Value Creation from Internationalization of Sugar Cane by-products: a multi-stakeholder view of artisanal cachaça production

Neutzling, Daiane Mulling; Santos, Manoela Silveira dos; Barcellos, Marcia Dutra de; Land, Anna Lauren

doi:10.7819/rbgn.v17i55.2134

ABSTRACT

Objective:

The aim of this paper was to identify the strategies developed for internationalization in order to create value in the artisanal cachaça sector of Brazil.

Design/methodology/approach:

A multiple-case study was applied in two artisanal cachaçarias. we carried out in-depth, semi-structured interviews with different stakeholders involved in supporting internationalization of these companies. To select the stakeholders we used snowball sampling. The content of the interviews was categorized and analysed according to accepted theory.

Findings:

Our study provides an overview of the organization and structure of the cachaçarias and reveals how internationalization is adding value to this network from a multi-stakeholder view. The support of the multi-stakeholder network is in an early stage, but it offers a promising future, since there is a consumer market being developed. Political power is needed to regulate the industry.

Practical implications:

Business internationalization of the handmade cachaça sector is a challenge, as most companies are small and do not have adequate financial resources or proper knowledge regarding international markets. Regulatory stakeholders support the cachaçarias in standardizing production and developing international strategies. The results can help to better understand the importance of collaboration embedded in stakeholder network relationships.

Originality/value:

Empirical research on internationalization in developing countries, especially in small and mediums sized firms is still very limited. We have shown that companies can benefit from specific organization structures when developing relationships within multi-stakeholder networks.

Keywords:
value creation; cachaça; multi-stakeholder; competitiveness

Texto completo disponível apenas em PDF.

Full text available only in PDF format.

REFERENCES

Amal, M., Awuah, G. B., Raboch, H., & Andersson, S. (2013) Differences and similarities of the internationalization processes of multinational companies from developed and emerging countries. European Business Review, 25(5), p. 411-428.
Amal, M., & Freitag, A. R. F. (2010). Internationalisation of small-and medium-sized enterprises: a multi-case study. European Business Review , 22(6), 608-623.
Andersson, S. (2000). The internationalization of the firm from an entrepreneurial perspective. International Studies of Management & Organization 30(1), 63-92.
Andriof, J., & Waddock, S. (2002). Unfolding stakeholder engagement. In J. Andriof, S. Waddock, B. Husted, & S. S. Rahman (Eds.), Unfolding stakeholder thinking: theory, responsibility and engagement (pp. 19-42). Shefﬁeld: Greenleaf.
Axinn, C. N., & Matthyssens, P. (2002). Limits of internationalizing theories in an unlimited world. International Marketing Review, 19(5), 436-449.
Bijman, J., Muradian, R., & Cechin, A. (2011). Agricultural cooperatives and value chain coordination: Towards an integrated theoretical framework. In B. Helmsing, & S. Vellema (Eds.), Value chains, inclusion and endogenous development: contrasting theories and realities (pp. 82-101). London: Routledge.
Chetty, S., & Holm, D. B. (2000). Internationalisation of small to medium-sized manufacturing ﬁrms: a network approach. International Business Review, 9(1), 77-93.
Childerhouse, P., & Towill, D. R. (2011) Arcs of supply chain integration. International Journal of Production Research, 49(24), 7441-7468.
Co, H. C., & Barro, F. (2009) Stakeholder theory and dynamics in supply chain collaboration. International Journal of Operations & Production Management, 29(6), 591-611.
Confederação Nacional das Indústrias. (2010). Relatório de pesquisa para identificação dos arranjos produtivos locais e a caracterização das empresas produtoras de cachaça de alambique do Sul do Brasil com foco no seu perfil exportador Porto Alegre: Autor.
Donaldson, T., & Preston, L. E. (1995). The stakeholder of the corporation: concepts, evidence and implications. Academy of Management Review, 20(1), 65-91.
Faugier, J., & Sargeant, M. (1997). Sampling hard to reach populations. Journal of Advanced Nursing, 26(4), 790-797.
Floriani, D. E., & Fleury, M. T. (2012). O efeito do grau de internacionalização nas competências internacionais e no desempenho financeiro da PME brasileira. Revista de Administração Contemporânea (RAC), 16(3), 438-458.
Foo, L.M. (2007). Stakeholder engagement in emerging economies: considering the strategic benefits of stakeholder management in a cross-cultural and geopolitical context. Corporate Governance, 7(4), 379-387.
Freeman, R. E. (1984). Strategic management: a stakeholder approach Boston: Pitman.
Gereffi, G. (1994). The organization of buyer-driven global commodity chains: how U.S. retailers shape overseas production networks. In G. Gereffi, & M. Korzeniewicz, Commodity chains and global capitalism (pp. 95-122). Westport: Praeger.
Gereffi, G. (2001). Shifting governance structure in global commodity chains, with special reference to the internet. American Behavorial Scientist, 44(10), 1616-1637.
Gray, B. (1989). Collaborating: finding common ground for multiparty problems San Francisco: Jossey-Bass.
Henriques, L., & Sadorsky, P. (1999). The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal, 42(1), 87-99.
Hollenstein, H. (2005) Determinants of international activities: are SMEs different?Small Business Economics, 24(5), 431-450.
Instituto Brasileiro da Cachaça. (2013). Cachaça: aumento na exportação solidifica posicionamento do produto brasileiro no mercado internacional Retrieved from http://www.ibrac.net/index.php/noticias/noticias-do-ibrac/327-cachaca-aumento-na-exportacao-solidifica-posicionamento-do-produto-brasileiro-no-mercado-internacional
» http://www.ibrac.net/index.php/noticias/noticias-do-ibrac/327-cachaca-aumento-na-exportacao-solidifica-posicionamento-do-produto-brasileiro-no-mercado-internacional
Johanson, J., & Vahlne, J. (2001). The mechanism of internationalization. International Marketing Review , 7(4), 11-24.
Kaplinsky, R., & Morris, M. (2001). A handbook for value chain research Retrieved from http://asiandrivers.open.ac.uk/documents/Value_chain_Handbook_RKMM_Nov_2001.pdf
» http://asiandrivers.open.ac.uk/documents/Value_chain_Handbook_RKMM_Nov_2001.pdf
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: an expanded sourcebook California: Sage.
Ministério do Desenvolvimento, Indústria e Comércio Exterior(2011). Alice-web: sistema de análise das informações de comércio exterior via internet Retrieved from http://aliceweb.desenvolvimento.gov.br/.
» http://aliceweb.desenvolvimento.gov.br
Mort, G. S., & Weerawardena, J. (2006). Networking capability and international entrepreneurship: how networks function in Australian-born global ﬁrms. International Marketing Review , 23(5), 549-72.
Nascimento, A. O. (2006). Cachaça: niche of market or strategic alternative? Revista Humanidades, 21(2), 188-194.
North, D. C. (1990). Institutions, institutional change, and economic performance New York, NY: Norton.
Othman, Z., Vandenbempt, K., & Hendrickx, E. (2010, November). Industrial dynamics and the evolution of Malaysian SME’s competitive capabilities in the world market: a value chain approach focusing on the food-processing sector. Proceedings of the Globelics International Conference University of Malaya, Kuala Lumpur, Malaysia.
Rowley, T. J. (1997). Moving beyond dyadic ties: a network theory of stakeholder influences. Academy of Management Review , 22(4), 887-910.
Ryan, J., O’Reilly, S., & Enright, P. (2004). Adding value by networking in the agri-food sector (Rural enterprise development & sustainability: innovative approaches to the needs of rural areas: Technical Report), Galway, Ireland, National University of Ireland Galway.
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (2008). Cachaça artesanal: estudos de mercado SEBRAE/ESPM Retrieved from http://www.biblioteca.sebrae.com.br/bds/BDS.nsf/B142F005A221FDB0832574DC00457C09/$File/NT0003905E.pdf
» http://www.biblioteca.sebrae.com.br/bds/BDS.nsf/B142F005A221FDB0832574DC00457C09/$File/NT0003905E.pdf
Svendsen, A., & Laberge, M. (2005). Convening stakeholder networks: a new way of thinking, being and engaging. Journal of Corporate Citizenship, 19, 91-104.
Tracey, M., Lim, J. S., & Vonderembse, M. A. (2005). The impact of supply-chain management capabilities on business performance. SCM International Journal, 10(3), 179-191.
Vieira, L. M., Barcellos, M. D., Hoppe, A., & Silva, S. B. (2013). An analysis of value in an organic food supply chain. British Food Journal, 115(10), 1454-1472.
Worley, C. G., & Parker, S. B. (2011). Building multi-stakeholder sustainability networks: the cuyahoga valley initiative. In S. A. Mohrman, A. B. R. Shani (Eds.), Organizing for sustainable effectiveness (Vol. 1, Chap. 7, pp. 187-214.). Bingley, UK: Emerald Group Publishing Limited.

4
Evaluation process: Double Blind Review

1.
The Brazilian Institute of Geography and Statistics - IBGE divides the social class based in the monthly family, Class B include people with family income between US$ 2,824 and US$ 3,682 and Class A defines families with larger incomes.
2.
Ecocert Brasil is a branch from Ecocert S.A. (France). ECOCERT is accredited to provide service of international certification according to the guide ISO 065. This assures that the products certified by the company have full access to main organic markets worldwide. ECOCERT BRASIL is accredited by MAPA - Ministry of Agriculture in Brazil and INMETRO.

Publication Dates

Publication in this collection
Apr 2015

History

Received
31 Aug 2014
Accepted
29 May 2015

This is an open-access article distributed under the terms of the Creative Commons Attribution License

[1] Amal, M., Awuah, G. B., Raboch, H., & Andersson, S. (2013) Differences and similarities of the internationalization processes of multinational companies from developed and emerging countries. European Business Review, 25(5), p. 411-428.

[2] Amal, M., & Freitag, A. R. F. (2010). Internationalisation of small-and medium-sized enterprises: a multi-case study. European Business Review , 22(6), 608-623.

[3] Andersson, S. (2000). The internationalization of the firm from an entrepreneurial perspective. International Studies of Management & Organization 30(1), 63-92.

[4] Andriof, J., & Waddock, S. (2002). Unfolding stakeholder engagement. In J. Andriof, S. Waddock, B. Husted, & S. S. Rahman (Eds.), Unfolding stakeholder thinking: theory, responsibility and engagement (pp. 19-42). Shefﬁeld: Greenleaf.

[5] Axinn, C. N., & Matthyssens, P. (2002). Limits of internationalizing theories in an unlimited world. International Marketing Review, 19(5), 436-449.

[6] Bijman, J., Muradian, R., & Cechin, A. (2011). Agricultural cooperatives and value chain coordination: Towards an integrated theoretical framework. In B. Helmsing, & S. Vellema (Eds.), Value chains, inclusion and endogenous development: contrasting theories and realities (pp. 82-101). London: Routledge.

[7] Chetty, S., & Holm, D. B. (2000). Internationalisation of small to medium-sized manufacturing ﬁrms: a network approach. International Business Review, 9(1), 77-93.

[8] Childerhouse, P., & Towill, D. R. (2011) Arcs of supply chain integration. International Journal of Production Research, 49(24), 7441-7468.

[9] Co, H. C., & Barro, F. (2009) Stakeholder theory and dynamics in supply chain collaboration. International Journal of Operations & Production Management, 29(6), 591-611.

[10] Confederação Nacional das Indústrias. (2010). Relatório de pesquisa para identificação dos arranjos produtivos locais e a caracterização das empresas produtoras de cachaça de alambique do Sul do Brasil com foco no seu perfil exportador Porto Alegre: Autor.

[11] Donaldson, T., & Preston, L. E. (1995). The stakeholder of the corporation: concepts, evidence and implications. Academy of Management Review, 20(1), 65-91.

[12] Faugier, J., & Sargeant, M. (1997). Sampling hard to reach populations. Journal of Advanced Nursing, 26(4), 790-797.

[13] Floriani, D. E., & Fleury, M. T. (2012). O efeito do grau de internacionalização nas competências internacionais e no desempenho financeiro da PME brasileira. Revista de Administração Contemporânea (RAC), 16(3), 438-458.

[14] Foo, L.M. (2007). Stakeholder engagement in emerging economies: considering the strategic benefits of stakeholder management in a cross-cultural and geopolitical context. Corporate Governance, 7(4), 379-387.

[15] Freeman, R. E. (1984). Strategic management: a stakeholder approach Boston: Pitman.

[16] Gereffi, G. (1994). The organization of buyer-driven global commodity chains: how U.S. retailers shape overseas production networks. In G. Gereffi, & M. Korzeniewicz, Commodity chains and global capitalism (pp. 95-122). Westport: Praeger.

[17] Gereffi, G. (2001). Shifting governance structure in global commodity chains, with special reference to the internet. American Behavorial Scientist, 44(10), 1616-1637.

[18] Gray, B. (1989). Collaborating: finding common ground for multiparty problems San Francisco: Jossey-Bass.

[19] Henriques, L., & Sadorsky, P. (1999). The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal, 42(1), 87-99.

[20] Hollenstein, H. (2005) Determinants of international activities: are SMEs different?Small Business Economics, 24(5), 431-450.

[21] Instituto Brasileiro da Cachaça. (2013). Cachaça: aumento na exportação solidifica posicionamento do produto brasileiro no mercado internacional Retrieved from http://www.ibrac.net/index.php/noticias/noticias-do-ibrac/327-cachaca-aumento-na-exportacao-solidifica-posicionamento-do-produto-brasileiro-no-mercado-internacional
» http://www.ibrac.net/index.php/noticias/noticias-do-ibrac/327-cachaca-aumento-na-exportacao-solidifica-posicionamento-do-produto-brasileiro-no-mercado-internacional

[22] Johanson, J., & Vahlne, J. (2001). The mechanism of internationalization. International Marketing Review , 7(4), 11-24.

[23] Kaplinsky, R., & Morris, M. (2001). A handbook for value chain research Retrieved from http://asiandrivers.open.ac.uk/documents/Value_chain_Handbook_RKMM_Nov_2001.pdf
» http://asiandrivers.open.ac.uk/documents/Value_chain_Handbook_RKMM_Nov_2001.pdf

[24] Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: an expanded sourcebook California: Sage.

[25] Ministério do Desenvolvimento, Indústria e Comércio Exterior(2011). Alice-web: sistema de análise das informações de comércio exterior via internet Retrieved from http://aliceweb.desenvolvimento.gov.br/.
» http://aliceweb.desenvolvimento.gov.br

[26] Mort, G. S., & Weerawardena, J. (2006). Networking capability and international entrepreneurship: how networks function in Australian-born global ﬁrms. International Marketing Review , 23(5), 549-72.

[27] Nascimento, A. O. (2006). Cachaça: niche of market or strategic alternative? Revista Humanidades, 21(2), 188-194.

[28] North, D. C. (1990). Institutions, institutional change, and economic performance New York, NY: Norton.

[29] Othman, Z., Vandenbempt, K., & Hendrickx, E. (2010, November). Industrial dynamics and the evolution of Malaysian SME’s competitive capabilities in the world market: a value chain approach focusing on the food-processing sector. Proceedings of the Globelics International Conference University of Malaya, Kuala Lumpur, Malaysia.

[30] Rowley, T. J. (1997). Moving beyond dyadic ties: a network theory of stakeholder influences. Academy of Management Review , 22(4), 887-910.

[31] Ryan, J., O’Reilly, S., & Enright, P. (2004). Adding value by networking in the agri-food sector (Rural enterprise development & sustainability: innovative approaches to the needs of rural areas: Technical Report), Galway, Ireland, National University of Ireland Galway.

[32] Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (2008). Cachaça artesanal: estudos de mercado SEBRAE/ESPM Retrieved from http://www.biblioteca.sebrae.com.br/bds/BDS.nsf/B142F005A221FDB0832574DC00457C09/$File/NT0003905E.pdf
» http://www.biblioteca.sebrae.com.br/bds/BDS.nsf/B142F005A221FDB0832574DC00457C09/$File/NT0003905E.pdf

[33] Svendsen, A., & Laberge, M. (2005). Convening stakeholder networks: a new way of thinking, being and engaging. Journal of Corporate Citizenship, 19, 91-104.

[34] Tracey, M., Lim, J. S., & Vonderembse, M. A. (2005). The impact of supply-chain management capabilities on business performance. SCM International Journal, 10(3), 179-191.

[35] Vieira, L. M., Barcellos, M. D., Hoppe, A., & Silva, S. B. (2013). An analysis of value in an organic food supply chain. British Food Journal, 115(10), 1454-1472.

[36] Worley, C. G., & Parker, S. B. (2011). Building multi-stakeholder sustainability networks: the cuyahoga valley initiative. In S. A. Mohrman, A. B. R. Shani (Eds.), Organizing for sustainable effectiveness (Vol. 1, Chap. 7, pp. 187-214.). Bingley, UK: Emerald Group Publishing Limited.

Brasil