Factors influencing Brazilian sugar and ethanol refineries’ failure

Purpose - This study aims to examine the dimensions of organisational failure in the Brazilian sugarcane and ethanol refineries, as reported in judicial recovery plans. Design/methodology/approach - This paper follows a qualitative, inductive approach that uses content analysis to examine the details of recovery plans. Besides, a cause-and-effect relationship diagram is proposed, making it possible to identify the interconnections between the identified variables. Findings - There is evidence that organisational failures are not a linear outcome. Organisational failures are complex and occur because of several factors, often interdependent and operating at different levels. Research limitations/implications - Organisational failures basically have three interrelated levels: the macro-level (external environment), the meso-level (organisational environment) and the micro-level (associated with the decision-maker). The relationship between these levels is not trivial and involves coordinated research efforts. Practical implications - Organisations must consider all types of failure levels when developing business reorganisation plans. Reorganisation plans are more than a formal document to achieve judicial recovery, as they should incorporate strategic factors. Social implications - Organisational failures are regularity in organisations’ day-to-day. Understanding failure’s sources is vital to design firms’ strategies and public policies. Originality/value - The study of organisational failure involves the analysis of complex and multidimensional phenomena. Judicial recovery plans are the means for companies to get a second chance. To that end, this paper addresses the sources of organisational failures through the lens of judicial plans.