ID: 16729
Authors:
Irene Raguenet Troccoli, T. Diana L. van Aduard de Macedo-Soares.
Source:
RAUSP Management Journal, v. 38, n. 3, p. 181-191, July-September, 2003. 11 page(s).
Keyword:
networks of relationships , orange-juice industry , strategic alliances , strategic blocks , strategic groups , strategic performance strategic management
Document type: Article (Portuguese)
Show Abstract
In the current competitive globalized context, firms are establishing
strategic networks to complement their resources and thus give better
attention to their customers’ increasing requirements. This article aims
at showing how networks, especially those of groups of firms that are
structurally similar and more densely connected to each other, i.e.
“strategic blocks”, imply reviewing or at least complementing
traditional strategic group — SG analyses, inasmuch as they enable firms
to enter these groups without the constraints related to mobility
barriers. In the first two parts, on the basis of bibliographic
research, key concepts are explained and constructs pertinent to the
analysis of the strategic implications of networks and blocks for firms
in SGs are presented. Next, with the help of documentary investigations,
these constructs are applied to the case of a group of firms in the
Brazilian orange juice industry that is considered, hypothetically, as
both strategic group and block, in accordance with Nohria and
Garcia-Pont’s (1991) concept of “pooling block”. These constructs are
validated in terms of being able to help provide new insights for
strategic decision-making, in the case of firms in SGs, that can
complement results of traditional analyses. Notably, it is shown how
they helped reveal that the relationships of blocks can dampen the
threats posed by Porter’s (1980) five strategic forces to firms in SGs,
although they can also create threats of their own for these firms. They
also helped indicate to what extent the density, pattern, strength and
nature of the network’s relationships can constitute opportunities in
terms of enhancing the performance of firms in SGs. The article
terminates by presenting a proposition, based on the application of the
constructs at issue, to be validated, in the scope of future empirical
research. It also makes suggestions for new investigations.