IDEAS home Printed from https://ideas.repec.org/p/pil/wpaper/57.html
   My bibliography  Save this paper

The Decline of Large Brazilian Companies

Author

Listed:
  • Alexandre Pavan Torres

    (Universidade Federal de Santa Catarina)

  • Emílio Araujo Menezes

    (Universidade Federal de Santa Catarina)

  • Fernando A. Ribeiro Serra

    (Universidade do Sul de Santa Catarina)

  • Manuel Portugal Ferreira

    (Instituto Politécnico de Leiria)

Abstract

This article focuses on the organizational decline and, more specifically, the evolution of a selected group of Brazilian companies that were included in the Largest and Best ranking of Exame magazine in the period between 1974 and 2006. Our descriptive analysis shows two main effects: firstly a high rate of decline among the largest Brazilian enterprises and secondly, that there is an acceleration of the decline process, that is: the companies have become gradually less capable of maintaining a superior level of competitiveness during an extended period of time. The study of the strategy, as a discipline, that seeks to understand and aid companies to capture and sustain a competitive advantage shall be reinforced by the understanding of the causes of unsuccessfulness and the loss of their ability to sustain competitiveness. Organizational Decline is, in this context, a process that warrants further analysis.

Suggested Citation

  • Alexandre Pavan Torres & Emílio Araujo Menezes & Fernando A. Ribeiro Serra & Manuel Portugal Ferreira, 2010. "The Decline of Large Brazilian Companies," Working Papers 57, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:57
    as

    Download full text from publisher

    File URL: https://globadvantage.ipleiria.pt/files/2010/03/working_paper-57_globadvantage.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McKinley, William & Ponemon, Lawrence A. & Schick, Allen G., 1996. "Auditors' perceptions of client firms: The stigma of decline and the stigma of growth," Accounting, Organizations and Society, Elsevier, vol. 21(2-3), pages 193-213.
    2. Donald C. Hambrick & Albert A. Cannella, 2004. "CEOs who have COOs: contingency analysis of an unexplored structural form," Strategic Management Journal, Wiley Blackwell, vol. 25(10), pages 959-979, October.
    3. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    4. Andrew H. van de Ven & George P. Huber, 1990. "Longitudinal Field Research Methods for Studying Processes of Organizational Change," Organization Science, INFORMS, vol. 1(3), pages 213-219, August.
    5. Vincent L. Barker Iii & Irene M. Duhaime, 1997. "Strategic Change In The Turnaround Process: Theory And Empirical Evidence," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 13-38, January.
    6. Kieran Walshe & Gill Harvey & Paula Hyde & Naresh Pandit, 2004. "Organizational Failure and Turnaround: Lessons for Public Services from the For-Profit Sector," Public Money & Management, Taylor & Francis Journals, vol. 24(4), pages 201-208, August.
    7. Castrogiovanni, Gary J. & Bruton, Garry D., 2000. "Business Turnaround Processes Following Acquisitions: Reconsidering the Role of Retrenchment," Journal of Business Research, Elsevier, vol. 48(1), pages 25-34, April.
    8. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
    9. Danny Miller & Peter H. Friesen, 1984. "A Longitudinal Study of the Corporate Life Cycle," Management Science, INFORMS, vol. 30(10), pages 1161-1183, October.
    10. Hugh G. Petrie & Daniel Alpert, 1983. "What Is The Problem Of Retrenchment In Higher Education? [I]," Journal of Management Studies, Wiley Blackwell, vol. 20(1), pages 97-119, January.
    11. Frank Hoy, 2006. "The Complicating Factor of Life Cycles in Corporate Venturing," Entrepreneurship Theory and Practice, , vol. 30(6), pages 831-836, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando A. Ribeiro Serra & Martinho Ribeiro Almeida & Manuel Portugal Ferreira, 2012. "Organizational decline: A yet largely neglected topic in organizational studies," Working Papers 88, globADVANTAGE, Polytechnic Institute of Leiria.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Satish C. Pandey & Pramod Verma, 2005. "Organizational Decline and Turnaround: Insights from the Worldcom Case," Vision, , vol. 9(2), pages 51-65, April.
    2. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    3. Patnaik, Swetketu & Munjal, Surender & Varma, Arup & Sinha, Sujay, 2022. "Extending the resource-based view through the lens of the institution-based view: A longitudinal case study of an Indian higher educational institution," Journal of Business Research, Elsevier, vol. 147(C), pages 124-141.
    4. Durand, Rodolphe & Coeurderoy, Regis, 2001. "Age, order of entry, strategic orientation, and organizational performance," Journal of Business Venturing, Elsevier, vol. 16(5), pages 471-494, September.
    5. Coeurderoy, Regis & Durand, Rodolphe, 2004. "Leveraging the advantage of early entry: proprietary technologies versus cost leadership," Journal of Business Research, Elsevier, vol. 57(6), pages 583-590, June.
    6. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 293-327, February.
    7. Hasan, Mostafa Monzur & Cheung, Adrian (Wai-Kong), 2018. "Organization capital and firm life cycle," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 556-578.
    8. Erik Stam & Elizabeth Garnsey, 2006. "New Firms Evolving in the Knowledge Economy: Problems and Solutions Around Turning Points," Chapters, in: Wilfred Dolfsma & Luc Soete (ed.), Understanding the Dynamics of a Knowledge Economy, chapter 4, Edward Elgar Publishing.
    9. Finbarr Livesey, 2012. "Rationales for Industrial Policy Based on Industry Maturity," Journal of Industry, Competition and Trade, Springer, vol. 12(3), pages 349-363, September.
    10. Xudong Gao & Ping Zhang & Xielin Liu, 2007. "Competing with MNEs: developing manufacturing capabilities or innovation capabilities," The Journal of Technology Transfer, Springer, vol. 32(1), pages 87-107, April.
    11. Achim Schmitt & Sebastian Raisch, 2013. "Corporate Turnarounds: The Duality of Retrenchment and Recovery," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1216-1244, November.
    12. David Gaddis Ross, 2014. "An Agency Theory of the Division of Managerial Labor," Organization Science, INFORMS, vol. 25(2), pages 494-508, April.
    13. Thomas Borup Kristensen & Henrik Nielsen, 2020. "Configuring a profile-deviation-analysis to statistical test complementarity effects from balanced management control systems in a configurational fit approach," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(4), pages 439-475, February.
    14. Richard J. Arend, 2008. "Differences in RBV strategic factors and the need to consider opposing factors in turnaround outcomes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 337-355.
    15. Tessa Christina Flatten & Andreas Engelen & Timo Möller & Malte Brettel, 2015. "How Entrepreneurial Firms Profit from Pricing Capabilities: An Examination of Technology–Based Ventures," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1111-1136, September.
    16. Lars Schweizer & Andreas Nienhaus, 2017. "Corporate distress and turnaround: integrating the literature and directing future research," Business Research, Springer;German Academic Association for Business Research, vol. 10(1), pages 3-47, June.
    17. Hatani, Faith & McGaughey, Sara L., 2013. "Network cohesion in global expansion: An evolutionary view," Journal of World Business, Elsevier, vol. 48(4), pages 455-465.
    18. Régis Coeurderoy & Rodolphe Durand, 2001. "La cohérence des choix stratégiques:l'impact des décisions d'entrée et des stratégies génériques sur la performance organisationnelle des firmes," Revue Finance Contrôle Stratégie, revues.org, vol. 4(3), pages 57-88, September.
    19. Thomas Hutzschenreuter & Fabian Guenther, 2009. "Complexity as a constraint on firm expansion within and across industries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 373-392.
    20. Moyassar Al-Taie & Aileen Cater-Steel, 2020. "The Organisational Life Cycle Scale: An Empirical Validation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 293-325, September.

    More about this item

    Keywords

    organizational decline; Brazil; strategy;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pil:wpaper:57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nuno Reis (email available below). General contact details of provider: https://edirc.repec.org/data/deiplpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.