Unveiling the Relevance of Nonmarket Strategy for Biodiesel Producers in Brazil

Abstract

Brazil is one of the most relevant players in the production of biofuels worldwide. The development of the local ethanol industry, with the experiences and lessons learned from it, paved the way for the emergence of the Brazilian biodiesel industry. The Brazilian biodiesel industry is characterized by the presence of government agents as regulators in all stages of the supply chain, since production to commercialization. From a nonmarket strategy perspective, the more controlled is the industry, the more relevant is the nonmarket environment for firm’s performance. This paper discusses the relevance of nonmarket strategy in biodiesel supply chain, with particular attention to Social Fuel Stamp regulation. More than a regulatory topic, it is a matter that deserves attention from a business strategy standpoint, targeting the creation of competitive advantage by managing the aspects related to this. Collection and assessment of data have been made under the guidance of Grounded Theory.