Business In Brazil Research Articles

Back to the nest: the practices employed for succession of heirs in family businesses in Brazil

PurposeThe present study aims to identify the practices employed to bring heirs into family businesses as successors.Design/methodology/approachWe conducted an exploratory, qualitative investigation using a case study approach. Semi-structured face-to-face interviews were conducted with external consultants and with incumbent leaders, next-generation heirs working in the firm (and likely to become successors) and employees from three family firms from different industries and under ownership and control of different generations of their respective families (first, second and third and fourth generations). In addition to surveying their general perceptions of the succession processes in their firms, each informant was asked to rate the degree of importance of 12 succession practices identified in the literature and the extent to which they exist in their respective firms.FindingsOur results showed that heirs typically enter the family business after a development process outside of the family business, which we have termed as coming back to the nest. This process was enacted through practices that we allocated to the following categories: continued development of heirs, developing relationships in the succession process, separation of roles and attitude of the successor heirs. Overall, 8 of the 12 practices derived from the theoretical framework were endorsed as important by representatives of the family businesses and 9 were endorsed by the consultants, 7 of which coincided in both groups. However, only 5 of the practices were identified as present in the firms’ succession processes by the representatives of the family businesses, while the consultants did not identify any of the 12 practices as present.Originality/valueWe present additional important practices, the adoption of which would be beneficial for family business succession, such as adapting external learning to the family business, acquiring leadership skills and experience and developing emotional intelligence. Our study advances the prior literature since we do not merely discuss succession planning but analyze in an applied manner how succession actually takes place in family businesses.

Assessing the impacts of the individual micro-entrepreneur act in Brazil: 10 years later

Abstract Entrepreneurship is widely acknowledged as a phenomenon of central importance in our society. Within the arena of entrepreneurship policy, a more specific trend has been an increase in recent years in informal entrepreneurship. Therefore, this article seeks to contribute to filling a knowledge gap in the entrepreneurship literature using empirical evidence to assess the impact of the implementation of the Individual Micro Entrepreneur Act on the formalization of small businesses in Brazil ten years after coming into force. Based on empirical data, our study provides evidence that this legislation is being used as a large-scale instrument for labor market deregulation. Additionally, we could also observe a strong increase in the number of Brazilian citizens officially registered as individual micro entrepreneurs, especially in urban areas and focusing on activities, such as hairdressers, manicures, pedicures, masonry works, and sales promotion. Keywords: informal entrepreneurship; firm formalization; public policy; regional development; Brazil

IMPACTOS ECONÔMICO-FINANCEIROS DA PANDEMIA NOS NEGÓCIOS NO BRASIL

This article aims to analyze the economic and financial impacts of the pandemic on the number of opening and closing businesses in Brazil. For the development of this study, the data was collected from the Ministry of Economy on the history of companies that opened and closed from 2010 to 2020; monthly sales for 2019 and 2020 with NF-e published by the Internal Revenue Service; IBGE fortnightly survey on the effects of the pandemic on sales in June to August 2020. In addition, an analysis of the relationship between the monthly flow of companies closed in 2020 and the monthly inflation index was carried out. The results point to an increase in the opening of companies “out of necessity” in periods of economic crisis; decrease in NF-e sales in the third quarter, followed by growth from the second half of the year; the greater negative impact of the pandemic on companies with few employees and linked to Construction and Commerce. The analysis of the relationship between the monthly flow of the companies closed in 2020 and the monthly inflation rate was low (r = 0,4231).

Modelling Risk for Commodities in Brazil: An Application for Live Cattle Spot and Futures Prices

This study analyses a series of live cattle spot and futures prices from the Boi Gordo Index (BGI) in Brazil. The objective is to develop a model that best portrays this commodity’s behaviour to estimate futures prices more accurately. The database created contains 2010 daily entries in which trade in futures contracts occurs, as well as BGI spot sales in the market, from 1 December 2006 to 30 April 2015. One of the most important reasons why this type of risk needs to be measured is to set loss limits. To identify patterns in price behaviour in order to improve future transaction results, investors must analyse fluctuations in asset values for longer periods. Bibliographic research reveals that no other study has conducted a comprehensive analysis of this commodity using this approach. Cattle ranching is big business in Brazil given that in 2021, this sector moved BRL 913.14 billion (USD 169.29 billion). In that year, agribusiness contributed 26.6% of Brazil’s total gross domestic product. Using the proposed risk modelling technique, economic agents can make the best decision about which options within these investors’ reach produce more effective risk management. The methodology is based on Holt–Winters exponential smoothing algorithm, autoregressive integrated moving-average (ARIMA), ARIMA with exogenous inputs, generalised autoregressive conditionally heteroskedastic and generalised autoregressive moving-average (GARMA) models. More specifically, five different methods are applied that allow a comparison of 12 different models as ways to portray and predict the BGI commodity behaviours. The results show that GARMA with order c(2,1) and without intercept is the best model. Investors equipped with such precise modelling insights stand at an advantageous position in the market, promoting informed investment decisions and optimising returns.

Family businesses and sustainable development goals

We analyzed the effect of family businesses participating in the Corporate Sustainability Index on adopting Sustainable Development Goals (SDGs). Our sample consisted of 43 Brazilian companies listed in the Corporate Sustainability Index (CSI) that totaled 126 observations from 2019 to 2021. We submitted the data to exploratory factor analysis to estimate the different dimensions of the SDGs (social, economic, and environmental) that, therefore, were analyzed using panel data regression. We found that family-run companies reduce practices linked to the social dimension of the SDGs. However, the fact that the company is family-owned or has family control does not influence practices linked to the SDGs in the social, economic, and environmental dimensions. We found that family-run companies are unrelated to adopting SDG practices in the economic and environmental dimensions. Our results contribute to discussions about the environment, sustainability, investments that value socio-environmental responsibility, the activities of family businesses, and adherence to the SDGs. Especially when showing that the different characteristics of family businesses in Brazil that make up the CSI generally do not imply an increase in practices related to the SDGs. Therefore, our findings can help investors, creditors, and regulatory bodies decide on adopting socio-environmental practices.

Individual Micro-Entrepreneur of Snacks and Portions in Brazil: Post-Pandemic Implications and Threats of the New Coronavirus (SARS-CoV-2: COVID-19)

The individual micro-entrepreneurs constitute a relevant portion of small businesses in Brazil, and despite its relevance, little information was found about the behavior of this sector in the recovery of the economy. Thus, in order to support a better understanding of the current scenario a descriptive exploratory research was carried out with 25 micro-entrepreneurs between June and September 2022. The study revealed that the average age of the interviewees was 41 years old, with the monthly net income obtained between USD 800 and USD R$ 1799. The total of all respondents reported that their ways of life and their businesses were affected during the pandemic, and in the recovery of the economy, they reported in their perceptions that the main implications resulting from that period were the high workload dedicated to work activities, the financial instability of sales , personal stress with the post-pandemic crisis and the lack of skilled labor. With regard to the future, and on the prospects for commercial growth, the majority of the respondents (n=88%) attested that despite being affected by the pandemic, they managed to implement actions to recover revenue, with the personalized customer service, quality of product offered, the variety of food offered and the speed in customer service being the main factors that have facilitated the recovery process after the pandemic.

PARK CRESCENT, REGENT’S PARK, E OS ESPAÇOS DA DIPLOMACIA DO BRASIL EM LONDRES, 1822-1829

Abstract This article explores the history of Brazilian diplomacy abroad during its formative period, investigating addresses, buildings and neighbourhoods where the first agents lived and worked specifically in London between 1822 and 1829, and why they installed the first legation at Park Crescent, Regent’s Park. The objective is to discuss the meaning of local spaces for the history of the diplomatic mission and the representation of the Empire of Brazil in other territories. The article demonstrates that the first legation in London was installed in a new, rich and modern district at the time, presenting itself in a different space from the other legations and embassies. In conclusion, it is argued that this action expressed a policy of seeking legitimacy and fortifying of relationship with a specific sector of that society, namely, bankers, investors and merchants, who had business in Brazil.

Brasileiros na Alemanha: motivações, perfil dos imigrantes e questões para debate

The article highlights the sociodemographic profile of Brazilian immigrants in Germany, opening space for academic and/or public policy discussions, when analyzing their sociodemographic profile and migratory motivations. A survey was carried out with 652 respondents, accessed in Facebook groups. The findings were triangulated with netnographic information extracted from the main Brazilian Facebook groups in Germany. The profile identified is mostly formed by young women, with a high schooling profile, who left Brazil for Germany, for relationship reasons (marriage or accompanying a spouse). Respondents declare that they do not have a set deadline to return, and they claim to have left Brazil due to lack of opportunities, violence, political instability and economic causes. The findings are contrasted with the typologies of immigration, being useful for the debate of public policies aimed at maintaining qualified Brazilians in the country, as well as attracting the capital generated by these migrants in the form of investments in business in Brazil.

A manager's stewardship identification in Brazilian family firms: the role of controls' design and procedural justice

Purpose The paper investigates whether a family firm's control context is directly associated with a manager's stewardship attitude or whether this relationship is mediated by the manager's perception with respect to the fairness of the control processes. Design/methodology/approach The authors have sent a survey to family businesses in Brazil. The authors tested the hypotheses with the data collected from 141 responding family and nonfamily managers with the use of structural equation modeling (SEM) analyses (SmartPLS). Findings The authors find that more participative and more formal controls are associated with higher procedural justice perceptions. Zooming in on the types of control, namely forward-looking action controls, like target setting (TS), and backward-looking results controls, like performance measurement (PM), the authors observe that TS is significantly positively associated with stewardship identification through a manager's procedural justice perceptions for both control characteristics (partial mediation for participative TS and full mediation for formal TS). PM on the other hand is only significantly directly related to a stewardship identification if it is of a participative character. In addition, the authors find a significant moderating effect of family affiliation, increasing the strength of the association between PM procedural justice and stewardship identification for nonfamily managers. Originality/value Prior literature focused on discussing stewardship attitudes and behaviors in family firms, but few provided empirical evidence that a stewardship attitude in a family firm is associated with contextual factors, like the design of controls in family firms in combination with a manager's individual perception of family firm's process factors.

Sources and Methodologies for Micro, Small and Medium Enterprises Study in Brazil

This article uncovers relevant sources and methodologies to gather knowledge about micro, small and medium enterprises (MSME) in Brazil. To achieve its purpose, the text presents sources and methodologies. This type of study is relatively neglected concerning MSMEs. Until this moment, not much data has been reported about these companies’ categories, and even less in advanced research. Among the most significant data and methodology of addressing MSMEs in the country, the text highlights the surveys conducted by the Brazilian Institute of Geography and Statistics (IBGE), the Brazilian Micro and Small Business Support Service (SEBRAE), and the international annual research Global Entrepreneurship Monitor (GEM) a study on the entrepreneurial activity, which Brazil is part for more than 20 years. The Brazilian institutions, as well as consulting for those companies, collect key data that posteriorly become research sources. Also, when explaining how institutions chose and treated the data, they own specific methodologies regarding those businesses in Brazil. The paper also points out the importance of constant law monitoring, adjustment, and technology incentives. This article's contribution is to present a research methodology on MSME in Brazil with relevant data.

Interlaboratory and proficiency tests for buildings sound insulation field measurements in Brazil - 4th Edition 2020

Since 2013 ABNT NBR 15575:2013 entered into force in Brazil, a national technical standard that establishes acoustic requirements for dwellings, that can be verified by means of field measurements procedures performed according to specific ISO standards. Therefore, those requirements have fostered the acoustic field measurement market, and the number of laboratories has quickly increased across the county. ProAcústica - Brazilian Association for Acoustical Quality, a non-profit entity, aiming to improve the quality of the acoustics business in Brazil has organized in 2020 the fourth edition of the "Interlaboratory program of field measurements for building acoustics laboratories - INTERLAB Program". This consists of a fundamental tool for acoustic field laboratories to evaluate and verify the quality of their measurement results. This paper presents the methodologies and procedures used in the interlaboratory program, as well as the results of both the interlaboratory test and the proficiency carried out in São Paulo (Brazil) during 2017 by ProAcústica - Brazilian Association for Acoustical Quality. In this edition a total number of 25 laboratories have participated (32% more participants than the last edition in 2017) for different type of field tests: airborne sound insulation, airborne facade sound insulation, impact sound level, sound pressure level from service equipment in buildings, and reverberation time). The main objectives are the evaluation of the precision of the field test methods in the Brazilian market, and the analysis of the performance of the participating laboratories as a quality control tool.

The Characteristics of Family Businesses in Brazil

The Characteristics of Family Businesses in Brazil

A aplicação dos dispute boards nos contratos empresariais no Brasil

The present work aims to analyze, from a legal point of view, the application of dispute boards in the Brazilian legal system, focused on private business contracts, so that, initially, the use of these types of business in Brazil was studied, and later, the application of extrajudicial means of conflicts applied to business transactions, with a view to the principles of autonomy of will and cooperation, in view of the slowness and legal uncertainty faced by entrepreneurs when resolving their disputes. Finally, it was possible to examine the execution of dispute boards in the legal system, demonstrating their compatibility with local laws and the advantages that their use can bring, which, however, still suffers an obstacle due to its lack of regulation, which prevents decisions have bound.

Sustainability-oriented strategy and Sustainable Development Goals

PurposeSustainability-oriented strategies involve considering all possible environmental, social and economic factors that impact stakeholders and sustainable development. They could be a crucial contribution of the private sector to Sustainable Development Goals (SDGs). The study’s objective is twofolded. First, the authors want to discover if enterprises doing business in Brazil are contemplating the SDGs in their strategies. Second, the authors want to identify the external and internal factors that motivate them.Design/methodology/approachThe authors collected data through an online survey with employees from Global Compact signatories in Brazil. From a list of 335 for-profit enterprises, the authors got back 132 answers. The sample comprises Brazilian enterprises that only operate in the Brazilian market, Brazilian multinational enterprises (MNEs) and foreign multinationals operating in Brazilian and international markets. For this study, the MNEs’ group comprises Brazilian multinationals and foreign multinationals (MNEs). To characterize the sample and identify the motivating factors, the authors conducted a descriptive analysis. To compare the domestic and MNEs’ mean differences regarding the factors that influenced their strategies and the SDGs, the authors performed Mann–Whitney's U-test.FindingsThe results of the study show that enterprises are addressing the SDGs in their strategies. All internal and external driving factors are similar for domestic and MNEs, except for the value chain's negative externalities. MNEs are more prone to consider their negative externalities, which is a positive trend. Finally, results suggest that both groups of enterprises consider the 17 goals in their strategies, contrary to the theoretical argument that multinationals suffer more pressure because of their broad geographic scope.Research limitations/implicationsThe database of the study involves data collected through a self-response survey. Thus, the authors cannot discuss the effectiveness of real SDGs' strategies once enterprises' discourse on sustainability does not always correspond with practices. Therefore, the authors suggest that researchers address the results of implemented strategies on the SDGs over time to check for improvements and new developments.Practical implicationsThe authors suggest frequent materiality assessment of domestic enterprises' supply chain and articulation of explicit purposes around the selected SDGs, including setting key performance indicators (KPIs) and monitoring progress.Social implicationsThe authors believe that enterprises and decision makers should recognize their essential role to bend the curve on SDGs and shift their behavior toward strategic choices that could contribute to their positive performance over time, without contributing to environmental degradation and socioeconomic chaos.Originality/valuePublication on how enterprises address the SDGs in Brazil is relatively scarce. This study provides some answers to that by focusing on the factors influencing sustainability-oriented strategies on the SDGs. Besides, most previous studies consider a small sample of enterprises and are industry specific or focus on the effects of the SDGs in public policy. The sample of this study is diverse and represents 42% of the for-profit signatories of the Global Compact in Brazil.

Challenges for the Future of Education brought by the Pandemic: The Coppead Case

ABSTRACT This teaching case describes the process experienced by Coppead, one of the main graduate schools in business in Brazil, to adapt to e-learning. The change is driven by the social isolation adopted in the country due to the COVID-19 pandemic. The case reports on the decisions that the faculty collegiate, led by the director Elaine Tavares, has needed to take to circumvent the quarantine and ensure teaching continuity at Master, Doctoral, and Executive MBA levels. The case discusses the main challenges during the transition, but most importantly highlights the strategic opportunities that this shift has offered for innovation in the coming years.

Challenges for the Future of Education brought by the Pandemic: The Coppead Case

ABSTRACT This teaching case describes the process experienced by Coppead, one of the main graduate schools in business in Brazil, to adapt to e-learning. The change is driven by the social isolation adopted in the country due to the COVID-19 pandemic. The case reports on the decisions that the faculty collegiate, led by the director Elaine Tavares, has needed to take to circumvent the quarantine and ensure teaching continuity at Master, Doctoral, and Executive MBA levels. The case discusses the main challenges during the transition, but most importantly highlights the strategic opportunities that this shift has offered for innovation in the coming years.

The internationalisation of TechnoLatinas from a resource-based perspective

PurposeThis paper investigates how entrepreneurs in an emerging economy in Latin America bundle resources to develop capabilities related to entering new markets whilst creating value for their firms. In particular, the paper explores how individual resources (experiential knowledge and social networks) impact on entrepreneurs' capabilities to exploit new market opportunities.Design/methodology/approachThe paper employs a case study approach to investigate five cases of entrepreneurs driving technology-based businesses in Brazil. Effectuation theory is used as a lens to ascertain how resources impact on the decision-making capabilities of the entrepreneurs and firms. The research adopts a longitudinal approach, capturing data from thirty interviewees over a period corresponding to domestic and international market entry of these TechnoLatinas ' businesses.FindingsThis paper builds on previous resource-based view (RBV) studies by supplementing evidence that individual and firm-level resources determine the development of capabilities to exploit new market opportunities for new firms. The presence of experiential knowledge (in particular, business planning, market analysis and experimentation) and social networks (individual resources) drives to a mix of causal and effectual heuristics; however, in the presence of firm-level resources (human and financial capital), new entrepreneurs tend to shift towards a stronger causal orientation.Research limitations/implicationsThe case companies are high technology, knowledge-intensive Brazilian start-up firms sharing a similar institutional setting. Further research should include a more diverse range of cases including other sectors and other countries in Latin America adopting quantitative design to confirm and generalise these findings.Practical implicationsFor policymakers and practitioners, this research provides guidelines on how entrepreneurs' know-how and social networks can be enhanced by providing access to the international market to speed up the growth of a new firm. For entrepreneurship educators, this research explains how effectual orientation (EO) or causal orientation (CO) influences the entrepreneur to exploit the available resources to maximise the growth of businesses in the international market.Originality/valueThe resource-based literature usually ignores the challenges faced by new resource-constrained firms and the individual-level resources of the entrepreneurs. This research contributes to the RBV, entrepreneurship and internationalisation debate by identifying the interplay between RBV and effectuation theory, particularly by bringing forward the impact of individual resources and capabilities of entrepreneurs to make the decision to enter a new market. Moreover, by using the effectuation theory, the research contributes to a better understanding of how resources are managed to create value and growth in new firms.

Internacionalização no segmento de mídia out of home: o caso da JCDecaux no mercado brasileiro

Purpose - This case study aims to understand the motivations for the expansion of the French multinational JCDecaux to Brazil, in the light of relevant theories about the internationalization of companies. JCDecaux is the world's largest outdoor media company (out of home), a fast-growing industry of the advertising market in Brazil.Design/methodology - This study explain the case based on the internationalization of companies theories, in the economic (Eclectic Paradigm of International Production) and behavioral (Uppsala School and Business Networks Model) strands. In addition to secondary sources, the research was supported by interviews with experts and executives from the outdoor media industry in Brazil.Findings - The main determining drivers for the entry of JCDecaux in the Brazilian market were identified. The analysis based on the theoretical models of internationalization concluded that the economic approach determined in a more significant way the company's entry into the Brazilian media out of home market. Economic advantages outweighed the costs and risks of Brazil's business environment, making the country attractive to the company's foreign investment.Research limitations - The scarcity of data about the media outdoor was reported by a professional interviewed as a negative feature. Another important limitation is the lack of scientific production about the out-of-home media in Brazil.Originality - This paper contributed to generate important information about the Brazilian outdoor media industry, especially on the phenomenon of internationalization of companies in this industry.

MY BUSINESS AND I: ENTREPRENEUR PERSONALITY TRAITS AND CAPITAL STRUCTURE CHOICE

ABSTRACT Purpose: This research seeks to identify how entrepreneurs’ personality traits can influence the capital structure of micro and small private businesses in Brazil, which are important for the economic growth and the subsistence of their owners. Originality/value: The study of the behavioral dimension of business decisions can help financial agents to better understand client behavior, including the adoption of mechanisms that identify possible risky or inefficient decisions made by managers based on their personality traits. It can also assist the government and institutions supporting micro and small private businesses in developing strategies to reduce the mortality of such companies. Design/methodology/approach: The proposed model involves 19 expected relationships that evaluate the relationships between the optimism, risk tolerance, sense of control (external and internal), attitude towards debt, and entrepreneur gender constructs. The sample includes 625 micro and small entrepreneurs in the state of Rio Grande do Sul, Brazil. Confirmatory factor analysis and structural equation modeling were performed. Findings: Results showed that attitude towards debt and gender were the most significant constructs and had a direct influence on the capital structure, while optimism and internal locus of control exerted a negative indirect influence, while risk tolerance had a positive indirect effect. Female managers demonstrated higher optimism and internal locus of control than male managers, but they had a worse attitude towards debt.

Energia limpa e limpeza étnica

Abstract This article analyzes the discursive, juridical, and political conditions of the environmental catastrophe of Belo Monte, a hydroelectric dam on the Xingu River with serious ecocidal consequences for the Amazon. The article traces the history of the project since its conception by the military dictatorship in 1975 through its several defeats at the hands of mobilized indigenous and riverbank Xingu populations in the 1980s and 1990s to its contested construction by the Lula and Rousseff administrations between 2005 and 2016. The Belo Monte dam was unique in that it was carried out by the very political party that had been the local populations’ most steadfast ally in defeating the project on previous attempts at executing it. Belo Monte was also intensely judicialized, with the Executive managing to delay decisions on the merit with repeated injunctions, while they turned the dam into an irreversible fact. The article analyzes that juridical singularity in the light of what later became known about Belo Monte as the epitome of how electoral campaigns have been financed in Brazil. The article also reconstructs arguments by indigenous leaders, biologists, anthropologists, energy specialists, law scholars, and local riverbank dwellers who correctly predicted the consequences of Belo Monte: the drying up of one hundred kilometers of the Xingu River (known as “Volta Grande”), extinctions of species, massive mortality of fish (crushed by turbines or starved to death), the impoverishment of indigenous and riverbank populations now packed in the outskirts of Altamira, and a host of other environmental, criminological, and medical effects. The title alludes to the role played by the rhetoric of “clean energy” [energia limpa] that has accompanied the hydroelectric dam business in Brazil, suggesting that in the case of Belo Monte another kind of “cleanliness” was at stake altogether, i.e. ethnic cleansing.