Coopetition and institutions: a strategy for Brazilian wineries facing internationalization

Abstract

Purpose The purpose of this study is to understand the role institutions play in driving the internationalization of firms in an emerging country through promotion of coopetition. Investigating the relationships between coopetition, institutions and internationalization, especially among firms in emerging countries, is an important approach that has received little attention. Design/methodology/approach This study has used a single case study interviewing managers of Brazilian wineries and representatives of formal institutions in an emerging economy. A research framework taking an institutions-based view of strategy and applying it to study coopetition and internationalization is proposed. Findings Formal institutions are the most important players in the promotion of coopetition between firms in the Brazilian wine industry. Coopetition enables firms to access new resources and capabilities, promoting and facilitating internationalization, while also increasing firms’ competitiveness in the domestic market. The study also found evidence of certain limiting factors within these relationships, caused by the heterogeneous nature of the firms involved and by the asymmetries in their perceptions of the gains achieved. Research limitations/implications As a consequence of the methodology adopted, the results of this study are limited to the Brazilian wine industry. Future research should extend the approach to data collected in different countries and industries. Another promising avenue for research is to explore how decisions of a political nature influence the institutions that coordinate an industry, which would provide a new perspective on the internationalization of the firms involved. Practical implications The results offer governments and institutions an opportunity to better understand, and therefore to better manage, their actions in relation to their role in the promotion of the competitiveness of firms and industries, both in international and domestic markets. For firms, the results offer insights into the possible gains and the limitations of coopetition strategies, contributing to their decision-making on involvement. The study also contributes to understanding the competitiveness of the industry investigated. Originality/value This study approaches coopetition from the institutional perspective. It also focuses on internationalization of firms from an emerging country, which is characterized by a lack of firm-specific resources. The proposed framework seems promising for future research investigating coopetition and institutions within an integrated analytical framework.

Do institutional networks affect winery survival?

“…industrial associations and/or public organizations) for innovation in the food and beverage industry (Dries et al, 2014;Bresciani, 2017;Santoro et al, 2017). Recently, Monticelli et al (2018) found that formal institutions are the most important players in the promotion of cooperation between firms in the Brazilian wine industry.…”

“…In order to figure out what the effects of institutions are, we need to understand what happens to wineries after they establish networks with institutions. These relationships increase the competitiveness of the domestic wine market by developing learning and relationship networks, reducing transaction costs and facilitating internationalization (Monticelli et al, 2018). Moreover, the networks formed by the winery can strongly influence the perceived quality of its wines within the market (Guibert, 2006).…”

Digital marketing and business-to-business relationships: a close look at the interface and a roadmap for the future

“…Geography and space-related factors may play an instrumental role in the nature of coopetition in B2B relationships (Luo, 2007). For example, the challenges related to the psychic, cultural and institutional distances between B2B partners may instrumentally shape how they see each other as collaborators and/or competitors (Klimas, 2016;Monticelli et al, 2018). However, once digital tools, platforms and business models are in the picture, the role of geography in coopetition may be fundamentally reshaped.…”

Estratégia e Desempenho pela Perspectiva do Tripé da Estratégia

“…Por sua vez, (Kotabe et al, 2007) observaram que a transferência de conhecimento entre ambientes institucionais variados afetam a capacidade das empresas inovarem e determinam as estratégias que assumem na captura deste conhecimento. Por outro lado, ambientes institucionais específicos também possuem relação com as estratégias desenhadas pelas organizações, como no setor vinícola (Monticelli et al, 2018), mesmo quando o isomorfismo local atua como limitador da diferenciação (Salomon & Wu, 2012). Assim, propomos que mesmo em ambientes homogêneos, as instituições também influenciam a relação entre seus elementos e a estratégia organizacional e argumentamos:…”