The Brazilian Institutional Environment: The Impact on Companies' Strategies in the Oil and Gas Sector

37 Pages Posted: 23 Aug 2011

See all articles by Luiz Marcelo Martins Almeida

Luiz Marcelo Martins Almeida

Banco Nacional de Desenvolvimento Econômico e Social (BNDES)

Luiz Alberto N. Campos Filho

Modus MCD Consulting and Business Development

Lourdes Casanova

Cornell University - Johnson Graduate School of Management

Date Written: August 23, 2011

Abstract

Institutional theory explains how interactions between organizations and institutions shape economic activity and consequently managerial performance and strategies. The institutional setting of most emerging countries is in transition, whereby a relationship-based transaction mode is gradually yielding to rule-based transactions. This study investigates how the institutional environment in Brazil influences the strategy of oil and gas companies, based upon a case study approach to exploration and production in the oil and gas sector. The results obtained from secondary data and interviews with executives of the main Brazilian oil and gas companies and members of public organizations demonstrate that institutions have a limited influence on the decisions of these companies, since the regulatory dimension plays the biggest role in decision making.

Keywords: business/government interaction and relations, business and society, institutional theory, resource-based view, resource dependency, stakeholder theory

Suggested Citation

Martins Almeida, Luiz Marcelo and Campos Filho, Luiz Alberto N. and Casanova, Lourdes, The Brazilian Institutional Environment: The Impact on Companies' Strategies in the Oil and Gas Sector (August 23, 2011). INSEAD Working Paper No. 2011/86/ST, Available at SSRN: https://ssrn.com/abstract=1915052 or http://dx.doi.org/10.2139/ssrn.1915052

Luiz Marcelo Martins Almeida

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) ( email )

Av. Republica do Chile
100 - 12nd. Floor
100 Rio de Janeiro, 20001-970
Brazil

Luiz Alberto N. Campos Filho

Modus MCD Consulting and Business Development ( email )

Av. Oswaldo Cruz, 87, Apt 1202
Flamengo
Rio de Janeiro, RJ 22.250-060
Brazil
55 21 8828 2656 (Phone)

HOME PAGE: http://www.modusmcd.com.br

Lourdes Casanova (Contact Author)

Cornell University - Johnson Graduate School of Management ( email )

370 Sage Hall
Johnson, Cornell University
Ithaca, NY 14853
United States
+16072295251 (Phone)

HOME PAGE: http://www.johnson.cornell.edu/Faculty-And-Research/Profile.aspx?id=lc683

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