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This paper explores how a firm that is established in an environment characterized by uncertainty can engage with weak regulative institutions by developing operational and institutional capabilities.

We employ a multiple case study approach with seven leading multinational firms in Brazil in industries that vary in industry concentration.

Firms choose among alternative strategies for engaging with regulative institutions as an ongoing process, based on their assessment of four characteristics of the uncertainty they face and their capabilities. Strategies that require a firm to exert greater effort to adapt to institutions or influence institutions have a greater potential to catalyze for developing operational capabilities. Although firms in industries with different concentrations behave similarly in individually adapting to regulative institutions, firms in decentralized industries are more likely to collaborate to influence institutions, which enables them to both access public agents through network partners and better negotiate their own interests.

This research guides managers in developing institutional engagement strategies to reduce the potential consequences of institutional uncertainty in their supply chain. It also suggests types of institutional capability aligned with decentralized vs concentrated industries.

We extend the construct of institutional engagement strategies from the context of entrance to a new international market to an ongoing process in firms that are established in an environment characterized by weak regulative institutions. We also examine the role of industry concentration in the application of institutional engagement strategies.

This paper aims to present the vertical integration state-of-the-art and propose an expansion of the operations and supply chain management (OSCM) field by identifying gaps and bottlenecks.

This paper uses a systematic literature review based on a sample of 173 OSCM field articles, collected from Scopus and Web of Science databases.

There are no single factors, such as future costs, structures or skills development, in the decision to vertically integrate operations. It is necessary to combine the vision of production costs with the perspective of governance and transaction costs. In addition, it is essential to consider the competency perspective and its impact on capability building.

Few studies have attempted to understand how vertical integration is used in terms of OSCM research themes and theories. Vertical integration can help companies face challenges and serve as a potential solution for achieving better prices, demand control and quality management.

The significant role of vertical integration mechanisms in supply chains is crucial for managers evaluating a firm's reconfiguration with more vertical operations. Policymakers interested in supporting the smoothness of vertical integration decisions in regulatory agencies play a key role as contingencies.

In times of global challenges, vertical integration is a strategy known to be more effective for firms to obtain a competitive advantage, making them more resilient.

This paper addresses gaps in the vertical integration theme and provides insights for future research development.