Value Creation and Appropriation by Different Stakeholders: An Analysis of the Brazilian Meat Export Industry

• Grant number: 24/12233-4
• Support Opportunities: Regular Research Grants
• Start date: April 01, 2025
• End date: March 31, 2028
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Principal Investigator: Sandro Cabral
• Grantee: Sandro Cabral
• Host Institution: Instituto de Ensino e Pesquisa (Insper). São Paulo , SP, Brazil
• Associated researchers: Carlos Inoue ; Octavio Augusto Darcie de Barros

Abstract

In recent decades, the literature on organizational strategy has evolved to incorporate themes beyond the business scope that gave rise to the field. There is growing recognition that the goals of public and private organizations are interdependent and that the strategy field should engage in debates on the design, implementation, and evaluation of public policies, as well as business policies. Theories and constructs in the field have significant potential to understand dilemmas associated with the creation and appropriation of public and private value.By uniting three complementary approaches-strategy in the public interest, stakeholder theory, and nonmarket strategies-this project aims to understand the following questions: How are different groups of stakeholders affected by the strategic behaviors of firms subject to political and institutional changes? What organizational factors can mitigate the negative impact of these changes on certain groups of stakeholders without harming others that are positively affected? How do the stakeholders of organizations directly influenced by political and institutional changes differ from those of similar organizations not affected by such external changes?To address these questions, this project will investigate the meat sector in Brazil, a sector with various stakeholders with potentially conflicting interests, focusing on a significant change: the authorization of Brazilian meatpacking plants to export beef to China. By comparing authorized and non-authorized meatpacking plants and exporters of other animal proteins (e.g., chicken and pork), we will specifically analyze how positive shocks in export demand, which primarily benefit shareholders and investors, impact the interests of workers, measured by wages and work accident rates. We will also examine whether managerial elements can amplify or mitigate the effects of increased demand on workers' well-being by analyzing behaviors in other units of the business groups and general or specific human capital strategies.Using quasi-experimental methodologies, this study will seek to establish causal relationships between market changes and the dynamics of value appropriation by different stakeholders. The empirical strategy adopted will be the difference-in-differences method. Data will be collected from public sources such as the Annual Social Information Report (RAIS) provided by the Ministry of Labor and Employment, work accident statistics produced by the National Social Security Institute, and demographic information from the Brazilian Institute of Geography and Statistics (IBGE). Additionally, private export and import data compiled by Standard & Poor's will be used. To achieve the above objectives, the research will also employ qualitative approaches, including document analysis and in-depth interviews with relevant actors, providing a greater understanding of the mechanisms involved.Thus, the scope of this proposal includes the collection of primary and secondary data that may result in a series of scientific articles on how the processes of value creation and appropriation in companies affect a broader range of stakeholders beyond shareholders and private financiers. The main product of this investigation will be formatted for publication in one of the following leading journals in the field of Management: Management Science, Organization Science, or Strategic Management Journal, all classified as ABS 4*. (AU)