeber e Kluckhohn (1952, p. 181) concern in this respect is the level of adaptation or
define organizational values as “made up by compatibility of individual values to organizational
implicit and explicit standards and by the behavior values, what has become a consensus to call it
acquired and transmitted by symbols, which will Person-Organization fit or P-O fit. According to De
constitute the distinct performance of different Clercq, Fontaine and Anseel (2008), many
groups, including the materialization of its researchers have studied this phenomenon aiming
artefacts”. Both authors add that “the essential core at understanding and predicting workers’ attitudes
of the culture consists of traditional ideas and and actions in their organizations.
especially its adjacent values. The cultural systems Kristof (1996) argues that the compatibility
may, on the one hand be considered as products of between people’s values and those of the
actions, and on the other hand as conditioning organizations occurs when at least one of these
elements of future actions” (KROEBER; entities provides what the other needs, when they
KLUCKHOHN, 1952, p. 181). share similar fundamental characteristics or when
Schein (1985), in turn, argues that the both situations occur. Within this perspective, a
cultural analysis of a group or organization requires high level of compatibility between values
the distinction between three fundamental levels in correlates positively with other significant variable
which culture is expressed: its noticeable artefacts; to the organizational performance, such as work
its basic adjacent assumptions and its values. satisfaction, identification and compromise
Therefore, organizational culture becomes a (BORG et al., 2011).
determinant as to the compromise with There is, therefore, a relationship between
productivity and longevity of an organization organizational values and control. Shared values
(O’REILLY; CHATMAN; COLDWELL, 1991). are characterized as an integrating element that is
Organizations with a strong culture – whose values capable of providing stability and consensus, as
are shared by its members – tend to achieve better they guide conveniently both behavior and action
global results (COLLINS; PORRAS, 1996; (KATZ; KAHN, 1978; MARTIN, 1992). In this
STRIDE; HIGGS, 2014). sense, the conformity of members with
The same way personal values guide actions organizational values allows for the creation
and individual judgments, organizational values among themselves similar mental models in regard
play a relevant guiding role in the function of to the function of the organization, the same way it
organizations (SCHEIN, 1985). They express avoids the expression of different perceptions
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 49
which would result in repercussion for their most largely adopted were the Organizational
behavior. As argued by Ouchi (1980, p. 138), Culture Profile (OCP), by O’Reilly, Chatman and
Coldwell (1991); Competing Values Framework
Common values and beliefs provide the (CVF), by Cameron and Quinn (1991) and
harmony of interests that erase the possibility of Organizational Values Questionnaire (OVQ), by
opportunistic behavior. If all members of the Reino and Vadi (2010). In Brazil, the Inventário de
organization have been exposed to an Valores Organizacionais (IVO), by Tamayo,
apprenticeship or other socialization period, then Mendes and Paz (2000) and Inventário de Perfis de
they will share personal goals that are compatible Valores Organizacionais (IPVO), by Oliveira and
with the goals of the organization. In this condition, Tamayo (2004) are the ones mostly adopted.
auditing of performance is unnecessary except for Another possible inference to draw was that
educational purposes, since no member will the most recurrent interest has been in P-O fit
attempt to depart from organizational goals. (KRISTOF, 1996; CABLE; EDWARDS, 2004;
DE CLERCQ; FONTAINE; ANSEEL, 2008). In
Based on this author’s view, such order to assess it, the same instrument is answered
institutionalization of values allows that the twice by the members of organizations, first they
organization survives even under conditions that describe the important values for themselves and
seriously limit its capacity of rational control, secondly they inform the ones relevant for the
which comes as an alternative to bureaucratic organization they work at.
control. As Bourne and Jenkins (2013) recognize, Other constructs constantly related to
in practice, organizational values are more and organizational values are productivity and
more used for stimulating or reinforcing behavior performance, as in the researches by Dobni,
alignment as a kind of normative control, which Ritchie and Zerbe (2000), Henri (2006), Leung and
raises a number of questions around efficiency and Chaturvedi (2011); Melo and Domenico (2012);
ethics. Yusof and Jamil (2013) and Riveira, Domenico and
The research on organizational values Sauaia (2014); resistance to change, as in the ones
has been carried out through three main strategies by Neiva and Paz (2012), Johansson et al. (2014)
(TAMAYO, 2007). The first one, of a qualitative and Towne Jr. et al. (2015); compromise and
nature, is carried out based on the analysis of the work engagement, as in the ones by Vuuren et al.
contents of the organization documents, aimed at (2007), Natarajan (2012), Sortheix et al. (2013) and
identifying espoused values. This is, however, a Stride and Higgs (2014).
limited approach, once the values stated in the Complementary studies aim at comparative
documents may not be found in the organization analyses among existing values in organizations of
praxis or in the individual’s mind. The second one different natures. Such are the cases of Porto and
uses the average of personal values as an estimate Tamayo (2005), who investigated the relationship
for organizational values. However, the among all types of organizational values and civics
incompatibility is frequent between personal and in two governmental companies, a private one and
organizational values, in such a way that the a Brazilian cooperative; by Van Der Wal, Graaf
obtained results cannot express accurately the and Lasthuizen (2008), who comparatively
organization’s values. A third access way to assessed organizational values of different
organizational values is through workers’ governmental and private organizations in
perception about existing and practiced values in Holland; and by Glomseth and Gottschalk (2009),
the organization. Within this realm, the access is who look into the differences in organizational
mainly through managers, considering they have values of criminal investigation and antiterrorism
strong influence over prevailing values in police stations in Norway.
organizations (SCHEIN, 1985). The assessment of organizational values
ased on managers’ perception is also frequent.
b
2.3 Empirical studies of organizational This type of assessment is done by the consensus
values that managers have a strong influence over
prevailing organizational values and culture. Such
From the analysis of the articles that were the are the cases of researches carried out by Helmig,
objects of this study, we verified that the scales Hinz and Ingerfurth (2014), with hospital managers
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 50
in Germany; by Leung and Chartuvedi (2011), with representation, but partial of the values that
high-tech companies’ managers in Singapore; and constitute organizations, for temporal orientation,
by Day and Hugson (2011), with North-American as well as for the level of analysis. Therefore,
small-business managers. conceiving each type individually as representative
Therefore, organizational values are found to of organization values implies significant
be studied in governmental, private and third-limitations, whereas their integration offers a more
sector organizations of different areas and in complete and realist perspective for the subject
relation to different constructs. In general, the study. Table 3, elaborated based on Bourne and
investigations do not seek to assess organizational Jenkins (2013), shows the main characteristics and
values per se, but to assess its impact in relation to limitations of the types of organizational values.
other relevant phenomena in the function of the
organization. As stated by Bourne and Jenkins Table 3. Forms of organizational values according to Bourne
(2013, p. 496), “values have a long reach and a & Jenkins (2013)
wide span of influence on critical processes and Forms of Description Limitations
values
characteristics in organizations”. However, as De
poused Values formally Organizational
Clercq, Fontaine and Anseel (2008) reflect in their Esespoused by values would be the
analysis of the assessment models P-O fit, a careful managers outcome of cognitive
tyles and managers’
examination of the literature reveals some through oral or s
fundamental limitations, and most of them are written bias. However, such
related to how researchers have looked into the statements and values are not
cuments; they necessarily shared
congruence of values. doare explicit with members of the
This outlook implies skepticism and organization.
confusion in regard to research on values, which is Attributed Values that They are based on
intensified by the large number of definitions and members repeated standards of
instruments used for their assessment. This attribute to the actions and
rganization decisions. Therefore,
implication results in the use of different value obased on they do not
dimensions and makes it difficult to a universal standards of encompass future
reapplicability (BOUCKENOOGHE et al., 2005). actions they projections and may
The theoretical thought of Bourne and Jenkins observe on a not characterize the
(2013) reveals that a significant part of existing regular basis. organization.
embersmay
approaches ends up conceiving the phenomenon a Madresses values they
single entity as stable and totally formed, which do not necessarily
hinders the empirical and theoretical dialogue and, share.
thus, the practical capacity of these instruments to Shared Values that They are based on
assess the value basis that guide organizations. members share. the conception that
hey are usually member’s personal
Therefore, based on the theoretical models most T
able to identify values may be
realist to organizational praxis can be inferred that common adjusted through
they should consider the inherent dynamics to organizational socialization and that
values, as well as the influences of asymmetric values, at least divergent interests
relationships of power that are established within the ones may be minimized.
elonging to However,
this realm. b
their work asymmetric power
groups. relations are
2.4 A contemporary perspective of disregarded and that
organizational values there may not be
common values
hared by members,
A careful examination of the studies s
especially in big
on organizational values demonstrates that they can organizations
take four different forms and, still, they can guide Aspirational Values members They may signal for
members of an organization regarding selection think that the a rupture with the
and behavior assessment (BOURNE; JENKINS, organization historical standards,
2013). Each one of these values – espoused; should adopt in but they are on the
order to succeed level of members and
attributed; shared; and aspirational – is a valid in the long term may not necessarily
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 51
sanction by institutionalized places. For managers, this is a
managers.
desirable chart, because it reflects positive and
Source: Elaborated by the authors based on Bourne & Jenkins negative aspects for the organization and it reduces
(2016). the need for normative control. However, this same
Within a dynamic perspective, these four chart is not so desirable because diversity can be
types of values are aligned according to how they reduced, it implies little motivation to challenge the
are oriented towards past standards or a desirable basis of decision and action and it raises difficulties
future and according to how collective they are, or for people with different values. The first
at the level of personal cognitive structures shared hypothesis, however, is that organizations with
by the members of the organization (BOURNE; positive performance or belonging to highly
JENKINS, 2013). Figure2 illustrates the inherent institutionalized areas boost extended periods of
dynamics to the concept: stability, which promote overlapping in the types
of organizational values (BOURNE; JENKINS,
Figure 2. Dynamic perspective of organizational values 2013).
An expectation gap created by tension in
orientation represents a gap among the types of
values assimilated into past standards, attributed
and shared, and the ones oriented for a future
intention, espoused and aspired. We then have a
common chart during weak performance and
dissatisfaction increase among members, which
can lead to a radical change process and the
substitution of old values for new ones. This way,
the second hypothesis is that low organizational
performance may lead to a demand for alternative
values. If such values are adopted, we have a failure
between aspired forms of values and those
Source: Bourne & Jenkins (2013). assimilated into the past of the organization
(BOURNE; JENKINS, 2013).
As shown in figure 2, a dynamic approach, A dislocation gap created by tension between
more connect with the organizational praxis, levels represents a large alignment of aspired
considers that most organizations will present a values with attributed ones and a large alignment
variation in the composition and emphasis on value of shared ones with aspired ones, but not between
forms. For instance, a certain organization may both dimensions. This scenario occurs in explicit
espouse values that emphasize individual lack of group belongingness to the organization,
performance, while most of its members share which is common when part of the members belong
values that emphasize team work. to powerful groups with antagonistic values to the
A number of internal and external factors ones espoused by managers and attributed by the
influence the mounting or reduction of tension other members, or when there is expansion of the
between forms of organizational values. In the cultural distances. Thus, a third hypothesis is that
model proposed by Bourne and Jenkins (2013), the of when there are groups of members linked to
similarities among the types of values imply in institutions or cultures ideologically distant from
overlaps, whereas contrasts imply tensions or gaps. the corporate center, a dislocated tension may
Thus, these authors raise four hypotheses related to emerge among the values these groups add to the
the possibilities of value variations within the individual and collective level of the organization
organizational sphere. (BOURNE; JENKINS, 2013).
An organizational value overlapping To conclude, a leadership gap represents lack
represents little difference in the contents of the of alignment between espoused values and all other
four types and it occurs under conditions of relative types of organizational values, which occurs when
stability and certainty, which is common in long-managers espouse new values to signal conformity
term positive performance occasions and highly with certain norms and institutional strategic
expectations before having support from the
Revista de Negócios, v. 21, n. 1, p. 44-54, January, 2016. 52
organization for such change. This way, the fourth analysis of the subject.
and last hypothesis is of that in situations where In view of the above, a consideration made
leaders fail to gain support from members, a by Spates (1983) seems appropriate due to its
leadership tension emerges among espoused relevance. According to this author, isolated
organizational values and other organizational techniques do not convey complete pictures of
values (BOURNE; JENKINS, 2013). value assessment. In this regard, the phenomenon
Although Bourne and Jenkins (2013) do not should be examined in loco based on multiple
provide a whole theory, the model is supposed to observation techniques, and this is due to its
contribute significantly to the organizational subjective nature and different social
theory, and their model is considered to be useful configurations in which they emerge. Besides, the
to organizational values because it isolates their first theoreticians concerned with the subject are
distinct forms that emerge in the organizational worth a second perusal, once, despite the
context and explores floating relationships that are increasing interest, little advancement has been
established among them. Values are based on added to the theory of values. Lastly, seeking
highly clashing human requirements, in a way that elements in alternative areas of knowledge may be
each one of their forms individually emphasized in relevant. On such ground, noting that the theory of
the literature reflects a partial demand, but it does values was a central and flourishing area in
not represent a construct as whole, and this is what Philosophy is worth it.
jeopardizes the generalization of empirical studies Thus, regarding the proposed models for
related to the subject. assessment and construction of a typology of
values inherent to organizations, they resonate in
3 Conclusion the literature as to the distinctive perception when
the involved in the context are considered.
The present study proposed to present Individual values usually diverge from collective
a contemporary theoretical review on values, but they present a bigger convergence than
organizational values. For such, the theoretical those of organizational values themselves.
chart and its applicability in organizational context In this regard, the incompatibility of these
was retrieved and, from a survey of a literature values raises a tension in the organizational
review of empirical studies conducted on the atmosphere with different levels of intensity.
subject, presented a contemporary perspective of Despite the existing level of tensions, the need for
the subject. a strong value basis as a determining factor to
Although there is a significant decision-making in organizations is to be
number of empirical studies on organizational considered.
values, carried out in different kinds of
organizations and in relation to various other References
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