Abstract
The neo-institutional theory has been used to explain inter-organizational networks related phenomena from the economic and sociological perspectives. The political perspective has not been often used to study institutional contexts of networks. We aim to analyze the decision-making of the formal institutions in the internationalization process of firms in an emerging economy from a political bias. For the empirical field of study, we considered the Brazilian wine industry. Starting from a case study with twenty-three interviews with representatives of wineries and entities of this industry, our paper furthers the understanding of how institutions influence the internationalization of firms in an emerging economy. Based on the political perspective of the neo-institutional theory, our study describes how institutions, mainly the government, can influence an industry. Government cannot afford resources to benefit or protect all the industries, as well as cannot provide incentives to all firms, and those that are supported will lose competitiveness. For the firms, the choices are based on trying to achieve economic advantages through political influences. For the institutions, the choices are based on political influences considering institutional strategies.
Highlights
Relationship networks was once a hot topic (Jarillo, 1988)
This paper presents the guiding question: How do formal institutions make decisions to stimulate the internationalization of firms from an emerging economy? We considered the network of firms as an analysis unit, in order to establish an interaction between the studies of network theory and neo-institutional theory from political and economic tendencies
Our study describes the background of the wine industry, by presenting the formal institutions in the political perspective of neo-institutional theory, whether they are representative entities from the industry or wineries, regardless their sizes and degree of internationalization
Summary
Relationship networks was once a hot topic (Jarillo, 1988). Over the past decades, it has derived into several research focuses: alliances (Gulati, Nohria, & Zaheer, 2000), social networking (Granovetter, 1973; Burt, 1992), learning (Anand & Khanna, 2000), innovation (Pittaway, Robertson, Munir, Denyer, & Neely, 2004), and governance (Provan & Kenis, 2007). The to internationalization of firms in an emerging economy neo-institutional theory has been used combined with the industry-based and the resource-based views. This combination is defined as the institutionbased view (Peng, 2002). Our study describes the background of the wine industry, by presenting the formal institutions in the political perspective of neo-institutional theory, whether they are representative entities from the industry or wineries, regardless their sizes and degree of internationalization. In this scope, our study is justified by the relevance of the industry. We present the conclusions of our research and indicate new issues to investigate
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