Sharing competences in strategic alliances: a case study of the Cosan and Shell biofuel venture

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Main Author: Luciana Florêncio de Almeida
Format: Artículo científico
Language:en
Published: Universidade de São Paulo 2013
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author Luciana Florêncio de Almeida
author_facet Luciana Florêncio de Almeida
contents Sharing competences in strategic alliances: a case study of the Cosan and Shell biofuel venture Luciana Florêncio de Almeida Cláudio Antonio Pinheiro Machado Filho Administración y Contabilidad Biofuel governance joint venture hybrids forms In a competitive world, the way a firm establishes its organizational arrangements may determine the enhancement of its core competences and the possibility of reaching new markets. Firms that find their skills to be applicable in just one type of market encounter constraints in expanding their markets, and through alliances may find a competitive form of value capture. Hybrid forms of organization appear primarily as an alternative to capturing value and manag­ ing joint assets when the market and hierarchy modes do not present any yields for the firm’s competitiveness. As a result, this form may present other challenging issues, such as the allocation of rights and principal-agent problems. The biofuel market has presented a strong pattern of changes over the last 10 years. New intra-firm arrangements have appeared as a path to participate or survive among global competition. Given the need for capital to achieve better results, there has been a consistent movement of mergers and acquisitions in the Biofuel sector, especially since the 2008 financial crisis. In 2011 there were five major groups in Brazil with a grinding capacity of more than 15 million tons per year: Raízen (joint venture formed by Cosan and Shell), Louis Dreyfus, Tereos Petrobras, ETH, and Bunge. Major oil companies have implemented the strategy of diversification as a hedge against the rising cost of oil. Using the alliance of Cosan and Shell in the Brazilian biofuel market as a case study, this paper analyses the governance mode and challenging issues raised by strategic alliances when firms aim to reach new markets through the sharing of core competences with local firms. The article is based on documentary research and interviews with Cosan’s Investor Relations staff, and examines the main questions involving hybrid forms through the lens of the Transaction Cost Economics (TCE), Agency Theory, Resource Based View (RBV), and dynamic capabilities theoretical ap­ roaches. p One focal point is knowledge "appropriability" and the specific assets originated by the joint venture... 2013 artículo científico 0080-2107 https://www.redalyc.org/articulo.oa?id=223427550013 en http://www.redalyc.org/revista.oa?id=2234 Revista de Administração - RAUSP application/pdf Universidade de São Paulo Revista de Administração - RAUSP (Brasil) Num.2 Vol.48
format Artículo científico
id redalyc_223427550013
institution Redalyc
language en
publishDate 2013
publisher Universidade de São Paulo
spellingShingle Sharing competences in strategic alliances: a case study of the Cosan and Shell biofuel venture
Luciana Florêncio de Almeida
Administración y Contabilidad
Biofuel
governance
joint venture
hybrids forms
Sharing competences in strategic alliances: a case study of the Cosan and Shell biofuel venture Luciana Florêncio de Almeida Cláudio Antonio Pinheiro Machado Filho Administración y Contabilidad Biofuel governance joint venture hybrids forms In a competitive world, the way a firm establishes its organizational arrangements may determine the enhancement of its core competences and the possibility of reaching new markets. Firms that find their skills to be applicable in just one type of market encounter constraints in expanding their markets, and through alliances may find a competitive form of value capture. Hybrid forms of organization appear primarily as an alternative to capturing value and manag­ ing joint assets when the market and hierarchy modes do not present any yields for the firm’s competitiveness. As a result, this form may present other challenging issues, such as the allocation of rights and principal-agent problems. The biofuel market has presented a strong pattern of changes over the last 10 years. New intra-firm arrangements have appeared as a path to participate or survive among global competition. Given the need for capital to achieve better results, there has been a consistent movement of mergers and acquisitions in the Biofuel sector, especially since the 2008 financial crisis. In 2011 there were five major groups in Brazil with a grinding capacity of more than 15 million tons per year: Raízen (joint venture formed by Cosan and Shell), Louis Dreyfus, Tereos Petrobras, ETH, and Bunge. Major oil companies have implemented the strategy of diversification as a hedge against the rising cost of oil. Using the alliance of Cosan and Shell in the Brazilian biofuel market as a case study, this paper analyses the governance mode and challenging issues raised by strategic alliances when firms aim to reach new markets through the sharing of core competences with local firms. The article is based on documentary research and interviews with Cosan’s Investor Relations staff, and examines the main questions involving hybrid forms through the lens of the Transaction Cost Economics (TCE), Agency Theory, Resource Based View (RBV), and dynamic capabilities theoretical ap­ roaches. p One focal point is knowledge "appropriability" and the specific assets originated by the joint venture... 2013 artículo científico 0080-2107 https://www.redalyc.org/articulo.oa?id=223427550013 en http://www.redalyc.org/revista.oa?id=2234 Revista de Administração - RAUSP application/pdf Universidade de São Paulo Revista de Administração - RAUSP (Brasil) Num.2 Vol.48
title Sharing competences in strategic alliances: a case study of the Cosan and Shell biofuel venture
topic Administración y Contabilidad
Biofuel
governance
joint venture
hybrids forms
url https://www.redalyc.org/articulo.oa?id=223427550013