Contents
Volume 23, Number 1, January, 2018
Editorial
Mohamed Amal ............................................................................................................................. 6
Articles
Absorptive Capacity and the Internationalization Process of an Emerging Multinational ......... 7
Graciella Martignago, Silvio Antônio Ferraz Cário, Graziela Dias Alperstedt
Isomorphic relations and process of institutionalization: a study for the special coffee market in
Brazil between 1990 and 2016 ................................................................................................... 31
Josue Pires de Carvalho, Jorge Luis Sánchez Arévalo, João Luiz Passador
................................ 43
Practical influence of the strategic process in organizational results …....
Elizangela Maria Pas Menegon, Esmael Rossetto Bernardi, Júlio Adriano Ferreira dos Reis,
Odilon Luiz Poli, Rodrigo Menegon
Human Capital and Competitiveness: Analytical Method to Strategic Management of the Man-
Organization interaction ............................................................................................................. 55
Giovanna Garrido, Marco Antonio Silveira, Rafael Damasco Silveira
PRESENTATION
Revista de Negócios is located in competitiveness covers all studies and
Blumenau, state of Santa Catarina, researches related to how organizations
Brazil, in the campus of Uni-versidade can sustain their competitiveness,
Regional de Blumenau—FURB, post-particularly focusing on innovations,
graduate programme in Business entrepreneurship and performance. The
Administration. Revista de Negócios is second topic covers studies and
published quarterly in January, April, researches on strategic management of
July and October on the website organizations, more specifically on how
furb.br/rn. companies can or should act at strategic
level looking mainly but not only to
POSTMASTER: Universidade external context, supply chain,
Regional de Blumenau-FURB, Rua competitive strategies in international
Antônio da Veiga, 140 - Victor Konder, market, and marketing approach. The
Blumenau - SC, 89012-900. editorial policy is based on promoting
Department: PPGAD/FURB - D102. articles with critical perspectives
seeking for the understanding of the
MISSION differences and similarities among
emerging countries and in comparison
Revista de Negócios advances the with experiences and theories on
knowledge and practice of management strategic management in developed
learning and education. It does it by countries. It intends to promote specific
publishing theoretical models and re-contributions of how theoretical and
views, mainly quantitative research, empirical studies on emerging
critique, exchanges and retrospectives economies may contribute to the
on any substantive topic that is advance of theories related to
conceived with studies on emerging innovations and competitiveness and
countries. Revista de Negócios is an strategic management of organizations.
interdisciplinary journal that broadly It is welcome scholars particularly
defines its constituents to include working on such topics to submit
different methodological perspectives theoretical essays, empirical studies,
and innovative approach on how to and case studies. The Revista de
understand the role of organizations Negócios is open to different
from emerging countries in a globalized methodological perspectives and
market. innovative approaches on how to
understand the role of organizations
SCOPE AND FOCUS from emerging countries.
Revista de Negócios aims to create an TARGET AUDIENCE
intellectual and academic platform,
under the perspective of Strategic The target audience of Revista de
Management Organization, to promote Negócios is the Brazilian international
studies on Emerging Countries. The academic community in related fields of
Journal looks and reviews for knowledge on business management.
contributions to the debate about
researches on two specific topics: EDITORIAL STRUCTURE
innovation and competitiveness and
strategic organization in emerging The Editor
countries. The topic of innovation and
Mohamed Amal, Prof. Dr. rer. pol. FURB
Postgraduate Program of Business mhelena@furb.br
Administration
Regional University of Blumenau - System Suport
FURB Marcos Rogério Cardoso,
amal@furb.br University Library Prof. Martin
Cardoso da Veiga
The Coeditor Regional University of Blumenau -
FURB
Marianne Hoeltgebaum, Prof. Dr. rer. mcardoso@furb.br
pol.
Postgraduate Program of Business Academic Board
Administration
Regional University of Blumenau - Luciana Lazzeretti, Prof, Dr.
FURB Department of Management
marianne@furb.br University of Firenze
luciana.lazzeretti@unifi.it
EDITORIAL COMPOSAL BOARD
Mohamed Amal, Dr.
Executive Board Postgraduate Program of Business
Administration
Editor Regional University of Blumenau -
Mohamed Amal, Prof. Dr. rer. pol. FURB
Postgraduate Program of Business amal@furb.br
Administration
Regional University of Blumenau - Shaker A. Zahra, Prof, Dr.
FURB Strategic Management and
amal@furb.br entrepreneurship department
Carlson School of management -
Coeditor University of
Marianne Hoeltgebaum, Prof. Dr. rer. Minnessotazahra004@umn.edu
pol.
Postgraduate Program of Business Tales Andreassi, Dr.
Administration Postgraduate Program of Business
Regional University of Blumenau - Administration
FGV
FURB Getúlio Vargas Institution SP –
marianne@furb.br tales.andreassi@fgv.br
Communication Editor Institutional Board
Cinara Gambirage, Msc.
Postgraduate Program of Accounting The Institutional Board is consisted by
and Business Administration the academic community of Regional
University of Blumenau - FURB.
Regional University of Blumenau –
FURB
rn@furb.br João Natel Pollonio Machado, Prof, Dr.
Rector of Regional University of
English Language Editor Blumenau - FURB
Prof. Marta Helena Caetano, MA. reitoria@furb.br
FURB Language Center
Regional University of Blumenau - Udo Schroeder
Vice - Rector of Regional University of Regional University of Blumenau -
Blumenau - FURB FURB
reitoria@furb.br gel@furb.br
Alexander Christian Vibrans, Prof. Dr. David Colin Morton Bilsland, Prof.
Dean of Postgraduate Studies, Research Head of International Relations Office -
and Culture - PROPEX FURB
Regional University of Blumenau - Regional University of Blumenau -
FURB FURB
propex@furb.br cri@furb.br
Valter Augusto Krauss, Prof. Márcia Regina Bronnemann, Prof.
Director of Applied Social Sciences Head of Marketing and Communication
Regional University of Blumenau - - FURB
FURB Regional University of Blumenau -
ccsa@furb.br FURB
ccm@furb.br
Gérson Tontini, Prof., Dr.
Coordinator of the Postgraduate
Program of Business Administration Past Editors
Regional University of Blumenau -
FURB 2014 - 2016 Marianne Hoeltgebaum
lleomar@furb.br
2014 - 2015 Edson Roberto Scharf and
Ciel Antunes de Oliveira Filho, Prof, Marianne Hoeltgebaum
Dr. 2012 - 2013 Edson Roberto Scharf
Head of Business Administration 2010 - 2011 Leomar dos Santos
Department 2008 - 2009 Denise del Prá Netto
2006 - 2007 Mohamed Amal
Regional University of Blumenau –
FURB
holiveira@furb.br 2004 - 2005 Gérson Tontini
2002 - 2003 Emerson Maccari. Valeria
Darlan Jevaer Schmitt, Ms. Riscarolli, Luciano Rosa
Director of University Library Prof. and Paloma Zimmer
Martin Cardoso da Veiga 2000 - 2001 Emerson Maccari
Regional University of Blumenau - 1998 - 1999 Gérson Tontini, Denise Del
FURB Prá Netto and Valeria
furbbc@furb.br
Riscarolli
Gelci Rostirolla, Ms. 1996 - 1997 Denise Del Prá Netto
Periodicals Support
Editorial Letter
In this current issue, we organized four articles that make significant contributions in
topics related to international business, the process of institutionalization in special market,
strategic process, and human capital and competitiveness of firms. In line with our editorial
policy, we attempted to publish contributions that attempted to make theoretical and empirical
contributions in the field of strategy management, entrepreneurial management and
internationalization of firms from the perspective of emerging economies.
The first article Absorptive Capacity and the Internationalization Process of an
Emerging Multinational, authored by Graciella Martignago, Silvio Antônio Ferraz Cário, and
Graziela Dias Alperstedt the purpose of this study is to describe the role of absorptive capacity
(AC) for the internationalization process of emerging multinational companies. Based on a case
study of a leading Brazilian company, the main findings point to the existence of relationships
among the elements of absorptive capacity (acquisition, assimilation, transformation, exploitation)
and that these affect the internationalization process of emerging market firms.
The second article Isomorphic relations and process of institutionalization: a study for
the special coffee market in Brazil between 1990 and 2016, authored by Josue Pires de
Carvalho, Jorge Luis Sánchez Arévalo, and João Luiz Passador, has the aim to analyze the
importance of isomorphic relations in the process of institutionalization of the special coffee
market in Brazil. The authors highlight the importance of the commitment of agents - producer
and buyer - who are proactively engaged in entrepreneurial actions, in order to adapt to the new
practices and trends of the special coffee market, where quality consumption is privileged.
The third article Practical influence of the strategic process in organizational results,
authored by Elizangela Maria Pas Menegon, Esmael Rossetto Bernardi, Júlio Adriano Ferreira dos
Reis, Odilon Luiz Poli, and Rodrigo Menegon, has the purpose to verify to what extent the
practice of the strategic process exerts influence in the managerial results of a garment industry of
the State of Santa Catarina. The study provides tools and rationale that help to predict risks, to
analyze opportunities and to provide an improved observation of the results.
The fourth article Human Capital and Competitiveness: Analytical Method to
Strategic Management of the Man-Organization interaction, authored by Giovanna Garrido,
Marco Antonio Silveira, and Rafael Damasco Silveira, suggests to merge different approaches,
particularly the Triple Bottom Line concept of sustainability, the core competences of the
organization and some analytical techniques, with the goal of implementing an own strategic
diagnosis method to quantify the impacts of the human factor in a multinational of the electronic
sector. The article shows how the proposed method has the potential to promote a qualified
diagnosis by quantifying the impacts of the developers' competences on the productivity of the
associated processes in the case of the electronic sector.
Before concluding this Editorial, as always, we want to express our gratitude to all
reviewers that helped us to achieve this current issue. We thank you and hope we can continue to
count on your contributions to our Journal in future issues.
To our readers, we hope you will enjoy reading the articles, and expect you to contribute
with our Journal in future issues on business strategies and emerging economies.
Mohamed Amal
Editor
7
Absorptive Capacity and the
Internationalization Process of an Emerging
Multinational
Graciella Martignago¹, Silvio Antônio Ferraz Cário², Graziela Dias Alperstedt³
Universidade do Sul de Santa Catarina (UNISUL) - graciellamartignago@gmail.com
Universidade Federal de Santa Catarina (UFSC) - fecario@yahoo.com.br
Universidade do Estado de Santa Catarina (UDESC) - gradial@gmail.com
KEYWORDS ABSTRACT
Knowledge is at the core of the process models of internationalization, although the
ternationalization;
Inimpact absorptive capacity has on the internationalization is still unclear. Based on an
ging multinational;
EmerAbsorptive Capacity. evolutionary approach to international expansion and learning by a firm, the purpose of
this study is to describe the role of absorptive capacity (AC) for the internationalization
process of emerging multinational companies. A qualitative study, descriptive and
Received 11.04.2018 ongitudinal, was conducted based on a case study of the biggest cement company of
l
Revised 28.06.2018 South America. Our findings identified the previous knowledge about
internationalization and the new knowledge that was acquired and assimilated on a need-
Accepted 04.09.2018 basis case as key factors of international competition. This study showed that even a
mature company, leader in its home market, with experience in competition with the
ISSN 1980-4431
Double blind review main international players, needed to acquire new knowledge about internationalization.
The assimilation of knowledge was hampered by the prior knowledge structure and new
routines were created before the external direct investment materialized. After the
acquisition in the foreign market, the adaptation of routines created in the domestic
market was developed. We identify that there are relationships among the elements of
absorptive capacity (acquisition, assimilation, transformation, exploitation) and that
these affect the internationalization process of emerging market firms.
PALAVRAS-CHAVE RESUMO
conhecimento está no cerne dos modelos de processo de internacionalização, embora o
Internacionalização; O
mpacto da capacidade de absorção na internacionalização ainda não esteja clara. Com
Multinacional emergente; ibase em uma abordagem evolutiva para a expansão internacional e aprendizagem por uma
Capacidade absortiva. empresa, o objetivo deste estudo é descrever o papel da capacidade de absorção (AC) para
o processo de internacionalização de empresas multinacionais emergentes. Um estudo
qualitativo, descritivo e longitudinal, foi conduzido com base em um estudo de caso da
ior empresa de cimento da América do Sul. Nossos resultados identificaram o
ma
conhecimento prévio sobre internacionalização e o novo conhecimento que foi adquirido
e assimilado em um caso de necessidade como fatores chave para a competição
internacional. Este estudo mostrou que mesmo uma empresa madura, líder em seu
mercado doméstico, com experiência em concorrência com os principais players
internacionais, precisava adquirir novos conhecimentos sobre internacionalização. A
similação do conhecimento foi dificultada pela estrutura de conhecimento anterior e
as
ovas rotinas foram criadas antes que o investimento direto externo se materializasse.
nApós a aquisição no mercado externo, foi desenvolvida a adequação das rotinas criadas no
mercado interno. Identificamos que existem relações entre os elementos de capacidade
absortiva (aquisição, assimilação, transformação, exploração) e que estas afetam o
processo de internacionalização das firmas de mercados emergentes.
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018.
8
1 Introduction market and became relevant global competitors
from their base in these emerging countries requires
Studies about emerging multinationals the analysis of the absorptive capacity (AC)
(Cohen, Levinthal, 1990) in the internationalization
, began in
companies, as “latecomers or latemovers”
the 1980s (Lall, 1983; Wells, 1983; Mathews; Cho, of these companies, given that knowledge is an
1999; Wilkins, 2010). With the greater relevance of essential resource for internationalization
these investments to the global economy, since the (Johanson & Valhne, 1977; Casillas et al, 2009;
decade of 2000, there has been rapid growth in the Teece, 2007; 2014). As a dynamic capability,
literature about this phenomenon. absorptive capacity allows firms to continuously
Various international journals have dedicated upgrade their resources and gain advantage, what is
special editions to this theme and many of them critical to emerging firms that operate abroad
have focused on the creation of capabilities and (Bilgili et al, 2016). Absorptive Capacity
contributes to International Business (IB) as a
lization
question “if” and “how” the internationa
of emerging multinationals differs from the major determinant of knowledge process in the
internationalization of traditional multinationals multinational context and the IB scholars confirm
from developed countries (Mathews, 2006; the significance of absorptive capacity in several
Dunning et al, 2008; Luo & Tung, 2007; contexts (Apriliyanti & Alon, 2017). However,
2018, Guillén & Garcia-Canal, 2009; there are few studies of absorptive capability in the
Ramamurti, 2009, 2012; Becker-Ritterspach & context of emerging market firms (Wu & Voss,
Gert Bruche, 2012; Cuervo-Cazurra, 2012; 2015; Cuervo-Cazurra & Rui, 2017; Garrido et al
Meyer & Peng, 2016; Hernandez & Guillén, 2017). The research questions about dynamic
2018). Nevertheless, little is still known about the capability of AC must address the relationship
internationalization process of emerging between organizational mechanisms and the AC
companies (Cuervo-Cazurra & Genc, 2008; process, as well as how a firm builds different
Madhok & Keyhani, 2012). The core question organizational mechanisms to increase AC
asked by Buckley et al (2007), whether the (Apriliyanti & Alon, 2017).
internationalization of emerging multinationals From an evolutionary approach of
challenges what we know from developed international expansion and firm learning, this
multinational enterprises, continues to be debated paper assumes that emerging multinationals are
(Hernandez & Guillén, 2018). able to achieve and sustain their global competitive
There are still many unanswered questions position even in the face of the firm's limited
and it remains an issue that requires greater resources and country-specific advantages (Lessard
attention from scholars (Ramamurti, 2009; Wells, & Lucea, 2009) and aims to describe the role of
2009; Wilkins, 2010; Cuervo-Cazurra, 2008; absorptive capacity for the internationalization
2016), considering the unknown quality of the process of emerging multinational companies.
consequences of the process, to all the parties Therefore, this study contributes to provide a better
involved. Particularly needing recognition from understanding of the internationalization process of
Brazilian academics, who face a phenomenon emerging firms by providing depth to the
still in development. understanding of the knowledge prior
Brazilian multinationals are part of a group of internationalization, the new knowledge acquired
poses a series of for internalization and the assimilation,
globalizers”, which im
“late
challenges on these companies, such as combatting transformation and exploitation of knowledge for
competition in the domestic market, the need to be internationalization.
technologically up-to-date, have the best practices The decision to operate in the international
and to expand internationally. The firms that market requires the company to learn, acquire and
overcame these challenges did so by transforming absorb knowledge to achieve this strategy. If, and
their status as latemovers into a network of to what extent, new knowledge is integrated into the
advantages, not only in other emerging economies, capabilities generated throughout the company's
but also in developed countries (Fleury & Fleury, historical development process, will determine the
2011). position of the emerging multinational in relation to
To understand how these companies have its competitors (Casillas et al, 2009).
positioned themselves in the dynamic international For the development of this learning process,
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 9
companies start from current capacities and internationalization has great relevance for
generate new capacities based on the development companies from emerging countries and for the
of the international activities; therefore, the international business academy, which seek
internationalization process is a dynamic of theoretical explanations for this new
learning and capacity development. New phenomenon. But above all, this new study has
knowledge is absorbed, shared, and built over time great pertinence for Brazilian companies, which are
through organizational routines (Nelson &Winter born in one of the most closed countries in the
1982, Cohen & Levinthal, 1990). world, which, despite being among the ten largest
The internationalization process begins global economies, accounts for 1% of world trade
before the first action abroad, when there is and 0.4% of the outward FDI issued in the world
recognition that the international market is a source (UnctadStat, 2016).
of opportunities for growth and increase This theme gains greater importance for
profitability, and develops as the company seeks contemporaneity, originality and the generation of
and acquires new knowledge, forming new routines knowledge shared with other companies of the
and procedures (Casillas et al, 2009). country that aim to expand their activities
But this process does not occur dissociated abroad. The study of the process will produce
from an external and internal context of the knowledge about the "how to," so crucial to the
company, and therefore, is dependent on a path, a practice of managers (Pettigrew, 2012) and for
history developed by the organization over the developing countries, which aim to expand the
years, which makes relevant the realization of the international insertion of their companies, still little
historical recovery of the company in its market exposed to global competition (Coutinho et al,
source. 2008). This theme is also fundamental for public
This research has as its objective the study of policy makers in order to facilitate
the company Votorantim Cimentos, participant in internationalization.
one of the largest conglomerates in Brazil, leader in This research will have the company as the
its segment and one of the largest players in the basic unit of analysis. It is based on the assumption
world in the cement industry, with 31,8 million tons that firms constitute open systems, in permanent
of cement produced per year and more than 11 coevolution, in an iterative process between
thousand employees. The company is 100 years old environment and organization in the development
(Votorantim, 2017). of their strategies (Chandler, 1962; Child, 1972;
Votorantim's internationalization process is a Nelson & Winter, 1982). The environment, in this
revelatory case not only for its relevance to the case, acts as a constraint to management decisions,
brazilian and world economy, but also due to the but there is room for active decisions, in which it is
inherent characteristics of its internationalization possible for organizational actors to determine the
process: a traditional competitor in the home strategies that will ultimately define the
market, it loses its position in the world market in organization's directions.
relation to competitors from other developing Internationalization is understood as a
countries, and enters the foreign market as a late strategic process (Melin, 1992) and as such, it must
mover. One of the great gaps in the debates in be analyzed from a contextualist and procedural
international business (Buckley et al, 2017) remains approach, as proposed by Pettigrew (1987). The
of “latemovers,” like relationships and interdependencies between the
ess of internalization
the proc
Votorantim, that learned how to operate in new organizational levels belonging to the internal and
foreign markets based on the knowledge acquired external context of the organization, from a
in the home market. Votorantim is family owned, sequence of actions and events in a historical way,
closed capital company, subsequently its will be examined.
internationalization process was little investigated This study addresses two major trends in
(Santos, 2008; Furquim & Meireles, 2012; internationalization research: the increasing interest
Colantuono & Pinho, 2012). This research delves in 'processes' (sequence of events over time) and the
mainly into the perspective of direct participants in focus on 'practices' (micro level actions
the decision making for internationalization, contextually), only achievable from longitudinal
introducing unique data for analysis. studies (Blazejewski, 2011; Pettigrew, 2012).
Studying the role of AC for Decisions are made within an internal
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 10
political context, and organizational actors, when Conceptualized first by Cohen and Levinthal
s the “ability of
defining reality according to their antecedents, (1990), these authors define AC a
values and mental models, can perceive the same the firm to identify, assimilate and explore
dge of the outside environment” (p.569).
phenomenon in a differentiated way, which knowle
characterizes the heterogeneity of companies This definition was elaborated on by Zahra and
orge (2002) who consider it as “a group of
(Child & Smith, 1987; Nadkarni, 2011). Therefore, Ge
for the study of business strategies not only organizational routines and processes by which
objective conditions are important, but also the firms acquire, assimilate, transform and explore
dge” (p. 186). The concept was later
perception of social actors that create the cognitive knowle
arena (Child & Smith, 1987). operationalized by various studies (Tsai, 2001;
Furthermore, to internationalize, companies Jansen, Van Den Bosch & Volberda, 2005; Lane
need to develop capabilities and obtain resources et al (2006); Chen et al, 2009; Camisón & Fóres,
(Penrose 1959; Barney, 1991). Understanding the 2010; Flatten et al., 2011; Jimenez-Barrionuevo
process of internationalization requires et al, 2011; Buckley & Park, 2014), despite its
comprehending the process through which firms abstract, intangible essence that is difficult to
renew their competencies in response to changes measure (Szulanski, 1996).
in the competitive These capacities (the ability to acquire,
environment. Internationalization implies a assimilate, transform and explore) represent four
reconfiguration of activities, or an incorporation of dimensions of the capability for absorption, which
new resources and especially new routines and is a dynamic capability that influences the ability
processes. Subsequently, the notion of "knowledge of the firm to create and employ the knowledge
generation" becomes relevant for the adaptation of needed to construct other organizational
Although Zahra and George’s (2002)
companies to a new environment, at the same time capabilities.
as a unique process. model has provided a better understanding of the
It is recognized that the idiosyncratic local construct, at the same time, its separation into four
conditions of emerging markets are initial sources dimensions has been criticized (Lane et al, 2006;
of international competitive advantage and that the Todorova & Durisin, 2007).
development of new capabilities during the Todorova and Durisin (2007) affirm that
internationalization process is crucial to the the recognition and understanding of the outside
sustainability of the multinational enterprise and knowledge value, originally defended by Cohen
that these two groups of capabilities, in the country and Levinthal (1990), should be introduced as a
of origin as well as those derived from international component prior to acquisition. In this sense, the
operations, need to be continually evaluated, authors also emphasize that the relationship
adapted, integrated and disseminated through the established between assimilation and
organization (Lessard & Lucea, 2009). transformation is not suitable. They thus argue
In the next section, we present the theoretical that transformation should be an alternative to
background of the research. We then describe our assimilation and not a step after it.
methodology and present the results. Finally, we At the same time in which the absorption
discuss our results and present conclusions and capability involves the need to acquire
managerial implications. knowledge of the outside environment, it also
focuses on the internal learning processes based
2 Theoretical Framework on past experience and current actions (Easterby-
Smith et al, 2008). Depending on the source of
For the development of dynamic capability, it knowledge and on the previously held
is essential to have the ability to integrate and to knowledge, AC is conditioned by the regime of
combine assets such as knowledge. The creation of appropriability (Cohen & Levinthal, 1990).
knowledge, its sharing and the integrating The model proposed by Todorova and
procedures are critical for the performance of the Durisin (2007) captures the dynamic aspect of the
firm and a key micro foundation for the dynamic phenomenon, which is in keeping with the
capabilities (Teece, 2007). concept of the dynamic capability that involves
An important dynamic capability of the organizational change and with an evolutionary
organization is its ability to absorb knowledge. approach, and therefore, can constitute a basis for
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 11
the development of a framework for the role of learning curves, can limit speed. The direction
absorptive capability in the internationalization refers to the paths that the firm will adopt in order
process. to obtain external knowledge. Past experience
It is admitted that the first component of the tends to define the search locus for new
absorption capability consists in the recognition knowledge, that is, the firm searches for
of the value of outside knowledge (Cohen & information where it has succeeded in the past,
Levinthal, 1990). Corroborating Teece (2014), which may influence the development of future
Nonaka and Takeuchi (1997) emphasize that the capabilities (Zahra & George, 2002). According
most critical elements of the company strategy to Johanson and Vahlne (1997), the search for
are the conceptualization of a vision about the knowledge for internationalization tends to be
type of knowledge that must be developed and the greater in countries where psychic distance is
operationalization of this knowledge in a lower.
management system of implementation. As there is individual, organizational and
Organizational intent provides the most interorganizational learning (Cohen & Levinthal,
important criterion for judging the veracity of a 1990), information for new knowledge can come
given knowledge. If it were not for the intention, from both the individual and organizational levels
it would not be possible to judge the value of the and from the interorganizational level (Casillas et
information or the knowledge perceived or al, 2009). According to Cohen and Levinthal
created. At the organizational level, intention is (1990), individuals are storehouses of
often expressed by organizational patterns or knowledge. This knowledge is gained by general
visions that can serve to assess and justify the and professional experience in different
knowledge created. Intent is necessarily charged organizational and social environments that they
with value (Nonaka &Takeuchi, 1997, p.84). The experience throughout life. It is knowledge based
role of top management should therefore be to on experience, which depends on one's personal
formulate an organizational intent and to propose history and is fundamentally tacit in nature. It is
such an intention to employees as a way of the current tacit knowledge that allows
guiding individuals and promoting a collective individuals and organizations to create greater
commitment (Takeuchi, 1997). In the specific future tacit knowledge through various forms of
case of the organization that intends to knowledge conversion (Kim, 2005). In the
internationalize, it will seek knowledge about the specific case of internationalization, therefore,
foreign market, the institutional aspects of the firms may choose to put on the management staff
exterior and internationalization itself, which is people with international experience in other
related to the experience that the company had on companies as a way of acquiring knowledge and
international activities in different countries skills that will be used to develop the firm's
(Erickson et al, 1997). The knowledge about internationalization process. As a fundamental
internationalization is knowledge based on the aspect, at the individual level, the members of an
company's experience in working its resources organization must have autonomy, as a way of
and skills to operate in the international market. stimulating the creation of knowledge (Nonaka &
It is an accumulated learning over time (Eriksson Takeuchi, 1997).
et al, 1997; Argote, 1999), derived from learning-In addition to individual knowledge,
by-doing and allows the firm to develop new collective knowledge can be generated by the
routines. Throughout the experience, it can also communication and distribution of knowledge
develop learning-by-interacting, as it establishes among management members and also through
relationships with other organizations (Zahra & the accumulated experience of the organization
George, 2002; Nelson & Winter, 2005). through cumulative behaviour. The accumulation
The effort to acquire knowledge, according of decisions, actions and results creates a unique
to Zahra and George (2002), has three attributes trajectory, path dependent path, developed over
that can influence the absorptive capability: the time (Eriksson et al 2000). According to Zahra
intensity of the search, the speed and the and George (2002), the organizational memory,
direction. The higher the effort, the faster the firm the depository of knowledge of the firm, is
will build the necessary capabilities, but the connected to experience. Absorption capability
inherent limitations of the process, such as is, therefore, a path-dependent capacity,
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 12
influenced by past experiences that are individuals and organizations (Casillas et al,
internalized by organizational memory. As 2009).
experience reflects past successes and failures, it In these aspects, in which prior knowledge
influences how the firm acquires and assimilates is relevant to the development of the capacity to
knowledge, as well as the locus of future internationalize, the process of
technological search (Zahra & George, 2002). internationalization is considered to start when
Cohen and Levinthal (1990) also highlight the firm or organization recognizes that the
the role played by the communication structure as international market is a source of growth
well as the character and distribution of opportunities or increased profitability, which
experience within the organization. The occurs long before the first action abroad. When
communication structure consists of the transfer a company identifies an opportunity in an
of knowledge between the external environment international market, it is unlikely that it has
and the organization, as well as between the sufficient knowledge to make a decision about
subunits of the organization. Young firms, with the commitment of resources to that market. The
simple and more flexible structures, have a fluid company will therefore seek new knowledge
exchange of information and experience between about the tastes and needs of new consumers, the
the founders and between the founders and the size of the potential market, market entry, the
new senior managers. In this type of situation, nature of government institutions and
which presupposes that directors have varied competitors in that market etc (Johanson &
international experience abroad, the exchange of Vahlne, 2006).
tacit knowledge will be more likely among The acquisition of international knowledge
members of a young organization than of an older is an iterative process (Knight & Liesch,
organization with more rigid structures and where 2002). The firm enters a continuous cycle of
communication channels are historically more information search, translation and assimilation
formal (Casillas et al, 2009). for internationalization. We look for existing
Once the new information is incorporated, information and evaluate whether the
firms are able to generate new collective accumulated information is sufficient to go to the
knowledge through the accumulation of next stage (action). This first stage, according to
experience, first in the domestic market and then Casillas et al (2009), corresponds to the concept
in foreign markets. Different factors related to of exploitation of March (1991), which is
the experience in the domestic market boost the obtained through the learning process of
firm's propensity to begin its internationalization, variation, varied experimentation and action.
such as the size of the domestic market, the Until this last point is reached, the firm will
presence of foreign competitors, the presence of continue the search for information. The speed
consumers and international suppliers, the growth with which the firm will enter the new market is
rate of the local market, etc (Eriksson et al 2000). directly related to the time spent by the company
Besides the individual and organizational to acquire and develop the knowledge needed for
level, the aspect of interorganizational relations future launches. This is the time between the
for the acquisition of knowledge can not be stage of exploration and exploitation (March,
neglected. The individuals that make up the 1991). Two aspects affect the duration of this
organizations are not isolated entities, but form an search process: the quantity and quality of
organizational and social network that previous knowledge and the nature of the
contributes to the generation of knowledge for the information sources used by the company
decision to move to the international (Casillas et al., 2009). The key determinant of
market. Directors and firms belong to how long the process of pursuing the new
international networks - through their knowledge will last is the level of prior
relationships with consumers, suppliers, knowledge available within the company. The
consultants, associations etc. - and have access to firm will need two types of relevant knowledge:
information that is relevant to identifying knowledge of the new geographic market and
opportunities abroad. The literature on networks knowledge of certain processes related to growth
suggests that individuals and organizations management (Eriksson et al., 1997). The
access information through interaction with other organization and management of business
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 13
activities related to internationalization may of competitiveness in the market and the
suffer significant influence from the experience implementation of a strategy to reverse the
in the domestic market. These companies that situation require investments in the acquisition of
have experience in domestic acquisitions can use new tacit and explicit knowledge, such as the
it in the search for possible business to acquire in hiring of new employees. It is a way for
the target country (Blomstermo et al, 2004). companies to turn the crisis into an
To increase its knowledge base, the firm opportunity. This crisis can even be intentionally
must have access to external and internal sources generated when top management evokes the
of information (Zahra, George, 2002). Internal feeling of crisis by proposing challenging goals
information is gained through the organization (built crisis) or when an external agent, such as
itself - knowledge based on experience, acquired the state, imposes challenging goals for
by individual managers and the organization companies of a chosen industrial branch
through cumulative decisions. They are (imposed crisis) (Kim, 2005). In the case of the
information obtained through participation in crisis built, it is the top management, with an
fairs, business trips and missions abroad, visits of entrepreneurial spirit, that introduces the crisis.
different durations to potential markets etc This forces discontinuous learning, which
(Casillas et al, 2009). External information is articulates metaphors and symbols that guide the
obtained through certain intermediaries that organization, and creates work teams that control
provide pre-developed information and coded the learning process throughout the
information transferred by the company in organization. It also provides the resources to
response to specific demands. This information support learning activities to make the crisis
comes from organizations that aim to promote creative, and which removes the various
internationalization, both public and private, obstacles to the learning process (Kim, 2005).
external consultants, sales agents, market External triggers are events that can influence the
researches, specialized journals (Casillas et al., future of the industry as radical innovations,
2009, Flatten et al, 2011). They also come from changes in government policy, environmental
acquisition processes, purchase agreements, turbulence (Zahra & George, 2002; Volvo, Foss
licensing and interorganizational relations, such & Lyles , 2010).
as R&D consortiums, alliances and joint Assimilation refers to the processes and
ventures. The deeper and wider the firm's routines that allow the firm to analyse, process,
exposure to knowledge sources, the more likely it interpret and understand the information obtained
will be to create new knowledge (Zahra; George, externally. This capability may not be developed
2002). for a number of reasons, such as the fact that the
The greater the diversity of sources, the new information is outside the search zone,
greater the influence of the acquisition and involves a heuristic understanding that differs
assimilation of the absorption capacity. But this from those used by the firm or is closely related
is not a guarantee that the firm will have a higher to a particular unfamiliar context (Zahra &
level of absorptive capacity, especially when the George, 2002). The greater the effort made to
knowledge sources have low complementarity assimilate the new knowledge, the more effective
with the firm's knowledge base (Zahra; George, this knowledge will be (Cohen & Levinthal,
2002). The search for knowledge will be 1990), but there are strong inertial forces that
influenced by activation triggers (Winter, reinforce the continuity of old patterns and,
2000). These are events that encourage or compel therefore, the knowledge coming from
a firm to respond to internal and external experience plays a fundamental role (Eriksson et
stimuli. Internal triggers may be organizational al., 1997, 2000; Johanson & Vahlne, 1977). As
crises, such as underperformance, or events that Kim (2005) explains, assimilation depends on the
redefine firm strategy, such as mergers (Zahra & intensity of effort or commitment to new
George, 2002). Nonaka and Takeuchi (1997) knowledge. It is not enough to expose individuals
denominate this phenomenon as creative chaos, and companies to explicit knowledge, but there is
in which tension is generated within the a need for a conscious effort by individuals to
organization and the members focus attention on internalize such knowledge, otherwise learning
problem definition and crisis resolution. A crisis will not occur. The firm will continue its quest for
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 14
new knowledge until it feels it is ready for action firms have learning advantages (Barkema,
(internationalization). This time will not come as Vermeulen, 1998).
management continues to regard the uncertainty From the assimilation of the new
as too high. The process of creating new knowledge, the management responsible for the
knowledge is developed through an upward spiral strategy of the company will evaluate the new
that ends when organizational actors merge to situation and, depending on the result, will make
accept a specific base knowledge, depending on particular decisions in consideration to: (1) go
the degree of quality and confidence of the new forward or not go ahead; (2) your preferences for
knowledge acquired, which consists of the geographical markets; (3) the choice of how to
justification process of Nonaka and Takeuchi launch the new market. The influence of the
(1997). The decision to launch a new country nature of the new knowledge and the type of
does not arise independently of prior knowledge international behaviour depends on two
or new knowledge acquired, but by a combination subjective factors: the first is the degree to which
of the two. The ability to assimilate new the new knowledge is compatible with the first;
knowledge depends on the existence of routines the second is the degree to which any lack of
and procedures that allow this new information to information needed to enter the new country is
be analysed, processed, interpreted and identified (Casillas et al, 2009). Taking into
understood. In the same way, the company must account these aspects, Casillas et al (2009)
have routines that allow to combine the previous propose that the speed with which the company
knowledge with the new one (transformation). launches in a specific international market is
The transformation dimension proposed by positively related to the capacity of absorption of
Zahra and George (2002) implies an ability to knowledge.
adjust both the new and the old knowledge Cohen and Levinthal (1990) not only
chains. The ability of the company to guide the defended the idea that learning new knowledge
use of this knowledge in a specific international depends on the existence of prior knowledge, but
context depends on the quality of this adjustment also that the motivation to learn depends on the
(Casillas, et al, 2009). The transformation results of the learning process itself. It is a
consists of the firm's ability to develop and refine question of self-reinforcing behaviour related to
the routines that combine existing knowledge the innovative behaviour (Cohen & Levinthal,
with new knowledge. Absorption capacity also 1990). Within the domain of internationalization,
requires the company to be able to apply its new Casillas et al (2009) identify this cycle of
knowledge base through a chain of actions reaffirmation through the degree to which the
(Cohen & Levinthal, 1990; Lane et al, 2006, new knowledge is compatible with previous
Zahra & George, 2002). But, as Todorova and knowledge, allowing the company to develop
Durisin (2007) point out, when the new new, coherent and more complete information.
information acquired fits the existing cognitive This compatibility depends on the degree to
themes, the new idea is incorporated into the which the new information: (1) confirms initial
existing knowledge structure. Therefore, the expectations regarding the opportunity for
structure of knowledge does not change and international expansion; (2) adds new and non-
knowledge is assimilated. But alternatively, contradictory information to prior information
transformation occurs, that is, when new and (3) identifies in concrete terms what
knowledge can not be assimilated because the knowledge is retained - quantity, quality, and
cognitive structure of individuals must be reliability - and what knowledge is missing. The
transformed to adapt to new ideas. It is the firm's ability to adjust prior knowledge to new
ability to recognize two groups of information knowledge is related to "current absorptive
and combine them. Knowledge has a cumulative capacity", which reflects the company's ability to
nature and when new knowledge is not related to take advantage of the knowledge that has been
existing knowledge, the adoption of new absorbed (Zahra & George, 2002). This lack of
knowledge is conditioned by unlearning. In the coherence between prior and new knowledge can
case of internationalization, companies in which grow from the failure to confirm the initial
this process occurs early in organizational life assumptions, the identification of risks, a
may be easier to operate abroad, since newer reduction in the apparent attractiveness of the
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 15
opportunity, or the identification of a lack of for a company that is internationalizing. This
readiness for internationalization (the need for learning is mainly developed through the
resources the need for disproportionate changes acquisition of knowledge based on the
in the organization, etc.) (Casillas et al, 2009). accumulation of international experience. This
When Cohen and Levinthal (1990) relate the experience gives the company the ability to
ability to absorb the new knowledge to the identify new business opportunities and reduces
existence of prior knowledge, they are implicitly the level of uncertainty associated with the
assuming that the new knowledge is coherent commitment in new international markets, as
with the previously existing one and that a well as providing knowledge on how to manage
process of adjustment between the two occurs. international operations or knowledge about the
This adjustment represents an integration of both internationalization process (Eriksson et al., 1997
the new knowledge and the previous one, which , 2000). There is also learning about the market
allows for a coherent structure of knowledge, and institutional knowledge. In this sense, as the
retained by both individuals and the organization, firm accumulates experience, this learning
to expand. Conversely, when new knowledge can process tends to gain momentum as a result of the
not be coherently integrated with prior broad knowledge base and the development of
knowledge, the absorptive capacity is greatly certain dynamic abilities related to information
reduced. In this situation, new knowledge is search ability, absorption capacity, etc. (Casillas
rejected or, individuals have to redesign the et al. , 2009). Studies have shown that the
existing knowledge structure. Given this lack of experience in making acquisitions (Vermeulen &
adjustment, the company will put brakes on the Barkama, 2001) and alliances (Kale, Dyer &
initial intentions, giving the project of external Singh, 2002) increase performance in the
expansion as complete or postponed. Therefore, realization of new acquisitions and alliances,
the degree to which the new knowledge is showing that the experience generates learning
compatible with previous knowledge is positively throughout history organizational
related to the speed with which a company enters structure. There is, therefore, an accumulation of
the international market (Casillas et al, 2009). capacities, such as cultural adaptability,
Companies that have a high level of knowledge receptivity to change (Sapienza et al, 2006).
will choose to use methods of launching with a Bingham and Eisenhardt (2011) analysed
high level of control over international operations what firms learn from the explicit learning
(greenfield investments, acquisitions, etc.).When generated by the internationalization process, that
a company has international knowledge, but lack is, what members of the company collectively
institutional knowledge about a certain country, articulate as a result of international experience.
this deficiency can be overcome by cooperation They concluded that learning goes far beyond
and trade agreements with local companies and routines. Through experience, patterns of action
institutions that provide this information are formed that are repositories of lessons learned
(Eriksson et al, 2000). When a company does not from experience. Routines and heuristics can be
clearly perceive what kind of knowledge it has or formed. Routines store organizational experience
what kind of knowledge it is lacking, it will tend in a way that allows the organization to quickly
to better understand uncertainty and try to transfer this experience to new situations. They
minimize risk as much as possible by entering are the repositories of organizational capacities
countries that are physically or culturally closed (Nelson & Winter, 2005; Zollo & Winter,
or using methods they represent a low 2002). They allow coordinated action, but do not
commitment of resources. necessarily consist of an appropriate response to
Finally, exploitation is the application of changes in the environment. Routines both
knowledge. They are the routines that allow the preserve organizational memory and represent a
firm to refine, extend and increase the source of endogenous change (Becker et al,
competencies or create new ones by 2005). While routines consist of detailed, almost
incorporating the acquired knowledge and its automatic answers to particular problems,
transformation. Action is a source of learning heuristics provide a common framework for a
through feedback. Specific entry actions in a new group of similar problems, but provide few
country represent the primary source of learning details about specific solutions to problem
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 16
solving. Firms develop heuristics that are Peikkari & Welch, 2004, p.6; Van Maanen, 1983)
idiosyncratic and represent the particularity of the and a longitudinal study focuses on the process and
rmit to answer the “how question” that is
firm (Bingham & Eisenhardt, 2011). pe
In addition to these aspects, we highlight concerned with describing and explaining the
the contingency factors that influence the temporal sequence of events (Van de Ven &
absorption capacity. An important barrier stems Huber, 1990; Burgelman, 2011). The process
from social integration mechanisms. The analized the critical events that happened before
first company’s entry in the international
exploitation of knowledge requires the sharing of the
knowledge among the members of the firm as a market until to turn one of the 10th biggest cement
ompany’s in the world, with plants in 12
way to promote mutual understanding and c
understanding of the new. However, structural, countries.
cognitive, behavioural, and political barriers can In addition to being descriptive, this study is
stifle this process of knowledge sharing. It is up interpretive and inductive because this allowed the
to the organization, therefore, to create formal interpretation of the data collected and favored
and informal mechanisms to facilitate the interaction during the interviews (Miller &
distribution of knowledge within the organization Friesen, 1982; Taylor & Bogdan, 1998).
and among organizations (Camisón & Fóres, Since the reality studied is complex and
2010; Zahra & George, 2002; Todorova & poorly known, it was decided to begin with
Durisin, 2007). Not only is the ability to questions of broad interest, as suggested by
assimilate knowledge influenced by social various authors (Miles & Huberman, 1984;
1989). A “voluntary suspension of
rdt,
interaction mechanisms, such as other Eisenha
s established, as Gioia et al (2012) call
lief” wa
components of absorptive capacity such as be
acquisition. The ability to identify external for, and only a theoretical structure with broad
knowledge requires investing in social networks references was used, as indicated in Table 1.
and social integration initiatives (Todorova &
Durisin, 2007). Table 1. Main guiding categories of research and the authors
Todorova and Durisin (2007), when of reference
ategory Property Dimension Theoretical Base
modifying the model proposed by Zahra and C
George (2002), added the relations of power. Knowledge Individual Cohen & Levinthal
rior knowledge; (1990); Nelson;
According to the authors, the relations of power pInternationali-Organizational Winter (2005) ;
within the organization influence the exploitation zation knowledge; Casillas et al (2009);
of new knowledge through the process of Interorganiza-Eriksson et al
allocation of resources. Therefore, even if the tional (2000); Zahra &
company has the necessary knowledge for knowledge George (2002) ;
Todorova & Durisin
internationalization, it is in the relations of power Absorpti-(2007) ; Teece
that the strategic choices reside and, in this ve (2014)
respect, the strategic intentionality can not be Capacity Acquisition - Internal and Casillas et al (2009);
f
disregarded. oKnowled-New external Ericksson (2000);
The above review suggests that absorptive ge to Knowledge for information Zahra & George
Internationali-sources (2002); Todorova &
capability is a construct with elements Internatio-
zation Durisin (2007);
(acquisition, assimilation, transformation and nalization March (1991)
exploitation) that affect the internationalization Assimilation, Compatibility Cohen & Levinthal
process. transformation between new (1990); Zahra &
and and previous George (2002);
ploitation of knowledge. Casillas et al
3 Methodology ex
knowledge for Capacity to (2009); Todorova
Internationali-absorb new & Durisin (2007);
The decision was made to conduct a zation knowledge Teece (2014)
qualitative and longitudinal study (Denzin & Source: The authors.
Lincoln, 1994, p.23). A qualitative study adopts
The research strategy proposed is a simple
not
meanings,
ed with the
that “are relat
procedures
with the frequency of a phenomenon through its case study. The case study is the best method for
study in a certain social context (Marschan-analysing the transformation of a firm, because
only it allows analysing the various variables and
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 17
nd a member of Brazil’s
the dynamic involved (Child & Smith, 1987; Yin, Brazilian cement market a
2009) and for this reason it was the research second largest private industrial group considering
strategy chosen by important studies in the field of the value of net assets (Valor Econômico, 2013). It
razil’s emerging companies listed by
international business (Johanson & Vahlne, 1977; is among B
Mathews, 2006), which proves the relevance of the Global Challenger 2016, from the Boston
method. Consulting Group (BCG, 2016) and competes with
In the qualitative study, the case to be companies that are among the 100 most
analysed is defined intentionally to be able to internationalized in the world. The biggest
understand a specific phenomenon, it is a companies in the cement industry in the world are
“revelatory case” – that is, the information the chinese firms (China Natinal Building
described is revealing. This situation occurs when Materials, Anhui Conch, Jidong), the Europeans
the investigator has the opportunity to observe and (Lafarge-Holcim and Heidelberg Cement), as well
analyse a previously not accessible scientific the Mexican company Cemex.
investigation (Yin, 2009; Merriam, 2002, 2009;
The data collected from Votorantim appear
hosen, or
Patton, 2015). “Outlier companies” are c
situations where certain attributes are emphasized in transcriptions of the interviews and field notes.
or revealed (Lervik, 2011). They are based on broad questions or foci of
For the selection of the unit studied in this interest, which became more direct and specific
research, the relevance of the company to the during the study. The abstractions were
international process of Brazilian companies was constructed from the data, in a bottom-to-top
considered. The size of the company was observed process.
(the number of employees and assets); its level of Therefore, a rigid sequence of steps was not
transnationality, position in the ranking of the followed. The data collection and analysis were
main international competitors in the sector; the not conducted separately. The information
availability of access to primary data, including collected were interpreted, which generated the
key actors in the internationalization process, need for new research for data, which is typical of
qualitative research, which requires an integrated
ers of the company’s top
particularly memb
administration, given the strategic character of the process of data collection and interpretation
data collected. (Triviños, 1987; Taylor; Bogdan, 1988; Jones,
Other factors considered were 2004).
characteristics unique to the international process, The data was collected from primary and
such as late internationalization when compared secondary sources. A triangulation of the
with other private Brazilian groups or with other interviews was conducted with the secondary
groups in global industry, despite the privileged sources of data to maintain the integrity of the
position in the Brazilian market and the analysis (Miles & Huberman, 1994). The primary
uncommon direction of the international process data were collected by means of interviews and in
(up-ward). documents, as suggested by Li (2007). Primary
Ramamurti (2009) explains that studies that documents were collected at the company, such as
rd” investments – internal reports and presentations and non-
ve research about “up-wa
invol
those from developing countries to developed structured interviews were conducted with
are theoretically relevant because they directors of the organization being studied.
countries –
go against the conventional wisdom about the It was decided to use non-structured
direction in which capital, technology and interviews because they provide the freedom and
knowledge should flow in the global economy. spontaneity needed by the informant, enriching the
) “in
cated by Parkhe (2004
gation, as indi
Studies of these cases constitute examples of investi
situations that the traditional international business many areas of rigorous empirical investigation,
theory fail to explain well (Ramamurti, 2009; there is simply no satisfactory substitute for
f the
With the development o
erviews” (p. xviii).
Madhok & Keyhani, 2012). int
The case studied in this research was that of study, semi-structured interviews were conducted,
the company Votorantim Cimentos, one of the based on prepared questions, as indicated by
largest players in the global cement industry - tenth Patton (2015). These were used above all to check
position (GCR, 2016). It is the leader in the previous affirmations of the same person or by
other people interviewed, and to go more deeply
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 18
into specific issues. theme; f) analysis and interpretation of the results;
The interviews, because of the strategic g) preparation of the final text.
nature of the questions, were conducted with upper The NVivo software helped to organize the
level executives of the organization or with people categories (called nodes) and establish the
recognized for their considerable knowledge about hierarchy according to the properties and
dimensions. The categories listed by the literature
process.
the organization’s internationalization
Once the first interviews were initiated, the can be filed, together with their concepts, which
following ones were identified through facilitates codification. Another advantage of the
“snowballing” (Patton, 2015). use of the software is that it allows agglutinating
Those interviewed included the Vice various portions of the interviews about the same
President of the Board of Directors of Grupo category, which allows the easy creation of the
Votorantim, two directors of Votorantim analytical tables proposed by Miles and Huberman
Participações, a former president of Votorantim (1994).
Cimentos, who was responsible for having
process
initiated Votorantim’s internationalization
4 Analysis
and the first person from Votorantim Cimentos
Brazil to be expatriated to Canada in the process of Votorantim Cimentos is a late mover in the
acquisition of the first production unit in that global cement industry. Contrary to companies
country. such as Holcim, Lafarge, Heidelberg Cement and
The interviews were conducted in person Italcementi which internationalized from their
and were recorded, which facilitated the data base in developed countries (Switzerland, France,
collection, because it guaranteed better fluency Germany and Italy), Votorantim is part of a group
and total recovery of the information. The formed by companies in developing country, such
interviews totaled 16 hours of recordings. as CEMEX and Argos. These companies are
In relation to the questions used in the leaders in their markets of origin, which did not
interviews, it was requested that the people remain regional, expanding to other markets in
interviewed talk about the internationalization of developing countries by conducting operations
the company, emphasizing its main moments. As known as up-market (Ramamurti, 2009).
the data collection and analysis advanced, the Therefore, they have a different starting point than
interviews became better organized, with a more companies from mature economies. They are in
specific focus on understanding the role of countries with medium income levels, that have
absorptive capacity for the internationalization institutional fragilities and have different patterns
process, as a way to validate information already and paths of internationalization than
received and to obtain additional information, multinationals from developed countries, thus
complementing the dimensions that were not configuring different internationalization
clear. processes.
After the reading and rereading of each The process is coherent with what generally
interview transcribed, they were codified (Strauss takes place within the cement industry. Since they
& Corbin, 1998), and analytical tables were are in oligopolistic structures, they are companies
prepared to navigate through the data that internationalize after they have command of
(Eisenhardt, 1989; Miles & Huberman, 1994) the market in their countries and generate enough
with the assistance of the NVivo software. resources to be able to realize large investments
Macro categories were developed and used abroad, given that the internationalization of this
as guides in the interviews and the data were industry follows the foreign direct investment
chronologically organized. Within these macro-mode, or on a smaller scale, the formation of joint-
categories, smaller units of events were identified, ventures, or even the acquisition of shareholder
for which reason the following steps were participation. The exports tend to not have an
followed to analyse the data: a) reading of the important strategic significance. But, as Dunning
the “third
ompanies of
ed, c
l (2008) emphasiz
t a
interviews; b) codification of the interviews; c) e
various
on tend to use
ationalizati
” of intern
ve
reading and rereading of the codified interviews; wa
d) grouping of the reports according to category; mode of entrance.
e) organization of the texts referring to each The Votorantim group underwent an intense
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 19
process of diversification over five decades. developed a series of resources and capacities that
Created in the 1930s, its internationalization only have enabled it to achieve 40% of the Brazilian
gained force in the first year of the twenty-first cement market. In Brazil, a country with a large
century, when it made foreign direct investments, continental dimension, with significant differences
thus committing a larger amount of resources in between regions (such as the differences between
the international market. the operations in the South and Northeast), with
Since 2001, Votorantim Cimentos has the presence of relevant international competitors.
become a global consolidator (Ramamurti & In this regard, the environment of the country of
Singh, 2009). It expanded its activities origin constituted a context for the development of
internationally through acquisitions and came to competencies for internationalization in the
compete for operational excellence in a mature cement industry, despite the institutional voids of
industry, in both developing and developed a Latin American country. The knowledge prior of
countries, and indicated that it aspired to first entry is summarized in table 2.
participate on the global stage (Lu & Tung, 2007). But, new knowledge had to be acquired to
It is in an industry with consolidated internationalize. An obstacle to
technology, where scale and other cost advantages internationalization was the inexperience of
are essential. But, it had still not attained the scale managers about different cultures and an
and scope of internationalization of a large advantage was to be part of a business group, a
multinational in an advanced market, although it guarantee to know about the global capital market.
was among the ten largest players in the global
cement industry. Table 2. Knowledge Prior to the Internationalization of
The characterization of Votorantim is Votorantim Cimentos
similar to the description that Lessard and Lucea Knowledge prior to the
Categories
internationalization
CEMEX: “it is a ‘middle out’
(2009) made of
company in two senses: it has expanded up-market Individual capacities that
and down-market from a country of medium stimulate the absorption of
chnological development
income, medium technological development, te
generated by countries of the
median institutional development and much of its Role of the center. Importation of machinery
competitive advantage is in mid-level managerial Entrepreneur. and professionals.
oundary
processes, as characterized by Nonaka (1988) as a Bspanner. Stock of Organizational
marked
ess” (pág 282). Search for knowledge - memory –
“middle out proc
by the need for technological
To internationalize, the company had to knowledge.
updating.
absorb knowledge to active its goals. The Table 2 Recognition of the value of
describes the main aspects related to the knowledge acquired outside the
knowledge prior to internationalization of country.
Votorantim Cimentos and the main categories Capacity to conduct operations in
identified as determinant. These features were different regions of the country.
Ability in relationship with key
prevalent before the first entry in the international Role of the competitors.
size
market, that occurred in 2001, when the company market –
nd growth The level of integration of
bought an firm in North-America and began to aoperation in Brazil was low.
rate. Presence
produce there. of international Capacity that needed to be
So, before the first acquisition abroad, the competitors. developed before the first
entrance abroad. Knowledge of
company had capacity to search for technological management practices and
knowledge, what was essential to develop monitoring of strategic actions.
excellence in production process. The first Ability to identify and integrate
generation of the owners (this is a family Experience operations in acquisitions process
in
company) studied abroad and the company grew acquisitions in the Brazilian market was not
up in the Brazilian import substitution process. in the sufficient to develop routines for
international acquisition. The
The Brazilian big market and the presence of domestic
company recognized that had to
foreign competitors created an experience in market. learn how to do that.
acquisitions but it was not sufficient to
internationalize. In its own country, Votorantim
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 20
Ability to absorb new technology, (Dunning, 1980) and vision based on knowledge
Capacity to develop combine resources and innovate
efficient production based on the point of view of the (Kogut & Zander, 1993), which ignored strategic
process. organization process to reduce costs. intention, entrepreneurship and other managerial
Excellence in operations. aspects of decision making. In the Votorantim
Capacity for Strong brands and communication case, the board was very reluctant to
the strategies in Brazil. internationalize because the nationalist view that
development of Difficulty to transfer this capacity
brands and given the particularities of the was part of the culture of the owners family. This
reputation. market. caused an import delay in the internationalization
Knowledge of global capital process when compared with the competitors and
Capacity to access market derived from the others others Brazilian companies.
global capital companies of Votorantim Group.
market. The role of the conglomerate. For us, the worst tie, I think was this [Brazilian
Votorantim International and
closed economy, cost of capital very high] and
other companies of the group.
the maturity of the company and the
Individual and There was no education in shareholders vision, in understanding that to
organizational individual capacities or hiring of remain as an eminently Brazilian group in
capacities professional with command of businesses that are increasingly global (...)
related to live other languages, or experience in tomorrow is a weakness [second worst ties to
abroad. other countries. internationalization]
Source: The authors.
Concerning the search for new knowledge, When internationalization is part of the
’s goals for growth, it shifts attention
ompany
in Votorantim’s internationalization process there c
was an emphasis on the role of crises in the from the natural trend of incremental paths and
development of capacities. As demonstrated by the encourages to take larger leaps, by considering
literature, crises stimulate learning by threatening long-term planning, which involves greater risks.
the existence of the organization (Winter, 2000) For Huzschenreuter et al (2007), in the process of
and lead to exploration, acquisition, and a search for opportunities (to seize, in the language
internalization of external knowledge (Zahra & of Teece, 2014), the values should involve
such as wanting “to be the first to
ng
George, 2002; Kim, 2005; Volberda, Foss & somethi
at least, to be among the first in this new
, or
Lyles, 2010). Institutional changes that took move”
place in Brazil in the early 1990s established a new wave, which did not occur in the case studied. The
economic reality that was more dynamic and nationalist mental model developed in markets that
competitive, which for Votorantim stimulated the had been closed for many years, an aspect
within Votorantim’s leadership,
identified
ess (Teece, 2014) for the
“sensing” proc
development of capacities to operate in the reinforced the belief that the domestic market was
more important than the global arena. In this way,
ket. The “rules of the game”
international mar
(North, 1990) were changed, which came to nationalist administrators tend to avoid
require from the Votorantim group the capacity to internationalization as a strategic option,
particularly in the case of direct foreign
the global market”,
rantee its participation in
“gua
investment, a form of entrance that requires greater
ion”, conditions
ont a “sharper competit
to confr
commitment of resources (Johanson & Vahlne,
the group “virtues,
required companies from
that
different from those required in the earlier phase, 1977) and is difficult to reverse. Nadkarni and
marked by the closing of the economy and Perez (2007) found that the mental model for the
. domestic market influenced internationalization,
rism” (Caldeira, 2007, p.243)
pionee
Nevertheless, aspects of the internal but there is still only limited empiric evidence
environment were important in determining the about the relationship between the mental model
recognition of value of knowledge about the and the internationalization process (Nadkarni et
internationalization process. A fragility of the al, 2011) and the case of Votorantim contributes to
strategic intentionality was identified in relation to this line of research.
internationalization, an aspect that did not receive Other characteristics of the process of
attention in traditional international business searching for knowledge during the
theories, such as the theory of internalization internationalization of Votorantim Cimentos are
(Buckley & Casson, 1976), the eclectic paradigm highlighted in Table 3. This search happened
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 21
before the first entry, too, but after the strategic Travels, visits to Relevant cost
intention to internationalize became stronger. This factories abroad,
phase was a consequence of a trigger of activation Sources of documents of
but the company faced the lack of capacities and knowledge companies, outside
onsulting, case
fragilities about structural organization and cstudies
processes (lack of integration of units, inefficient Source: The authors.
communication channel, no sharing practices and
no routines to search knowledge about foreign During the knowledge acquisition process,
markets). the action of a boundary-spanner was found to be
relevant. An executive participated who had
Table 3. Acquisition and Assimilation - Search for international experience as CEO of cement
Knowledge in Votorantim Cimentos Internationalization
Process companies and who brought a diversity of
Search for knowledge (acquisition) perspectives and experiences, which allowed a
gain of intensity, velocity and legitimacy to the
ntos’
Categories during Votorantim Cime
internationalization process process of searching for knowledge for
Role of crises Energy Crises; Reveal reactive internationalization. As the findings of this study
– triggers of CADE creation; adaptive process suggest, the existence of people with international
activation. Recession (Collor experience in other companies can bring
Plan)
significant gains by expanding the capacity to
Recognition Weak strategic Conflict. Search absorb new knowledge about internationalization,
of the value of intention for ideas consistent
because they expand the locus of the search and
knowledge with the previous
knowledge decrease the chances that the company fall into
Poor integration Little stimuli to traps of familiarity, maturity and or affinity and
between corporate sharing of
they facilitate the assimilation process because the
Organizational units and among knowledge.
dge can be ‘translated’. The access to
w knowle
structure units of VC. Lockout in terms ne
xperiences” took place via inter-
se “e
Communication only of the
at the top internationalization organizational relationships, which shows the
capacity of knowledge to be generated both by
Low diversity of Favors the low
work locations recognition of value relations within the company and those with other
among members of of knowledge and companies.
Diversity the family owner, expanded barriers to During the learning process about
and without searching
professionals with internationalization was identified the need to
experience with realize structural changes in the organization based
other cultures on the domestic market. Greater integration was
Locus of Initially, by Accumulative conducted among the regions, processes that
search for bordering countries, knowledge. involved an expressive transfer of knowledge
knowledge where there are between units and generated the transformation of
export operations
tacit knowledge developed by a region into
Boundary-Executive with Access to tacit codified knowledge, which could be transferred to
spanner international knowledge, others. A team of replicators was also formed.
experience in the experience These experiences were, therefore, fundamental
cement industry
for internationalization, despite the greater
Formal Structure with the Learning about the complexity needed to conduct this transference in
structure of objective of market,
search for prospecting development of the international market, as the interviews
knowledge acquisition methodology of revealed.
opportunities analysis
In relation to the mode of entrance,
About the country (opportunities for Votorantim Cimentos followed a standard
Types of growth, institutional questions, logistical established in the sector, marked by an intense
knowledge conditions), companies that are targets for
acquisition, search for clusters process of mergers and acquisitions, either partial
or total. Once the entrance in the international
market began, with the first acquisition,
Votorantim Cimentos created VCNA –
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 22
Votorantim Cement North America and based on the development of the
strengthened the vision that it could grow in the internationalization process, reduced the variety of
firm’s knowledge base and promoted
market, that it had competence to do so and could the
practice price levels and leveraging like the large ossification and simplicity. Acquisitions, as
multinationals. But, they identified that they had to Vermeulen and Barkema (2001) showed, contrary
learn to operate in markets very different from the to greenfields, make firms more tolerant in the
Brazilian market. The data revealed that it was a sense that new ways of doing things are identified,
process of trial and error. which can be found in the case studied. The new
One example of routines that had to be circumstances of acquisition, in new territory,
developed was the distribution systems for the brought new information and incentives that
product, which required abilities not developed in triggered the search for and creation of new
the domestic market. They identified obstacles knowledge.
referring to cultural differences and difficulties in At the same time that the company identified
the process of knowledge transfer and they had to the need to have a homogeneous global platform
modify the Votorantim Cimentos Management for management of operational processes and
System. An outside consulting firm was a source indicators, it was determined to be important to
of knowledge for the integration process of the consider regional characteristics. This denotes the
new subsidiary and for the initial operating studies, development of the ability to have flexibility
above all concerning the specific legislation of the during the internationalization process. When new
country and the environmental issues and routines were being established, contributing to
expatriates were qualified to transfer, especially, greater rigidity, internationalization brought an
the production management knowledge. infusion of new ideas and new ways of doing
The management system developed in Brazil things.
proved to be very complex to be transferred to Although the creation of routines was
other realities, at the subsidiaries. When the necessary and resulted of a learning process, it also
integration process advanced, they saw peculiar had undesirable effects (Hannan & Freeman,
characteristics of the mode of operation of each 1984), which need to be transported for a better
country. Furthermore, it was during the adjustment to new conditions.
international management process that Votorantim Table 4 presents the main aspects related to
Cimentos learned to get along with worker unions. the processes of transformation and exploitation of
Abilities in the relationship with workers also had knowledge during the internationalization of
to be developed and adapted to the local culture. Votorantim Cimentos.
As far as the new subsidiaries were
incorporated, new management tools were Table 4. Transformation and Exploitation of Knowledge in
developed with standards of operational Votorantim Cimentos Internationalization Process
efficiency. A tool called optimal structural cost
ategories Transformation and exploitation
was created. C
The acquisition, therefore, represented both Abroad conditions were unknown -
use of the base of knowledge, with (management system emphasized the
exploitation –
short term instead of long term;
a refinement of routines, as well as exploration –
perception of the employee about
which allowed the firm to renovate its knowledge B
ofile
ns (“Brazilian Indian”); pr
razilia
base (March, 1991). Each time that the knowledge Development of of the employees; relationship with
w abilities
base was applied, opinions about what functioned neunions and found required new abilities
and these conditions demanded the
and why it functioned, were more firmly –
established in the minds of the administrators, and existence of new routines
we
process was slower than
“This
thus, the new routines were established (Nelson & i
”, said an interviewee
magined
Winter, 2005). Adaptation of the VCPS system –
The analysis of the first outside acquisition Creation of Votorantim Cements Production System
of a productive unit showed that the knowledge routines Outside consulting and expatriation
that is not useful for a given reality begins to were participants
disappear from the organizational memory. Step
by step, the exploitation, as well as a fine-tuning
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 23
Excellent structural cost – technique adapted to a market that had become unstable.
New
created during the internationalization
technologies for The interviews showed an organization with
process. Designed for comparison
management of between units and represents the centralized decision making and with conflicts
integration of continuity in the creation of the new between ownership and management,
subsidiaries knowledge process particularly concerning internationalization,
Source: The authors. which increased the time of searching for
knowledge about the foreign market. The
5 Conclusion influence of a nationalist mental model was
identified, in which the domestic market was
The multinational studied perceived as a priority. Under this aspect,
internationalized to exploit advantages of managerial discretion is also considered in the
ownership developed in the domestic market. internationalization processes. The development
These advantages include intangible assets, of capacities are not separated from the strategy
nd depend on the “nature of the managerial
such as managerial ability and greater a
hestration” (TEECE, 2014).
operational efficiency. Therefore, depending on orc
the context in which the internationalization The administrative structure of the case
takes place (the industry), capacities can be studied limited coordination between its units that
developed in the emerging countries, which will are spread among many regions of the country,
have to transfer knowledge to subsidiaries in which made it difficult to establish synergies and
foreign countries, a capacity that is still being develop a single sense of direction and strategic
developed given the immaturity of the thinking and above all, to share best practices,
capacities that are
international process among companies from and create knowledge –
the periphery. In the case in study, this fundamental to action in the global market.
immaturity takes place in terms of Based on this contextual configuration, the
internationalization because it is a mature company sought to develop capacities for
company, well established in the market of internationalization, driven by an entrepreneurial
origin and that had to make an intense effort to attitude of the company administrators. The first
learn to act globally. finding was that having operational efficiency
This case study revealed aspects of the was not sufficient, operating abroad would
require dynamic capacities, based on the
domestic environment that
organization’s
affected its strategic decisions referring to development of new routines and processes
internationalization. The following aspects that inherent to internationalization. An acquisition
affected internationalization stood out: its process of knowledge should be developed. The
formation in a conglomerate, governance administrators perceived that the company
structure and the low coordination between the needed to learn to be global, or, in other words,
knowledge about internationalization”.
eded “
regions of the company. ne
The participation in a conglomerate, typical It was in this recognition of the value of
of companies in developing countries, which knowledge about internationalization that an
supported themselves in this configuration to fill-intense process began to search for new
in institutional gaps, at the same time that it knowledge, despite the fear and uncertainty that
drained resources from the productive activity in this strategic intention represented.
question (cement, in this case) to conduct other In this sense, it was observed that the
activities, did not stimulate production abroad; in experience developed until that time in years of
other moments, it favored the internationalization exporting was not sufficient to prepare the
of the cement company through cultivation of company for production abroad. It was necessary
access to the international capital market and the to develop a structure with routines suitable for
sharing of practices. Nevertheless, the interviews the acquisition and prospecting of knowledge.
revealed a low coordination between the business This process involved both internal sources,
units during the organizational history, which which sought knowledge abroad through travel
expanded over time. and visits to possible acquisition targets; as well
The governance structure described as external sources, such as consulting companies
revealed signs of an organization that was poorly that conduct studies of best practices in
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 24
internationalization models. This search process 7 References
revealed a scarcity not only of organizational
knowledge, but also of individual knowledge, Apriliyanti, I; D.; Alon, I. (2017) Bibliometric
given that there was no one on staff with abilities analysis of absorptive capacity. International
inherent to experience with other cultures. Business Review, 26, 896-907.
The effective entrance into the international
market revealed a still unknown reality, which Argote, L. (1999) Organizational Learning:
corroborated the literature by identifying Creating, Retaining & Transferring Knowledge.
internationalization as a source of learning. Klumer Academic Publisher, 1999.
Differences were identified in the market
practices from various aspects – realization of Barkema, H. Vermeulen, F. (1998). International
investments, labor and union relations, relations Expansion through Start up or Acquisition: A
among employees and managers and in work Learning Perspective. The Academy of
organization. There was a transfer of the Management Journal. Vol. 41, No. 1 (Feb., 1998),
Brazilian managerial system abroad, but it proved pp. 7-26
to be incapable of being implemented as it was in
Brazil, given the peculiarities of the foreign Barney, J. B., (1991) Firm resources and sustained
reality. Therefore, a new phase of generation of competitive advantage. Journal of Management,
knowledge was developed, which represented 17, 99–
120.
the use of the knowledge base,
both exploitation –
with a refinement of routines, as well as - BCG –
Boston Consulting Group (2016). Global
exploration – the renovation of the base of Leaders, challengers and champions:The engines
knowledge. of emerging markets. Retrieved from
www.bcgperspectives.com/images
6 Implications and Further Research
Becker, M.; Lazaric, N.; Nelson, R. & Winter, S.
The description of the role that knowledge (2005) Applying organizational routines in
exercised in the internationalization process in understanding organizational change. Industrial
the case presented contributed to the literature by and Corporate Change, v.14, n.5, p. 775-791.
showing how the creation of capacities and their
exploitation are enrooted in specific contextual Becker-Ritterspach F. & Bruche, G. (2012)
conditions. The study contributed by showing Capability creation and internationalization with
how and why an emerging company was able to business group embeddedness –
the case of Tata
create capacities in an emerging country and Motors in passenger cars. European Management
expand them through an internationalization Journal. vol:30 iss:3, 232-247.
process to become a global consolidator. doi:10.1016/j.emj.2012.03.009
The main limitation of this study refers to
the method and data sources used. Despite the Bingham, C.; Eisenhardt, K. (2011). Rational
internationalization process being conducted by he
rn
e rules’ that strategists lea
uristics: the ‘simpl
senior management, the data are limited to the from process experience. Strategic Management
view of the main drivers of the process. Similarly, Journal. Vol 32, 13, Pages 1437-1464.
when using secondary data provided by the
organization, other sources of data that could Bilgili, T.; Kedia, B. & Bilgili, H. (2016)
assist in the process of understanding are Exploring the influence of resource environments
discarded. on absorptive capacity development: The case of
The authors suggest that further research emerging market firms. Journal of World
explores the relation of internationalization and Business. 51, 700-712. doi
absorptive capacity using the categories found in 10.1016/j.jwb.2016.07.008
this study with a quantitative method by the way
of analyse others sectors in an emerging market. Blazejewski, S. (2011) When truth is the daughter
of time: the longitudinal case studies in
international business research. In Piekkari, R.;
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 25
Welch, C. (2011) Rethinking the Case Study in doi:10.1016/j.jwb.2008.08.001
International Business and Management
Research. USA: Edward Elgar Publishing Chandler, A. (1962). Strategy and Structure.
Limited. Cambridge. Mass.:MIT Press.
Blomstermo, A.; Eriksson, K.; Lindstrand, A. & Chen, Y,; Lin, M. & Chang, C. (2009) The positive
Sharma, D. (2004). The perceived usefulness of effects of relationship learning and absorptive
network experiential knowledge in the capacity on innovation performance and
internationalizing firm. Journal of International competitive advantage in industrial markets.
Management, vol. 10, issue 3, 355-373. Industrial Marketing Management, 38 (2), 152-
158.
Buckley, P.J.; Clegg, L.; Cross, A.R.; Liu, X.;
Voss, H. & Zhen, P. (2007) The determinants of Child, J. (1972). Organizational Structure,
Chinese outward foreign direct investment. Environment and Performance: the role of
Journal of International Business Studies. 38 strategic choice. Sociology, v.6, p 2-22.
(4):499-518.
Child, J. & Smith, C. (1987) The Context and
Buckley, P. & Park, B. (2014) Realised absorptive Process of organizational transformation. Cadbury
capacity, technology acquisition and performance Limited in its Sector. Journal of Management
in international collaborative formations; an Studies, v.24, n.6., p.565-593.
empirical examination in the Korean context. Asia
Pacific Business Review, vol 20, n.1, 109-135. Cohen, W. & Levinthal, D. (1989). Innovation and
doi;10.1080/13602381.2013.779126. Learning: The Two Faces of R&D. Economic
Journal, 99, 569-596. doi: 10.2307/2233763
Buckley, P. J; Doh, J. P & Benischke, M. Towards
a renaissance in international business research? Cohen, W. & Levinthal, D. (1990) Absorptive
Big questions, grand challenges, and the future of capacity: a new perspective on learning and
IB scholarship. Journal of International Business innovation. Administrative Science Quartely, vol.
Studies, 48, 1045-1064. 35, n. 1, Special issue: Technology, Organizations
and Innovation. March, 128-152. doi:
Burgelman, R. (2011) Bridging History and 10.2307/2393553
Reductionism: A Key Role for Longitudinal
Qualitative Research. Journal of International Colantuono, A. & Pinho, M. (2012)
Business Studies. Vol. 42, Issue 5, Pages 591-601 Internacionalização de empresas produtoras de
cimento: análise da Votorantim Cimentos. III
Casson, M.C. (1976) The future of multinational Congresso Latino-Americano de Historia
enterprise, London: Homes & Meier. Económica y XXIII Jornadas de Historia
Económica. Retrieved from
Caldeira, J. (2007). Votorantim 90 anos: uma www.aahe.fahce.unlp.edu.ar/Jornadas/iii-cladhe-
história de trabalho e superação. São Paulo: xxiii-jhe
Mameluco.
Coutinho, L.; Hiratuka, C & Sabatini, R. (2008). O
Camisón, C. & Forés, B. (2010). Knowledge investimento direto no exterior como alavanca
absorptive capacity: New insights for its dinamizadora da economia brasileira. In: Barros,
conceptualization and measurement. Journal of O; Giambiagi, F. (org.) (2008). Brasil
Business Research, v.63, p. 707-715. Globalizado: o Brasil em um mundo
doi:10.1016/j.jbusres.2009.04.022 surpreendente. Rio de Janeiro: Elsevier.
Casillas, J., Moreno, A., Acedo, F., Gallego, M. Cuervo-Cazurra, A. (2012). Extending theory by
& Ramos, E. (2009). An integrative model of the analysing developing country multinational
role of knowledge in the internationalization companies: solving the goldilocks debate. Global
process. Journal of World Business, 44, 311-322. Strategy Journal. V.2, 153-167.
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 26
doi: 10.1111/j.2042-5805.2012.01039.x cost in the internationalization process. Journal of
International Business Studies, 28 (2), págs 337-
Cuervo-Cazurra, A. & Genc, M. (2008). 360.
Transforming disadvantage into advantage:
developing-country MNEs in the least developed Forsgren, M. The concept of learning in the
countries. Journal of International Business Uppsala internationalization process model: a
Studies. 39 (6), 709-725. critical review. International Business Review,
doi:10.1057/palgrave.jibs.8400390. 11(3), 257-277.
Cuervo-Cazurra, A. (2016). Multilatinas as Foss, N. J., Lyles, H. W. & Volberda, M.A. (2010).
sources of new research insights: the learning and Absorbing the concept of absorptive capacity: how
escape drivers of international expansion. Journal to realize its potential in the organization field.
951.
of Business Research, vol 69, issue 6, 1963-1972. Organization Science, v.21, n. 4, p. 931–
doi:10.1016/j.jbusres.2015.10.142 http://dx.doi.org/10.2139/ssrn.1513184
Cuervo-Cazurra, A. & Rui, Huaichuan. (2017) Flatten, T.C., Engelen, A., Zahra, S.A. & Brettel,
Barriers to absorptive capacity in emerging market M. (2011). A measure of absorptive capacity: scale
firms. Journal of World Business, 52, 727-742. development and validation. European
Management Journal, v.29, n. 2, p. 98-116.
Denzin, N. K. & Lincoln, Y. S. Handbook of doi:10.1016/j.emj.2010.11.002
qualitative research. Londres: Sage, 1994.
Fleury, A. & Fleury, M. T. Brazilian
Dunning, J. H. (1980). Towards an eclectic theory Multinationals. Cambridge University Press,
of international production: some empirical tests. 2011.
Journal of International Business Studies, 11(1),
9-31. doi:10.1057/palgrave.jibs.8490593 Furquim, N. & Meireles, D. (2006) Grupo
Votorantim: Um caso contemporâneo de
Dunning, J., Kim, C. & Park, D. (2008). Old Wine internacionalização bem-sucedida. Internext, (1),
in new bottles: a comparison of emerging-market 1, 1-22.
TNCs today and developed-country TNCs thirty
years ago. In Sauvant, K. (org) The Rise of Garrido, I. L.; Parente, R. C,; Gonçalo, C. R. &
Transnational Corporations from Emerging Vasconcellos, S. L. (2017) Mantendo-se
Markets. Threat or Opportunity? Edward Elgar Inovadoras: O papel do Desempenho Passado, da
Publishing, USA. Capacidade Absortiva e da Internacionalização.
Brazilian Business Review, 14 (6), p. 559-574.
Easterby-Smith,M., Graça, M., Antonacopoulou, DOI: http://dx.doi.org/10.15728/bbr.2017.14.6.1
E. & Ferdinand, J. (2008) Absorptive Capacity: a
process perspective. Management Learning. 39 Gioia, D, Corley, K. & Hamilton, A. (2012).
(5), 483-501. doi: 10.1177/1350507608096037 Seeking qualitative rigor in inductive research:
notes on the Gioia Methodology. Organizational
Eisenhardt, K., (1989) Building Theories from Research Methods. 16 (1), 15-31. doi:
Case Study Research. Academy of Management 10.1177/1094428112452151
Review, vol. 14, n.4, 532-550. doi:
10.5465/AMR.1989.4308385 GCR, Global Cement Report (2016). Top 100
Report. Retrieved from
Eriksson, K.; Majkgard, A. & Sharma, D. (2000). www.globalcement.com/reports
Path Dependence and knowledge development in
the internationalization process. Management Guillén, M. & Garcia-Canal, E. (2009) The
International Review, 40, págs 307-328. American Model of the Multinational Firm and the
New Multinationals from Emerging Economies.
Eriksson, K.; Johanson, J.; Majkgard, A. & Academy of Management Perspectives, may. 23-
Sharma, D. (2009). Experiential knowledge and 35. doi: 10.5465/AMP.2009.39985538
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 27
Hannan, M. T., & Freeman, J.. (1984). Structural Johanson, J. & Vahlne, JE (1997) The
Inertia and Organizational Change. American internationalization process of the firm-a model of
Sociological Review, 49(2), 149–164. Retrieved knowledge development and increasing foreign
from http://www.jstor.org/stable/2095567 market commitments. Journal of International
Studies., 8 (1), pp. 23-32
What’s
Hernandez, E; Guillén, M. (2018)
theoretically novel about emerging-market Kale, P.; Dyer, J. H. & Singh, H. (2002).Alliance
multinationals? Journal of International Business capability, stock market response, and long-term
Studies, 49, 24-33. doi.org/10.1057/s41267-017-alliance success: the role of the alliance function.
0131-7 Strategic Management Journal 23(8): 747-767.
Hutzschenreuter, T., Pedersen, T. & Volberda, H. Kim, L. (2005) Da Imitação à Inovação: a
(2007) The role of path dependence and dinâmica do aprendizado tecnológico da Coreia.
managerial intencionality: a perspective on Campinas, SP: Editora da UNICAMP.
international business research. Journal of
International Business Studies, 38 (7), 1055-1068. Knight, G. A., & Liesch, P. W. (2002).
doi:10.1057/palgrave.jibs.8400326 Information internalization in internationalizing
the firm. Journal of Business Research, 51(12): 1–
Jansen, J.J.P., Van Den Bosch, F.A.J. & Volberda, 15.
H.W. (2005) Managing potential and realized
absorptive capacity: how do organizational Kogut, B. & Zander, U. (1993). Knowledge of the
antecedents matter? Academy of Management firm and the evolutionary theory of the
Journal, v.48, n. 6, 999-1015. multinational corporation. Journal of
doi:10.1057/palgrave.jibs.8400326 International Business Studies, fourth quarter,
625- 645. doi:10.1057/palgrave.jibs.8400058
Jiménez-Barrionuevo, M. M., García-Morales, V.
J., & Molina, L. M. (2011). Validation of an Lall, S. (1983) The new Multinationals: The
instrument to measure absorptive capacity. Spread of the Third World Enterprises.
Technovation. 31(5/6), 190-202. doi: Chichester, UK: John Wiley & Sons.
10.1016/j.technovation.2010.12.002
Lane, P., Koka, B. & Pathak, S. (2006). The
Jones, V. The Rhythms of Latin America: a Reification of Absorptive Capacity: a critical
context and guide for qualitative research.In review and rejuvenation of the construct. Academy
Marschan-Piekkaru, R & Welch, C. (2004). of Management Review, vol.31., n.4, 833-863. doi:
Handbook of qualitative research methods for 10.5465/AMR.2006.22527456
international business. UK: Edward Elgar
Publishing Limited, 2004. Lervik, J. (2011). The single MNC as research site.
In Perkkari, R.; Welch, C. Rethinking the case
Johanson, J. & Vahlne, J. (1977) The study in international business and management
A model research. UK: Edward Elgar.
Internationalization Process of the Firm –
of Knowledge Development and Increasing
Foreign Market Commitments. Journal of Lessard, D. & Lucea, R. (2009). Mexican
International Business Studies, 8 (1):23-32. multinationals: Insights from CEMEX. In
doi:10.1057/palgrave.jibs.8490676 Ramamurti, R. & Singh, J. Emerging
Multinationals in Emerging Markets. NY:
Johanson, J. & Vahlne,J E. (2006) Commitment Cambridge University Press.
and opportunity development in the
internationalization process: A note on the Li, P. (2007). Toward an integrated theory of
Uppsala internationalization process model. multinational evolution: the evidence of Chinese
MANAGE. INT. REV. (2006) 46: 165. multinational enterprises as latecomers. Journal of
https://doi.org/10.1007/s11575-006-0043-4 International Management, 13 (3), 296-318.
doi:10.1016/j.intman.2007.05.004
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 28
Luo, Y. & Tung, R. (2007) International expansion Miller, D. & Friesing, P. H. (1982) The
of emerging market enterprises: a springborard longitudinal analyses of organizations: a
perspective. Journal of International Business methodological perspective. Management
Studies, 38, 481-498. Science, v. 28, n. 9, p. 1013-1033.
doi:10.1057/palgrave.jibs.8400275 doi: 10.1002/gsj.1023
Luo, Y & Tung, R. (2018) A general theory fo Milles, M. & Huberman, A. (1984). Qualitative
springboard MNEs. Journal of International data analysis: a source book of new methods.
Business Studies, 49, 129-152. doi Bervely Hills: Sage.
10.1057/s41267-017-0114-8
Nadkarni S. & Perez, P. (2007). Prior conditions
March, J. (1991) Exploration and Exploitation in and degree of internationalization: the mediating
organizational learning. Organization Science, 2, role of domestic mindsets. Journal of
71-87. http://dx.doi.org/10.1287/orsc.2.1.71 International Business Studies 38 (1), 160- 176.
doi:10.1057/palgrave.jibs.8400248
Marschan-Piekkaru, R & Welch, C. (2012)
Reflections on Using Qualitative Research Nadkarni, S., Herrmann, P. & Perez, P. (2011).
Methods in International Business. Retrieved from Domestic Mindsets and Early International
www.ita.hse.fi/2006/4/ita_2006_04_a7.pdf. Performance: the moderating effect of global
industry conditions. Strategic Management
Mathews, J. (2006) Dragon Multinationals: New Journal, 32, 510-532. DOI: 10.1002/smj.888
Players in the 21 st century globalization. Asia
Pacific Journal Management, 23, 5-27. doi Nelson, R. & Winter, S. (2005). Uma teoria
10.1007/s10490-006-6113-0 evolucionária da mudança econômica. Campinas,
SP: Editora da UNICAMP.
Mathews, J. & Cho, D. (1999) Combinative
Capabilities and Organizational Learning in Nonaka, I. (1988) Toward Middle-up-down
Latecomer Firms: the case of the Korean Management: Accelerating Information
Semiconductor Industry. Journal of World Creation. Sloan Management Review, Spring.
Business, 34 (2), 1999, pp. 139-156. Retrieved from
doi:10.1016/S1090-9516(99)00013-9 http://sloanreview.mit.edu/article/toward-
middleupdown-management-accelerating-
Madhok, A. & Keyhani, M. (2012). Acquisitions information-creation/
as entrepreneurship: asymmetries, opportunities,
and the internationalization of multinationals from Nonaka, I.; Takeuchi, H. (1997) Criação de
emerging economies. Global Strategy Journal., 2: Conhecimento na Empresa: Como as Empresas
26–40. DOI: 10.1002/gsj.1023 Japonesas Geram a Dinâmica da Inovação. Rio de
Janeiro: Campus.
Melin, L. (1992). Internationalization as a strategy
process. Strategic Management Journal, 13, North, D., (1990) Institutions, Institutional
118. Change and Economic Performance, Cambridge:
Winter, special issue, p. 99–
Cambridge University Press.
Merriam, S. (2002) Introduction to qualitative
research, Jossey-Bass. Parkhe, A. (2004). Interviews: a key data source in
international business research. In Marschan-
Merriam, S, (2009) Qualitative research: a guide Piekkaru, R & Welch, C. Handbook of qualitative
to design implementation, John Wiley & Sons. research methods for international business. UK:
Edward Elgar Publishing Limited.
Meyer, K. E. & Peng, M. (2016) Theoretical
foundations of emerging economy business Patton, M. Q. (2015). Qualitative Research &
research. Journal of International Business Evaluation Methods: integrating theory and
Studies, 47, 3-22. doi: 10.1057/jibs.2015.34
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 29
practice, 4th ed. Thousand Oaks, CA and London: DOI: 10.1002/smj.4250171105
Sage.
Taylor, S. & Bogdan, R. (1998) Introduction to
Pettigrew, a. (2012). Context and Action in the Qualitative Research Methods: a guidebook and
Transformation of the firm: a reprise. Journal of resource. NY: John Wiley&Sons, Inc.
Management Studies, vol 49, issue 7, pp 01-25.
Teece, D. J. (1986) Profiting from technological
Penrose, E. (1957) Limits to the Growth and Size innovation: implications for integration,
of Firms. American Economic Review, vol 45, n.2, collaboration, licensing and public policy.
p. 531-43. Research Policy, 15, 285-305. doi:10.1016/0048-
7333(86)90027-2
Ramamurti, R. (2009) Why study emerging-
market multionationals? In RAMAMURTI, R,; Teece, D. J. (2007) Explicating Dynamics
SINGH, J. Emerging Multinationals in Emerging Capabilities: the nature and microfoundations of
Markets. NY: Cambridge University Press. (sustainable) enterprise performance. Strategic
Management Journal, 28, 1319- 1350.
Ramamurti, R. & Singh, J. (2009). Indian DOI: 10.1002/smj.640
multinationals: generic internationalization. In
Ramamurti, R, & Singh, J. Emerging Teece, D. J. (2014) A dynamics capabilities-based
Multinationals in Emerging Markets. NY: entrepreneurial theory of the multinational
Cambridge University Press. enterprise. Journal of International Business
Studies, 45, 8-37. doi:10.1057/jibs.2013.54
Ramamurti, R. (2012). What is really different
about emerging market multinationals? Global Todorova, G. & Durisin, B. (2007) Absorptive
Strategy Journal, v.2, 41-47. Capacity: valuing a reconceptualization. Academy
DOI: 10.1002/gsj.1025 of Management Review, vol. 32, 2007, p. 774-786.
doi: 10.5465/AMR.2007.25275513
Rugman, A. (2008) How global are TNCs from
emerging markets? In Sauvant, K. (org) The Rise Triviños, A. (1987) Introdução à pesquisa
of Transnational Corporations from Emerging qualitativa em ciências sociais: a pesquisa
Markets. Threat or Opportunity? Edward Elgar qualitativa em educação. São Paulo: Atlas.
Publishing, USA.
Tsai, w. (2001). Knowledge transfer in
Santos, L. B. (2008) Reestruturação, intraorganizational networks: Effects of network
internacionalização e novos territories de position and absorptive capacity on business unit
acumulação do Grupo Votorantim. Dissertação. innovation and performance. Academy of
Universidade Estadual Paulista, Faculdade de Management Journal, 44 (5), 996-1004.
Ciências da Tecnologia.
UNCTADStat – United Nations Conference on
Sapienza, H.; Autio, E; George, G & Zahra, S. A. Trade and Development (2016). Retrieved from
(2006) Capability perspective on the effects of unctad.unctad.org/wds/TableViewer/tableView.as
early internationalization on firm survival and px
growth. Academy of Management Review, 31, p.
914-933. Valor Econômico, (2013). 200 Maiores Grandes
Grupos. Ano 12, n.12, Dezembro.
Strauss, A. & Corbin, J. (1998) Basics of
Qualitative Research, Sage Publications. Van de Ven, A; Huber, G. (1990). Longitudinal
Field Research Methods: Studying Processes of
Szulanski, G. (1996). Exploring internal Organizational Change. Administrative Science
stickiness: impediments to the transfer of best Quartely 1 (3):213-219.
practices within the firm. Strategic Management
Journal, v.17, n. 10, p. 27-43. Van Maanen, J. (1983) Qualitative methodology.
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 30
BH; Sage. vol.27, n.2, 185-203. doi:
10.5465/AMR.2002.6587995
Vermeulen, F. & Barkema, H. (2002). Pace,
Rhythm and Scope: Process dependence in Zollo, M. & Winter, S. G. (2002) Deliberate
building a profitable multinational corporation. Learning and the Evolution of Dynamic
Strategic Management Journal. 23:637-653. Capabilities. Organization Science, v. 13, n. 3, p.
DOI: 10.1002/smj.243 339-351.
Volberda, H.; Foss, N. & Lyles, M. (2010)
Absorbing the Concept of Absorptive Capacity:
How to Realize Its Potential in the Organization
Field. Organization Science. V. 21,p.931-951.
Votorantim (2017). Relatório 2017. Retrieved
from https://mz-
filemanager.s3.amazonaws.com/8b9699e2-23e0-
419e-9df2-0c87f04b3208/relatorios-
anuais/a562a1cd783fa5fa9ce0eed758e78505370b
9fb16e0f722095e1bf4aa56a7bf9/relatorio_votora
ntim_2017.pdf
Wells, L. (1983). Third World Multinationals: The
Rise of Foreign Investment from Developing
Countries. Cambridge, MA: the MIT Press.
Wells, L. (2009) The Third World multinationals:
a look back. In Ramamurti, R. & Singh, J.
Emerging Multinationals in Emerging Markets.
UK: Cambridge University Press.
Wilkins, M. (2010). The History of the
multinational enterprise. In. RUGMAN, A.; The
Oxford Handbook of International Business. 2nd
edition. UK: Oxford University Press.
Winter, S. G.. (2000). The Satisficing Principle in
Capability Learning. Strategic Management
996. Retrieved from
Journal, 21(10/11), 981–
http://www.jstor.org/stable/3094423
Wu, A. & Voss, H. (2015) When does absorptive
capacity matter for international performance of
firms? Evidence from China. International
351.
Business Review 24, 344–
http://dx.doi.org/10.1016/j.ibusrev.2014.08.006
Yin, R. (2009) Case Study Research: Design and
Methods, 4th ed., Thousand Oaks: Sage.
Zahra, S. & George, G. (2002). Absorptive
Capacity: a review, reconceptualization, and
extension. Academy of Management Review,
Revista de Negócios, v. 23, n. 1, p. 7-30, January, 2018. 31
Isomorphic relations and process of
institutionalization: a study for the special coffee
market in Brazil between 1990 and 2016
Josue Pires de Carvalho¹, Jorge Luis Sánchez Arévalo², João Luiz Passador³
¹ Universidade de São Paulo (USP) - josa.carvalho@outlook.es
² Universidade de São Paulo (USP) - jsarevalo@usp.br
³ Universidade de São Paulo (USP) - jpassador@usp.br
ABKEYWORDS
STRACT
Special coffee; This study analyzes the importance of isomorphic relations in the process
Geographical Indication; of institutionalization of the special coffee market in Brazil. To accomplish
ganizational Field.
Or the objective, interviews were conducted with the various agents tied to the
field. Three Brazilian regions were chosen because they are the most
Received 03.10.2017 representative and convenient for the study, considering their high
Revised 07.03.2018 institutional development; two (Northwest of Minas and Alta Mogiana)
Accepted 30.08.2018 already have Geographical Indications (GI) and the third one (Matas de
ISSN 1980-4431 Minas) is in the process of adoption. The results show the importance of
Double blind review the State as between promoter and inducer in relation to the adoption of
GIs. In addition, it is evident the importance of the commitment of agents -
producer and buyer - who are proactively engaged in entrepreneurial
actions, in order to adapt to the new practices and trends of the special
coffee market, where quality consumption is privileged.
PALAVRAS-CHAVE RESUMO
Café especial,
Este estudo analisa a importância das relações isomórficas no processo de
Indicação Geográfica;
Campo organizacional. institucionalização do mercado especial de café no Brasil. Para atingir o objetivo,
foram realizadas entrevistas com os diversos agentes ligados ao campo. Três
regiões brasileiras foram escolhidas por serem as mais representativas e
convenientes para o estudo, considerando seu alto desenvolvimento institucional;
duas (Noroeste de Minas e Alta Mogiana) já possuem Indicações Geográficas
(GI) e a terceira (Matas de Minas) está em processo de adoção. Os resultados
mostram a importância do Estado como promotor e indutor em relação à adoção
das IG. Além disso, fica evidente a importância do comprometimento dos agentes
- produtores e compradores - que estão engajados proativamente em ações
empreendedoras, a fim de se adaptar às novas práticas e tendências do mercado
de café especial, onde o consumo de qualidade é privilegiado.
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 32
1 Introduction Specifically, in relation to the indication of special
coffees by their origin, in general, the aspects that
This article brings to the discussion the differentiate them are related to: producing region,
importance of organizational studies, starting from soil, predominant climate, temperature variation,
the approach of the contributions of institutional altitude, drying and roasting, mainly.
theory on the challenges, possibilities of Thus, this study tries to understand in what
advancement and possible impasses of the way the organizations inserted in "regions"
relationship of the State with the private agents in directed to the production of special coffees are
the search to guarantee and promote adequate influenced by institutional factors, mainly in its
arrangements for socioeconomic development and process of acquisition of a Geographical Indication
permanence productive activities; In particular, as it has been disseminated, extrapolating the limits
those aimed at aggregating value in coffee of producer organizations in isolation, and how the
production in Brazil, with an impact not only on the state fulfills a fundamental role in this context.
agribusiness itself but also on the medium and It should be emphasized that the process of
small family-based producers. acquiring a Geographical Indication (GI) suffers
In the context of organizational studies, institutional influence not only in the tendency to
institutional theory, since the last quarter of the increase its adhesion by the productive sector, but
twentieth century, has been consolidated as an also because the adoption of GIs would imply a
analytical tool aimed at understanding the commitment to new rules, routines, ways of doing
processes of institutionalization of organizational and acting that could even contradict previous
practices involving relations and impacts between practices.
Structure and technical and socioeconomic In view of the context presented, the
environment, between organization and institution. following research questions are raised: How do
Reflecting in the structuring of the governance, in institutional aspects influence and are mobilized to
the strategies, in the appearance of new acquire a geographical indication in the context of
arrangements, adoption of new technologies, in the an organizational field? What role does the State
intra and inter organizational relations. play in promoting the special coffee market in
Regarding the relationship between coffee Brazil? And describe the importance of
and Brazil, although it is not a national native plant, isomorphism between the parties involved.
since the first seedlings were brought here, it has Institutionalization (based on institutional
become one of the main commodities of Brazilian theory) is understood as the means of explaining
agricultural production, being for several decades the structure or action of organizations, through
of economic history the main product of national to interactions that become legitimate, with the
export. purpose of obtaining a standardization of social
In addition, due to its economic magnitude, behavior or social relations of the interested parties,
its ability to generate employment and income in through Organizational identity can be determined.
the country side and throughout its productive In the same context, isomorphism is a key concept
chain, the relevance of the debate on coffee for understanding the politics and rites of many
production in Brazil, including more recently the modern organizations. In general, it is seen as a
"specialty coffees" segment, has been which pressure inducer to a unit or organization to
underpinned for several decades by several resemble other units that participate in the same set
institutions involved, especially those that make up of environmental conditions.
the "Consórcio Pesquisa Café" coordinated by the Therefore, it is based on the theoretical
Ministry of Agriculture, Livestock and Supply approach of organizational institutionalism, more
(MAPA). The entities that make up the consortium closely than its notions of Isomorphism and
are: UFV, EPAMIG, UFLA, EMBRAPA, IAC, Institutional Field, to evidence the role of the State
IAPAR, PESSAGRO, EBDA and INCAPER. and other actors in this process as sources of
So-called "specialty coffees" are considered isomorphic pressure. That, in turn, are conditioned
to be the products with the highest added value. the characteristics of institutionalization present in
The notion of specialty coffees refers to attributes the structure of a field. In addition, it seeks to
related to the product itself or linked to the broaden the understanding of the phenomenon,
production process and services involved. adding to the analysis the action of the public
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 33
agents as institutional entrepreneurs. of the exchange with the environment relation,
which organizations promote in their quest
2 Theoretical Framework for survival (Hollway, Lomi, Pallotti, 2017;
Duarte, Tavares, 2012).
2.1 The Organizational Field It is understood that, initially the
organizations are in isolation, and that given the
The organizational field is characterized as specialization and perception of belonging to a
the conjunction of the component organizations of field, they tend to share values. This process tends
an institutional segment, comprising clients, to strengthen the field institutionalization.
suppliers, competitors and regulatory bodies, Evidently, organizations begin to recognize the
which influenced by them, are directly or indirectly mutual and gradual importance of the proximity.
impacted (Dimaggio & PowelL, 1991). Consequently, the evolution of the relations
In this sense, external agents to an becomes accentuated, and the points of contact
organization or a group of them can even interfere tend to converge, strengthening the sharing of
in its behavior and structure, through norms and values (see figure 1).
even the transmission of values. This process In addition, organizations become more
becomes more evident as the field reaches its similar (isomorphic) to each other from
institutionalization phase, in which case the the implication of "powerful forces" acting in a
presence of interorganizational bonds and shared structured field. This observed process may be
values is accentuated (Yorozu, 2017; Simão et al, more relevant when it comes to the same activity
2017). sector and composed of different organizations. It
The notion of organizational field linked to is emphasized that this process tends to impact
organizational legitimacy, is of fundamental structures, work practices, organizational behavior,
importance in the institutional sedimentation goals and strategies which promotes the
process (Cruz-Suarez, et al. 2014). In addition, it "isomorphism" condition.
seeks to add a symbolic dimension in the analysis
Figure 1. Formation stages of an organizational field
Source: Elaborated from Gonzalez & Martin (2017), and Gomes & Vieira (2009).
2 .2 Isomorphism types manifested formally or informally arising from
dominant organizations that holds some kind of
2 .2 .1 Coercive Isomorphism demanding resource or by socially determined
expectations.
It is the result of political influences and the Teo, Wei and Benbasat (2003), when
legitimacy question. The organizations may suffer studying the adoption of new technologies, pointed
expressly coercive pressure or even in the to evidence that would reinforce the perception
persuasion form, invitation to joint participation, that, through domination, resource-holding
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 34
organizations (corporate headquarters and isomorphically in function of problems that have
regulators) may exert coercion in exchange not yet allowed their own coping solutions (Prado-
relationships. The authors emphasize that Román et al, 2018; Hüther and Krücken, 2016).
customers and suppliers can exert influence for the
use of a certain technology on a company when it 2.2.3 Mimetic Isomorphism
is dependent on the first in resources. Thus, the
maintenance of trade relations of In this type of isomorphism, the pressures
mutual benefit, would then be a form of coercive come from the positive perception that
pressure. organizations have of others. Thus, in order to
On the other hand, to link the issue with consider them to be more successful or legitimate,
the participation of governments more closely, the organizations perceive the need to insert itself
state, along with the other agents, tends to coerce a in the context, that is, to model after other
number of organizations through the organizations. In the view of DiMaggio and Powell
implementation of public policies, highlighting its (1991, 1988) there are situations of an organization
role in the isomorphic changes. being taken as a model, that in reality do not result
the organization’s position, but
For example, researches highlight the from the desire for
importance of the governmental hierarchy and its of the effort displayed, aiming at strengthening the
organs as a source of influence on organizations, organization in the inserted segment.
considering the adoption of information In this same context, companies use
technologies, through political manipulation and recurring imitation to produce new products, to
budgetary resources (Rodriguez et al., 2007). elaborate processes and methods, to outline ways
Moreover, the legitimacy of standards of organizing and exploiting new markets (Yorozu,
regarding the practices, can also result from the 2017). At this point, the cultural-cognitive pillar
development of public policies (Cruz-suarez, et al associated with the mutation of the isomorphic
2014; Diniz et al., 2009), something determinant in mimetic is highlighted, where the activities of
the special coffee context, which is the question of institutions are taken culturally and adhered to in
anizations’ dynamics (RUPIDARA, 2017).
org
study. the
Hence the emphasis attributed to symbols and
2.2.2 Normative Isomorphism meaning, as individuals do not absorb the external
reality as given ontologically; but taking into
The source of normative isomorphic change account a socially shared structure of meanings.
comes mainly from the professionalization and Linking this part of the theory with the
recognition of its importance. These points act as a proposed study, it is integrative and systemic
collective force of a profession/occupation character, by considering it to be a potentiating
members that defines the conditions and methods prospect of elucidation of stakeholders. In view of
of their own work (Gamage and Gooneratne, this, while recognizing the challenges of time,
2017). These influences are determinant in diverse resources demanded and even dangers
organizations. when relating to the epistemological context, the
Although the practices of a particular proposed study seek to understand the
profession may be different in one organization, institutionalization phenomenon of the special
professionals linked to a profession tend to coffee. Undoubtedly, categories such as
replicate similar behavior even in different organizational field, isomorphism, legitimacy and
companies. This reality can derive and foster the institutional entrepreneur, are simultaneously
relationship through networks of professionals determinant concepts.
that constantly update themselves and spread new
work forms as they are composing their staff. 2.3 Formalization of research focus
In this sense, considering the similarity in the
Considering that an organizational field
in
ganizations
erent or
case in diff
managers’
relation to their networks of work/relationships and advances in its stages of institutionalization
formal education, the response to problematic concomitant to the increase of the interactions and
situations tends to be similar, given the sharing of diffusion of shared understandings and beliefs,
practices. In this sense, organizations would act adopted practices, rationalized myths by the
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 35
present organizations, in order to make them more The scope of the research covers three coffee
and more similar (Gamage; Gooneratne 2017; regions, namely: (a) the northwestern part of the
Tolbert & Zucker, 1998), we have the following Minas Gerais state, (b) the Zona da Mata, also in
propositions: the state of Minas Gerais, and (c) the Alta Mogiana,
Proposition 1. The adoption of the GI state of São Paulo. It should be noted that the first
registration for coffees occurs under certain two producing regions have GI of coffee produced
structuring conditions arising from the by them; while the last region mentioned above is
institutionalization process of the organizational in the process of achieving geographical
field. certification.
Proposition 2. Organized entities in the The choice of the above-mentioned coffee
coffee production tend to be forced to adhere to the regions was due to convenience criteria, that is, to
GI registry by government agencies and select the most profitable research locus; and
organizations that have resources and power, due whose actors made themselves available to
to coercive pressures. It is considered that collaborate with the data provision necessary for
the coercive pressures can come from dominant the reflections that were and are understood in the
organizations, possessing resources and power research scope. Nevertheless, it should be pointed
present in the organizational field. out that the expedient of choosing certified coffee
Proposition 2A. Interest in GI registration by regions, and a single region that does not yet have
the State and other resource-earning organizations a geographical indication, is justified by the need
tends to exert coercive pressures for their use in to have elements to compare the evident
dependent coffee organizations. institutionalities in each of the analytical loci which
3. Coffee producers’ associations covers the research.
Proposition
that seek premium prices tend to seek GI It is important to reiterate that the coffee
registration in accordance with professional and regions contemplated in this study are among the
governmental organizations, due to the occurrence main poles of production of special coffees in
of normative isomorphism. Brazil. Thus, it is very important to undertake
Proposition 4. Coffee grower organizations efforts which have the purpose to shed light to the
tend to seek legitimacy by registering a GI as they dynamics and characteristics of these regions.
identify an GI holding organization as a Consequently, it is important to regard important
successful model in a field. Thus, use of GI by elements so that the planning can be more efficient,
prominent organizations in the field can exert and in turn, imply the promotion of coffee
pressure of the mimetic type on the other entities. production in emerging localities, such as the states
Proposition 5. In addition to coercive of Rondônia and Bahia, for example.
pressures, the State, through its agents and Data utilized in this study are from the
agencies, engages in proactive actions of following sources: (a) participant observation and
institutional entrepreneurship through the systematic with leading players who are based in
mobilization of efforts and resources, and through the special coffee producing regions; (b)
the sensitization discourse to adopt a GI for coffee. documents provided by the investigated players
The previous proposition is strengthened by (such as documents, minutes of meetings, statutes,
the fact that the institutional entrepreneur (whether photographic records, folders and the likes); (c)
individuals or organizations) acts by mobilizing exploratory and in-depth interviews with players,
resources and elaborating discourses of persuasion, which guided the institutions definition in the
implying changes in institutions (Rahmah 2017; coffee regions investigated in this paper.
Rupidara, Darby, 2017; Dimaggio, Powell, 1991). As an instrument for directing the in-depth
Importantly, the results using the criterion of interviews, a protocol with guiding questions was
"big influence" and "small influence" is based on used to understand how institutional factors
the relationship observed in the research, being influence the adoption of geographical indication
used to such criteria, interviews and texts related to (Blakeney, et al. 2013) in the context of the
the study. organizational field under analysis, in each one of
the coffees producing regions considered in this
3 Methodology research.
As a subterfuge for a greater and better
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 36
approximation in relation to the subject Grader and owner of Cafeteria; a producer and
investigated, exploratory interviews were owner of an accredited warehouse, with a pioneer
conducted with privileged informants from the family in the production of coffee in the Minas
producing regions investigated. The interviews Gerais cerrado region.
were not recorded and served to check previous Part of the interviewees in the preliminary
information, contributing to the refinement of the and exploratory stage of the research composed, in
protocol with guiding questions effectively a second moment, the set of agents that were
engaged in data collection. effectively interviewed with greater rigor and detail
Agents interviewed effectively in this step richness. Thus, interviews of this last group of
were as follows: two pioneers of the third wave agents were recorded for subsequent transcription,
coffee branch in Brazil; two researchers who and to use in the research results. The agents
participate in projects focused on the coffee area, investigated in the stage of effective data collection
financed by Funcafé; a pioneer in the segment, for the survey were the following.
certifier of SCAE in Brazil, producer, Q-
INTERVIEWED AGENT LOCATION DURATION
1. National reference in the field of special coffee, Q-grid, owner of 39 minutes, 02
third wave cafeteria, producer of the cerrado Belo Horizonte-MG seconds.
IG’s consultant Patrocínio-MG 37 minutes, 45
2. Cerrado Mineiro
seconds.
3. Producer and vice-president "AMSC" Alta Mogiana Region 41 minutes, 12
seconds.
4. Owner and Barista of third wave coffee shops, buyer of IG Alta Ribeirão Preto-SP 1 hour, 56 minutes, 23
Mogiana and Cerrado Mineiro coffees. seconds.
5. Expocaccer Representative Patrocínio-MG 18 minutes, 26
seconds.
e Minas’" representative Patrocínio-MG 1 hour, 3 minutes, 16
6. SEBRAE "Matas d
seconds.
7. Publisher of the "Espresso" magazine Belo Horizonte-MG, 41 minutes, 03 seconds
International coffee week.
8. Representative of the region "Alta Mogiana" Belo Horizonte-MG,
International coffee week. 27 minutes, 54
seconds.
ais’
se and producer in Minas Ger
wner of accredited warehou
9. O
MG 24 minutes, 08 seconds
cerrado region Patrocínio –
as’
member of the Matas de Min
roducer, consultant Illy and
10. P
Council Belo Horizonte 60 minutes, 01 second
ion Serra do Salitre – MG 1 hour, 28 minutes, 03
the Minas Gerais’ cerrado reg
roducer and award winner in
11. P
seconds
As can be seen in the above table, there were 2017, which were later submitted to content
11 in-depth interviews in the period of 2016 to analysis techniques - as it will be clarified soon,
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 37
still in this chapter. The ordering of the interviews, be verified that even with the action of these actors
for their better analysis and comprehension were - with greater influence - the organizational field
performed using the qualitative program Nvivo 12 was still incipient, a fact explained by the little
Pro. interaction with other actors potentially important
It should be noted that in the period of 2014 to strengthen the initiative, such as: BSCA -
to 2017 the study’s authors participated in various Brazilian Association of Special Coffees,
events and courses related to the sector. Thus, EMBRAPA - Brazilian Agricultural Research
third-wave coffee shops and production properties Corporation, ABIC - Brazilian Coffee Industry
were visited in the cities of São Paulo-SP, Brasília, Association.
Ribeirão Preto-SP, Curitiba-PR and Belo In general, figure 2 depicts the image of the
Horizonte-MG, in which it was possible to trace the coffee field, with a view to promoting the new
image of the sector, which was further strengthened wave of special coffee in Brazil. Outstanding, the
through the above-mentioned interviews. main entities involved in the process, evidently
In addition, researchers had the possibility to with little participation of the State and an initial
accompany on-site, in the years 2014, 2015 and process of engagement of the other institutions.
2016, the International Coffee Week, in which (see figure 2).
there were major “players” in the coffee industry in Since the beginning in 1990 until 2016, the
Brazil (including the branch of special coffee), with specialty coffee market in Brazil has undergone
the city of Belo Horizonte/MG as its venue. many changes, and today tends to a sedimentation
The agents chosen for the interview met the process. The Organizational Field of specialty
players” who, in coffees, after the nineties had several changes,
convenience criterion, that is, the “
addition to offering fundamental information to nowadays the thematic competitiveness began to
lighten the research problem, volunteered to gain prominence (Arevalo, Arruda and Carvalho,
participate in the research. It is worth considering, 2016) with the impetus of two fundamental actors
as it is appropriate, that agents were duly informed who began to interact with the others already
of the strictly academic and scientific character of involved until Then, such is the case of BSCA
the research, and they were guaranteed (Brazilian Association of Special Coffees) and
confidentiality in the treatment and analysis of teaching and research institutions. Specifically, the
information provided to researcher. strict quality standard for the product makes BSCA
a determining institution and, therefore, of greater
4 Organizational field: institutionalization and influence in the improvement of the image of
evolution Brazilian coffee in the international market.
Given this new context, the wave of
The figure 2 below describes the specialty coffees reached entities linked to the
organizational field of specialty coffee in Brazil government, such as SEBRAE (Brazilian Service
until 1991. At that time, several events occurred in of Support to Micro and Small Enterprises) in
the Brazilian coffee sector at the beginning of 1990, different states - Minas Gerais, São Paulo, Paraná -
such as deregulation in the sector resulting from the and several producing and selling companies. The
end of the international coffee agreements S) and promotive action of these institutions is
the fall of the Brazilian Coffee Institute (IBC). In determinant for the development of the culture of
this way, the productive structure of the sector was production of specialty coffees in Brazil. To the
altered, consequently a new institutional previous sentence, it is verified with the strong
arrangement and pattern of consumption were growth of companies linked to the production and
unchanged. In fact, the production of differentiated sale of special coffees in Brazil, spread over several
coffees had an important player in the market, and states between (Figure 3).
in this context the Ernesto ILLy quality award in The context is reinforced by the initiative of
1990 gained prominence, which aims to add greater the magazine Expresso in 2006, it began to play an
value and promote product quality. important role in this process, and at that time the
Also, Figure 2 highlights the most sector still lacked means of written dissemination.
influential players who initiated the new wave of Little was said about quality coffee, and in fact
specialty coffees in Brazil, which are: quality little understood this type of coffee and what is
awards, large buyers and state governments. It can more where to find this product. At the time two
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 38
Figure 2. Organizational field of the Special Coffee in Brazil (1990)
Source: The author (2017).
Figure 3. Organizational field of the Special Coffee in Brazil (2016)
Source: The author (2017).
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 39
important companies entered the Brazilian market, At this point, given the importance of UFLA
Starbucks and Nespresso, each of them with its as a research institution in the field under study, it
peculiarity. Thus, registering the importance of is observed that it exerts an influence like
international investment by strengthening the normative isomorphism, since it emphasizes the
domestic market, which at the time was seen as a fundamental role that professionals specialized in
threat to the domestic market. the subject has on the sector, besides, it should be
In 2016, the observation of the organizational noted that there is a limited number of trained
field is an increasingly consolidated professionals in the sector.
institutionalization of the sector involving the In 2008, the National Institute of Coffee
government (via government and directly and Science and Technology - INCT Café, created by
indirectly linked companies such as SEBRAE and CNPq and headquartered at UFLA, was created in
EMBRAPA - Brazilian Agricultural Research 2008 to highlight the initiatives and partnerships of
Corporation) and several entities of interest (third the university aimed at strengthening the research
wave coffee bars, large Buyers such as IILy and and propagation of knowledge in coffee. Like the
Nespresso, producers) as well as prosecutors in the other INCTs in other areas, the objective of the
process (state governments, quality awards, partnership was to integrate the main research
research institutions). agencies focused on agribusiness coffee, in order to
Also, a trend of consumption change is produce innovation, solve problems of application
observed, which is corroborated by the greater and improvement of the sector from the
influence of third wave coffee shops and the involvement of highly qualified researchers. In this
importance of participation in the "International context, the importance of the concept of coercive
Coffee Week" in three consecutive visits between and mimetic isomorphism is pointed out, since the
2014 and 2016. This trend of change in process of organization and legitimation of the
consumption is linked to several factors sector through the creation of the National Coffee
influencing the process, such as the new consumer Science and Technology Institute (INCT) makes
profile, being this consumer more demanding in the the other institutions and Stakeholders tend to
sense of being interested in knowing, among other moderate and adhere to the system.
things, the origin of the product. Consequently, one Still in relation to UFLA, the last important
can expect a disruption of the ordinary consumer's initiative was the installation in its premises in June
sense of coffee with the entry and promotion of 2016 of the INOVACAFÉ Agency, under the
specialty coffee by third wave coffee networks. coordination of EMBRAPA CAFÉ. It is a physical
In the same line, in the organizational field is space equipped with infrastructure to support and
verified the importance of the producers. This integrate its internal organs for the research in
influence is understood as the interest that the coffee and to approach the other universities,
producers show in relation to adapting the new government and productive sector.
trends and being able to meet the market demand, Therefore, InovaCafé arises to house and
both internal and external. In this context, Brazil's optimize important projects such as the INCT Café
participation in the world market for differentiated itself, as well as the Technological Center for
coffees is about 15%, in relation to the world total. Online Marketing of Coffee and e-CAFÉ BRASIL,
It is true that the percentage is still not significant, the Center for Market Intelligence - CIM, the
but Brazil has the capacity to serve the market with Training Center in Markets, the Bureau of
greater participation. Information and Coffee Development and the
With regard to teaching and research Center for Teaching, Research and Extension of
institutions, UFLA (Federal University of Lavras) Agribusiness Café - CEPECAFÉ. All these
has become one of the exponents of the initiatives have a direct or indirect impact on
strengthening and institutional support to the field productivity, quality and knowledge production of
of special coffee. He began his research and coffee produced in the country. The funders and
extension projects for coffee more than six decades institutional supporters of the agency are the
ago; Therefore, even before the movement for FUNDADOR DE RECURSOS E PROJETOS -
special coffee, and currently has more than 100 FINEP, UFLA and the Foundation for Research
researchers working in the Research Coffee Support of Minas Gerais - FAPEMIG.
Consortium, in 47 specific projects. The strengthening of the sector specifically
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 40
corroborates aspects discussed in the theory, such evaluated) in the sense of strengthening and
as the concept of isomorphism and organizational evidencing the GIs of the coffee.
field, increasingly striking in the process in search
of the sedimentation of the market, as several 5 Conclusion
institutions strengthen the sector.
Also, important institutions in this context This study aimed to analyze the importance
are the Federal University of Viçosa - UFV, the of the adoption of geographical indication and
Agronomic Institute of Campinas - IAC, the other efforts in favor of the process of
Agronomic Institute of Paraná - IAPAR, the institutionalization of the special coffee market in
Capixaba Institute for Research, Technical Brazil. Several agents present in the field were
Assistance and Rural Extension - INCAPER, Bahia interviewed for the purpose of being able to fulfill
Agricultural Development Company - EBDA , The the objective and to be able to portray an accurate
Agricultural Research Company of the State of Rio reality of the field.
de Janeiro - PESAGRO, which in partnership with There is a strong occurrence of coercive,
UFLA, EMBRAPA and MAPA (Ministry of mimetic and normative isomorphic pressures in the
Agriculture, Livestock and Food Supply) form the field that help to validate the proposition described
"coffee research consortium", whose mission is to in the methodology. Specifically, in talking about
promote the conjunction of human, physical and the International Coffee Week, it harmonizes with
financial resources in the research and the context of normative isomorphism,
development of coffee. specifically, it is verified through this initiation the
In view of the importance of the "coffee establishment of conditions, methods and practices
research consortium", state governments, relevant to the sector. In addition, this context
especially the "Government of Minas Gerais" play reinforces the discussion involving propositions 3
an important role, as regards the Governments of and 4, in which coffee producers' organizations
São Paulo and Paraná, as promoters of the product tend to seek legitimacy, considering that the
and investors (credit institutions aimed at measure that identifies an organization that owns
supporting coffee cultivation). the GI is seen as a model of success in the field.
Thus, given the greater influence of these Also, it is verified how isomorphic pressures
actors, the strengthening of GIs is a consequence. occur in the organizational field under study. The
Through which the creation of value in the product importance of the entrepreneurial role of the State
is observed, the same that fulfills the role of serving and of other actors that act in the process of
/ promoting the opportunity for producers to offer adoption and dissemination of GIs for coffee is
their products to the demanding market. The vision highlighted. They are evidenced as state agents that
observed here with strengthening the GIs is an proactively engage in actions as institutional
institutional effort with a vision of the future, entrepreneurs in the institutional change promoted
adapting to the new trends that the market imposes. in the field in question.
(see figure 3). It is important to mention that not only the
Reinforcing the previous approach, it should state, but also, the entities described as an integral
be noted that the event in question as a part of the organizational field of coffee are
representation of the field is a heuristic resource of involved proactively, evidencing a coercive
the researcher that is justified even with its isomorphism. Thus, intentional action with the
alignment with the theory of organizational field to objective of achieving goals, fits into a dynamic in
the media that favors the dynamic visualization of which the interaction of entities is continuously
the individuals and organizations involved, Since strengthened. In short, based on what has been
the various segments are represented here in a described, it is observed that the organizational
detailed and agalmatized space. field underwent a lot of change, being this positive
Finally, Figure 3 shows the evolution of the factor in the sense of observing the commitment of
segment, highlighting several changes, especially the actors.
in relation to the proximity link between the Finally, this study contributes to the
producing regions under study. There were discussion that involves the improvement of the
changes in the technical and academic issue of the adoption of GI, especially in the coffee
programming of the event successively (in the time sector, aiming to develop and improve not only the
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 41
public policies for the sector, but also to identify Gamage, S. D. D., Gooneratne, T. Management
the best practices of the governmental actors in the controls in an apparel group: An institutional
implementation phase of the policies developed. theory perspective (2017). Journal of Applied
Accounting Research, 18 (2), pp. 223-241. DOI:
References 10,1108 / JAAR-09-2015-0075.
Arevalo, J. L. S.; Arruda, D. A.; de Carvalho, J. P. Gomes, J. P. P.; & Vieira, M. M. F. (2009). The
Competitividade no comércio internacional do field of electric energy in Brazil from 1880 to 2002.
café: um estudo comparativo entre Brasil, Revista de Administração Pública, 43 (2), 295-
Colômbia e Peru. Organizações Rurais & 321. https://dx.doi.org/10.1590/S0034-
Agroindustriais. Lavras, v. 18, n. 1, 2016. 76122009000200002.
Blakeney, M., Coulet, T., Mengistie, G., Mahop. Gonzalez, R. V. D.; & Martins, M. F. (2017).
Extending the protection of geographical Knowledge Management Process: a theoretical-
indications: Case studies of agricultural products in conceptual research. Management & Production,
Africa (2013). Extending the Protection of 24 (2), 248-265. Epub January 26, 2017.
Geographical Indications: Case Studies of https://dx.doi.org/10.1590/0104-530x0893-15.
Agricultural Products in Africa, pp. 1-372. DOI:
10.4324 / 9780203133316. Hollway, J. & Lomi, A. & Pallotti, F. & Stadtfeld,
CH., 2017. Multilevel social spaces: The network
Cruz-suarez, A; Díez-martín, F.; White-gonzález, dynamics of organizational fields. Network
A.; Prado-román, C. Analysis of the relationships Science, Cambridge University Press, vol. 5 (02),
between organizational legitimacy, its sources and pages 187-212, June.
dimensions. Revista Venezolana de Gerencia, vol.
19, no. 65, January-March, 2014, pp. 9-22. HütheR, O., Krücken, G. Nested organizational
fields: Isomorphism and differentiation among
Dimaggio, PJ (1988). Interest and agency in European universities (2016). Research in the
institutional theory. In LG Zucker (Ed.), Sociology of Organizations, 46, pp. 53-83. DOI:
Institutional patterns and organizations: 3-22. 10.1108 / S0733-558X20160000046003.
Cambridge, MA: Ballinger.
Prado-Roman C., Díez-martín F., Blanco-González
Dimaggio, P. J. (1991). Constructing an a., Prado-Roman A. (2018). The Origin of the
organizational field as a professional project: US Legitimacy of Organizations and Their
art museums, 1920-1940. In WW Powell & PJ Determining Factors. In: Berger-Vachon C., Gil
DiMaggio (Eds.), The new institutionalism in Lafuente A., Kacprzyk J., Kondratenko Y., Merigó
organizational analysis. 267-292. Chicago: J., Morabito C. (eds) Complex Systems: Solutions
University of Chihuahua Press. and Challenges in Economics, Management and
Engineering. Studies in Systems, Decision and
Diniz, E. M., F., Junqueira, A. R. B., & Prado, O. Control, vol 125.
(2009). Electronic government in Brazil: historical
perspective from a structured model of analysis. Rahmah, M. The protection of agricultural
Journal of Public Administration, 43 (1), 23-48. products under geographical indication: An
https://dx.doi.org/10.1590/S0034-alternative tool for agricultural development in
76122009000100003. Indonesia (2017). Journal of Intellectual Property
Rights, 22 (2), pp. 90-103.
Duarte, D. V.; & Tavares, B. Institutionalism and
Governmental Determinations: Evidence of Rodriguez, C. L, Diniz, E., & Ferrer F. (2007).
Isomorphism in Technologically Based Government Influence and Institutional Strategies
Companies. ENAPG - Meeting of Public in the Diffusion of Innovations in Emerging
Administration and Governance, 2012, Economies. RAE-Journal of Business
Salvador. ENAPG 2012, 2012. Administration, 47 (1), 10-21.
http://dx.doi.org/10.1590/S0034-
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 42
75902007000100002. Yorozu, C. New Institutional Entrepreneurship and
a Celebrity CEO: The Role of Institutional Actors
Rupidara, N. S., Darby, R. Institutional influences in Japan. (2017). Journal of Organizational
on HRM in the Asian business environment: the Transformation and Social Change, 14 (2), pp.
case of Indonesia (2017). Journal of Asian 165-185. DOI: 101080 / 14779633.2017.1341763.
Business Studies, 11 (3), pp. 262-277. DOI:
10.1108 / JABS-07-2015-0110.
Simão, G. L., Antonialli, L. M., Souza Netto, T.;
Carvalho C. de, & Santos, Antonio Carlos dos.
(2017). Strategic Institutional Management in
Dairy Cooperatives - a theoretical appointment.
Revista de Economia e Sociologia Rural, 55(4),
693-710.
Teo, H. H.; Wei, K. K.; Benbasat, I. Predicting
intention to adopt interorganizational linkages: An
institutional perspective. Mis Quarterly, v.27, n.1,
Mar, p.19-49. 2003.
Tolbert, P. S.;ç & Zucker, L. G. (1998). The
institutionalization of institutional theory. in:
clegg, s.; hardy, c.; nord, w. (org.). Handbook of
organizational studies: analysis models and new
issues in organizational studies. São Paulo: atlas
publishing house.
Revista de Negócios, v. 23, n. 1, p. 31-42, January, 2018. 43
Practical influence of the strategic process in
organizational results
Elizangela Maria Pas Menegon1, Esmael Rossetto Bernardi2, Júlio Adriano Ferreira dos
Reis3, Odilon Luiz Poli4, Rodrigo Menegon5
1
Unochapecó - elizangela.menegon@unochapeco.edu.br
2
Unochapecó - esmael.adm@unochapeco.edu.br
3
Unochapecó - julioreis@unochapeco.edu.br
4
Unochapecó - odilon@unochapeco.edu.br
5
Unochapecó - menegon7691@yahoo.com.br
ABSTRACT
KEYWORDS
Strategic planning; This article proposes to verify to what extent the practice of the strategic process exerts influence
Organizational Results; in the managerial results of a garment industry of the State of Santa Catarina. The topic is
Strategic practice. discussed theoretically, however, doubts remain about the effectiveness of its purposes with the
daily execution of its activities. From this premise came the question of research: in what way
Received 19.12.2017 s the practice of the strategic process influence the organizational results of a garment
doe
Revised 24.07.2018 industry? It presents an exploratory-descriptive approach of qualitative nature, based on the
Accepted 30.08.2018 methodology of case study. Initially, a bibliographical research was done to survey the
theoretical aspects about the theme. In the empirical research, an interview with the director of
ISSN 1980-4431 the company was carried out, as well as a questionnaire was elaborated applied to the
Double blind review
responsible managers of each area. The collected data were transcribed, analyzed and refined in
order to generate information relevant to the study. As a result, it was possible to verify the
importance of establishing strategic processes in practice and the synergy between those
involved in decision making. It also demonstrates that the use of management tools enables a
clearer understanding of all the strategic processes that it influences. In addition, it helps to
predict risks, analyzes opportunities and provides an improved observation of the results and
ends with the proposal of future studies.
ALAVRAS-CHAVE RESUMO
P
Planejamento estratégico;
Resultados organizacionais; Este artigo propõe verificar em que medida a prática do processo estratégico exerce influência
Prática estratégica. nos resultados gerenciais de uma indústria do vestuário do Estado de Santa Catarina. O tema é
discutido teoricamente, porém, subsistem dúvidas quanto à efetividade de seus propósitos com
execução diária de suas atividades. A partir dessa premissa, surgiu a questão da pesquisa: de
a
que maneira a prática do processo estratégico influencia os resultados organizacionais de uma
indústria de confecções? Apresenta uma abordagem exploratório-descritiva de natureza
qualitativa, baseada na metodologia do estudo de caso. Inicialmente, foi realizada uma pesquisa
bibliográfica para levantamento dos aspectos teóricos sobre o tema. Na pesquisa empírica, foi
realizada uma entrevista com o diretor da empresa, bem como elaborado um questionário
aplicado aos gestores responsáveis de cada área. Os dados coletados foram transcritos,
analisados e refinados, a fim de gerar informações relevantes para o estudo. Como resultado, foi
possível verificar a importância do estabelecimento de processos estratégicos na prática e a
sinergia entre os envolvidos na tomada de decisão. Demonstra também que o uso de
ferramentas de gestão permite uma compreensão mais clara de todos os processos estratégicos
os quais ele influencia. Além disso, ajuda a prever riscos, analisa oportunidades e proporciona
uma melhor observação dos resultados e termina com a proposta de estudos futuros.
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 44
1 Introduction the budget, tend to the organizational synchronism,
besides adopting the precepts of the situational
Companies in general, regardless of their leadership. The organization works through
size, are immersed in competitiveness in an interdependent processes, acting in an integrated
increasingly globalized market. The development and synchronized way to obtain the desired final
of new products, services, technologies and result.
solutions, whatever the field of activity has worried In order to elucidate the practical versus
managers and professionals, given the speed of strategic modus operandi, the article is articulated
change, where companies that do not follow these by beginning this discussion by the theoretical
oscillations are lagged behind the competition. understanding about the strategy, the strategy
Milnitz and Luna (2017) highlight among the main formation process and its practical applicability.
characteristics of the Brazilian textile industry, the These initial clarifications are relevant as they form
production of labor-intensive products with little part of the concept of strategy in practice. The
investment in intellectual capital, which allows methodological aspects are presented, followed by
competition and opening of companies in regions the analysis of the results.
with low labor costs. work. It was defined as the research problem: in
Changes in the external environment bring what way does the practice of the strategic process
challenges to organizations and affect them in a influence the managerial results of a garment
variety of ways, requiring definitions by managers industry? The general objective of this study is to
at every turn, in pursuit of the survival of growth verify to what extent the practice of the strategic
(Gulini, 2005). In addition to this, the current process influences the managerial results of a
economy requires companies to take an garment industry in the State of Santa Catarina.
entrepreneurial and constant innovation. Menegon
(2018) provides an overview of the main 2 Theoretical rationale
innovation strategies, according to Freeman and
Soete (2008), developed by firms in the west of In this session we will discuss the scientific
Santa Catarina where 37.5% use traditional concepts that will support this research.
strategies with imitative, dependent and defensive
strategies, fall to 18.75%, respectively, only 6.25% 2.1 The Strategic Process and Strategy as Practice
of companies use opportunistic strategy. And it is
within this vision that competitive intelligence Empirically, there is a suspicion about the
moves from strategic to entrepreneurial process of strategy formation, that this process does
(PELISSARI et al, 2012). This article is justified not only emerge internally but is influenced by the
because it considers necessary the development environment (HART, 1992; HART, BANBURY,
and application of strategic management tools in a 1994). The way to develop the strategy can be
practical way, in order to assist the decision-influenced by diverse characteristics such as
making process, to demonstrate credibility to all culture, manager profile and sector in which the
those involved, as well as to facilitate the structured organization is inserted (MINTZBERG;
development of organizations. The strategy is AHLSTRAND; LAMPEL, 2009), this shows that
present in any action that managers take, regardless the strategic area is lacking in qualitative studies
of the area of the company. When linking a case that recognize the applications of the theme in
study based on theoretical precepts, where strategic organizations and answer questions of research
planning is put into practice in a structured, regarding the way the strategic phenomenon occurs
standardized way, it is assumed to achieve relevant in companies.
organizational benefits. Mintzberg, Ahlstrand and Lampel (2009)
Following this line of reasoning, the research categorize the studies in ten schools: three with a
was developed in a garment industry located in the prescriptive approach (design, planning and
western region of Santa Catarina, has been in the positioning); and seven with a descriptive and
apparel market for 26 years, specializing in men's procedural approach (entrepreneurial, cognitive,
fashion. Since 2010 the company has been learning, power, culture and configuration). It is
investing in the professionalization of evident that schools aim at thinking strategically,
management, adding tools that support the strategy, and they vary according to the profile of the
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 45
strategist and the environment, individual or Jarzabkowski presents the difference between
collective, analytical or action oriented. practice and practice, where practice is the actual
On strategy in practice, Whittington (2006) activity, events, or strategy work, while practices
defines as a social activity, built through actions, are the traditions, norms, rules and routines through
interventions, and multi-stakeholder negotiations of which strategy work is constructed
and practices on something. It uses a conceptual (JARZABKOWSKI, 2004).
framework for strategy in practice, based on three When analyzing what happens when the
elements: praxis, practices and practitioners, where strategies are put into practice, and how
praxis is a term that describes the whole of human individuals, especially managers, contribute to this
action at the social level, and the interconnections process, it is evident that some companies do well
between actions, modeled flow of activities over without strategy, some strategies emerge from the
time. Practices as routine types of behavior, and company, while others are implemented from up.
practitioners the individuals or professionals who The field of strategy as the practical investigation
use them. It emphasizes that there is no need to should open itself to other areas that are not yet
avoid the interconnection of these three issues in interconnected, for example, sometimes the
strategy research, in view of their interdependence. unspoken is more important than what is carefully
The challenge of strategy as a social practice is to articulated, hence an analysis of the symbols,
understand how strategists exercise strategizing in artifacts, and strategic language would be crucial to
their daily lives, based on the interaction between understand strategy as a practice (CLEGG et al,
the strategists of the organization and the physical 2011).
(objects, artifacts, tools) and social resources Through Whittington's (2003) strategic
(practices, community, division of labor and rules) outline, concern about understanding
available in their social, historical and cultural contemporary strategy-making activity can be
environment (JARZABKOWSKI, 2010). broadly characterized as a means of identifying
The strategy-as-practice approach is not what strategists actually do. The problem is that
limited to checking how strategists who decide company managers are unable to carry out the
strategies think and lead, but also understand how sophisticated strategies they develop from an
other people in the organization contribute to its organizational point of view. In the last 20 years,
execution. There is much research on the strategic strategic thinking has distanced itself much from
process in organizations, but with little focus on the organizational competencies "(BARTLETT;
individual, that is, the research agenda is focused GHOSHAL, 1998, p.
on strategies focused on professionals, About the profile of strategists there is little
professionals versus praxis, practices versus information available, thinking about
professionals, and methodological levels in organizational future, decision making and
empirical practices. From the discussion of the resource allocation, this lack of knowledge
strategy's microprocesses, studies have emerged on becomes a hindrance. Clegg, Carter, and
the need for a more practice-based approach to Kornberger (2004), bring a question that is worth a
strategy. This led to the emergence and partial deep reflection: how do you form the identity of the
institutionalization of a group strategy as a practice. strategists who live in a time and a space that forces
The practice-based approach investigates the core them to create a future that perhaps never arrives?
strategy formation, budget routines, expense The notion of a practical approach strategy, it
meetings, reports and presentations by focusing on is an activity, not only as an attribute of the
praxis, practitioners, and practices company, but the work developed by employees,
(WHITTINGTON, 2003). From the management that is, strategy is something that people do
theories, a certain degree of ambiguity is required (JARZABKOWSKI, 2010). The strategic planning
to maintain the flexibility of interpretations in cycle is a powerful practice for distributing an
contexts of local change. increasingly consistent interpretation of desirable
Starbuck (1983) found a gap the discourse, strategic activity based on accountability and
action and decision in the organizations, showing financial viability. Johnson et al. (2003, p.14) argue
that practical-level managers actually do different that "our position is different in that it addresses the
things than at the discursive level. To the resource enduring issues of bottom-up strategy."
group for everyday activities to do strategy, For Whittington (2004: 63), "strategy as
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 46
practice allows both illumination of a significant 2.2 Clothing industry
phenomenon that has hitherto been obscure as the
improvement of something in which people and The textile segment, worldwide, is one of the
society in general have great resistance." this most dynamic. An example of this is the various
approach, managers who create strategies in those collections released annually. World textile
fields where action is possible can be coordinated production is led by China, which owns 50.2% of
by these strategies. From an epistemological the amount produced, and represents the largest
perspective, strategy as a practical approach seems consumer market in the world. Brazil occupies the
to resemble a rough version of positivism that 5th place in the world production of manufactured
understands practice as being "closer" to reality, textiles, with 2.4% of the total (IEMI, 2013).
with a "more accurate" description of the real Despite the fact that Brazil is among the five largest
world. Strategy as a practice, in its approach, manufacturers of manufactured textile products in
positions itself as a problem-solving tool for the world, its production is geared primarily to the
managerial elites. domestic market.
The practical approach draws on many There is a need to rethink the financing
insights from the process school, but returns to the structure for innovation in force in the country so
managerial level, concerned with the form of that more expressive and sustainable amounts are
strategies, leaving aside the methodological allocated to companies in this segment that are in
challenges involved in observing a strategy within constant cycles of innovation. Data from the
a process, the critique of the practical approach is National Confederation of Industries (2017) show
that the structure of the process is not yet that between 2007 and 2016, about 30% of the
sufficiently sensitive to the microenvironment. collection of the National Science and Technology
(Johnson et al., 2003, p.5). Development Fund (R $ 12.2 billion) is no longer
As noted, strategy as a practical approach invested in research and development Innovation).
does not use the concept of practice to its fullest Because of this, the CNI, together with
extent. Practice seems to mean being closer to entrepreneurs and the federal government, are
reality or being more easily applicable, in other articulating actions to ensure that resources for
words, practice is understood as what people innovation reach companies.
actually do as strategies. Veyne (1997) suggests The Brazilian Textile Industry is
turning our thinking upside down: some companies concentrated in the Southeast (52.2%) and South
do well without strategy, some strategies emerge (28.3%) of the national production. The Northeast
from the company, while others are implemented participates with 15.6%, while the Midwest (3.5%)
from the top down. From this perspective, a and North (0.4%) are considered to be less
strategy of practical approach would be to representative in this industrial activity (ABIT,
investigate the practices that constitute the object 2016). In the 1980s, the Brazilian textile industry
of the strategy. The field of strategy as the practical dominated the domestic market, which was closed
investigation must open up to other areas that are to imports of finished products or inputs and
not yet interconnected. equipment. As a result, the production chain bases
Rather than replicate the conventional notion its strategy on improving productivity with the
that strategy is about top management teams of the modernization of the industrial park and the
corporation, we suggest broad and inclusive development of new products, which are still out of
conceptualizations about how the strategy could be line with the world's competitors (VIANA, 2005).
and how it is done. Practical understanding lags far Figure 1 illustrates the productive chain of the
behind strategy design. From the theories that deal textile sector.
with management, it is necessary to maintain the The sector's businesses start with the raw
flexibility of meaningful interpretations in contexts material (textile fibers), being transformed into
of local change. Rather than reproduce the yarns in the spinning mills, from where they go to
conventional notion that the strategy the top weaving (that manufactures flat fabrics) or to
management teams of the corporation, the article knitwear (knitted fabrics). Afterwards, they go
broader and more inclusive conceptualization on through the finish until finally they reach the
the practical action of applied form of strategic confection. The end product of each of these phases
planning. is the raw material for the next phase. (Costa,
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 47
ROCHA, 2009, p.162). outdated.
Figure 1. Production chain of the Textile and Clothing sector.3 Methodology
This research adopted an exploratory-
descriptive approach of qualitative nature. In
Severino's view (2014), the exploratory research
seeks information about a given object, delimiting
the field of work and the specific conditions of that
object. Triviños (2006, p. 110) states that "the
descriptive study is intended to accurately
describe" the facts and phenomena of a given
reality ". Barros and Lehfeld (2007: 84) point out
that in this type of research "there is a survey of
Source: IEMI (2013) data that can be compared, but not manipulated,
that is, there is no interference of the researcher, he
In Brazil, the textile industry accounts for describes the object of research, discover the
2.0% of the Gross Value of Industrial Production frequency with which a phenomenon occurs, its
(VBPI) and accounts for 3.8% of jobs in the nature, characteristics, causes, relationships and
Manufacturing Industry (IBGE, 2014). In August connections with other phenomena. " Minayo
2016, there was a 3.8% reduction in industrial (2011, 24) states that "the researcher who works
activity, a more intense drop since January 2012 (-with qualitative strategies acts with the raw
4.9%), where clothing and accessories made a material of experiences, everyday experiences,
negative result of 6.9%. According to data from analyzes structures and institutions." The case
IBGE (2016), the comparison of August 2016 with study strategy is used because it is "an empirical
the same month of the previous year, the industrial investigation that investigates a contemporary
sector showed a decrease of 5.2%, among phenomenon within its real life context" (Yin,
activities, clothing and accessories 7.3%. This fall 2015, p.17).
in industrial performance brings an alert on the As for the procedures, data collection
level of competitiveness and innovation of the artifacts are used, through an interview, a
textile sector. The low productivity of the Brazilian questionnaire and a bibliographic survey. As
apparel industries, needing to meet the needs of a secondary data, performed participant observation
growing market, must compete with large retail and documentary research. Researches with this
chains, which mostly work with the importation of design can accurately characterize the object of
resale products. This fact leads to the outsourcing study, demonstrate and describe relationships
of processes with small factions that tend to share between phenomena and variables, but do not
the production with other smaller workshops and, propose to determine causality (GIL, 2002). The
as a consequence, the quality of the final product is study was conducted in a garment industry, located
impaired. in the city of São Carlos - SC.
Vianna (2005) traces a panorama of the Data collection was performed through
Brazilian textile industry, considering as main interviews and questionnaires. The interview was
characteristics the technological and managerial given by the manager-financial manager of the
heterogeneity. In the same segment are modern company, in addition to the manager, there is the
companies, with technological standards and president, who is dedicated to the marketing area,
strategies similar to the best companies in the this shares with the vision the interviewee, which is
world, and in contrast, there are partially why, among them, they defined the company. The
modernized companies, with some up-to-date the manager took into account the proactive stance,
equipment in strategic processes and with strict the concern with the direction of the business and
quality control and design training. However, in the relevance of its position, since it is a partner-
this same segment, there are several companies owner. The interview was performed in the
with technological and managerial standards organization, with a semi-structured format, using
a recorder, with the consent of the interviewee,
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 48
generated 42 minutes of recording, later From the information collected it was
transcribed, allowing the analysis. The semi-possible to understand the strategic management of
structured interview allows the informant to use all the business, the interaction between the areas and
his creativity and spontaneity, valuing the research the tools used to translate the expected
(Beuren, 2003). A questionnaire was sent to the organizational objectives into practice. The survey
managers of the organization, made available by e-was conducted from February to May 2016.
mail, with the appropriate guidelines, to all 7
managers, of whom 57% handed in the forms 4 Analysis of results
answered, will be listed as Manager1, Manager2,
Manager3 and Manager4. Managers who did not The Textile and Apparel Sector is the guiding
respond to the questionnaire, when approached force behind this research, given the importance of
indirectly on the subject, portrayed the perspective this segment to Brazil. In this sense, attention is
described here, talking about the tools used in paid to the stakeholders involved in the entire
strategy management, the format of meetings and production chain.
the active participation of managers in all areas of
the company. 4.1 Characterization of the object of study
The questions that guided the present
research were based on Whittington's (2003) The company, object of study has been
precepts: "Where and how is strategy creation and growing above 20% per year, (Deloitte, 2016). The
management really done? Who does this activity? positive outlook has awakened a look at the
What skills are required for this activity and how strategic management and the development of the
are they acquired? What are the common tools and strategic process. He has been working in the
techniques for creating and managing strategies? textile and clothing sector for 26 years, with
how is this activity performed? How are your headquarters in São Carlos, SC, has six production
results disclosed and used? " units in municipalities in the western region of
The bibliographic survey was carried out Santa Catarina. It has 92% of the domestic
taking into account the area database, books and production, with a focus on the male audience, in
specialized magazines, in order to present the state the last collections, started the production of
of the art in light of the strategy in practice. After juvenile children. With competitive differentials, it
the data collection, the results were analyzed has been gaining space nationwide with products of
according to the dimensions derived from the high turnover, retail services, personalized service
theoretical discussions, as shown in table 1 below: and with attractive marketing campaigns. Today it
has more than 3,000 points of sales.
Table 1. Theoretical Discussions Strategy in Practice
Authors Strategy in practice
It differs in its location from the social 4.2 The practice of the strategic process
Reckwitz (2002) and its conceptualization of body, According to the administrative-financial
mind, things, knowledge, discourse,
structure or process and agent. director, the strategy structuring process is due to
Process of interaction between people, the need for positive results and emerges from the
Whittington environment, organization and
company's vision for the market, there is a need to
(2003) strategy with their practice (praxis,
practice and practitioners). understand who the competitors are, the target
audience, and what are products for this audience ,
Clegg, Carter e Reflective and critical strategy,
Kornberger shaping the organization, the price, according to the profile of the consumer,
(2004) interrelationships and additional in addition to competing strategies, which
techniques. culminates in a view from the outside in. It seeks
Jarzabkowski Actions based on micro activities with
(2004) a view to understanding the strategy. incessantly for information that enables the
It considers the phenomena that company to find the best market positioning,
Johnson et al. happen at the micro level (actors and through its brand, the strength it has in the market,
(2007) their relationships) where processes and its perceived value by the consumer.
and practices occur. The business area is apparel, men's fashion,
Source: Prepared by the authors (2017).
with a very specific profile. It understands that the
strategy is closely linked to sociology and
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 49
psychology, given the rapidity of the behavioral praxis in their practices is thus verified
changes of the individuals that directly influence in (WHITTINGTON, 2003), based on the significant
the form of consumption. Moreover, the interpretations in the different contexts and periods
superficiality of the use of trademark brands is of change.
observed as a determining factor in consumer By questioning managers about where and
habits given the hierarchy of individuals' needs, how the strategy creation and management activity
versus the financial availability to purchase clothes is actually done, they cite the strategy cycles,
with higher costs. PEOE (Strategic Planning and Implementation)
Another situation raised by the director is the meetings, where areas are involved in order to
issues related to the informality of the branch of deploy goals and objectives of the organization,
productive activity, which in many Brazilian states with management support and participation.
are several informal operators that influence in the In analyzing the cycle of success or failure of
market, generating or contributing to unfair a particular strategy, it is observed that the fact that
competition, from the importation of the raw the company has implemented a project
material, inputs , labor and billing itself. She notes management cell has reduced the chances of great
that, over the years, the learning curve related to losses or failures. The Project Management process
strategy has changed the perception of managers has helped to predict possible problems of new
who make the decisions. projects or bets of the company, and evaluate as to
Among the players that discuss the strategy the continuity, reapplication, cancellation or
are the internal professionals who study the market, abandonment of certain strategies, bringing
through the product research and development maturity to those involved and faster decision
sector, the market intelligence sector, the making.
productive, administrative, commercial, financial It is noticed that the economic-financial
and results analysis ( controller). The strategic result is very present in the analysis of the
decisions are discussed at the table, collectively, strategies, this indicator is decisive for the decision
always observing the impact of expected results in making, and is inserted in the day-to-day of the
each area. It also aggregates the knowledge company managers who discuss and evaluate
acquired through international information related periodically through the shared management. Data
to the sector, research on these subjects, as well as input is the first step in the strategy creation
expert opinion, sectoral and performance process, after analyzing the variables and
indicators, as well as the raw material suppliers alternatives with the professionals' discussion
themselves who are always anticipating trends. The process, followed by the execution, followed by
company has short, medium and long-term strategy feedback.
cycles. One of the great challenges of management
The company has formalized the Strategic is the development of leaders, team managers and
Planning process for a number of years, for a period processes that can develop strategy in every sector
of five years thereafter, deploying and analyzing of the company, every individual is in a stage of
the results annually. Among the main performance life, maturity, development and aligning all is a
indicators are brand positioning in the market, difficult task for the managers, there is always a
growth and market share, and return on financial continuous development in the search for
results. The process is done by analyzing the results professionalism and professional qualification. The
obtained together with the management, discussion most important skills for managers of the company
and establishment of new strategies, in a cycle of is the analytical capacity of the scenarios, internal
retro-analysis and with the definition by the Board and external indicators, specific technical skills of
of Directors. The development of the specific each area, as well as the team's ability to lead the
strategy of each area is given by its management planned results.
that is responsible for contributing or developing There is agreement in the manager's speech
its share so that the company's overall strategy is when analyzing table 2, the profile of the managers
carried out. The strategic tools used translate of the company is basically formed by employees
strategic intentions into practical actions and who started in operational activities and increased
projects and are used by the entire team of their career within the organization, ascending to
managers and management. The practitioners' the responsibilities of thinking about the future of
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 50
the company, corroborating with Clegg, Carter and strategic processes. They consider essential for the
Kornberger (2004), on the formation of the company to grow and differentiate itself in the
strategists' identity. market. They emphasize that the use of
management tools, by the sectors and departments
Table 1. Manager profile of the company, turns to goals and metrics directed
Manager 1 Manager 2 Manager 3 Manager 4 to the general strategy, that is, all working in their
Genre areas with their goals and objectives aimed at the
Male Female Male Male
Age (years) Between 35 Between 35 Between 35 Between 25 reach of the business strategy, consider, with that
to 45 to 45 to 45 to 35
Company the achievement of objectives becomes easier to
time 22 years 20 years 3 years 15 years achieve. They consider that the strategy of the
Schooling
Specialization Specialization Specialization Specialization company is what governs all the decision making,
Source: Prepared by the authors (2017).
of any collaborator.
Regarding the influence of corporate culture
Asked about the growth in the professional
on the development of Strategic Planning, Gestor 2
career, Gestor1 emphasizes that "I started the
emphasizes that the company's ideology is very
activities in the company after finishing high
strong, mission, vision and values are in daily
school, in the sector of the Court, I was changing
practice, Gestor1 corroborates in affirming "I
roles, with a good job and directing the studies to
consider that the clarity of business, , a vision allied
the administrative area, came the invitation to
to values, are essential factors, together with
assume the management of an important area of the
objectivity, goals, numbers, co-responsibility
company, this happened with challenges and
between management and managers, through open
projects focused on my area. " The other managers
and shared management, and synchronization
affirm that they started their activities in
between areas are factors that add up and reflect in
operational areas and over the years were invited to
the result and development of strategic planning ".
take on new challenges in strategic areas of the
The director finishes the interview reporting
company.
that in analyzing the strategies adopted, the
In general, the company always makes
company has been growing between 25 and 30%
investments in external knowledge through
per year in business volume and this has been a
consultancies, permanently maintaining market
positive indicator reaffirming that the decisions and
professionals that bring new work tools to help
paths chosen and run by the management have been
improve the company's performance. The board
satisfactory. In relation to common tools and
emphasizes that over the years they perceive the
techniques for creating and managing strategies,
gradual progress and positive reflection of the
managers cite BSC (balance score card); strategic
implantation of new routines, new processes, new
map; strategic, tactical and operational indicators;
concepts and capacities the team, be it in industry,
budget; differentiated leadership; people
in finance, accounting, information technology,
management tools, reverberate that "the data needs
project management, processes, marketing and
to be presented so that everyone is following up and
strategy, which has been instrumental to the
seeking improvement of results, with immediate or
success of the business. The managers highlight the
specific actions for each indicator."
opportunities offered by the company to perform
The strategic thinking alignment between
their roles, recognize as positive the participation
directors and managers is perceived. The tools used
in management consulting, training and use of
give the necessary subsidy to the decision making
strategic tools.
and these, as the reports have shown, are directing
On the learning curve and analysis of the
the growth and participation in the market by
flaws of the strategic process already exercised
company. Figure 2 illustrates the main
over the years, the board emphasizes that the
management strategies tools in the practice adopted
proximity to the consumer and the understanding
by the company. From the participant observation,
of their desires is a continuous process in finding
it was possible to perceive that the base of the
how to find the best form of communication and
leadership is oriented to results, these, are based on
approximation with this group and extract from it
a strategic plan with BSC (Balance Score Card)
the most accurate feedback.
methodology, with unfolding of the strategic
Managers are accustomed to planning and
actions in a panel of initiatives developed by all
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 51
areas of the company. These actions are organized controlled and defined with the participation of the
from the PEOE (Planning and Execution of areas, using access tools interconnected with the
Strategic Objectives), in workshops held monthly, enterprise ERP; V process, project and innovation
in the so-called AGIR (Managerial Assessment of office that provides assistance to the areas in the
Results Indicators). Control tools are used for a mapping of processes, use of the project
participatory budget, besides the company count on methodology in the PMBOK model, with
an office of processes, projects and innovation, that scheduling control and indicators through a
is responsible for the process mapping, the project specific tool, in addition to using the CANVAS
management and the innovation program method to present the approval of the projects for
developed by the company. Still, people multidisciplinary budgetary team; has an
management values differentiated leadership, with innovation program in the operational areas; VI
careful selection of the human resources and management of people with premises of situational
humanized practices of the best companies to work leadership, method of careful selection with the
for. participation of managers requesting the vacancies
in conjunction with the management of people, use
Figure 2. Strategic Management in Practice of great place to work practices.
The theoretical precepts exposed on strategy
in practice speak about an integrative structure
developed from strategy as practice, which defines
its general parameters of research as: practitioners
(those people who do the work of strategy);
practices (the social, symbolic, and material tools
through which strategy work is done); and praxis
(the flow of activity in which the strategy is
performed) (Jarzabkowski, 2004, Johnson et al.,
2003; Whittington, 2006). These three elements
represent the study of strategic activity that differs
from top-down approaches and that work with
rectified notions of company and strategy.
Thus, in the case study, the influence of the
practices used by the company to execute the
Source: Prepared by the authors (2017). strategic process, which are positively driving
managerial results, was verified. As advocated by
In view of the results obtained, it can be Jarzabkowski (2004), Whittington (2006) and
observed that the levels of growth of the company Johnson et al (2007), strategy as practice
surveyed, in the face of the crisis period established emphasizes explicit links between micro-action
in the current economic situation, in relation to the perspectives, that is, the deployment of strategic
productivity of the segment in the country over the planning for areas, what people actually do and
last decades, have been differentiated. In the set of how they influence teams in the end product of
internal factors that allowed the company to reach their process, to the macro perspective, taking into
this differentiated level, we can mention: I) the account the context in which they are inserted.
strategic planning with the use of structured tools In the meantime, strategic planning, in the
and the use of the BSC methodology; II the format adopted by the company has positively
unfolding of the planning in strategic actions, in the influenced its results. The practice, as advocated by
format of panel of initiatives, with responsible for Reckwitz (2002), by mentioning the routine types
each action, indicators, metrics and well-defined of behavior that consist of several elements,
goals; III strategic agenda of meetings, entitled interconnected to each other, being things and their
PEOE (planning and execution of the strategic use, culminating in the form of understanding,
objectives), which are disaggregated to the tactical know how, make the act of managing the areas,
areas in AGIR's (Managerial evaluations of results according to the strategy, a preponderant factor that
indicators) and workshops with training on actions has led them to support the business. Professionals
that need review and replanning; IV budget are the individuals who translate into practices to
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 52
act the format delimited by the strategists of the with a view to contributing to the academy and
organization. promoting the scientific knowledge alluding to the
strategic practices of companies. In addition,
5 Conclusion encourage new forms of work, be it in the textile
segment or in other areas of activity.
This paper presents a brief overview of the The contribution brought by this research is
textile sector, which shows the difficulties faced by in the indication of opportunities in aligning the
the current economic situation, which led to a strategic planning in order to be perceived in the
decline in industrial performance, a factor that execution of the daily activities. That is, the use of
directly affected the level of competitiveness and management tools, in a structured way, leads to
innovation in the sector, which is reflected in professional management to mitigate measurable
technological and managerial diversity, where results. The role of managers is to translate
some are the best companies on a world scale, business objectives into structured processes, to
while others are outdated. involve the different actors in the discussions about
In the study company, it was verified that the the necessary updates when correcting the
activities are carried out based on the actions, organization's directions and, mainly, to
interactions and negotiations of multiple actors, the understand that practitioners are essential in the
approaches used are united by the proposition that execution of the praxis required by the business
the practical understanding and the strategic strategy with a view to understand the actions and
intelligibility are articulated in the daily situations routines that constitute the competitive advantages
in relation to the variety of its activity. of the business.
It is noticed that the tools used to formalize
the strategy process have been of great value, that References
is, positively influenced the results of the business.
The learning curve reported by the director shows ABIT, Associação Brasileira da Indústria Têxtil.
that mistakes are part of the constant revisions of Relatório de Atividades 2016. (2016). Disponível
daily management activities. The growth bias of em:
the company, contrary to the pessimistic forecasts www.abit.org.br/conteudo/informativos/relatorio_
of the market, shows us that the methodologies atividades/2016/relatorioabit_2016.pdf. Acesso
adopted underpin professional management. em 20 fev, 2017.
In this way, the factors under the decision-
making perspective are in accordance with the Assembléia Legislativa do Estado de Santa
actions practiced, the alignment of procedures and Catarina.
methods, the initiatives of performance http://responsabilidadesocial.alesc.sc.gov.br/notici
improvements implemented, forecast delivery and as/25, 2017.
controls account for meeting the strategy defined
according to the methodology. In addition, the BARTLETT, C.; GHOSHAL, S. Building
s in Managers’ Mind. Readings in the
tructure
company's growth indicates the satisfaction of the S
customers in relation to the products offered Strategic Process. Englewood Cliffs, NJ: Prentice-
following the standards and market trends. Hall, v. 187, n. 193, p. 174-194, 1998.
6 Implications and future studies BARROS, A. J. S.; LEHFELD, N. A. S.
Fundamentos da metodologia científica. 3. ed. São
As a suggestion for future studies, it is Paulo: Pearson Prentice Hall, 2007.
recommended the comparative view among
companies of the same segment, in order to analyze BEUREN, I. M.; RAUPP, F. M. Trajetória da
the format of strategic management, the effective construção de um trabalho monográfico em
use of management tools, and to correlate contabilidade. BEUREN, Ilse Maria. Como
organizational practices with growth outcomes in Elaborar Trabalhos Monográficos em
the light of strategic planning definitions. The Contabilidade: Teoria e Prática. Atlas: São Paulo,
expectation of the delimitation of this study is to p. 46-75, 2003.
provide information in a practical, structured way,
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 53
CLEGG, S. R.; CARTER, C.; KORNBERGER, M. HART, S., BANBURY, C. How strategy making
A máquina estratégica: fundamentos processes can make a difference. Strategic
epistemológicos e desenvolvimentos em curso. Management Journal, 1994.
RAE - Revista de Administração de Empresas, v.
44, n. 4, p. 21-31, 2004. IBGE. (2014). Instituto Brasileiro de Geografia e
Estatística. Pesquisa industrial anual 2014 (PIA).
CLEGG, S. R.; et al. Strategy: theory and practice. Disponível em: http://www.ibge.gov.br/home/.
Sage, 2011. Acesso em 23 out. 2016.
CONFEDERAÇÃO NACIONAL DA IBGE. Instituto Brasileiro de Geografia e
INDÚSTRIA – CNI. Agenda para Brasil sair da Estatística. (2016). Pesquisa industrial mensal de
crise - 2016-2018, Brasília, março de 2017. produção física Brasil. Disponível em:
Disponível em: www.ibge.gov.br/Industrias_Extrativas_e_de_Tra
http://www.portaldaindustria.com.br/publicacoes/nsformacao/Pesquisa_Industrial_Mensal_Produca
2016/4/agenda-para-o-brasil-sair-da-crise-2016-o_Fisica/Fasciculos/Fasciculo_Indicadores_IBGE
2018/. Acesso em 01 mai, 2017. _Brasil/pim-pf-br_201608caderno.pdf. Acesso em
23 out, 2016.
COSTA, A. C. R.; ROCHA, E. R. P. Panorama da
cadeia produtiva têxtil e de confecções e a questão INSTITUTO DE ESTUDOS E MARKETING
da inovação. BNDES Setorial, Rio de Janeiro, n. INDUSTRIAL (IEMI). Brasil Calçados 2013:
29, p. 159-202, 2009. relatório setorial da indústria de calçados no Brasil.
São Paulo: IEMI, 2013.
DELOITTE. (2016). As PMEs que Mais Crescem
no Brasil O ranking das emergentes e as lições para JARZABKOWSKI, P.; WILSON, D. C. Pensando
tempos desafiadores. Pesquisa 2016. Disponível e agindo estrategicamente: novos desafios para a
em: análise estratégical. RAE, v. 44, n. 4, 2004.
https://www2.deloitte.com/content/dam/Deloitte/b
r/Documents/conteudos/pmes/PME-2016.pdf. JARZABKOWSKI, P. An activity-theory
Acesso em 05 fev, 2017. approach to strategy as practice. Cambridge
Handbook of Strategy as Practice. Cambridge
FIESC, Federação das Indústrias do Estado de University Press, Cambridge, p. 127-140, 2010.
Santa Catarina. Programa de Desenvolvimento
Setorial, Rotas Estratégicas Setoriais 2022, Têxtil e JOHNSON, G. et al. Strategy as practice: research
Confecções. Florianópolis, 2013. directions and resources. Cambridge: Cambridge
University Press, 2003.
GIL, A. C. Como classificar as pesquisas. Como
elaborar projetos de pesquisa, v. 4, p. 44-45, 2002. MILNITZ, Diego; LUNA, Mônica Maria Mendes.
Caracterização da Indústria Têxtil e de Confecções
GULINI, P. L. Ambiente organizacional, do Estado de Santa Catarina: Principais Elos,
comportamento estratégico e desempenho Parceiros e Produtos Comercializados. Revista da
empresarial: um estudo no setor de provedores de UNIFEBE, v. 1, n. 22, p. 166-182, 2017.
internet de Santa Catarina. 2005. Tese de
Doutorado (Programa de Pós Graduação em MINAYO, M.C. S. Pesquisa social: teoria, método
e criatividade. Petrópolis, RJ: Vozes, 2011.
Administração) - Universidade do Vale do Itajaí –
UNIVALI, 2005.
MINTZBERG, H., AHLSTRAND, B.; LAMPEL,
HART, S. (1992). An integrative framework for J. Safári de estratégia: um roteiro pela selva do
strategy-making processes. Academy of planejamento estratégico. Porto Alegre: Bookman,
Management Review. 2009.
PELISSARI, A. S. et al. Diagnóstico do uso da
inteligência competitiva empreendedora em
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018. 54
pequenas empresas da indústria de confecções da
cidade de Vila Velha–ES. Revista de
Administração da UFSM, v. 5, n. 2, p. 183-203,
2012.
RECKWITZ, A. Toward a theory of social
practices: A development in culturalist theorizing.
European journal of social theory, v. 5, n. 2, p. 243-
263, 2002.
SEVERINO, A. J. Metodologia do trabalho
científico. Cortez editor, 2014.
TRIVIÑOS, A. N. S. Introdução à pesquisa em
ciências sociais: a pesquisa qualitativa em
educação. São Paulo: Atlas, 2006.
VEYNE, P. Foucault revolutionizes history.
University of Chicago Press. pp. 146-82, 1997.
VIANA, F. L. E. A indústria têxtil e de confecções
no Nordeste: características, desafios e
oportunidades. Série Documentos do ETENE. nº
06. Fortaleza: BNB, 2005.
WHITTINGTON, R. National innovation and
transnational variation. Keynote presentation,
European Academy of Management, Bocconi
University, April, 2003.
WHITTINGTON R. Completing the practice turn
in strategy research. Organization Studies, v. 27, n.
5, p. 613- 634, 2006.
YIN, R. K. Estudo de caso: Planejamento e
métodos. 5ª ed. Porto Alegre: Bookman, 2015.
Revista de Negócios, v. 23, n. 1, p. 43-54, January, 2018.
1
Human Capital and Competitiveness:
Analytical Method to Strategic Management of
the Man-Organization interaction
Giovanna Garrido1, Marco Antonio Silveira2, Rafael Damasco Silveira3
1
Centro de Tecnologia da Informação Renato Archer - giovanna.garrido@cti.gov.br
2
Centro Universitário Campo Limpo Paulista (UNIFACCAMP)/ Centro de Tecnologia da
Informação Renato Archer - marco.silveira@cti.gov.br
3
Integrare Tecnologia, Aprendizagem e Treinamento - rafael@integrare.in
KEYWORDS ABSTRACT
People Analytics, One of the management challenges is to understand the mutual relations between individuals and
Human Capital, organizations, which promotes the emergence of methods that allow diagnosing and quantifying the impacts
Analytical Method, of the human factor in the organization. This challenge has been defining a new area of knowledge known as
Competences Development, People Analytics, Human Resources Analytics, among other denominations. Thus, having People Analytics
Return on Investment (ROI). as the main subject of research, this study merges the Triple Bottom Line concept of sustainability, the core
competences of the organization and some analytical techniques, with the goal of implementing an own
Received 07.02.2018 strategic diagnosis method to quantify the impacts of the human factor in a multinational of the electronic
Revised 24.05.2018 sector. Aiming at integrating the technological, human and sociotechnical domains, this method integrates
Accepted 10.07.2018 variables related to people, processes and competences. The correlation between these three elements with
people management methodologies and analytical techniques facilitates the obtaining of quantitative
information about the human factor in organizations, contributing to human management becoming assertive,
ISSN 1980-4431
Double blind review strategic and oriented to the sustainable development of the business. The implementation was directed to the
strategic improvement of competence management in the software development sector, aiming to improve
the productivity of its developers. The method showed its potential to promote a qualified diagnosis by
quantifying the impacts of the developers' competences on the productivity of the associated processes,
enabling the improvement in the functional aspects of the area and subsidizing strategies of success for the
company in terms of the assertive management of human capital.
PALAVRAS-CHAVE RESUMO
People Analytics, Um dos desafios de gestão é compreender as relações mútuas entre indivíduos e organizações, o que promove
Capital Humano, o surgimento de métodos que permitem diagnosticar e quantificar os impactos do fator humano na
Método Analítico, rganização. Este desafio tem definido uma nova área de conhecimento conhecida como People Analytics,
oHuman Resources Analytics, entre outras denominações. Assim, tendo o People Analytics como objeto
Desenvolvimento de
principal de pesquisa, este estudo funde o conceito de sustentabilidade Triple Bottom Line, as competências
Competências,
Retorno sobre centrais da organização e algumas técnicas analíticas, com o objetivo de implementar um método de
Investimento (ROI). diagnóstico estratégico próprio para quantificar os impactos do fator humano em uma multinacional do setor
eletrônico. Com o objetivo de integrar os domínios tecnológico, humano e sociotécnico, este método integra
ariáveis relacionadas a pessoas, processos e competências. A correlação entre esses três elementos com
vmetodologias de gestão de pessoas e técnicas analíticas facilita a obtenção de informações quantitativas sobre
o fator humano nas organizações, contribuindo para que a gestão humana se torne assertiva, estratégica e
orientada para o desenvolvimento sustentável do negócio. A implementação foi direcionada para o
aprimoramento estratégico da gestão de competências no setor de desenvolvimento de software, visando
melhorar a produtividade de seus desenvolvedores. O método mostrou seu potencial para promover um
iagnóstico qualificado, quantificando os impactos das competências dos desenvolvedores sobre a
dprodutividade dos processos associados, possibilitando a melhoria nos aspectos funcionais da área e
subsidiando estratégias de sucesso para a empresa em termos da assertiva gestão do capital humano.
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 56
1 Introduction they remain little aligned to the strategic
management of human capital in favour of
Due to changes in the global organizational organizational sustainability (Angrave et al., 2016;
scenario and the recognition of intellectual capital Handa & Garima, 2014; Huselid, 2015; Minbaeva,
as a strategic asset of organizations (Hota & Ghosh, 2017; Rasmussen & Ulrich, 2015; Schiemann,
2013), the opportunities associated with the Seibert, & Blankenship, 2018; Wang & Cotton,
strategic management of the human factor in the 2018).
last decades are greater than ever (Huselid, 2015). Paraphrasing Wang and Cotton (2018) and
Consequently, the understanding of the mutual Angrave et al. (2016), the current reality reveals a
relations between the organization and the scientific opportunity of advocating more strategic
individuals for the competent management of approaches of People Analytics, as well as to
human capital constitutes one of the key factors in influence its use and implementation through
generating competitive advantages. studies that grant it a multivariate denotation,
Based on the axiom of managerial sciences integrate its strategic content to the business ideals,
dequately offer new approaches and methodologies about it
“what can not be measured it can not be a
managed” (Breyman & Dolinskiy, 2016), the and consider ways to diagnose, quantify and
development of knowledge, tools and analytical improve the human capital of organizations.
methods that allow a quantitative approach for the This context has made the claim of this study
human capital management constitutes one of the an initiative with scientific and organizational
major challenges both academic and business. As relevance. Having People Analytics as the main
resources become increasingly scarce and subject of research, this study merged the Triple
competition increasingly fierce, the guarantee of Bottom Line concept of sustainability (Elkington,
benchmark in the marketplace is in disposing of 1999), the core competences of the organization
beliefs and empiricism and to increasingly ground (Prahalad & Hamel, 1990) and some analytical
on data and metrics for decision-making (Huselid, techniques, with the goal of implementing an own
2015; Shah et al., 2015). strategic diagnosis method to quantify the impacts
This scenario propitiates the emergence of of human factor in a multinational of the electronic
methods to diagnose and quantify the impacts of sector.
the human factor in the organization, defining a Recognized worldwide as a leader in the
new area of knowledge known as People Analytics, technology sector and one of the top ten global
Human Resources Analytics, among others brands, the company claimed to notice the low
denominations, whose interest has been growing productivity among professionals of the software
dramatically among scholars and practitioners development area. Thus, the proposal of
(Huselid, 2018). As one of the most promising implementation of the method was focuses on the
areas in the current corporate world for generation strategic enhancement of competence management
of competitive differential (Bodie et al., 2016), in the area, prospecting improvements in the
People Analytics constitutes a revolutionary productivity of its developers.
approach with potential to improve the results of The proposed approach was justified by the
business through an assertive human capital fact that People Analytics constitutes an area of
management. knowledge that allows to diagnose and quantify the
However, the current studies on the subject impacts of the human factor in the organization and
reveal that this area of knowledge has its limits still enable effective solutions with high added value in
unexplored. Althought it is recognized the human capital management. Therefore, it requires
capability of People Analytics to provide better a direction of its potential not only in subsidizing
decisions about the human capital, applications of human resources functions, but also in approaching
strategic value are still insufficient in the it in a comprehensive way as a supporting tool to
organizations. The diagnosis and quantification of the human capital strategic management for
the impacts of human factor, when applied, still organizational sustainability (Angrave et al.,
represent a tactical or limited value, being focused 2016).
on supporting the human resources functions and For confidentiality reasons, organizational
optimizing the operationalization and the solution data used in the analyses have not been presented
of specific problems in the area. Consequently, in this study. A few demonstrative graphics are
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 57
presented, since the intent of the study was to to its consideration as the basis of all intellectual
reveal the logical implementation of the proposed capital. This consideration derives from its
method and its results, in order to verify its viability potential of improving the structural capital,
of being explored in a useful way to diagnose and internalizing the rewards of relationship capital in
quantify the human factor impacts in organizations. order to boost the coming results, and, more
importantly, generating new knowledge and
2 Theoretical Framework applying it through innovations.
Therefore, the capability to mobilize the
2.1 Organizational Sustainability: The challenge of generation and sharing of the human capital
the 21st century consists in a very important managerial task. Since
the early days of studies on the organizational
scenario, theory, it is known that people and organization
Due to the 21st century’s economic
organizations have been required to develop participate in a symbiotic relationship, in which
competences in order to act and survive in one does not exist without another and the
competitive environments. The dynamic nature of behaviour of one modifies the behaviour of the
markets and the increasing availability of other. Namely, organizations are environment of
information and technology impose to human transformation and people are their agents
organizations the necessity to innovate of transformation. (Silveira et al. 2015).
continuously, aiming to increase competitiveness In this way, efforts for mantain the
and focusing their efforts on organizational organizational sustainability over time should
sustainability. consider the importance of strategic alignment of
Elkington (1999) proposes a wide approach human capital to the ideals of the organization and,
for the sustainability idea through the Triple at the same time, the need of a proficiency in its
Bottom Line concept (TBL), which denotes the management (Momim & Mishra, 2015; Silveira et
ideal that a system only becomes sustainable when al., 2015).
there is a dynamic balance of social, economic and
environmental objectives. Since this approach to 2.2 Diagnosis and quantification of human factor
sustainability has as its underlying principle the impacts
pursuit of continuity of positive business results
(Silveira, 2012), the managing challenge for Due to the ultracompetitive nature of markets
sustainability implies dealing with multiple and the increasing availability of information and
variables linked to tangible and intangible factors, technologies, the demand for the strategic
of human, technological and organizational nature. integration of human capital into organizational
as a way to increase competitiveness with
“profit by profit” has become a actions –
In this context, the
makes the understanding of mutual
high-risk strategy, while intellectual capital quality of life –
becomes a strategic organizational asset (Hota & relations between individuals and organizations
Ghosh, 2013). one of the key factors in generating competitive
The intellectual capital can be understood as advantages (Silveira, 2012).
the set of intangible resources that organizations Based on the axiom of managerial sciences
quately
sured it can not be ade
what can not be mea
have at their disposal, which allows them to “
, the
an & Dolinskiy, 2016)
ged” (Breym
produce in an efficient and effective way. It is mana
composed by three components: The structural necessity of using data and analytical techniques to
capital, which involves organizational assets support decision-making has become evident to
related to the intellectual property category; the companies that are looking for a strategic
relationship capital, that corresponds to the management of the human capital. This need
generation of knowledge resulted from relations derives from its potential of improving both
with other organizations, clients and suppliers; and organizational competitiveness, since that leads to
human capital, its main component that represents greater confiability of results and better
the knowledge and skills of employees at the management of investments in human capital, and
disposal of the organization (Edvinsson & Malone, individual performance and development, due to
1998; Sveiby, 1998). the consistent approach to people (Bassi, 2011;
The emphasis given to human capital is due Bodie et al., 2016; Fitz-Enz, 2010; Gustafsson,
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 58
2012; Handa & Garima, 2014; Mishra, Lama, & domain, abolishing hunches and intuition and
Pal, 2016; Momim & Mishra, 2015; Shah et al., cherishing decision-making based on data and
2015). evidences (Shah et al., 2015). Containing elements
Given the scientific and technological of business intelligence, this approach of human
difficulty of measuring many of the phenomena capital quantification goes from a systematic
related to human capital, the development of process of reporting human resources metrics to a
knowledge, tools and analytical methods that allow process of combinating analytical techniques for
a quantitative approach to the management of this the establishment of predictive models to support
asset constitutes one of the major academic and decisions (Bassi, 2011; Mishra, Lama, & Pal, 2016;
business challenges. This propitiates the Momim & Mishra, 2015) and people development.
emergence of methods that allow diagnosing and Thus, since People Analytics increases the
quantifying the impacts of the subjective variables credibility and effectiveness of human resources
on the policies and practices, it constitutes an approach
set – conceptualized as Human Factor –
main objective variables of organization, defining that enhances the strategic role of the human
a new area of knowledge known as People resources area, the human capital management and,
Analytics, Human Resources Analytics, among at the same time, the organizational results (Lins et
other denominations, whose interest has grown al., 2015). Namely, People Analytics consists in a
dramatically among scholars and practitioners source of competitive advantages to organizations
(Huselid, 2018). that have it as a main management competence
Denoting the data science applied to the (Bassi, 2011; Bersin et al., 2016; Breyman &
human factor, People Analytics is adept at a Dolinskiy, 2016; Fitz-Enz, 2010).
strategic vision of human capital management and Therefore, there is a consolidation of a
it brings answers to the limits imposed on human capital management approach encompassed
organizational sustainability. Based on correlations for an ideal of sustainable development, which is
for example, motivation, able to provide companies competitiveness with
between human factors –
and quality of life. Namely, an approach of
knowledge, cooperation, competences, etc. –
the competitive performance of organizations, this management and people development at the same
area of knowledge allows diagnosing and time profitable and illuminated, cherishing gains to
quantifying the impacts of individuals in the the organization, people and society (Bassi, 2011).
organization in order to improve assertiveness in
human capital management. 2.3 Strategic diagnosis method: Rationale and
Thus, as one of the most promising formulation
tendencies in the current corporate world (Bodie et
al., 2016), with high potential in terms of scientific, Although People Analytics is moving
economic and social benefits, People Analytics towards a new corporate mainstream and denotes
consists in a quantitative approach to the human the state of art in people management, there are still
capital management (Fitz-Enz, 2010; Gustafsson, few international groups with relevant academic
2012; Handa & Garima, 2014; Mishra, Lama, & studies (Gustafsson, 2012; Lins et al., 2015). The
Pal, 2016; Shah et al., 2015). By associating main references in this area of knowledge are the
knowledge to analytical methods, it ensures quality American universities Harvard and Wharton and
g’s College London.
and strategic design to decisions related to the the British one Kin
human side of organizations (Gustafsson, 2012; Furthermore, even though the capability of
Mishra, Lama, & Pal, 2016). People Analytics to provide better decisions about
It is considered that, by associating the human capital is known, its prevailing approach
knowledge related to the human factor to the still represents a tactical or limited value. When
possibility of quantifying its impacts on the applied, it remains focused on diagnosing and
organization as a whole, People Analytics quantifying the impacts of the human factor in
represents an area of knowledge that reaches the order to support the human resources functions and
current state of art in the organizational the solution of specific problems in the area.
management field. For organizations searching for Preponderantly focused on the optimization of
better managing the returns on human capital these processes, People Analytics remains little
investments, People Analytics appears as a new aligned to a strategic management of the human
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 59
capital in favour of organizational sustainability 2014). Unlike the traditional vision that considers
(Angrave et al., 2016; Handa & Garima, 2014; its application only requires statistical skills, since
Huselid, 2015; Minbaeva, 2017; Rasmussen & predictive models dispense any qualitative
Ulrich, 2015; Schiemann, Seibert, & Blankenship, analysis, the benefits of quantifying the human
2018; Wang & Cotton, 2018). factor impacts are linked to multidisciplinary
Commonly, the use of People Analytics is analyses of the gained results and decisions taken.
limited to conventional metrics that answer For this reason, qualitative analyses are also
questions of historical nature, with low predictive required for the diagnosis of human factor impacts,
potential of future events. In solving human capital not only for arranging data into information, but
problems, organizations persist in a reactive circle also for generating knowledge from them and for
that is limited to operational report, underutilizing designing decisions according to all influence
the potential of People Analytics as a strategic and factors. Namely, analytical methods and
proactive tool for decision-making (Angrave et al., techniques must subsidize decisions and guide
2016; Handa & Garima, 2014). them to results, and not simply dictate an absolute
It is certain that the prevailing approach course of action in a way that qualitative analytical
already favours competitive gains in human competences be banned (Bidwell, 2016; Spears &
resource actions. However, there is a risk of People Bolton, 2015).
Analytics becoming another management praxis of In summary, by addressing the ideology of
unknown real value to organizations (Rasmussen & quantification of the human factor kepting it
Ulrich, 2015). oriented to results, the greater is the time spent.
Thus, People Analytics should not be However, it is a way to position the human capital
restricted to the human resources functions. Its management alongside the sustainable challenge of
potential use must be inherent to a quantitative organizations, managing the elements of this asset
approach to manage the questions related to the throughout the value chain (Rasmussen & Ulrich,
as 2015).
human capital with objectivity and method –
well as it is done with other resources of the
organization – and also to promote its integration 2.3.1 The essential of simplicity: Processes,
and strategic alignment in the business as a whole. Competences & People
Basing on the opinion of Momim e Mishra
(2015) in which every strategy related to the human Once exposed that the comprehension and
resources should be aligned with business strategy, measurement of human factor impacts in the
People Analytics needs to transcend the functional organization and in its competitive performance are
boundaries of human resources. Its sustainable fundamental issues for a sustainable management
approach requires developing a strategic of this valuable resource, an approach of human
understanding about the contribution of human capital management that aligns such necessity to
capital for the organization (Angrave et al., 2016). the sustainability notion in its wider scope
Therefore, it is required a People Analytics (Elkington, 1999) is considered crucial. After all,
approach that prioritizes the alignment of analytical human capital is per se a strategic resource to
techniques to people management methodologies overcome unsustainable organizational models
as well as their application to a logical structuring (Silveira, 2012).
of data analysis (Fitz-Enz, 2010), in order to Since human capital represents the
understand the correlations between human capital, knowledge and competences at the disposal of the
productivity and organizational competitiveness. organization (Silveira, 2012), a human capital
This approach makes feasible effective and high-management as basis for organizational
added value solutions in human capital sustainability requires an approach that also
management, which not only referring to the incorporates the core competences theory,
human resources management but also enabling proposed by Prahald and Hamel (1990). After all,
organizational sustainability. being crucial for the formulation of strategies, the
For this reason, a strategic insertion of People key organizational competences are the basis of the
Analytics must reference it as a fusion of generation of competitive advantages.
quantitative and qualitative information and data to Therefore, a sustainable management of this
support people management (Handa & Garima, valuable resource requires approaching it
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 60
according to the strategic alignment between the a) Any system can be seen as a circular
Triple Bottom Line concept of sustainability, the relation between purpose, environment and
core competences of the organization and functions that correspond to the processes;
analytical techniques. b) Based on the process perspective as a
In this way, this study is based on the transformation that adds value, it is evident that
principle that an assertive management of human only through its network of processes that an
factor requires an integrated knowledge about the organization can transform a set of Inputs –
in Outputs –
factors related to the human capital and the materials, information or clients –
that fulfill the
assessment of its impacts. Therefore, it links its final or intermediary results –
purpose to an own strategic diagnosis method for a organizational purposes;
sustainable human capital management based on c) The process perspective presents a similar
three key organizational elements, namely, complexity to organizations, as it is compounded
processes, competences and people (Figure 1). of multidimensional factors associated to physical
dimensions (equipments, infrastructure, materials,
Figure 1. Strategic Diagnosis Method so on), organizational (procedures, information
flow, decision-making, so on) and human
dimensions – knowledge, competences,
cooperation, so on.
Therefore, the organization is consolidated
per se as a network of processes. It is compounded
of integrated sets of activities that are sequenced in
not always linear – in order
a coordinated manner –
to produce specific results to satisfy the clients
(Gonçalves, 2000). Thus, the method proposed
considers that the guarantee of success over time
includes a good management of the processes.
In this aspect, the logical combination
between the processes and others elements of the
Source: Elaborated by the authors. method is due to the pretension of emphasizing that
the effectiveness of a process, as well as the
The reason for a method based on these three satisfaction of their related necessities (Silveira,
elements is due to logical cadence of this 2006), depend on the capability of that who runs it.
combination. It is known that the fundamental Therefore, since they boost the processes and,
purpose of organizations is to guarantee their consequently, the organizational essence, the
success over time. Therefore, in order to generate competitiveness is also linked to the management
a synergistic combination of
sustainable competitive advantages, the of the competences –
organization must act in a way that its product or Knowledge, Skills and Attitudes expressed by
service adds enough value to satisfy the customers professional performance in a particular
and, at the same time, brings it positive returns on organizational context (Perrenoud, 1999; Silveira,
investments Maia, & Fioravanti, 2012).
For this reason, knowing that a product or Hence, the cycle of the proposed
service is a result of a series of processes, many methodology advocates that the guarantee of
authors, especially those who present the systemic organizational sustainability lies in the strategic
approach of organizations (Gonçalves, 2000; management of people, a key element for the
Maranhão & Macieira, 2004; Maximiano, 2000; organizational innovation that is constituted as the
Schoderbek, Schoderbek, & Kefalas, 1980; Senge, bearer of necessary competences to execute the
2013; Silveira, 2006; Tachizawa & Scaico, 2006), organizational processes.
they consolidate a vision of processes as being the Therefore, the sustainability of an
fundamental components of an organization. Such organization depends on its strategic action on
vision is based on three perspectives: what is under its governability. The organizational
success is consequence of a jointed work of
elements and variables that, being guided by
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 61
strategy, allow a coherent set of people, area. Propitiating a qualified diagnosis of aspects
competences and processes. Hence, the human related to the human factor, the method enables
dimension consists in a focus to be explored. deeper investigations, instigates new reflections
The logical cadence of this combination and delimits assertive solutions, in order to
reveals the inherency of this method’s foundation minimize flaws in the assessment of value.
to the People Analytics approach. Since the
competences are considered as the basis of the Figure 2. Proposed strategic diagnosis method versus
organization’s strategic performance, being up to traditional methods
them to define the productivity and the level of
competitiveness, changes, innovation and the
reduction of costs (Shah et al., 2015), the positive
relation between a strategic approach of human
capital management and the organizational
performance depends on the data collected,
information generated, available knowledge and
individual competences to be aligned with the
organization’s core compentences.
Thus, the method is based on the alignment
of data, information, knowledge and competences.
It consolidates an approach of technological,
human and sociotechnical domain, involving the
gathering of internal and market data, the
organization of these data into information, the
reflection and generating of knowledge and the
management of knowledge and competences of
interest.
This rationale is aligned to the consideration
of processes, people and competences as the main
organizational components and, therefore, as
crucial basis for a strategic business diagnosis. The
synergistic correlation between such components
with methodologies of people management and
analytical techniques enables obtaining
quantitative information about the human factor in
organizations and contributes to human
management becoming strategic and oriented to the
sustainable development of the business.
Constituted by a comprehensive vision that Source: Elaborated by the authors.
includes components of the organization as a
whole, such method allows approaching the human In summary, Figure 2 presents the way that
capital management in a more assertive way, the proposed strategic diagnosis method differs
allowing the understanding and measurement of its from traditional methods. By dealing with the
relations to organizational performance and human capital in a measurable way, it consists in a
productivity. quantitative management approach that allows
The strategic value of the proposed method is bringing innovative elements to human capital
linked to its potential of diagnosing organizational management, influencing the organizational
elements that subsidize not only the human sustainability in a positive way.
resources area and the improvement of its Wherefore, since its main proposal is to
respective functions, but also the empowerment of implement the aforementioned method in a
its role to similar levels to other organizacional business practice, the following topic describes the
y’ methodological details.
comprehensiveness allows stud
method’s
areas. The
overstepping boundaries of the human resources
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 62
3 Methodology already been mapped, totalling a set of twenty-one
competences.
Basing on Gil (2002), the study was Based on the CHA Model of competence
a model aligned with the vision of
exploratory. Such classification is due to the study management –
has approached People Analytics as an area of specialists on competences development
knowledge which there are still few relevant (Perrenoud, 1999) which is based on the notion of
academic studies about and its intention of competences as synergetic combinations of
exploring the human factor diagnosis and Knowledge, Skills and Attitudes expressed by
quantification as an approach whose potentialities professional performance in a particular
exceed its current focus on human capital organizational context (Silveira, Maia, &
it was identified that the
management. Fioravanti, 2012) –
Therefore, looking to position it as a potential developer position required ten kinds of
ideal to provide organizations competitiveness Knowledge and eleven Skills and Attitudes, as
with quality of life, the study bibliographically shown in Table 1.
mapped People Analytics as area of knowledge. Its
proposal was to approach the subject according to Table 1. Current mapping of the competences of the Software
the alignment between the Triple Bottom Line Developer job position
notion of sustainability (Elkington, 1999), the core Knowledge Skills and Attitudes
competences of the organization (Prahalas &
Hamel, 1990) and analytical techniques, in order to Technical Knowledge 1 English
guide the implementation of its own strategic
reasoned and described in the Technical Knowledge 2 Alignment/Standardization
diagnosis method –
in a multinational of the
previous session –
eletronic sector. The company is recognized Technical Knowledge 3 Strategic Orientation
worldwide as a leader in the technology sector and
one of the top ten global brands. Technical Knowledge 4 Problem Solving
The study was focused on the software
development area of the organization, which is Technical Knowledge 5 Interpersonal Relationship
composed of a team of sixteen developers.
Although in a subjective way, the organization Technical Knowledge 6 Cooperation/Teamwork
claimed to notice a low productivity among these
professionals. Hence, the proposal was to Technical Knowledge 7 Communication
implement the aforementioned method in order to
echnical Knowledge 8 Leadership
improve the competence management in the area. T
Therefore, the purpose of this study involved
echnical Knowledge 9 People Management
the quest for quantifying the impact of the T
nces on productivity in order Technical Knowledge 10 Customer focus
developers’ compete
to prospect improvements in their performance.
For confidentiality reasons, organizational Response Time
data used in the analyses have not been presented
Source: Elaborated by the authors.
in this study. A few demonstrative graphics are
presented, since the intent of the study was to Likewise, the Key Performance Indicators
reveal the logical implementation of the proposed (KPI) of each developer had already been mapped
method and its results, in order to verify its viability b
on’s system and they were
y the organizati
of being explored in a useful way to diagnose and measured based on time. In other words, Time was
quantify the human factor impacts in organizations. the key performance indicator and it consisted in a
fundamental element of the or
ation’s
ganiz
3.1 Mapping the software development area Management Information System.
The area grouped developers as Junior, Full-
The studied organization already claimed to fledged and Senior. The grouping criterion was
have a strategic management of human capital. The based on the period of experience.
required competences in the developer position had
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 63
3.2 Application of the method human resources area, in terms of recruitment and
selection, training and retaining talents.
The method formulated in this article is based
on the application of own algorithms which use 4 Analyses
Analysis of Variance (ANOVA) and Cluster
Analysis techniques to correlate data referred to Through its adequacy to the fundamentals of
people, competences and processes, crucial the aforementioned strategic diagnosis method, the
elements for the business diagnosis. proposed implementation was potential to solve
As usual in the corporative world, the problems pointed as important by the organization
information provided by the organization were not and to reach the established objectives.
stored into one place. The mapping of the Based on integrated analysis of the three
competences constituted the human resources area elements that compound the implemented method,
database, while details about processes when correlating the competence level of each
performance were stored in software development developer and their performance in the process, it
area database. was possible to quantify the impact of each kind of
Thereby, since disintegrated information knowledge, skill or attitude on the developer’s
sources difficult the data analysis (Visier, 2014), productivity. This action allowed to better
the first action was to integrate both bases in a way understand which competences added value to the
that subsequent analyses could be facilitated. position and generated significant changes in the
Afterward, the study looked to understand the results, as well as how to manage them in an
ness’s
relations between the collected data, aiming to assertive, strategic and oriented to the busi
diagnose the impacts of each competence on the sustainable management way.
productivity. The measurability of the method has shown
For this purpose, according to its own potential to make explicit aspects that had not been
statements, the implementation of the method considered by the organization. As mentioned
allowed to consider that, in order to measure the above, the mapping of the competences followed
impact of the mapped competences on the process, subjective standards and their relevance for
the key factor was to obtain data referring to the improvements in productivity was unknown.
developers, intermediary agents of this relation. Therefore, by allowing approaching the
Therefore, the study sought to investigate the human factor in an analytical way, the
differences between developers in terms of implementation of the method subsidized strategies
competence level to the extent of influencing the of success for the organization in terms of human
required time for execution of their activity. capital management. Even though the study has
Through 360º performance evaluation been focused on an area whose processes involved
evaluation by superior, peers, high complexity, its foundation on the synergistic
methodologies –
the level of each relations between three aforementioned
subordinates and own developer –
developer for each mapped competence was organizational elements, human management
evaluated, being assigned Level 1 (low), Level 2 methodologies and analytical techniques, has
(medium) or Level 3 (high). favoured strategic enhancements in the
competence management of the area, prospecting
veloper’s
In summary, approaching the de
velopers’ productivity.
Competence Level and Productivity as variables of improvements in the de
interest and investigating the relation between them Furthermore, the assertiveness conferred by
in an analytical way, strategic improvements in the the method on human capital management has
competence management of the area were propitiated improvements in the functional aspects
suggested, prospecting enhancements in of the human resources area, allowing the strategic
loper’s performance. By the synergy between establishment of new foundations for recruitment
deve
components, people management and selection, training and retaining developers. By
the method’s
methodologies and analytical techniques, the study correlating competence level and productivity –
this study allowed
considered its analyses in subsidy to strategic both variables of interest –
management of human capital and to the determining which competences should be
improvements in the procedural functions of considered in the recruitment and selection,
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 64
training and retention processes, as detailed in Figure 4. Impact of competence level on productivity
topics 4.1, 4.2 and 4.3.
4.1 Recruitment and selection of software
developers
The established parameters for the
recruitment and selection of software developers
followed the subjective mapping of competences
considered important for these professionals (Table
1). However, through application of statistical
techniques, in order to understand the relations
between competence level and the productivity of
processes, it was found that some mapped
competences generated significant improvements
in productivity as far as their level increases, while
others declined. Therefore, there were identified Source: Elaborated by the authors.
competences that impacted the performance in a
directly proportional manner and competences that According to Figure 4, the level of English,
impacted performance in an inversely proportional for example, is an important consideration when
manner. recruiting a candidate to the developer position.
The Figure 3 illustrates this occurrence, Changes on the level of this skill generate
considering the levels of English and Interpersonal significant impacts on productivity, in which the
Relationship and the amount of required hours to higher level of developer, more efficient will be his
execute a given activity. According to the Figure, productivity. On the other side, the level of
high levels of English improved the performance, Interpersonal Relationship, for example, unlike it
is not seen as potential for developers’
ems,
while high levels of Interpersonal Relationship se
loper’s performance. productivity.
decreased the deve
Figure 4 also presents cases where a
Figure 3. Levels of English / Interpersonal Relationship competence only becomes relevant to productivity
versus Productivity
when its level is higher or lower. For example,
Technical Knowledge 9 is relevant for developer’s
productivity solely in cases that he has it in a higher
level, while Technical Knowledge 2 only shows
potential when he has in a lower level.
Therefore, the fact of appealing to analytical
techniques allowed a more assertive mapping of
competences that were more important to the
position and that, for this reason, they should be
considered in the recruitment and selection
processes of the area. Justified by Figure 4, the new
Source: Elaborated by the authors.
mapping of knowledge, skills and attitudes for the
Hence, based on the way that each developer position is shown on the Table 2.
competence level influenced productivity, it was Table 2. Proposed mapping of the competences of the
possible to extract from the mapped competences Software Development job position
those that really should be considered in a
nowledge Skills and Attitudes
recruiting and selection process and those that K
could be disregarded (Figure 4). It is important to T
echnical Knowledge 1 English
know that the impact of some levels of competence
on productivity could not be measured, since there Technical Knowledge 2 Alignment/Standardization
were not developers with the respective level.
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 65
Technical Knowledge 3 Strategic Orientation Figure 5. Maximizing the performance difference between
groups
Technical Knowledge 4 Problem Solving
Technical Knowledge 5
Technical Knowledge 8
Technical Knowledge 9
Source: Elaborated by the authors.
4.2 Retaining talent
As previously mentioned, the software
development area grouped developers as Junior,
Full-fledged or Senior. The grouping criterion was
based on the period of experience in the
organization. However, it was observed that there
were developers in the current grouping who,
although theoretically considered Junior, they
produced just as a Senior, and vice-versa.
Consequently, due to the absence of
quantitative criteria to support assertive decisions,
the organization could search for strategies to
retain developers by the simple fact that they were Source: Elaborated by the authors.
Senior, whereas a Junior retaining could be more
strategic, considering his better performance. According to the Figure, in the current
This finding corroborates the opinion of grouping, the performance difference between
Huselid (2015) regarding to the current gap of Junior and Senior developers is approximately
information in many organizations, which makes three hours on simple activities and four hours on
the most representative talents the least measured complex activities. Otherwise, in the suggested
and managed. grouping, the performance difference betweeen
Hence, through Cluster techniques, a new low and high-performance groups on simple and
way of grouping the developers was designed, not complex activities has become approximately four
according to the fact that they are Junior, Full-and nine hours, respectively.
fledged or Senior, but according to the performance Therefore, by maximizing the performance
obtained in the process, in order to maximize the difference between groups, the suggested grouping
performance differences between groups. In this subsidized conclusions about which developers
way, developers were regrouped into three new should be retained and which could be developed.
groups organized in the following way: Low Regardless of being Junior, belonging to the high-
Performance (3 Junior / 1 Senior); Medium performance group meant that developer should be
Performance (2 Full-fledged / 5 Senior); and High retained. In the same way, regardless of being
Performance (1 Junior / 2 Full-fledged / 2 Senior). Senior, belonging to the low-performance group
Figure 5 illustrates how the performance meant that developer could be developed.
difference between groups was maximized with the Therefore, from sixteen developers, such
new grouping suggestion, both in considering the analysis allowed to identify five for whom the
performance of the groups on simple tasks, which retention should be strategic, since they belonged
required up to one day of work service, as well as to the High-performance group (1 Junior / 2 Full-
on complex activities that required more than one fledged / 2 Senior), and four developers who,
day of work service. belonging to the Low-performance group, should
be developed (3 Junior / 1 Senior).
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 66
4.3 Training and development This study explores the aforementioned
limits when presenting the means to implement a
Once the suggested grouping allowed strategic management of human capital through the
identifying which developers should be retained insertion of methodologies of the area of People
and which could be developed, observing the Analytics in the conduction of the organizations. It
differences on the competence levels of the low, was tried to show how the quantification of the
medium and high-performance groups, it was variables associated to the human factor in support
possible to identify which competences were of the business strategy, and not only limited to the
groups’ functions of human resources, allows solutions
constituted as differential factors of the
performance and that, therefore, consisted in with high added value in human capital
potential competences to be trained and developed. management, that are promoters of organizational
This finding allowed claiming that the sustainability (Angrave et al., 2016; Huselid,
differential factor of the low-performance group to 2015).
the medium-performance group was constituted of The implementation of methodologies in the
two skills and attitudes, highlighting the necessity area of People Analytics in support of the
of developing them. Meanwhile, three technical organizational strategy requires the alignment of
knowledge and one skill and attitude delimited the efficient analytical techniques with practices in
differential of the medium and high-performance people management, enabling an assertive human
group, highlighting the possibility of being capital management, that allows to understand and
developed. quantify the relations of the workforce with the
Therefore, the strategic nature of the performance and organizational productivity.
proposed diagnosis method is due to its potential to The study presented, with People Analytics
serve not only as a resource for human resources as the central research theme, aligned the concepts
functions or to solve specific problems related to of the Triple Bottom Line of sustainability
the human factor, but also to promote a qualified (Elkington, 1999) and essential competences of the
diagnosis for the quantification of impacts and the organization (Prahalad & Hamel, 1990) with
assertive management of this valuable resource. analytical techniques, aiming to present the
application of its own strategic diagnosis method to
5 Conclusions quantify the impacts of the human factor in an
electronics multinational.
This study had as the main subject of research Based on the alignment of data, information,
the quantification of the impacts of the human knowledge and skills, the implemented method
factor in the organization, emerging knowledge enables an integrative approach in the
area known as People Analytics, among other technological, human and sociotechnical domains;
denominations, one of the most promising areas of for that, both internal and market data are collected.
knowledge in the current corporate world for the The organization of these data in relevant
generation of competitive differential (Bodie et al., information allows the generation of new
2016). knowledge, resulting in the management of this
While People Analytics is moving toward knowledge and the competences of interest in
being a new corporate mainstream, as an approach support of the organizational strategy.
with the potential to leverage business results Considering that the sustainability of an
through assertive human capital management, its organization depends on its strategic action on
limits of action remain unexplored. The diagnosis what is under its governability, such method
and quantification of the impacts of human factor integrates variables related to people, processes
in the organization remain focused on supporting and competences, considered as the main
human resources functions and optimizing the components of the organization and, therefore, the
solution of specific problems of the area. crucial elements for the business diagnosis.
Consequently, they remain little aligned to the Through it, the study advocated that the
strategic management of human capital in favour of synergic correlation of people, processes and
the organizational sustainability (Angrave et al., competences with people management
2016; Handa & Garima, 2014; Huselid, 2015; methodologies and analytical techniques facilitates
Rasmussen & Ulrich, 2015). to obtain quantitative information about the
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 67
estrategic human factors in organizations and studied organization, since they were specific and
contributes to people management becoming equivalent to the implementation of the proposed
ness’ method for the strategic improvement of the
objective, strategic and oriented to the busi
sustainable management. competence management in the studied area, the
It is certain that, by comparing the diagnosis results achieved justify the continuity of the
method addressed here to the traditional methods, research for new method directions. This will allow
since it keeps focused on the results and consists in to diagnose other problems related to human factor
a comprehensive vision that includes the and delineate strategic actions that join
components of the organization as a whole, the improvements on the productivity of the area, as
bigger is the work and time spent for its application well as the competitive performance of the
on daily reality of the organizations. However, it organization.
consists in a way of positioning the human capital A very interesting new possibility of research
management along the current demands of the consists on the implementation of the method
century. defended and implemented here in the diagnosis of
The implementation of the mentioned one of the greatest problems related to human
method was focused on the reality of an capital, that is the presenteeism. Characterized as
n “invisible absence” at work, the presenteeism
organization that, although recognized worldwide a
as a leader in the technology sector and as one of becomes a chronic behaviour that, by attenuating
the top ten global brands, it claimed to perceive a productivity, threatens organizational
low productivity among the professionals of the sustainability in all its aspects (Garrido et al.,
software development area. Hence, through 2017).
demonstrative graphics, the logic of the method The justification for this direction lies in the
and its applicability on the diagnosis and fact that, after acknowledging the range of
quantification of the impacts of the human factor presenteeism, an assertive management of this
for the strategic improvement of competence behavior requires approaches that provide ways to
management in the area was revealed, prospecting diagnose its manifestation (Lowe, 2002) and to
veloper’s productivity. measure its impacts on the individual and the
improvements in the de
The method showed potential to solve the competitive performance of the companies (Ospina
problem claimed by the organization and to reach et al., 2015, Tang, 2014). However, although the
the proposed goals. Through integrated analysis of efforts have been put into searching and how to
three organizational key elements, people measure it since 1992 (Pereira, 2014), the
management methodologies and analytical management of this behaviour is still tinged by the
techniques, the implementation of the method approaches of People Analytics, which were
enabled strategic improvements in the competence exposed in the topic 2.3.
management and in the procedural aspects of the For this reason, since the identification,
area, establishing assertive foundations to three understanding and measurement of this behavior
processes of the HR area: selection, training and and its effects on productivity still represents one
retention of professionals. of the greatest management challenges (John,
In summary, it is possible to consider that, 2010; Lowe, 2002), the implementation of the
allowing the approach of the human factor in an defended method in studies aiming the diagnosis
analytical and quantifiable way, the and quantification of its impacts on the individual
implementation of the method subsidized strategies and the competitive performance of organizations
of success to the organization in terms of human also consists of a path of potential relevance.
capital management.
References
6 Implications and Further Research
Angrave, D., Charlhood, A., Kirkpatrick, I.,
The results of the presented study can Lawrence, M., & Stuart, M. (2016). HR and
subsidize new studies that guarantee the scientific Analytics: Why HR is set to fail the big data
and organizational relevance of the purpose that challenge. Human Resource Management
has been started here. Journal, 26(1).
Regarding the possibilities guaranteed by the Bassi, L. (2011). Raging debates in HR Analytics.
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 68
People & Strategy, 34(2), 14-18. workforce analytics: Introduction to the
Bersin, J., Collins, L., Mallon, D., Moir, J., & HRM special issue. Human Resources
Straub, R. (2016). People Analytics: Gaining Management, 57, 679-684.
the Huselid, M. (2015). Worforce Analytics for
speed. In Global Human Capital Trends –
new organization: Different by design, strategy execution. In D. Ulrich, W.A.
pp.87-95. Deloitte University Press. Extraído Schiemann, & L. Sartain (Eds.). The rise of
de: bit.ly/1T6wJQS HR: Wisdow from 73 Thought leaders.
Bidwell, M. (2016). Staffing analytics. In C. Estados Unidos: Hr Certificate Institute, 309-
Massey, M. Haas, & M. Bidwell. People 315.
Analytics. Coursera, Wharton – University of Johns, G. (2010). Presenteeism in the workplace: A
Pennsylvania. review and research agenda. Journal of
Bodie, M.T., Cherry, M.A., Mccormick, M.L., & Organizational Behavior, 31, 519-542.
Tang, J. (2016). The law and policy of People Lins, J., Faro, E., Pomi, M., & Kia, C. (2015).
Analytics. Legal Studies Research Paper People Analytics: Estágio atual da análise de
Series, (6). dados aplicada à gestão de pessoas no
Breyman, I., & Dolinskiy, A. (2016), Introdução ao Brasil. Pricewaterhouse Coopers. Extraído
People Analytics. Coursera, MIPT - Moscow de: pwc.to/2aCn6Hq
Institute of Physics and Technology. Lowe, G. (2002). Here in body, absent in
Edvinsson, L., & Malone, M.S. (1998). Capital productivity. Canadian HR Reporter, 2.
intellectual. São Paulo: Makron. Extraído de http://bit.ly/2G9f2yb
Elkington, J. (1999). Cannibals with forks: The Maranhão, M., & Macieira, M.E.B. (2004). O
triple bottom-line of 21st century business. processo nosso de cada dia: Modelagem de
Oxford: Capstone. processos de trabalho. Rio de Janeiro:
Fitz-Enz, J. (2010). The new HR Analytics: Qualitymark.
Predicting the economic value of your Maximiano, A.C.A, (2000). Teoria geral da
human capital investments. administração: da escola científica à
company’s
Estados Unidos: AMACOM. competitividade na economia globalizada.
Garrido, G., Mendonça, A.V., Lopes, K.M.O.L., & São Paulo: Atlas.
Silveira, M.A. (2017). Presenteísmo: Causas Minbaeva, D.B. (2017). Building credible human
e consequências de um mal subterrâneo. capital analytics for organizacional
Revista de Ciências da Administação, competitive advantage. Human Resources
19(48), 54-67. Management, 1-13.
Gil, A.C. (2002). Como elaborar projetos de Mishra, S.N., Lama, D.R., & Pal, Y. (2016).
pesquisa. São Paulo: Atlas. Human Resource Predictive Analytics
Gonçalves, J.E.L. (2000). As empresas são grandes (HRPA) for HR Management in
coleções de processos. Revista de organizations. International Journal of
Administração de Empresas, 40(1), 6-19. Scientific & Technology Research, 5(5), 33-
Gustafsson, D. (2012). Business intelligence, 35.
analytics and human capital: Current state of Momim, W.Y.M., & Mishra, K. (2015). HR
workforce analytics in Sweden. Course Analytics as a strategic workforce planning.
Conclusion Work (Graduation in International Journal of Applied Research,
Information Systems). University of 1(4), 258-260.
SKÖVDE. Skövde, Suécia. Ospina, M.B., Dennett, L., Wayne, A., Jacobs, P.,
Handa, D., & Garima. (2014). Human resource & Thompson, A.H. (2015). A systematic
(HR) Analytics: Emerging trend in HRM. review of measurement properties of
International Journal of Research in instruments assessing Presenteeism. The
Commerce & Management, 5(6), 59-62. American Journal of Managed Care, 21(2),
Hota, J., & Ghosh, D. (2013). Workforce Analytics 171-185.
approach: An emerging trend of workforce Pereira, N.C. (2014). Presenteísmo odontológico:
management. AIMS International Journal of conhecendo um instrumento de pesquisa para
Management, 7(3), 167-179. mensuração e avaliação. Dissertação de
Huselid, M. (2018). The science and practice of Mestrado (Mestrado em Ciências
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018. 69
Odontológicas Aplicadas), Universidade de organizacional: Inovação, aprendizagem e
São Paulo. capital humano. Campinas: Cedet, 163-180.
Perrenoud, P. (1999). Construir as competências Spears, M., & Bolton, R. (2015). Evidence-based
desde a escola. Porto Alegre: Artes Médicas HR: The bridge between your people and
do Sul. delivering business strategy. KPMG
Prahalad, C. K., & Hamel, G. (1990). The core International. Extraído de: bit.ly/2gvQ91d
competence of the corporation. Harvard Sveiby, K. E. (1998). A nova riqueza das
Business Review, 68(3), 79-91. organizações: Gerenciando e avaliando
Rasmussen, T., & Ulrich, D. (2015). Learning from patrimônios do conhecimento. Rio de
practice: How HR Analytics avoids being a Janeiro: Campus.
management fad. Organizational Dynamics, Tachizawa, T., & Scaico O. (2006). Organização
44, 236-242. flexível: Qualidade na gestão por processos.
Schiemann, W.A., Seibert, J.H., & Blankenship, São Paulo: Atlas.
M.H. (2018). Putting human capital analytics Tang, K. (2014). Estimating productivity costs in
to work: Predicting and driving business health economic evaluations: A review of
success. Human Resources Management, 57, instruments and psychometric evidence.
795-807. Pharmaco Economics, 33(1), 31-48.
Schoderbek, C.G., Schoderbek, P.P., & Kefalas, Visier (2014). HR joins the analytics revolution.
A.G. (1980). Management Systems: Harvard Business Review. Extraído de:
Conceptual considerations. Dallas: Business
Publications. bit.ly/2bg0rG9
Senge, P.M. (2013). A quinta disciplina. Estados Wang, L., & Cotton, R. (2018). Beyond Moneyball
Unidos: Best Seller. to social capital inside and out: The value of
Shah, N., Agarwal, R., Pollak, S., Dutta, R., & differentiated workforce experience ties to
Dunphy, K. (2015). Trends in People performance. Human Resources
Analytics. Estados Unidos: Management, 57, 761-780.
PricewaterhouseCoopers. Extraído de:
pwc.to/21Te0ds
Silveira, M.A. (2012). Gestão estratégica para a
sustentabilidade organizacional: Capital
humano e os processos de inovação e
aprendizagem. In M.A. Silveira (Org.).
Gestão da sustentabilidade organizacional:
Inovação, aprendizagem e capital humano,
21-46. Campinas: Cedet.
Silveira, M.A. (2006). Gestão da inovação em
sistemas organizacionais. In J. Balloni
(Org.). Por que gestão em sistemas e
tecnologias da informação? Campinas:
Komedi, 103-159.
Silveira, M. A., Kikuchi, L.S., Lima, A.S., &
Silveira, R.D. (2015). Inovação e
aprendizagem organizacional: Abordagem
TCD para desenvolvimento de competências
em empresa do setor eletrônico. Congresso
Latino-Iberoamericano de Gestão de
Tecnologia 16, Porto Alegre.
Silveira, M.A., Maia, L., & Fioravanti, M. (2012).
Aprendizagem organizacional para a
sustentabilidade: Integração ao trabalho e
valorização do fator humano. In M.A.
Silveira (Org.). Gestão da sustentabilidade
Revista de Negócios, v. 23, n. 1, p. 55-69, January, 2018.