Factors influencing Brazilian sugar and ethanol refineries’ failure
DOI:
https://doi.org/10.1108/RAUSP-05-2022-0154Keywords:
Organisational failure, Judicial recovery, Failure factorsAbstract
Purpose: This study aims to examine the dimensions of organisational failure in the Brazilian sugarcane and ethanol refineries, as reported in judicial recovery plans.
Design/methodology/approach: This paper follows a qualitative, inductive approach that uses content analysis to examine the details of recovery plans. Besides, a cause-and-effect relationship diagram is proposed, making it possible to identify the interconnections between the identified variables.
Findings: There is evidence that organisational failures are not a linear outcome. Organisational failures are complex and occur because of several factors, often interdependent and operating at different levels.
Research implications: Organisational failures basically have three interrelated levels: the macro-level (external environment); the meso-level (organisational environment); and the micro-level (associated with the decision-maker). The relationship between these levels is not trivial and involves coordinated research efforts.
Practical implications: Organisations must consider all types of failure levels when developing business reorganisation plans. Reorganisation plans are more than a formal document to achieve judicial recovery, as they should incorporate strategic factors.
Social implications: Failures are a regularity in organisations’ day-to-day. Understanding failure’s sources is vital to design firms’ strategies and public policies.
Originality/value: The study of organisational failure involves the analysis of complex and multidimensional phenomena. Judicial recovery plans are the means for companies to get a second chance. To that end, this article addresses the sources of organisational failures through the lens of judicial plans.
Downloads
References
Amankwah-Amoah, J. (2016). An integrative process model of organisational failure. Journal of Business Research, 69(9), 3388–3397. https://doi.org/10.1016/j.jbusres.2016.02.005
Amankwah-Amoah, J. & Debrah, Y. A. (2010). The Protracted Collapse of Ghana Airways: Lessons in Organizational Failure. Group & Organization Management, 35(5), 636–665. https://doi.org/10.1177/1059601110381492
Bacchi, M. R. P. (2019). Reflexões sobre medidas de produtividade e alguns resultados para a agropecuária brasileira. Retrieved from https://www.cepea.esalq.usp.br/br/opiniao-cepea/reflexoes-sobre-medidas-de-produtividade-e-alguns-resultados-para-a-agropecuaria-brasileira.aspx
Bengtsson, M. (2016). How to plan and perform a qualitative study using content analysis. NursingPlus Open, 2, 8–14. https://doi.org/10.1016/j.npls.2016.01.001
Caleman, S. M. Q. & Zylbersztajn, D. (2013). Falhas organizacionais: tipologia, determinantes e proposta de modelo teórico. Organizações e Sociedade, 20, 261–282.
Castillo, R. (2015). Dinâmicas recentes do setor sucroenergéticos no Brasil: competitividade regional e expansão para o bioma cerrado. GEOgraphia, 15(35), 95–119.
CEPEA. (2019). Indicador semanal do etanol. Retrieved from https://www.cepea.esalq.usp.br/br/indicador/etanol.aspx
CEPEA. (2021). Indicador do açúcar cristal Cepea/Esalq - São Paulo. Retrieved from https://www.cepea.esalq.usp.br/br/indicador/acucar.aspx#imagenet-popup-grafico1
Chaddad, F. (2016). Agriculture in Southeastern Brazil: Vertically Integrated Agribusiness. In The Economics And Organization Of Brazilian Agriculture: Recent Evolution And Productivity Gains (pp. 73–109). Cambridge: Academic Press.
CNA. (2017). Agronegócio contribui para queda da inflação e geração de empregos em 2017. Retrieved from http://www.cnabrasil.org.br/noticias/agronegocio-contribui-para-queda-da-inflacao-e-geracao-de-empregos-em-2017
Conab. (2017). Perfil do setor do açúcar e etanol no Brasil. Retrived from https://www.conab.gov.br/info-agro/safras/cana/perfil-do-setor-sucroalcooleiro/item/download/23297_de81c06b3f67b9f7612d3779a8c72030
Daily, C. M. (1994). Bankruptcy in Strategic Studies : Past and Promise. Journal of Management, 20(2), 263–295.
Guerras-Martín, L. Á., Madhok, A., & Montoro-Sánchez, Á. (2014). The evolution of strategic management research: Recent trends and current directions. BRQ Business Research Quarterly, 17(2), 69–76. https://doi.org/10.1016/j.brq.2014.03.001
Higashi, S. Y., Morales de Queiroz Caleman, S., Kluwe de Aguiar, L., & Manning, L. (2020). What causes organizations to fail? A review of literature to inform future food sector (management) research. Trends in Food Science & Technology, 101, 223–233. https://doi.org/10.1016/j.tifs.2020.05.011
Hino, K., Aoki, H., & Hidetaka, a. (2013). Romance of leadership and evaluation of organizational failure. Leadership & Organization Development Journal, 34(4), 365–377. https://doi.org/10.1108/LODJ-08-2011-0079
IPEA. (2021). Taxa de juros - Selic - fixada pelo Comitê de Política Monetária (Copom). Retrieved from http://www.ipeadata.gov.br/Default.aspx
Kahneman, D. (2012). Rápido e devagar: duas formas de pensar. Rio de Janeiro: Objetiva.
Kim, J. (2018). Bankruptcy and Institutions: Theory and Empirical Evidence from Korea and the United States. Emerging Markets Finance and Trade, 54(1), 219–233. https://doi.org/10.1080/1540496X.2017.1313732
Krippendorf, K. (1980). Content Analysis: An Introduction to Its Methodology. Newbury Park: Sage.
Laitinen, E. K. & Lukason, O. (2014). Do firm failure processes differ across countries: evidence from Finland and Estonia. Journal of Business Economics and Management, 15(5), 810–832. https://doi.org/10.3846/16111699.2013.791635
McGovern, T. (2007). Why do successful companies fail? A case study of the decline of Dunlop. Business History, 49(April 2015), 886–907. https://doi.org/10.1080/00076790701710407
McMillan, C. J. & Overall, J. S. (2017). Crossing the Chasm and Over the Abyss: Perspectives on Organizational Failure. The Academy of Management Perspectives, 31(4), 271–287. https://doi.org/10.5465/amp.2017.0018
Mellahi, K. & Wilkinson, A. (2004). Organizational failure: a critique of recent research and a proposed integrative framework. International Journal of Management Reviews, 5–6(1), 21–41. https://doi.org/10.1111/j.1460-8545.2004.00095.x
Monteiro, G. F. A., Caleman, S. M. Q., & Pongeluppe, L. S. (2020). Firm performance and the strategic components of bankruptcy reorganization plans. Brazilian Administration Review, 16(4), 1–28. https://doi.org/10.1590/1807-7692bar2019190072
Moraes, M. L. & Bacchi, M. R. P. (2014). Ethanol, do início às fases atuais de produção. Rev. Política Agrícola, 4(23), 5–22.
Neves, M. F. & Conejero, M. A. (2007). Sistema agroindustrial da cana: cenários e agenda estratégica. Economia Aplicada, 11(4). https://doi.org/10.1590/S1413-80502007000400007
Nogueira, L. A. H. & Capaz, R. S. (2013). Biofuels in Brazil: Evolution, achievements and perspectives on food security. Global Food Security, 2(2), 117–125.
North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97–112.
NovaCana. (2019). Número de usinas em recuperação judicial e falidas aumenta 18% e 8% em um ano. Retrieved from https://www.novacana.com/n/industria/usinas/2018-2019-12-usinas-cana-recuperacao-judicial-duas-faliram-230419
Peng, M. W. (2014). Global Business (3rd ed.). Cincinnat: South-Western Cengage Learning.
Peng, M. W., Yamakawa, Y., & Lee, S.-H. (2010). Bankruptcy Laws and Entrepreneur- Friendliness. Entrepreneurship Theory and Practice, 34(3), 517–530. https://doi.org/10.1111/j.1540-6520.2009.00350.x
Queiroz, M. P. de. (2022). Grau de endividamento das usinas versus novos horizontes de preços da cana. Retrieved from https://www.novacana.com/n/industria/financeiro/grau-endividamento-usinas-versus-novos-horizontes-precos-cana-de-acucar-060522
Simon, H. A. (1979). Comportamento administrativo: estudo dos processos decisórios nas organizações aministrativas (3rd ed.). Rio de Janeiro: Ed. da Fundação Getúlio Vargas.
Souza Filho, H. M., Buainain, A. M., & Paulillo, L. F. de O. (2021). Desenvolvimento rural e políticas agrícolas no Brasil. In Batalha, M. O. (Ed.). Gestão Agroindustrial (pp. 461–497). São Paulo: Atlas.
Stanger, H. (2010). Failing at retailing: the decline of the Larkin Company, 1918-1942. Journal of Historical Research in Marketing, 2(1), 9–40. https://doi.org/http://dx.doi.org/10.1108/17557501011016244
UNICA. (2013). Nova linha de plástico verde da Braskem amplia mercado de bioplásticos no país, diz UNICA. Retrieved from http://www.unica.com.br/noticia/2636818920323122056/nova-linha-de-plastico-verde-da-braskem-amplia-mercado-de-bioplasticos-no-pais-por-cento2C-diz-unica/
Weber, R. P. (1990). Basic content analysis (2nd ed.). Newbury Park, CA: Sage Publications, Inc.
Wegner, D. & Padula, A. D. (2012). Quando a cooperação falha: um estudo de caso sobre o fracasso de uma rede interorganizacional. RAM. Revista de Administração Mackenzie, 13(1), 145–171. https://doi.org/10.1590/S1678-69712012000100007
Wiesenfeld, B. M., Wurthmann, K. A., & Hambrick, D. C. (2008). The Stigmatization and Devaluation of Elites Associated with Corporate Failures: A Process Model. Academy of Management Review, 33(1), 231–251. https://doi.org/10.5465/AMR.2008.27752771
Williamson, O. E. (1985). The economic institutions of capitalism. New York: Free Press.
Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38, 595–613.
Wubeen, E. F. M. (2009). Relating International Ethanol Supply Chain Performance to their Governance Structures. In D. Zylbersztajn & O. Omta (Eds.), Advances In Supply Chain Analysis In Agri-food Systems (pp. 251–275). São Paulo: Editora Singular.
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Management Department of the School of Economics, Management and Accounting of the University of São Paulo.
The publication of article segments is allowed, subject to prior authorization and source identification.
Copyright is regulated under Licença Creative Commons Attribution
