Coopetition and institutions: a strategy for Brazilian wineries facing internationalization

Abstract

Purpose

The purpose of this study is to understand the role institutions play in driving the internationalization of firms in an emerging country through promotion of coopetition. Investigating the relationships between coopetition, institutions and internationalization, especially among firms in emerging countries, is an important approach that has received little attention.

Design/methodology/approach

This study has used a single case study interviewing managers of Brazilian wineries and representatives of formal institutions in an emerging economy. A research framework taking an institutions-based view of strategy and applying it to study coopetition and internationalization is proposed.

Findings

Formal institutions are the most important players in the promotion of coopetition between firms in the Brazilian wine industry. Coopetition enables firms to access new resources and capabilities, promoting and facilitating internationalization, while also increasing firms’ competitiveness in the domestic market. The study also found evidence of certain limiting factors within these relationships, caused by the heterogeneous nature of the firms involved and by the asymmetries in their perceptions of the gains achieved.

Research limitations/implications

As a consequence of the methodology adopted, the results of this study are limited to the Brazilian wine industry. Future research should extend the approach to data collected in different countries and industries. Another promising avenue for research is to explore how decisions of a political nature influence the institutions that coordinate an industry, which would provide a new perspective on the internationalization of the firms involved.

Practical implications

The results offer governments and institutions an opportunity to better understand, and therefore to better manage, their actions in relation to their role in the promotion of the competitiveness of firms and industries, both in international and domestic markets. For firms, the results offer insights into the possible gains and the limitations of coopetition strategies, contributing to their decision-making on involvement. The study also contributes to understanding the competitiveness of the industry investigated.

Originality/value

This study approaches coopetition from the institutional perspective. It also focuses on internationalization of firms from an emerging country, which is characterized by a lack of firm-specific resources. The proposed framework seems promising for future research investigating coopetition and institutions within an integrated analytical framework.

Citation

Monticelli, J.M., Garrido, I.L. and de Vasconcellos, S.L. (2018), "Coopetition and institutions: a strategy for Brazilian wineries facing internationalization", International Journal of Wine Business Research, Vol. 30 No. 1, pp. 74-95. https://doi.org/10.1108/IJWBR-08-2016-0028