The development dynamics of business networks: A comparison among Wines of Brasil (Brazil) and Vitrocristal (Portugal)

Abstract

Purpose

The purpose of this paper is to compare the development dynamics of two business networks initially created to promote the internationalization of its members. Wines of Brasil – a Brazilian wineries network – was established in 2002 and remains active, while Vitrocristal (VtC) – a Portuguese network of glass producers – was established in 1994 and is already closed.

Design/methodology/approach

Data were collected from 14 interviews, with network managers and representatives of companies with different sizes and participation times. Information obtained was compared with the life cycle model of Wegner et al. (2015) and enabled the authors to understand the dynamic development of each network and its current stage in the life cycle.

Findings

The results allowed the authors to describe the development pattern of both business networks, showing that the Brazilian network is in the consolidation stage while the Portuguese one finished its activities in 2007 after a period of financial constraints due to the end of governmental support.

Practical implications

The comparison of the two cases shows that the experience of the Portuguese business network may be useful for networks in emerging markets, as it displays several difficulties that the management of such networks may face during their life cycle.

Originality/value

This study provides a more comprehensive and nuanced understanding of the dynamics of change in business networks. The cases confirm the life cycle stages proposed by Wegner et al. (2015) and shed more light on the development process of business networks, by describing how exogenous variables such as public support may affect cooperation.

Citation

Wegner, D., Silva, S.C. and De Rossi, G. (2018), "The development dynamics of business networks: A comparison among Wines of Brasil (Brazil) and Vitrocristal (Portugal)", International Journal of Emerging Markets, Vol. 13 No. 1, pp. 27-44. https://doi.org/10.1108/IJoEM-12-2016-0332