fgv - rae revista de administração de empresas, 2015. volume 55, número 4
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FÓRUM
Social entrepreneurship and social business: retrospective and prospective researchEdgard Barki, Graziella Comini, Ann Cunliffe, Stuart Hart e Sudhanshu Rai
Social business dilemmas in Brazil: Rede Asta caseEdson Sadao Iizuka, Carmen Augusta Varela e Elisa Rodrigues Alves Larroudé
Microfinance and climate change impacts: the case of Agroamigo in BrazilRafael Magnus Barbosa Moser e Lauro Gonzalez
Cause-fit, positive attitudes and behaviors within hybrid Colombian organizationsJuan Pablo Román-Calderón, Carlo Odoardi e Adalgisa Battistelli
ARTIGOS
Um outro olhar sobre a eficiência dos mercados: o caso das bolsas de apostas de tênisJúlio Lobão e Nuno Marques Rolla
The brand equity of Lahore Fort as a tourism destination brandMuhammad Kashif, Siti Zakiah Melatu Samsi e Syamsulang Sarifuddin
The international growth of a social business: a case studyAnita Maria de Moura, Graziella Comini e Armindo dos Santos de Sousa Teodósio
Strategic decisions of family firms on cash accumulationMaria Belen Lozano
PENSATA
Garantias governamentais e competitividade no setor financeiroRafael Schiozer
INDICAÇÕES BIBLIOGRÁFICAS
Ação coletiva e ação públicaZilma Borges
Os negócios e a gestão do socialAndrea Leite Rodrigues
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PESQUISA ECONHECIMENTOV. 55, N. 4,Julho–Agosto 2015
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ISSN 0034-7590www.fgv.br/rae
REDAÇÃOAnalista de Produção Editorial: Denise Francisco Cândido Assistente Administrativa: Eduarda Pereira Copidesque e revisão (Português): Paula Thompson Tradução e revisão (Espanhol e Inglês): Arabera Traducoes |Lersch Traducoes | Robert Dinham
ADMINISTRAÇÃOResponsável: Ilda FontesAssistente Administrativa: Eldi Francisca SoaresAssistente de Marketing: Andréa Cerqueira Souza
DISTRIBUIÇÃOComunidade acadêmico-científica: 700 exemplaresNúmero de visitas ao site no período maio/junho 2015: 139.356 visitantesASSINATURA ANUAL: R$ 300,00EXEMPLAR AVULSO: R$ 50,00PONTOS DE VENDA: Livrarias da FGV e Livraria CulturaARTE/EDITORAÇÃO ELETRÔNICATypecomm | Comunicação + DesignIlustração Pensata: Alex Lutkus
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INDEXADORESDOAJ - Directory of Open Access Journalswww.doaj.orgEbsco Publishing: Business Source Complete, Economia y Negocios, Fonte Acadêmicawww.ebscohost.come-RevistasPlataforma Open Access de Revistas Científicas Electrónicas Españolas y Latinoamericanashttp://www.erevistas.csic.esGale Cengage Learningwww.gale.cengage.comGoogle Scholarscholar.google.com.brPortal de Periódicos CAPESwww.periodicos.capes.gov.brProQuest Information and Learningwww.proquest.com.brRePEc www.repec.orgSistema de Información Científica Redalyc - Red de Revistas Científicas de América Latina y el Caribe, España y Portugalredalyc.uaemex.mxSciELO - Scientific Electronic Library Onlinewww.scielo.orgScopus | Elsevierwww.info.sciverse.com/scopusSHERPA/RoMEOhttp://www.sherpa.ac.uk/romeoSPELL – Scientific Periodicals Electronic Librarywww.spell.org.brSumários Brasileiros de Revistas Científicaswww.sumarios.funpeerp.com.brThomson ReutersSSCI, JCRwww.thomsonreuters.comDIRETÓRIOS10th Edition of Cabell’s Directory of PublishingOpportunities in Managementwww.cabells.comCLASE – Citas Latinoamericans en Sciencias Sociales y Humanidadeswww.dgbiblio.unam.mx/index.php/catalogosDiadorimdiadorim.ibict.brIBSS - International Bibliography of the Social Sciencewww.lse.ac.ukHAPI-Hispanic American Periodicals Índexhapi.ucla.eduLatindex - Sistema Regional de Información en Líneapara Revistas Científicas de América Latina, el Caribe,España y Portugalwww.latindex.orgUlrichs Periodical Directorywww.ulrichsweb.com
SAC / ASSINATURASAssinaJáTelefones: + 55 (11) 3512-9442 | + 55 (21) 4063-6989Horário de atendimento: segunda a sexta das 9 as 18h, exceto feriados.www.fgv.br/rae
A RAE - Revista de Administração de Empresas foi impressa com papel proveniente de madeira certificada FSC e de outras fontes controladas. A certificação FSC é uma garantia ao meio ambiente e aos trabalhadores florestais.
CORPO EDITORIAL CIENTÍFICOAlexandre de Pádua Carrieri (UFMG - Belo Horizonte - MG, Brasil), Allan Claudius Queiroz Barbosa (UFMG - Belo Horizonte - MG, Brasil), Ana Maria de Albuquerque Vasconcellos (UNAMA - Belém - PA, Brasil), Ana Paula Paes de Paula (UFMG - Belo Horizonte - MG, Brasil), Anatalia Saraiva Martins Ramos (UFRN - Natal - RN, Brasil), André Lucirton Costa (USP/FEA-RP - Ribeirão Preto - SP, Brasil), Andre Luis de Castro Moura Duarte (INSPER - São Paulo - SP, Brasil), Andre Ofenhejm Mascarenhas (Centro Universitário da FEI - São Paulo - SP, Brasil), Andrea Lago da Silva (UFSCAR – São Carlos – SP, Brasil), Anielson Barbosa da Silva (UFPB - João Pessoa - PB, Brasil), Antonio Díaz Andrade (AUT University - Auckland, Nova Zelândia), Antonio Domingos Padula (UFRGS - Porto Alegre - RS, Brasil), Antonio Lopo Martinez (FUCAPE - Vitoria - ES, Brasil), Antonio Moreira de Carvalho (PUC Minas - Belo Horizonte - MG, Brasil), Antonio Navarro-García (Universidad de Sevilla - Sevilha, Espanha), Bento Alves da Costa Filho (Ibmec-DF - Brasília - DF, Brasil), Bill Cooke (University of York - Heslington, Reino Unido), Carlos Jesús Fernández Rodríguez (Universidad Autónoma de Madrid - Madrid, Espanha), Carlos L. Rodriguez (UNCW - Wilimigton - NC, Estados Unidos), Cesar Alexandre de Souza (USP-FEA - São Paulo SP, Brasil), Claudio R. Lucinda (USP/FEA-RP - Ribeirão Preto - SP, Brasil), Dario de Oliveira Lima Filho (UFMS - Campo Grande - MS, Brasil), Delane Botelho (FGV-EAESP - São Paulo - SP, Brasil), Denise Del Prá Netto Machado (FURB - Blumenau - SC, Brasil), Diego Rene Gonzales Miranda (Universidad EAFIT - Medellín, Colômbia), Diogo Henrique Helal (UFPB - Joao Pessoa - PB, Brasil), Domingo Garcia-Perez-de-Lema (UPCT - Cartagena, Espanha), Edgard Barki (FGV-EAESP - São Paulo - SP, Brasil), Edmilson de Oliveira Lima (UNINOVE - São Paulo - SP, Brasil), Eduardo Andre Teixeira Ayrosa (FGV-EBAPE - Rio de Janeiro - RJ, Brasil), Ely Laureano de Paiva (FGV-EAESP - São Paulo - SP, Brasil), Eric David Cohen (Ibmec-Rio - Rio de Janeiro - RJ, Brasil), Eric van Heck (Erasmus University - Rotterdam, Holanda), Fábio Frezatti (USP-FEA - São Paulo - SP, Brasil), Fernanda Finotti Perobelli (UFJF - Juiz de Fora - MG, Brasil), Francisco Javier Rondán Cataluña (Universidad de Sevilla - Sevilla, Espanha), Gláucia Maria Vasconcellos Vale (PUC-Minas - Belo Horizonte - MG, Brasil), Glicia Vieira (UFES - Vitoria - ES, Brasil), Graziela Comini (USP-FEA - São Paulo - SP, Brasil), Graziela Dias Alperstedt (UDESC - Florianópolis - SC, Brasil), Heitor Almeida (College of Business at Illinois - Champaign, Estados Unidos), Henrique Luiz Côrrea (CRUMMER - Flórida - FL, Estados Unidos), Janete Lara de Oliveira (UFMG - Belo Horizonte - MG, Brasil), João Luiz Becker (UFRGS - Porto Alegre - RS, Brasil), Jorge Verschoore (São Leopoldo – RS, Brasil), José Antônio Gomes Pinho (UFBA - Salvador - BA, Brasil), José Henrique de Faria (UFPR - Curitiba - PR, Brasil), José Mauro C. Hernandez (USP-EACH - São Paulo - SP, Brasil), Luciano Barin Cruz (HEC-Montréal - Québec, Canada), Luiz Artur Ledur Brito (FGV-EAESP - São Paulo - SP, Brasil), Maria Alexandra Cunha (FGV-EAESP - São Paulo - SP, Brasil), Maria Ceci Araújo Misoczky (UFRGS - Porto Alegre - RS, Brasil), Mário Aquino Alves (FGV-EAESP - São Paulo - SP, Brasil), Mario Sacomano Neto (UNIMEP - São Paulo - SP, Brasil), Marlei Pozzebon (HEC-Montréal - Québec, Canada e FGV-EAESP - São Paulo - SP, Brasil), Mateus Canniatti Ponchio (ESPM - São Paulo - SP, Brasil), Mauricio Reinert (UEM - Maringá - PR, Brasil), Patricia Mendonça (USP-EACH - São Paulo - SP, Brasil), Paulo Bastos Tigre (UFRJ - Rio de Janeiro - RJ, Brasil), Paulo Roberto Barbosa Lustosa (UnB - Brasília - DF, Brasil), Rafael Alcadipani (FGV-EAESP - São Paulo - SP, Brasil), Rafael Goldszmidt (FGV-EBAPE - Rio de Janeiro - RJ, Brasil), Ramón Valle Cabrera (Universidad Pablo de Olavide - Sevilha, Espanha), Rebecca Arkader (UFRJ - Rio de Janeiro - RJ, Brasil), Ricardo Ratner Rochman (FGV-EAESP - São Paulo - SP, Brasil), Roberto Patrus Mundim Pena (PUC-Minas - Belo Horizonte - MG, Brasil), Rodrigo Bandeira-de-Mello (FGV-EAESP - São Paulo - SP, Brasil), Rodrigo Ladeira (UNIFACS - Salvador - BA, Brasil), Salomão Alencar de Farias (UFPE - Recife - PE, Brasil), Sérgio Bulgacov (FGV-EAESP - São Paulo - SP, Brasil), Sérgio Giovanetti Lazzarini (INSPER - São Paulo - SP, Brasil), Silvana Anita Walter (FURB - Blumenau - SC, Brasil), Sônia Maria Fleury (FGV-EBAPE - Rio de Janeiro - RJ, Brasil), Tales Andreassi (FGV-EAESP - São Paulo - SP, Brasil), Teresia D. L. van Ad. de Macedo-Soares (PUC-Rio - Rio de Janeiro - RJ, Brasil), Thomas Brashear Alejandro (University of Massachusetts Amherst - Amherst - MA, Estados Unidos), Vinicius Brei (UFRGS - Porto Alegre - RS, Brasil), Wilson Toshiro Nakamura (MACKENZIE – São Paulo – SP, Brasil).
COMITÊ DE POLÍTICA EDITORIALCarlos Osmar Bertero, Eduardo Diniz, Flávio Carvalho de Vasconcelos, Francisco Aranha, Luiz Artur Ledur Brito, Maria José Tonelli, Maria Tereza Leme Fleury, Tales Andreassi, Thomaz Wood Jr.
EDITOR CHEFEEduardo Diniz
EDITOR ADJUNTOFelipe Zambaldi
EDITORA DE LIVROSRoseli Morena Porto
Publicação bimestral da Fundação Getulio VargasEscola de Administração de Empresas de São Paulo
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PESQUISA E CONHECIMENTO | V. 55, N. 4, JULHO-AGOSTO 2015
RAE – Revista de Administração de Empresas / Fundação Getulio Vargas.Vol. 1, n. 1 (maio/ago. 1961) - . - Rio de Janeiro: Fundação Getulio Vargas, 1961 - v.; 27,5cm.
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EDITORIAL
Em breve, conheceremos a nova lista do Qualis. Na última vez que tratamos desse tema em um editorial (RAE, 52(3), 279), comemorávamos o resultado positivo dos periódicos brasilei-
ros na lista, relacionando essa melhora geral à evolução “tanto na qualidade dos processos de avaliação quanto na padronização de critérios editoriais, adotando práticas operacionais e éticas reco-nhecidas internacionalmente”. Comentávamos, também, o fato de alguns periódicos nacionais terem sido avaliados pela sua relevân-cia para a nossa comunidade e “classificados em estrato acima do estabelecido apenas pelos critérios objetivos”, ressaltando a “res-ponsabilidade daqueles que, como a RAE, foram premiados” em “evoluir mais ainda”, rumo a uma maior internacionalização.
Três anos talvez não seja muito para uma avaliação definiti-va, mas, no geral, evoluímos menos nestes últimos anos do que no período entre o Qualis 2008 e o Qualis 2012. Particularmente no que diz respeito à internacionalização dos nossos periódicos mais bem classificados, pouco se evoluiu. Há várias medidas para avaliar esse avanço da internacionalização, como submissões de fora do País ou publicação de artigos de autores de instituições estrangeiras, mas vamos considerar apenas a participação nos dois indexadores mais emblemáticos, Scopus e Web Of Science, não por acaso exatamente os que são a principal referência para elaboração do Qualis.
Após 2012, nenhum periódico nacional da área de Administra-ção entrou no pequeno grupo dos que já faziam parte de um desses dois indexadores, quase todos estreantes do período imediatamente anterior. Longe de culpar os periódicos por esta situação, até porque vários tentaram entrar nesses indexadores e não obtiveram sucesso, a questão é que não conseguimos evoluir como esperado. E, repetin-do o que já temos dito em muitas outras oportunidades, o problema não é de um ou outro periódico individualmente, mas de todo o nos-so conjunto de periódicos nacionais, pois o impacto de cada um de-pende das citações que recebe dos outros. Enquanto formos poucos periódicos nesses indexadores, continuaremos pouco relevantes nes-sas bases, pois ninguém nos cita mais do que nossos pares nacionais.
Dito isso, resta discutirmos coletivamente a saída para o problema da nossa relevância internacional. Volta a questão da estrutura de publicação que temos à disposição de nossos perió-dicos científicos, em geral precária e amadora, ainda que muitas vezes heroica, na concorrência com multinacionais poderosas e muito mais bem estruturadas, apesar de baseadas em modelos de negócio fechados em contraponto com nosso modelo brasileiro de acesso aberto. Se vamos perseguir alguma solução, melhor buscar inspiração em alguma iniciativa que tenha obtido algum sucesso nesse percurso de confronto com as grandes editoras que domi-nam nosso mercado.
Liderados pela Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD), já propusemos e construímos
o SPELL, que, se infelizmente ainda não conseguiu se firmar a pon-to de ser considerado na elaboração do Qualis, pelo menos mos-trou-se efetivo operacionalmente e, em breve, deve começar a pro-duzir os indicadores necessários para servir de referência para a nossa comunidade. Outro exemplo que pode ter algum efeito inspi-rador é o Public Library of Science (PLOS), editora de acesso aber-to que teve seu início com um conjunto de renomados e laureados cientistas californianos. Decididos a enfrentar o domínio das gran-des editoras científicas, formaram, na área de Saúde, um grupo que hoje edita cerca de 10 periódicos sobre os princípios da dissemi-nação ampla e aberta do conhecimento científico. Para isso, firma-ram-se com o modelo de negócio que ainda é tabu em nossa co-munidade, no qual os autores pagam para que os leitores tenham acesso gratuito ao conteúdo científico.
Independentemente de qual modelo venhamos a seguir, não é possível acreditar que possamos sair da estagnação em que estamos contando cada periódico exclusivamente com sua capaci-dade. A solução, qualquer que seja, só vai acontecer quando efe-tivamente estivermos atuando de maneira coletiva para robustecer nossa infraestrutura de publicação, preservando as identidades in-dividuais de cada periódico em seu processo de certificação cien-tífica. Quando conseguirmos isso, o Qualis vai, então, retratar a relevância de nossos periódicos, considerando a sua verdadeira contribuição para a ciência do País.
Nesta edição, publicamos o fórum internacional “Social Bu-sinesses”. O artigo “Social entrepreneurship and social business: retrospective and prospective research”, escrito pelos organizado-res, traz um panorama sobre a pesquisa na área de Negócios So-ciais e apresenta os três artigos aprovados no processo de avalia-ção. Além do fórum, há quatro artigos inéditos: “Um outro olhar sobre a eficiência dos mercados: o caso das bolsas de apostas de tênis” investiga a eficiência no mercado de apostas de mate-rial esportivo; “Brand equity of Lahore Fort as a tourism destina-tion brand” utiliza o modelo de Customer-Based Brand Equity para medir o valor da marca em um destino turístico no Paquistão; “The international growth of a social business: a case study” discute a influência dos resultados de negócios sociais em três países em de-senvolvimento; e “Strategic decisions of family firms on cash accu-mulation” analisa o impacto que as decisões nas empresas familia-res acarretam para a sustentabilidade financeira de seus negócios.
Completam esta edição a pensata “Garantias governamen-tais e competitividade no setor financeiro”, assinada pelo profes-sor Rafael Schiozer; e indicações bibliográficas sobre Ação Coletiva e Ação Pública e Os Negócios e a Gestão do Social.
Tenham todos uma boa leitura!
EDUARDO DINIZ | EDITOR CHEFE
DOI: http://dx.doi.org/10.1590/S0034-759020150401
ISSN 0034-7590© RAE | São Paulo | V. 55 | n. 4 | jul-ago 2015
Julho/Agosto 2015
FÓRUM
380 EMPREENDEDORISMO SOCIAL E NEGÓCIO SOCIAL: PESQUISA RETROSPECTIVA E PROSPECTIVA Apresentação do Fórum Social Businesses. Edgard Barki, Graziella Comini, Ann Cunliffe, Stuart Hart e Sudhanshu Rai
385 DILEMAS DE NEGÓCIOS SOCIAIS BRASILEIROS: CASO REDE ASTA Pesquisa qualitativa sobre as principais tensões e dilemas que ocorreram ao longo da história
da Rede Asta, pioneira em negócios sociais de vendas de produtos artesanais por meio de catálogo no Brasil.
Edson Sadao Iizuka, Carmen Augusta Varela e Elisa Rodrigues Alves Larroudé
397 MICROFINANÇAS E IMPACTOS DAS MUDANÇAS CLIMÁTICAS: O CASO DO AGROAMIGO NO BRASIL Estudo de caso sobre a interface entre microfinanças e ações de mudanças climáticas, com
contribuições acerca de oportunidades para iniciativas que envolvam os dois campos. Rafael Magnus Barbosa Moser e Lauro Gonzalez
408 ADESÃO À CAUSA, ATITUDES E COMPORTAMENTOS POSITIVOS NAS ORGANIZAÇÕES HÍBRIDAS COLOMBIANAS
Estudo empírico sobre os efeitos da adesão à causa nos comportamentos e atitudes de diversos colaboradores de uma organização híbrida na Colômbia.
Juan Pablo Román-Calderón, Carlo Odoardi e Adalgisa Battistelli
ARTIGOS
418 UM OUTRO OLHAR SOBRE A EFICIÊNCIA DOS MERCADOS: O CASO DAS BOLSAS DE APOSTAS DE TÊNIS Investigação da eficiência do principal mercado de apostas de tênis em nível mundial com uso de
dados provenientes da bolsa de apostas Betfair. Júlio Lobão e Nuno Marques Rolla
432 BRAND EQUITY DO FORTE LAHORE COMO UMA MARCA DE DESTINO TURÍSTICO Investigação sobre o branding do Forte Lahore como destino turístico, com uso do modelo
de construção da marca como ativo com base no cliente no contexto de um país em desenvolvimento.
Muhammad Kashif, Siti Zakiah Melatu Samsi e Syamsulang Sarifuddin
444 O CRESCIMENTO INTERNACIONAL DE UM NEGÓCIO SOCIAL: UM ESTUDO DE CASO Discussão sobre fatores que influenciam os resultados de negócios sociais, suas naturezas e
realidades sociais em três países em desenvolvimento: Botsuana, Brasil e Jordânia. Anita Maria de Moura, Graziella Comini e Armindo dos Santos de Sousa Teodósio
461 DECISÕES ESTRATÉGICAS DE EMPRESAS FAMILIARES SOBRE ACÚMULO DE DINHEIRO Análise das características e estratégias distintas de empresas familiares em relação à quantidade
de dinheiro que mantêm. Maria Belen Lozano
PENSATA
467 GARANTIAS GOVERNAMENTAIS E COMPETITIVIDADE NO SETOR FINANCEIRO Reflexão sobre a relação entre o uso de garantias governamentais e suas variações e a
competitividade do setor financeiro. Rafael Schiozer
INDICAÇÕES BIBLIOGRÁFICAS
474 AÇÃO COLETIVA E AÇÃO PÚBLICA Zilma Borges
475 OS NEGÓCIOS E A GESTÃO DO SOCIAL Andrea Leite Rodrigues
SUMÁRIO
July/August 2015
CONTENTS
FORUM
380 SOCIAL ENTREPRENEURSHIP AND SOCIAL BUSINESS: RETROSPECTIVE AND PROSPECTIVE RESEARCH Presentation of the Social Businesses Forum. Edgard Barki, Graziella Comini, Ann Cunliffe, Stuart Hart and Sudhanshu Rai
385 SOCIAL BUSINESS DILEMMAS IN BRAZIL: REDE ASTA CASE Qualitative research into the main tensions and dilemmas that have occurred throughout the
history of the Rede Asta, a social business pioneer that sells handmade products via a catalogue in Brazil.
Edson Sadao Iizuka, Carmen Augusta Varela and Elisa Rodrigues Alves Larroudé
397 MICROFINANCE AND CLIMATE CHANGE IMPACTS: THE CASE OF AGROAMIGO IN BRAZIL A case study into the interface that exists between microfinance and climate change actions, with
contributions relating to opportunities for initiatives that involve both fields. Rafael Magnus Barbosa Moser and Lauro Gonzalez
408 CAUSE-FIT, POSITIVE ATTITUDES AND BEHAVIORS WITHIN HYBRID COLOMBIAN ORGANIZATIONS An empirical study into the effects that joining the cause has on the behaviors and attitudes of
different employees of a hybrid organization in Colombia. Juan Pablo Román-Calderón, Carlo Odoardi and Adalgisa Battistelli
ARTICLES
418 ANOTHER LOOK AT THE EFFICIENCY OF MARKETS: THE CASE OF THE TENNIS BETTING EXCHANGES An investigation into the efficiency of the main, global tennis betting market, using data from the
Betfair tennis betting exchange. Júlio Lobão and Nuno Marques Rolla
432 BRAND EQUITY OF LAHORE FORT AS A TOURISM DESTINATION BRAND Investigation into the branding of Lahore Fort as a tourism destination, using the customer-based,
brand equity construction model within the context of a developing country. Muhammad Kashif, Siti Zakiah Melatu Samsi and Syamsulang Sarifuddin
444 THE INTERNATIONAL GROWTH OF A SOCIAL BUSINESS: A CASE STUDY Discussion of the factors that have an influence on the results of social businesses, their natures
and social realities in three developing countries: Botswana, Brazil and Jordan. Anita Maria de Moura, Graziella Comini and Armindo dos Santos de Sousa Teodósio
461 STRATEGIC DECISIONS OF FAMILY FIRMS ON CASH ACCUMULATION Analysis of the characteristics and different strategies of family firms with regard to the amount of
money they keep. Maria Belen Lozano
ESSAY
467 GOVERNMENT GUARANTEES AND COMPETITIVENESS IN THE FINANCIAL SECTOR Reflection on the relationship between the use of government guarantees and their variations and
the competiveness of the financial sector. Rafael Schiozer
BOOK RECOMMENDATION
474 COLLECTIVE ACTION AND PUBLIC ACTION Zilma Borges
475 BUSINESS AND SOCIAL MANAGEMENT Andrea Leite Rodrigues
ISSN 0034-7590© RAE | São Paulo | V. 55 | n. 4 | jul-ago 2015
ISSN 0034-7590© RAE | São Paulo | V. 55 | n. 4 | jul-ago 2015
SUMARIO
Julio-Agosto 2015
FÓRUM
380 EMPRENDEDORISMO SOCIAL Y NEGÓCIO SOCIAL: ESTUDIO RETROSPECTIVO Y PROSPECTIVO Presentación del Foro Social Businesses. Edgard Barki, Graziella Comini, Ann Cunliffe, Stuart Hart y Sudhanshu Rai
385 DILEMAS DE NEGOCIOS SOCIALES BRASILEÑOS: CASO REDE ASTA Estudio cualitativo sobre las principales tensiones y dilemas que suceden a lo largo de la historia
de la Rede Asta, pionera en negocios sociales de ventas de productos artesanales por medio de catálogo en Brasil.
Edson Sadao Iizuka, Carmen Augusta Varela y Elisa Rodrigues Alves Larroudé
397 MICROFINANZA Y LOS IMPACTOS DE LOS CAMBIOS CLIMÁTICOS: EL CASO DEL AGROAMIGO EN BRASIL Estudio de caso sobre la interfaz entre microfinanzas y acciones de cambios climáticos, con
contribuciones acerca de oportunidades para iniciativas que involucran los dos campos. Rafael Magnus Barbosa Moser y Lauro Gonzalez
408 ADHESIÓN A LA CAUSA, ACTITUDES Y COMPORTAMIENTOS POSITIVOS EN ORGANIZACIONES HÍBRIDAS COLOMBIANAS
Estudio empírico sobre los efectos de la adhesión a la causa en los comportamientos y actitudes de diversos colaboradores de una organización híbrida en Colombia.
Juan Pablo Román-Calderón, Carlo Odoardi y Adalgisa Battistelli
ARTÍCULOS
418 OTRA MIRADA SOBRE LA EFICIENCIA DE LOS MERCADOS: EL CASO DE LAS BOLSAS DE APUESTAS DE TENIS
Investigación de la eficiencia del principal mercado de apuestas de tenis a nivel mundial usando datos provenientes de la bolsa de apuestas Betfair.
Júlio Lobão y Nuno Marques Rolla
432 BRAND EQUITY DEL FUERTE LAHORE COMO UNA MARCA DE DESTINO TURÍSTICO Investigación sobre el branding del Fuerte Lahore como destino turístico, con uso del modelo de
construcción de la marca como activo con base en el cliente en el contexto de un país en desarrollo. Muhammad Kashif, Siti Zakiah Melatu Samsi y Syamsulang Sarifuddin
444 EL CRECIMIENTO INTERNACIONAL DE UN NEGOCIO SOCIAL: UN ESTUDIO DE CASO Discusión sobre factores que influyen los resultados de negocios sociales, sus naturalezas y
realidades sociales en tres países en desarrollo: Botsuana, Brasil y Jordania. Anita Maria de Moura, Graziella Comini y Armindo dos Santos de Sousa Teodósio
461 DECISIONES ESTRATÉGICAS DE EMPRESAS FAMILIARES SOBRE ACUMULACIÓN DE EFECTIVO Análisis de las características y las diferentes estrategias de empresas familiares en relación con la
cantidad de efectivo que guardan. Maria Belen Lozano
ENSAYO
467 GARANTÍAS GUBERNAMENTALES Y COMPETITIVIDAD EN EL SECTOR FINANCIERO Reflexión sobre la relación entre el uso de garantías gubernamentales y su barrido y la competitividad
del sector financiero. Rafael Schiozer
INDICACIONES BIBLIOGRÁFICAS
474 ACCIÓN COLECTIVA Y ACCIÓN PÚBLICA Zilma Borges
475 LOS NEGOCIOS Y LA GESTIÓN DE LO SOCIAL Andrea Leite Rodrigues
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CALL FOR PAPERSTransnational Governance regimes in the Global South:
Multinational, States and NGOs as political actorsDeadline: August 31 2015
Guest editors: Glenn Morgan (Cardiff Business School), Marcus Vinícius P. Gomes (FGV-EAESP) and Paola Perez-Aleman (McGill University)
PURPOSE OF THE SPECIAL ISSUEPolanyi’s ‘double movement’ described how social actors construct institutions that confine and regulate markets. In his view, the history of capitalism in the 19th and early 20th centuries could be understood in terms of when and how certain key aspects of life were taken out of the market sphere and placed predominantly within the state. The state needed to intervene as a counterweight to the power of the market. In recent decades, neo-liberalism and globalization have changed this terrain and undermined the capability of states to perform such a role. Under conditions of free movement of capital, multinationals’ ability to move locations and shop for more favorable regimes has been massively enhanced. States com-pete against each other for multinational investment by offering incentives, tax concessions, etc. and labor movements, where they still exist, are also drawn into these processes. On top of this, states have also tended to be absent from or neglectful of a whole range of issues around environment and sustainability which have increased in saliency and importance for their electorates, leaving multina-tionals operating in these areas with limited monitoring or supervision of their ac-tivity. The result in many countries has been disillusion amongst electorates with the prevailing political parties and the rise, on the one hand, of extremist populism and on the other hand, of transnational social movements and NGOs using new forms of activism as an alternative way to fetter the unrestrained market power exercised by MNCs and local elites.
States are increasingly having to find new ways to shape markets for social purposes and foster development in these contexts. In a number of areas such as human rights, labor rights (concerning trade unions, wages and overtime, health and safety at work, child labor, human slavery), indigenous land rights and environmental issues (in forestry, marine life, biodiversity, climate change, among others), states have increasingly negotiated with large multinationals, social movements, international organizations and NGOs to develop transnatio-
nal governance systems that set transparent standards and codes of conduct for corporations. These multi-stakeholder initiatives are emerging to identify, discipline and reconstitute naked market mechanisms so that a wide range of social and environmental standards of production have to be taken into ac-count and implemented by firms. This form of taming the market depends on corporations’ fear that failure to abide by standards will lead to reputational damage that in turn will impact on markets through activist and aware consu-mers boycotting products. More recently states have been using these systems as the basis for denying entry to their markets to products that do not conform to these standards, e.g. as in the EU’s FLEGT system for forestry products. The result has been the rise of transnational communities of technical experts (in creating certification systems and monitoring and auditing them) connecting states, social movements and NGOs and multinational firms into a sphere of negotiated orders that aims to institutionalize soft law regimes based on cor-porate codes, reputation management and responsible consumption. These developments constitute challenges for state regulation in terms of how the state connects to the issues raised by NGOs and social movements and how far states, particularly in the Global South and in big and powerful economies such as the BRICs are willing to sacrifice areas of sovereignty to transnational governance regimes promoted mainly from the Global North and often driven by the interests of consumers and MNCs from the Global North. Finally these processes also create tensions in social movements and NGOs with more ra-dical agendas that challenge the fundamental principles of global capitalism – how do they reconcile their goals with pragmatic involvement in soft law trans-national governance regimes?
In this Call therefore we are interested in both the limits to transnational governan-ce as well as how it has grown and developed.
THEMES AND TOPICSThe guest editors welcome submissions related, but not limited to, the following issues:
• The impact of transnational governance mechanisms on issues of sustainability, human rights and inequality.
• The partnership between global and local social movements to address issues of inequality and sustainability.
• The interaction of global social movements with local indigenous communities and grassroots’ movements in limiting the power of MNCs and in opening governance to previously excluded groups.
• The role of states in relation to transnational governance and soft law processes.
• The processes whereby transnational communities of experts are formed and maintained.
• The impact of social media networks in the transnational governance arena.
• The different repertoires NGOs use to different audiences in order to legitimate their role, e.g. as ‘guerrilla’ for their radical supporters, as ‘research’ for their policy making community or as ‘consultancy’ when taking on monitoring and auditing tasks for MNCs.
SUBMISSION OF PAPERSPapers submitted must not have been published, accepted for publication, or presently be under consideration for publication elsewhere. To be eligible for review the paper must be set up according to the RAE’s guidelines (available at www.fgv.br/rae). The papers must be wri-tten in English. The submission must be made through the ScholarOne system at http://mc04.manuscriptcentral.com/rae-scielo. Suitable papers will be subjected to a blind review. Please address questions to Marcus Vinícius P. Gomes ([email protected]).
RAE-REVISTA DE ADMINISTRAÇÃO DE EMPRESAS(JOURNAL OF BUSINESS ADMINISTRATION)
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CALL FOR PAPERS
ICT for Development in Ibero-AmericaDeadline: November 30 2014
Guest editors: Antonio Díaz Andrade (Auckland University of Technology/ New Zealand) andNicolau Reinhard (FEA-USP/Brazil)
PURPOSE OF ThE SPECIAL ISSUEIbero America is a vast region that spans two continents and is home of close to 10% of the world population. Established in the 16th century, Latin America has a long history of cultural connections with Portugal and Spain. The Latin American region is immensely rich in natural resources, yet it has the world’s most unequal wealth distribution (de Ferranti, Perry, Ferreira & Walton, 2004). A sizable portion of its inhabitants has limited or no access at all to health care and education services. Portugal and Spain, while being part of the countries with very high human development indexes, lag behind most of their European neighbours (UNDP, 2013) and have been severely affected by the euro crisis since early 2009.
It is against this background that governments, international donors and local non-governmental organisations have implemented a number of information and communication technology (ICT) initiatives aiming at increasing economic development, enhancing social opportunities and expanding political liberties on both sides of the Atlantic. This special issue calls for theoretical and practical contributions on how access to relevant information and the provision of critical services using ICT tools influence people’s living conditions.
ThEMES AND TOPICS
This special issue welcomes theoretical and empirical submissions with a focus on the Ibero-American region in the following areas (but not limited to):
• Unequal Access to ICT • Local identities
• Conceptual frameworks • Methodological approaches to ICT4D
• Diffusion and adoption of IT • Open business models and ICT4D
• Educational applications • Policy issues and legal frameworks
• Ethical aspects of ICT4D • Political implications of ICT4D
• Health informatics • Social innovations
• ICT and micro-entrepreneurship • Social movements
• ICT for economic development • Stakeholders engagement
• ICT4D and social inclusion • Urban issues and ICT
• ICT4D applications • Telecentres
SUBMISSION OF PAPERSPapers submitted must not have been published, accepted for publication, or presently be under consideration for publication elsewhere. To be eligible for review the paper must be set up according to the RAE’s guidelines (Available at www.fgv.br/rae). The papers must be written in English. The submission must be made through the ScholarOne system at http://mc04.manuscriptcentral.com/rae-scielo. Suitable papers will be subjected to a blind review.Please address questions to Antonio Díaz de Andrade ([email protected]).
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EDGARD [email protected] at Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo – São Paulo – SP, Brazil
GRAZIELLA [email protected] at Universidade de São Paulo, Faculdade de Administração, Economia e Contabilidade – São Paulo – SP, Brazil
ANN CUNLIFFE [email protected] at University of Bradford, School of Management – Bradford – Yorkshire, United Kingdom
STUART HART [email protected] at University of Vermont, Business School – Burlington – Vermont, United States of America
SUDHANSHU RAI [email protected] at Copenhagen Business School, Department of Intercultural Communication and Management – Frederiksberg, Denmark
FORUMInvited article
SOCIAL ENTREPRENEURSHIP AND SOCIAL BUSINESS: RETROSPECTIVE AND PROSPECTIVE RESEARCHSocial Entrepreneurship and Social Business (SE/SB), inclusive business, businesses with social impact and a higher purpose are becoming increasingly important both in academia and the busi-ness world (Sassmannshausen & Volkmann, 2013). Since the influential article by Dees (1998), many different perspectives about social entrepreneurship and social business have been dis-cussed in academia. On the management side, these types of businesses have also proliferated in the last decades. Yunus with his work leading Grameen Bank has inspired many other entrepre-neurs and organizations to create a new kind of business more embedded with a social purpose.
The main purpose of the Social Entrepreneurship and Social Business (SE/SB) field is to diminish vulnerabilities and social inequalities in the world. Indeed, SE/SB are emerging as prac-titioners of market forces that play an integrative role in bridging sustainable business models with society needs, that still exist because of opportunities arising from government gaps.
According to Yunus (2010), one of the goals of SE/SB is to reduce poverty. Therefore, another stream of thought that is aligned with SE/SB is the Base of the Pyramid (BoP). From the semi-nal article by Prahalad and Hart (2002) much has been debated about BoP and how businesses might have a social impact. From a first approach based on the idea of a market base, the BoP field has evolved to a more inclusive perspective that has some relations to the concepts of SE/SB and currently has some of the same challenges of creating more inclusive approaches.
The purposes of this article are twofold: firstly to examine some of the main themes dis-cussed about SE/SB up to the moment and secondly to present some major themes that we believe will be the focus in the next years.
RETROSPECTIVE VIEW
In a retrospective view, the field of SE/SB has evolved in many dimensions in the last decade. A quali-tative analysis of the field, based on perceptions from the literature and from the ecosystem of SE/SB, indicates four central themes (for a quantitative analysis see Sassmannshausen & Volkmann, 2013).
The first theme is about conceptualization, which is important for any new field. There are many different perspectives to define social businesses (Comini, Barki, & Aguiar, 2012). Currently, the sector presents several concepts: including business, social entrepreneurship, and business with social impact, among others. Although different, they all have in common the notion of using a busi-ness model with a higher purpose, financially sustainable and that has a social impact (Young, 2007).
Yunus (2010) is one of the leading advocates of the social business concept, with his argu-ment of “no loss, no dividend”. He believes that social businesses have the social impact as their main objective and that all profits should be reinvested in the organization. For Yunus (2010) there is another type of social business: the one owned by the poor and that the profitability of the organization goes to them as a means to alleviate poverty.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150402
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However, this is not the only perspective. Chu (2007), for instance, argues that, in order to have a higher impact, social business should distribute dividends to shareholders. This would be the best way so as to attract more investments.
Moreover, in Europe, social enterprise is recognized as a legal form of organization in most countries and tends to include nonprofit organizations. It is also often based on cooperatives, with beneficiary participation and that intend to address issues as social inclusion and employment (Comini et al., 2012; Kerlin 2006; Travaglini, Bandini, & Mancinone, 2009).
When defining social businesses, it is important to dif-ferentiate them from traditional businesses. Although similar in many venues, these two types of organizations have some dif-ferences. The most accepted difference regards their purpose (Austin, Stevenson, & Wei-Skillern, 2006; Martin & Osberg 2007). Social entrepreneurs are similar to traditional entrepreneurs, but they tend to focus on filling a gap or a basic need of society. Basi-cally, social entrepreneurs attempt to create and sustain a social value as their main drivers (Dees, 1998). In the words of Martin and Osberg (2007, p. 35),
Unlike the entrepreneurial value proposition that assumes a market that can pay for the innovation, and may even provide substantial upside for in-vestors, the social entrepreneur’s value proposi-tion targets an underserved, neglected, or highly disadvantaged population that lacks the finan-cial means or political clout to achieve the trans-formative benefit on its own.
The second important discussion is about the dilemmas inherited by the definition. Social businesses bring within the concept a dichotomy that is difficult to deal. How can businesses be more social? Despite some good examples of this possibil-ity, there is still a big discussion about the positive impact that traditional businesses or even social businesses might create.
On one side, authors such as Porter and Kramer (2011), Mackey and Sisodia (2013) and London and Hart (2011) claim that traditional businesses might have a higher purpose and not seek only profits. In this perspective, instead of a trade-off between profits and social impact, there could be a win-win sit-uation, in which investments in the social arena could benefit the businesses. The concept of social business by Yunus (2007, 2010) goes beyond in the sense that these organizations have as their main goal the social impact, and business models are the engine to foster it.
On the other hand, Crane, Palazzo, Spence, and Matten (2014), for instance, believe that most of the time there is ten-
sion between the social impact and the profit generation than a win-win possibility. Moreover, according to Epstein and Yuthas (2010) even organizations with a social mission and working with microfinance suffer from the tension between social and finan-cial objectives.
One third issue is related to social innovation. Many authors believe that social businesses need to do things differ-ently and therefore it is important to understand the processes and challenges of social innovation (Dees & Anderson, 2003; Lettice & Parekh, 2010; Mulgan, 2006). Social innovation might be defined as new ideas that seek to develop ways to improve the society (Mulgan, 2006; Murray, Caulier-Grice, & Mulgan, 2010). The research on social innovation is mostly based on the processes of creating a social innovation and how social entre-preneurs and private organizations could benefit from it.
Finally, a fourth aspect that is being researched with more emphasis is how to measure social impact, an obvious step for organizations that aim at a social purpose. Although the litera-ture on social impact is vast (Khandker, Koolwal, & Samad, 2010), there is not an easy way to perform it.
One of the main issues is to define clearly cause-effect relationships and isolating other causes that might have been the cause of the social impact (Khandker et al., 2010). Moreover, when measuring social impact it is easier to evaluate the outputs than the outcomes, that is, most of the times, the real objective of the organization. Figure 1 presents the main research topics of SE/SB in a retrospective view.
Figure 1. Retrospective view of main research topics SE/SB
Conceptualization
Social innovationDilemmasbusiness x social
Evaluation of social impact
PROSPECTIVE VIEW
In our view, some of the previous discussions will still be import-ant, but the field is fluid and some will diminish and new ones will appear. As the field of SE/SB becomes more mature, the two first issues will be better articulated: both conceptualization
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and the dilemma of the tension between social and financial will probably move to the background and give place to other more complex subjects.
On the other hand, the process of social innovation and mainly the measurement of the social impact are themes that must gain more importance due to their central role in the sector that is seeking a higher level of professionalism and impact. Inves-tors, entrepreneurs and researchers have still a long way to go to define processes of social innovation and to advance in method-ologies to measure social impact.
Due to the need to replicate and scale good experiences, one question that still must be better explored is how to foster SE/SB? Indeed, few researchers have analyzed strategies and business models that might be used more successfully by SE/SB. Getting insights from other literatures, like the Resource Based View (RBV) from strategy, culture organization, or brand commu-nity might be an opportunity for new research venues.
Aligned with this question is the problem of how to create and define social impact? Embedded in this issue there is the idea of how to better define the possible benefits of a SE/SB and how to create a social impact in a deeper way. There is also a discus-sion in the tension between relevance of the impact and number of people impacted. Some organizations impact many people, but in a smooth manner. On the other hand, some organizations are very impactful to fewer people. The discussion is how and to what extent it is possible to impact many people in a deep way.
Moreover, few researchers have discussed the possibili-ties and difficulties of linking social and environmental impact. As Hart argues “what happens if companies today think about taking a great leap all the way to the base of the pyramid and vetting technologies and business models there?” (Hart, 2005, p. 27). There is a huge avenue to analyze innovations that take into account simultaneously social, environment and business models.
Another stream of thought is the role of Multinational Cor-porations (MNCs). In this case, at least three research possibilities appear: the first one is how MNCs can include social businesses in their supply chain and therefore foster these organizations in a more sustainable way. Private companies are dominant in marketplace and their buying power makes all the difference for social entrepreneurs that are willing to gain some opportunities in these large companies.
The second issue is how MNCs can incorporate the learning and innovation brought from the social business arena to their own businesses. In other words, how the business might have a higher purpose and embed the concept that “doing good might be good for the business”.
The third point regarding MNCs is the importance of the social intrapreneur. Besides some exceptions (Grayson, McLaren,
& Spitzeck, 2014; Sustainability Report, 2008), few researchers have addressed this subject. However, this is a theme that will probably grow. One of the reasons is that there is a new gener-ation of employees in large companies that want to perceive a different purpose for their work.
A final point is the possibilities of researches on the eco-system. Besides analyzing the business models, a different perspective is to analyze the environment in which SE/SBs are inserted. What is the role of the Government, incubators, accel-erators, investors and other agents? Moreover, there is a growing field of social finance that has a direct impact in SE/SB. In these cases, for instance the literature of relationship, agency theory, cooperation and collaboration might be the basis for this dis-cussion. Figure 2 presents the main research topics of SE/SB in a prospective view.
Figure 2. Prospective view of main research topics SE/SB
How to create/definesocial impact Social innovation
SE/SB ecosystem Evaluation of social impact
How to foster SE/SB(ex: strategy literature)Role of MNCs Environmental
x social impact
SE/SB FORUM
This forum presents three articles that discuss some of the issues raised before: the dilemmas of SE/SB, the link between social and environment impact and how to foster SE/SB.
Iizuka, Varela, and Larroudé’s (2015) article on “Social business dilemmas in Brazil: Rede Asta case” examines the ten-sions and dilemmas faced by social business in Brazil as they try to balance a social and ethical goal with the need to develop a business venture. Based on an exploratory qualitative case study of Asta, a network selling artisan products made by low-income groups by catalogue, they identify and analyze a number of ten-sions faced by the organization, in particular how to: measure business performance, maximize sales channels, value diversity, develop a brand name, manage the various structures, cultures and practices used by different production groups, and finally how to balance results/income generation/growth/and respon-sible environmental practices.
The article makes a theoretical contribution by building on Smith, Gonin, and Besharov’s (2013) four variables of per-
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formance, organization, belonging and learning by arguing that tensions tend to generate dilemmas, which contribute to the meaning and understanding of social businesses through an ongoing process of creating meanings and understandings.
In “Microfinance and climate change impacts: The case of Agroamigo in Brazil”, Moser and Gonzalez (2015) explore the relationship and potential impact of climate change on microfi-nance through a study of Agroamigo, the largest rural microcredit program in Brazil. Natural disasters such as droughts and storms affect assets and therefore the ability of microfinance clients to repay loans. Using document analysis of Agroamigo’s financial reports, field observation and interviews with national manag-ers, a regional manager, coordinators, credit agents, and clients, they gathered data on the design and performance of products for extreme weather events, along with client experiences of such events. Findings indicate that Agroamigo aims to enhance community resilience to climate change by offering lending mech-anisms that help clients in poor areas respond to the impact of climate change. However, the authors argue that these do not go far enough, and make recommendations for improvement and possible adaptive actions, including playing a more proactive role by diversifying its portfolio and assessing renewable energy sources as a new market opportunity.
Román-Calderón, Odoardi, and Battistelli (2015) use the concept of the psychological contract to examine whether employ-ees’ perceptions of the fit between their values and the social mission of the organization led to greater identification. They argue that employees of such organizations are often driven by a social cause, and therefore a match between the ideological values of the employee and those of the organization is important in establishing productive and cooperative relationships. Based on a survey carried out in a Columbian socially-oriented, for-profit hybrid organization aiming to help disadvantaged women, the authors assess workers feelings of being respected, their job satisfaction, organizational citizenship behavior, and turn-over intentions. They conclude that a perceived fit has a positive impact on identification, and that employers need to recognize the need to align the organization mission with personal values through improved communication strategies.
REFERENCES
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Chu, M. (2007). Commercial returns at the base of the pyramid. Innovations, 2(1-2), 115-146. doi:10.1162/itgg.2007.2.1-2.115
Comini, G., Barki, E., & Aguiar, L. (2012). A three-pronged approach to social business: A Brazilian multi-case analysis. RAUSP-Revista de Administração da Universidade de São Paulo, 47(3), 385-397. doi:10.5700/rausp1045
Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the value of “creating shared value”. California Management Review, 56(2), 130-153.
Dees, J. (1998). The meaning of social entrepreneurship. Boston, MA: Harvard Business School.
Dees J. G., & Anderson B. B. (2003). For-profit social ventures. In Social entrepreneurship, Eds. M. L. Kourilsky & W. B. Walstad. Birmingham, UK: Senate Hall Academic Publishing.
Epstein, M., & Yuthas, K. (2010). Mission impossible: Diffusion and drift in the microfinance industry. Sustainability Accounting, Management and Policy Journal, 1(2), 201-221. doi:10.1108/20408021011089248
Grayson, D., McLaren, M., & Spitzeck, H. (2014). Social intrapreneurism and all that jazz: How business innovators are helping to build a more sustainable world. Sheffield: Greenleaf Publishing.
Hart, S. (2005). Innovation, creative destruction and sustainability. Research Technology Management, 48(5), 21-27.
Iizuka, E. S., Varela, C. A., & Larroudé, E. R. A. (2015). Social business dilemmas in Brazil: Rede Asta case. RAE-Revista de Administração de Empresas, 55(4), 385-396. doi:10.1590/S0034-759020150403.
Khandker, S. R., Koolwal, G. B., & Samad, H. A. (2010). Handbook on impact evaluation: Quantitative methods and practices. Washington: The International Bank for Reconstruction and Development/The World Bank.
Kerlin, J. (2006). Social enterprise in the United States and Europe: Understanding and learning from the differences. International Journal of Voluntary and Nonprofit Organizations, 17(3), 246-262. doi:10.1007/s11266-006-9016-2
Lettice, F., & Parekh, M. (2010). The social innovation process: Themes, challenges and implications for practice. International Journal of Technology Management, 51(1), 139-158. doi:10.1504/IJTM.2010.033133
London, T., & Hart, S. (2011). Next generation business strategies for the base of the pyramid. New Jersey: Pearson Education.
Mackey, J., & Sisodia, R. (2013). Conscious capitalism: Liberating the heroic spirit of business. Boston: Harvard Business School Publishing.
Martin, R. L., & Osberg, S. (2007, Spring). Social entrepreneurship: The case for definition. Stanford Social Innovation Review, 5(2), p. 28-39. Retrieved from http://www.ssireview.org/
Moser, R. M. B, & Gonzalez, L. (2015). Microfinance and climate change impacts: The case of Agroamigo in Brazil. RAE-Revista de Administração de Empresas, 55(4), 397-407. doi:10.1590/S0034-759020150404.
Mulgan, G. (2006). The process of social innovation. Innovations, 1(2), 145-162. doi:10.1162/itgg.2006.1.2.145
Murray, R., Caulier-Grice, J., & Mulgan, G. (2010). The open book of social innovation. London: The Young Foundation.
Porter, M., & Kramer, M. (2011). Creating shared value. Harvard Business Review, 89(1-2), 62-77.
Prahalad, C. K., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy + business, 26. Retrieved from http://www.cs.berkeley.edu/
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Román-Calderón, J. P., Odoardi, C., & Battistelli, A. (2015). Cause-fit, positive attitudes and behaviors within hybrid Colombian organizations. RAE-Revista de Administração de Empresas, 55(4), 408-417. doi:10.1590/S0034-759020150405.
Sassmannshausen, S. P., & Volkmann, C. (2013). A bibliometric based review on social entrepreneurship and its establishment as a field of research [Schumpeter Discussion Papers 2013-003]. Wuppertal: Schumpeter School of Business and Economics.
Smith, W. K., Gonin, M., & Besharov, M. L. (2013). Managing social-business tensions: A review and research agenda for social enterprises. Business Ethics Quarterly, 23(3), 407-442. doi:10.5840/beq201323327
Sustainability Report (2008). The social intrapreneur: A field guide for corporate changemakers. Retrieved from http://www.sustainability.com/library/the-social-intrapreneur#.VGuX98kinEg.
Travaglini, C., Bandini, F., & Mancinone, K. (2009, July 1-4). Social enterprises in Europe: Governance models. an analysis of social enterprises governance models through a comparative study of the legislation of eleven countries. Proceedings of the EMES International Conference on Social Enterprise, Trento, Italy, 2.
Young, D. R. (2007, January). A unified theory of social enterprise [Working Paper 07-01]. Andrew Young School of Policy Studies, Atlanta: Georgia State University.
Yunus, M. (2007). Creating a world without poverty. Philadelphia: Public Affairs.
Yunus, M (2010). Building social business: The new kind of capitalism that serves humanity’s most pressing needs. Philadelphia: Public Affairs.
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EDSON SADAO IIZUKA [email protected] at Centro Universitário da FEI, Departamento de Administração – São Paulo – SP, Brazil
CARMEN AUGUSTA VARELA [email protected] at Centro Universitário da FEI, Departamento de Administração – São Paulo – SP, Brazil
ELISA RODRIGUES ALVES LARROUDÉ [email protected] at Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo – São Paulo – SP, Brazil
FORUMSubmitted 12.10.2013. Approved 06.09.2014Evaluated by double blind review process. Scientific Editors: Edgard Barki, Graziella Comini, Ann L Cunliffe, Stuart Hart and Sudhanshu Rai
SOCIAL BUSINESS DILEMMAS IN BRAZIL: REDE ASTA CASEDilemas de negócios sociais brasileiros: caso Rede Asta
Dilemas de negocios sociales brasileños: caso Rede Asta
ABSTRACTSocial businesses seek financial, social and even environmental results. Academic knowledge on how such organizations operate, however, has emerged more recently. This article sought to investigate qualitatively the main tensions and dilemmas occurring throughout the history of Rede Asta, a pioneer social business in direct catalog sales of artisanal products in Brazil. Results indicate the Rede Asta managers have experienced tensions and dilemmas in three of the four categories identified by Smith, Gonin, and Besharov (2013): social and financial performance, organizational aspects and learning. One of the dilemmas involves organizational aspects and learning, since Asta achieves feasibility with two organizations: a nonprofit association and a for-profit corporation. On perceptions of belonging, stakeholders declared they felt they were a part of the organization’s social and environmental goals; some even as activists.KEYWORDS | Social entrepreneurship, social businesses, tensions, dilemmas, Rede Asta.
RESUMONegócios sociais buscam, simultaneamente, resultados financeiros, sociais e até mesmo ambientais. Contudo, o conhecimento acadêmico sobre o funcionamento dessas organizações é incipiente. Este artigo buscou investigar as principais tensões e dilemas vividos na trajetória da Rede Asta – um negócio social pioneiro na venda direta por catálogo de produtos artesanais no Brasil – utilizando métodos qualitativos de pesquisa (entrevistas, observação direta e estudo de caso). Os resultados indicaram que as gestoras da Rede Asta têm convivido com tensões e dilemas em três dos quatro aspectos identificados por Smith, Gonin, e Besharov (2013): desempenho financeiro e social, aspectos organizacionais e de aprendizado. Um dos dilemas envolve aspectos organizacionais e aprendizagem, pois legalmente a Rede Asta viabiliza o negócio com duas organizações: uma associação não-lucrativa e uma empresa com fins lucrativos. Já no aspecto de pertencimento à organização, as pessoas declaram-se pertencentes aos objetivos sociais e ambientais da Rede; algumas inclusive como ativistas.PALAVRAS-CHAVE | Empreendedorismo social, negócios sociais, tensões, dilemas, Rede Asta.
RESUMENLos negocios sociales buscan resultados sociales, financieros y hasta medioambientales. Sin embargo, el conocimiento académico en cómo tales organizaciones operan ha emergido recientemente. Ese artículo tiene como objetivo investigar cualitativamente las principales tensiones y dilemas que ocurrieron a lo largo de la historia de la red Asta, un negocio social pionero en ventas por catálogo directo de productos artesanales en Brasil. Los resultados indican que los gerentes de la red Asta han experimentado tensiones y dilemas en tres de las cuatro categorías identificadas por Smith, Gonin, y Besharov (2013): performance financiera y social, aspectos organizacionales y aprendizaje. Uno de los dilemas involucra aspectos organizacionales y aprendizaje, una vez que Asta alcanza viabilidad con dos organizaciones: una asociación sin ánimo de lucro y una corporación con fines lucrativos. En la percepción de pertenencia los accionistas declararon sentirse como una parte de los objetivos medioambientales y sociales de la organización; algunos hasta como activistas.PALABRAS-CLAVE | Empresariados sociales, negocios sociales, tensiones, dilemas, Rede Asta.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150403
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INTRODUCTION
Rede Asta is a social business in direct catalog sales of artisanal products in Brazil, with sales over US$ 500,000 in 2012. With offices in Rio de Janeiro and São Paulo, the network involves 50 low-income production groups (mostly in Rio de Janeiro), a 19-person staff and activist salespeople throughout the country, as well as two legal entities: a non-profit association and a for-profit corporation. As an example of social entrepreneurship, Asta is a valuable case study with its pioneering social business model.
Social entrepreneurship has been increasingly garnering more attention from both the academic and executive arenas, particularly in face of social and economic inequalities. Although social entrepreneurship is an old phenomenon, it is conceptually still under construction (Dees, 2001; Gawell, 2013; Mair & Martí, 2006; Sassmannshausen & Volkmann, 2013).
Over time, many organizations have sold goods or services and simultaneously sought a social impact through their activities. These initiatives belong to the field of social entrepreneurship. Profit seeking is not the main focus of these organizations; it is merely necessary for survival. Organizations that specifically seek to generate profit while producing social and even environmental impact, however, are deemed social businesses – which are a specific type of social entrepreneurship, and are a more recent phenomenon. In this context, social businesses may be considered an alternative within the capitalist system, in which the expansion of its activities tends to generate economic, social and sometimes even environmental benefits.
Researchers are simultaneously using multiple theoretical approaches as lenses in seeking explanatory and analytical models for social businesses (Comini, Barki, & Aguiar, 2012; Dacin, Dacin, & Matear, 2010; Mair & Martí, 2006; Teodósio & Comini, 2012). Less attention has been given, however, to investigating how these organizations function. Smith, Gonin, and Besharov (2013) theorize on the tensions related to social businesses; another approach yet to be explored concerns the practical dilemmas arising from those tensions.
The double or triple bottom line is (or should be) typical of social businesses. One of the main difficulties is to precisely ascertain the results obtained by the social business, its impact and how to distribute the profits. A superior financial result often requires partly waiving the social impact (Smith et al., 2013). While financial results are relatively easy to measure, the social and environmental ones are much harder to determine – achieving the balance demanded by the double or triple bottom line can be quite challenging.
Social businesses often partner with varying types of organizations, and their distinct practices and processes, derived
from their cultures and structures, are not easy to combine (Smith et al., 2013; Williams & Taylor, 2013).
In addition, social businesses, particularly those still under construction, present tensions and dilemmas related to their learning and their perceptions of belonging. Building a social business commonly requires an ongoing learning process, in which traditional assumptions must be cast aside (Smith et al., 2013). Community organizations are not always able to serve the scale demanded by the market; the mere adoption of tools and techniques successful in the private sector is often not enough to reach satisfactory results. Some of the people and groups involved in a social business will tend to value the social role, while others will value the organization’s financial results. The degree to which these expectations are met will influence the groups’ and people’s perceptions of belonging to the social business.
This study is inspired by the theoretical essay by Smith et al. (2013), which identified four types of tension present in a social business: performance, organizational, belonging and learning. We propose a complementary analysis model, by including the following analytical elements: (i) tensions tend to generate dilemmas, (ii) tensions and dilemmas contribute to the meaning and understanding of social businesses and (iii) such conflicts lead to an ongoing process of meanings and understandings. We seek to learn whether our proposed model (of building meanings and understandings) effectively makes sense, as per Weick’s (1995) sense-making approach.
Thus, we aim to investigate a social business using the following research question: what are the main tensions and dilemmas experienced by Rede Asta throughout its history? The resulting analysis will hopefully elucidate issues that other social businesses are likely to face as they build and consolidate their companies. In this manner, this research aims to contribute to the advancement of theoretical and empirical knowledge of social businesses, by adopting a theoretical approach that has been little explored, and by investigating the history and the operation of a pioneer social business.
To fulfill this goal, we have selected to use qualitative methodology of an exploratory nature. After collecting documents and information on Rede Asta and conducting in-depth interviews with two managers, two salespeople (also known as “advisers”) and four coordinators of production groups, we systematized the data into a case study.
The article is organized in six sections, in addition to this introduction. A literature review on social entrepreneurship and social business is followed by a detailed description of the methods. The fourth section contains the Rede Asta case description and the fifth presents analysis and results, based on the variables established in the literature review. We conclude with our final considerations and suggestions for further research.
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LITERATURE REVIEW
Social entrepreneurship
Theoretical definitions of social entrepreneurship initially encompassed governmental and civil society organizations aiming at improving quality of life in local contexts, so as to increase opportunities for the poorest and most disenfranchised portion of the population (Albagli & Maciel, 2002).
Along the same line, David (2004, p. 51) has argued: “[…] in social entrepreneurship, economics are serving the community, […] multiplying […] projects such as the sugar and salt solution for rehydration, a school-stipend, family doctors, solidary university and many others”. In this perspective, the focus is on interaction between governments and Brazilian civil society in seeking to improve the social and economic conditions of the poor.
Other authors, meanwhile, have sought to highlight the different dimensions related to social entrepreneurship. Oliveira (2003, p. 408) described it as: “a new rationality for managing human life; […] a paradigm of socially transforming reality; […] seeking sustainable development and social change; it is a new profession”. There appears, therefore, to be a consensus regarding the social impact on the lives of the poor through social entrepreneurship (Bornstein, 2004; Dees, 2001; Yunus, 2007).
According to Roper and Cheney (2005, p. 98), “non-profits that assume an entrepreneurial posture are less hesitant to implement concepts and practices from marketing, strategic planning and systems for the analysis and control of costs”.
Borzaga, Depedri, and Galera (2012, p. 399) argue that the term ‘social entrepreneurship’ is used in the United States to refer to initiatives relatively different from those in Europe. According to them, “the term referred mainly to profit-generating activities carried out by non-profit organizations to find the pursuit of social goals”.
For the purposes of this study, we understand that the definition by Austin, Stevenson, and Wei-Skillern (2012, p. 2) is the most comprehensive and inclusive: “We define social entrepreneurship as innovative, social value creating activity that can occur within or across the nonprofit, business, or government sectors”. This definition may be deemed pertinent because the creation of social value is not restricted to a single sector, but to several initiatives developed by public, private and civil society organizations. There are social entrepreneurism initiatives that do not arise from organizations, nor are they connected to a specific sector, but rather they occur because of the joint efforts of people interested in improving their community or institution. Figure 1 seeks to translate the definition by Austin et al. (2012).
Figure 1. Actors in social entrepreneurship: government, enterprises, civil society and social businesses
Civil society
Government
1 3
2
2,5Enterprises Social
businesses
Legend:1: Government2: Enterprises3: Civil society2,5: Social businesses
Social entrepreneurship: includes enterprises, government and civil society initiatives with social impact.
Source: Based on Austin et al. (2012).
Complementing Austin et al. (2012), within the field of organizational theory, the phenomenon of social entrepreneurship has been established as a new analytical perspective, for it included organizations that simultaneously seek profits and social impact (Godói-de-Sousa & Fischer, 2012): social businesses.
Social businesses
Several theoretical fields have been used to understand social businesses. Among others, the economic approach (Sen, 2000; Yunus, 2007) values human capabilities, as well as the possibility of a world without poverty; the corporate strategy field (Prahalad, 2005) points to wealth at the “bottom of the pyramid”, serving low-income consumers; organizational studies, more specifically on organizational hybridism (Billis, 2010; Grassl, 2012; Trexler, 2008), examine organizations that address both social and financial goals. Some authors, like Gaiger (2011), believe that stimulating income-generating alternatives can contribute to reducing inequalities suffered by the poorest population, situated at the bottom of the pyramid.
According to Comini et al. (2012), social businesses have been addressed through three basic perspectives: the North-American, which tends to relate social businesses to corporations that serve the bottom of the pyramid (Prahalad, 2005); the European, in which collective action and associativism are highlighted and, finally, the perspective of developing countries, in which social businesses tend to aim at including the poor and disenfranchised.
These distinct approaches lead to different definitions of social businesses. Nobel laureate Muhamad Yunus – the “Banker to the poor”, who brought microcredit to fame via the Grameen Bank and has started corporations such as Grameen Danone, which provides yogurt at low prices – understands that social businesses should generate wealth, to be reinvested in the business, and that
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gains should be collective. The North-American perspective tends to understand social businesses as a traditional private corporation, whose consumers are the population at the bottom of the pyramid.
According to Thompson and Doherty (2006, p. 362), who integrate European and developing country perspectives, social businesses have the following traits:
They have a social purpose; assets and wealth are used to create community benefit; they pursue this with (at least in part) trade in a market place; profits and surpluses are not distributed to shareholders, as is the case with a profit-seeking business; “members” or employees have some role in decision making and/or governance; the enterprise is seen as accountable to both its members and a wider community; there is either a double or triple bottom line paradigm.
In a double bottom line perspective, profit and social impact are balanced in successful social businesses, while organizations with an imbalance between social and financial results tend to be less effective (Thompson & Doherty, 2006). When considering the triple bottom line, social enterprises are organizations intent on using the knowledge of the marketplace to solve social and environmental problems (Borges, Borges, Ferreira, Najberg, & Tete, 2013; Massetti, 2011).
For social businesses located at the outskirts of cities, it is plausible that such problems are even more present (even when partnering with organizations outside of the poorer areas).
On the plus side, social businesses also generate improvements. Jain (2012) presented five possible positive outcomes of this type of organization: creation of social and economic values; employment creation; innovation / new goods and services; social capital and equity promotion.
The fact that social businesses seek both social and financial goals tends to favor a phenomenon of organizational hybridism, as Trexler (2008, p. 5) describes:
Social enterprise combines values from two seemingly distinct conceptual domains. Embedded within the “social” component is an array of values associated with behavior with an orientation beyond the market, state or self; likewise, the term
“enterprise” links to values associated with business, commerce, purpose and corporate structure.
Despite this conceptual debate, social businesses may be examined from different theoretical lenses. Within the field of organizations, in addition to hybridism (Billis, 2010; Grassl, 2012;
Trexler, 2008), institutional theory and stakeholder theory are used, for they emphasize the context, environment and pressure of interest groups that are external to the organization. Theories of organizational identity and paradox highlight how the organization’s internal dynamics influence tensions in a social business (Smith et al., 2013).
The organizational traits of social businesses, combined with their dual goal of profit and social impact, contribute to the occurrence of tensions related to performance, organizational dynamics, perceptions of belonging and learning (Smith & Lewis, 2011; Smith et al., 2013). Exhibit 1 presents these types of tension related to social businesses.
In terms of performance, qualitative (usually social) and quantitative (usually financial) measurements cannot always be combined. The goal of including poorer people often means losses in productivity; the need for scale may entail a decrease in quality of life for those involved in the social business. Paradoxically, an increase in the amount of financial resources may weaken the cohesion between members of a community, since equitable and transparent distribution of profits is no simple task. Consequently, managers experience dilemmas regarding stakeholder interests that are not always convergent.
An organizational culture that has been built over years results in singular practices and processes. For social businesses that work with other organizations, this type of tension is even more evident: the organizations closest to the market tend to adopt a private management logic, while those closest to communities seem to prefer a more social and collective logic. The combination of these different logics may result in synergies, but also in conflicts and tensions.
One example of diverging practices is a fair trade proposal for a production chain: the expectation is that participating organizations will seek a fair and transparent division of results, but this does not always occur in practice for all members. For some authors, such as Smith (2013) and Beiji-Becheur, Pedregal and Ozcaglar-Toulouse (2008), fair trade is a socially constructed concept and reaching a definition requires establishing interactions and negotiations among the agents involved.
The groups and subgroups of a social business oscillate regarding their feeling of belonging to an organization, depending on the latter’s priorities. When financial results are the priority, for instance, part of the groups may increase their perception of belonging to a given social business, while those who favor social and environmental aspects may feel frustrated and, therefore, have a low feeling of belonging to the enterprise.
Finally, the processes of growth and scaling almost always entail learning – not just of new knowledge, but also an attitude of casting aside preconceived ideas and concepts.
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Exhibit 1. Types of tensions in social businesses
Types of tensionsSocial and financial dimensions that explain tensions
Emerging issues for social businesses
Related to performance:Goals, metrics, meeting stakeholder expectations
Social impact is generally difficult to measure/compare; financial results, however, tend to be simpler to measure/compare.
How do leaders define success, given the diverging goals (and the risk that economic success may entail social failure)?
Related to organizations:Diverging dynamics due to different structure, culture, practices and processes
To reach social and economic goals, there is a tendency to hire professionals with different, and not necessarily convergent capabilities.
How can hiring be managed so as to engage different professionals to work harmoniously?To what degree do organizations differentiate and integrate social mission and business?What organizational form/structure should the organization adopt?
Related to the feeling of belonging:Divergent identities between groups, sub-groups and the organization
Employees and other stakeholders are usually divided into those who identify more with the social mission and those who identify with the business.
How can the organization manage diverging identities and expectations?
Related to learning:Timelines are different in the processes of change, growth and scaling.
Social goals tend to aim at long-term scenarios; as opposed to business, which focuses on short-term results.An increase in social impact may diminish financial results and vice-versa.
How does the organization deal with short- and long-term schedules?How has the organization sought short-term financial results so as to expand its social results?
Source: Adapted from Smith et al. (2013).
Smith et al.’s (2013) theoretical essay presents four variables for examining the tensions in social businesses: performance, organizational aspects, belonging and learning. In order to apply literary references to our empirical investigation phase, we propose to adopt the analysis model illustrated in Figure 2.
Figure 2. Analysis model
Social businesses:
Hybrid organizations that aim to combine financial, social and even environmental goals.
Give rise to tensions in four different dimensions:
- performance- organizational- belonging- learning
The tensions and dilemmas experienced lead to an ongoing process of meanings and understandings (iii).
Tensions tend to generate dilemmas (i).
The process of building and consolidating a social business entails dilemmas for managers and stakeholders.
Tensions and especially dilemmas (ii) contribute to the meaning and understanding of social businesses.
Source: Adapted from Smith et al. (2013).
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The proposed analysis model seeks to complement Smith et al.’s (2013) approach of examining tensions with three new analytical elements: (i) tensions tend to generate dilemmas, (ii) both of these contribute to the meaning and understanding of social businesses and (iii) this leads to an ongoing process of meanings and understandings. We are seeking to determine if this analytical model (of building meanings and understandings) makes sense according to Weick’s (1995) sense-making approach.
The next step in our research involves establishing the methodological aspects to guide our investigation of Rede Asta.
METHODS
The purpose of this article is to analyze the history and operation of Rede Asta, using a single case study, seeking to reveal its main tensions and dilemmas. In order to reach this general goal, we have undertaken the following specific goals: 1) to map and systematize literature references regarding social entrepreneurship and social businesses; 2) to investigate the background and functioning of Rede Asta, as well as its relationships with salespeople and artisans; and 3) to gather information, albeit incipiently, on the distribution of resources obtained from the sale of products, and its impact on low-income artisanal groups related to the business.
Using a single case study, according to Yin (2001, p. 67), is justifiable inasmuch as the “the case constitutes a rare or exclusive event or serves a revealing purpose”. Indeed, Rede Asta constitutes a rare social business, for it was the first in Brazil to work with direct sales of artisanal products – while also working in a network with several production groups and simultaneously seeking financial, social and environmental goals (triple bottom line). In addition, throughout the investigation, the fact Rede Asta is still under construction proved to be particularly helpful for examining the social business’ tensions and dilemmas, given that its operations are still expanding and more aspects are undergoing change.
According to Yin (2001), a case study can be based on six different sources of information: a) documents; b) file records; c) interviews; d) direct observation; e) participant observation and f) physical artifacts. This article is based on the first four sources of evidence and their potential triangulations.
In order to achieve the first specific goal, a literature review was performed and it is shown in section 2. For the second and third specific goals, we applied qualitative research methods: held interviews, analyzed documents and file records (including reports, catalogs and websites) and made direct observations – in the São Paulo office, by studying its operation and the distribution of management and display spaces, as well as product quality
and variety. All seven interviews (by Skype, email or in person) were held between September and November of 2013.
The interviews followed a semi-structured questionnaire, the development of which was based on consulted literature and researchers’ prior experience. The first interview was held during a visit to Rede Asta’s representation office in São Paulo. The two-hour in-depth interview was made with the manager of the office. In addition, the visit enabled us to observe directly the types of products that are marketed, as well as their variety and quality, in order to confirm whether they corresponded to the manager’s description and to the photographs available in the catalogs and the organization’s website. During the interview, additional information and documents were requested, which the manager later sent to us by email.
The second interview (lasting approximately one hour) was held with one of the founding partners and manager of Rede Asta, who is based at their headquarters in Rio de Janeiro.
In order to triangulate the information obtained in the analyzed material (catalogs, minutes and other documents) and supplied in the interviews with the business managers, questionnaires were sent to two salespeople: one with a large volume of sales and one with a small amount of sales (both from São Paulo). In addition, through Rede Asta’s website, eight artisan groups with available contact information were selected for interviews; three of them answered the questionnaire fully and one partially: from Rio de Janeiro, Mulheres do Salgueiro, Mulheres Arteiras and Bordados N´Atividade; and Bordana from Goiás.
The purpose of adopting the qualitative methods of investigation described above is to allow a greater understanding of Asta’s history and some of its tensions and dilemmas. Our analysis is presented in Section 5, after the following description of the social business and its case study.
REDE ASTA CASE
Rede Asta is a social business that works by promoting a network for marketing artisanal products, especially items that have been produced using a significant percentage of recycled or reused raw materials. In addition, products are sold on a scale as customized corporate gifts.
The idea of creating the business began in 2005, but the network only emerged after three years. Due to several needs that arose over time, Asta currently operates using two legal entities: a for-profit micro-corporation named Asta Corp Produtos Sustentáveis Ltda-ME (Asta Corp Sustainable Products
– Micro Enterprise) and a non-profit association named Instituto Asta (Asta Institute). The association renders capacity-building
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and training services for the artisans, while the corporation issues sales invoices, especially for corporate gifts. In addition, the association is qualified as a public-interest civil society organization (Organização da Sociedade Civil de Interesse Público
– OSCIP), which requires, among other duties, that its financial administration be overseen by a supervisory board and that its financial reports be made available for scrutiny by any citizen (Law nr 9.790, 1999).
According to the organization’s website, “Rede Asta is a social business that has the mission of helping to diminish Brazilian social inequality” (Rede Asta, 2013, p. 1) and they intend to achieve this mission by helping small community businesses to thrive, by facilitating their access to knowledge and markets and by supporting the creation of networks.
In 2012, the Asta Institute had four members, of whom one was president, one was vice-president and the other two were members of the supervisory board. Asta Corp had two partners, one of which is the president of the Institute and the other is a designer not associated with the Institute.
The network involves approximately 650 artisans, of which 90% are women, mostly from low-income communities, ranging in age from 20 to 70. Each group wishing to become part of the network must have at least three people, three different products
for sale and the capacity to produce at least 200 items per month. The groups usually produce items using 70% of recycled or reused material. One of Asta’s partners is a print fabric company that donates tons of fabric every year.
Products are marketed through the internet, through direct sales, at the Rio de Janeiro store (which also serves as a showroom for exhibiting and demonstrating them) and, on a greater scale, as customized corporate gifts. The Asta business is not yet fully self-sustainable (revenues currently cover approximately 70% of costs) but the network seeks to apply fair trade practices throughout the production chain.
Rede Asta encompasses around 50 artisanal production groups, of which 90% are in Rio de Janeiro. In São Paulo, there is only one group, but the network keeps a representation office in that city (with purchasable showroom items), aiming to expand business and increase sales, especially for corporate gifts. There is also a waiting list of 90 groups who wish to join the network, currently awaiting triage.
Table 1 presents the evolution of each sales channel and its contribution to total revenue. We can observe that sales quadrupled from 2008 to 2012 and that corporate gifts correspond to nearly 50% of revenues (although more recently internet sales have also grown).
Table 1. Rede Asta revenues by sales channel (amounts in R$)
2008 2009 2010 2011 2012
Salespeople/catalog 52,179 122,959 295,689 215,257 237,454
Corporate gifts 126,680 155,283 188,292 268,147 337,563
Internet 0 0 0 11,740 77,695
Rio de Janeiro store 0 0 0 75,622 47,942
Total 178,859 278,241 483,981 586,957 755,812
Source: Based on Asta’s organizational records.
The sales catalogs are published quarterly and approximately 28 groups are selected to include their products; participating in one quarter does not entail participation in the next quarter. On the website and at the store, there is a greater variety of participants and exhibited products for sale.
Each group presents the items they wish to sell and set the price they would like to receive for it; Rede Asta then doubles the actual sales price, of which 50% goes to the artisans, 22% to the salespeople (or advisers) and 28% to the network. The network’s portion covers its expenses – such as the salaries of its 19 employees, including designers, sales specialists, financial managers and those in charge of logistics, all hired by
the corporation, as well as store and website maintenance and logistic costs for shipping products.
Before implementing this sales compensation model, the networks managers did some research and found that cosmetics companies that work with direct sales usually compensate salespeople with around 30% of the price. Given Asta’s cost structure, however, the partners calculated that they could only pay 22%. There are approximately 800 registered advisers, most from income classes A and B, but only 70 are active (spread throughout the country).
Through the sale of their products via Asta, 20% of the artisans are able to secure an average monthly income of
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over US$400.00; 37% of them earn between US$140.00 and US$400.00 and 43% receive less than US$140.00 a month. Most groups, however, do not depend solely on Rede Asta to market their products, so said amounts work more as supplementary (as opposed to a main source of) income.
The managers hold four meetings a year with the artisans before preparing the sales catalogs, and these meetings also serve to award the best groups regarding quality, speed of delivery and other aspects. At these gatherings, the network also gets in touch with the history of each group and its members and sometimes attempts to recover their self-esteem. Periodically, there are also capacity-building sessions on financial education and product quality.
Designers will sporadically visit the groups with suggestions for new work methods or new materials. On occasion, Asta will find that a product’s price is not feasible for marketing; in these cases, a designer visits the group and suggests changes to the product to reduce its production costs (with fewer hours invested or less material used).
When the groups deliver their products to the network, they receive their 50% up front. For internet sales, half of the amount covers what was paid to the artisans and the other half goes to Asta. For the advisers, the model is different: they make
their requests for products (of at least R$200,00), and within 2-3 weeks they receive their package in the mail, together with an invoice that charges a flat rate of R$15,00 for freight and the total cost of products minus 22%. They have 20 days to pay the invoice.
While the advisers entail more work for the organization, especially in terms of communication costs, they also constitute an important channel for promoting the products, thus bringing capillarity to the model and providing the network with feedback regarding customer satisfaction with product quality and price.
By adopting and adapting the direct sales business model (so their sales force also disseminates the cause), Rede Asta has been able to establish itself as a pioneering social business in Brazil. Its progress has not been without hiccups, as shown in the following section.
ANALYSIS AND RESULTS
The qualitative methods of investigation adopted in the research enabled us to understand this social business’ history and to clarify part of the tensions and dilemmas in this social business. See Exhibit 2.
Exhibit 2. Rede Asta stages
Stage 1 – 2002 to 2004 Stage 2 – 2005 to 2010 Stage 3 – 2011 onwards
The network began to operate in 2002 with Instituto Realice – first as an NGO focusing on capacity-building and training for artisans.
In 2005, Rede Asta launched sales of corporate gifts and acknowledges the need to issue invoices to their clients – the NGO and a business began to coexist.
In 2010, Rede Asta had received support from Ashoka and McKinsey for building its strategic plan. In 2011, the network broadened its sales channels.
Absence of tensions and dilemmas. Virtual absence of tensions and dilemmas.Tensions and dilemmas began with the increase in profitable activities and need for production scale.
To begin with, it is simple to observe that Rede Asta is a social business under construction and has not yet reached its financial stability. The managers have been reflecting on and analyzing their relationship with stakeholders – clients, production groups, salespeople, among others – as they evolve in a sort of “learning by doing”, or trial and error.
Rede Asta initially attempted to mirror the corporate model of direct sales (in which salespeople do not necessarily consume the products), but this led to unsatisfactory results. Over time, the managers acknowledged the advisers to be more than mere
salespeople, for those with constant and significant results have become activists for the network’s social and environmental cause. Direct sales, however, have not proved sufficient to provide income for the artisans: some of the production groups declared the need to improve their decision processes regarding products, sales operation and especially in increasing and maintaining financial results.
The process of recycling and reusing materials, such as fabrics and plastic bottles, has derived mostly from the network’s relationship with businesses, with satisfactory results from the
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financial as well as the social and environmental perspective. This makes the corporate gifts segment a likely candidate for expansion, for it simultaneously boosts both the amount of recycled material and wholesale transactions, which increases the income for production groups.
Applying the proposed analytical model (Figure 2) to examine Asta’s history and operations revealed its tensions and dilemmas related to performance, organizational aspects, perceptions of belonging and learning.
Dilemmas regarding performance appeared in more than one instance. On the subject of evaluation, for example, one of the founders declared that only in 2013 they began to establish measurements for the business, aided by a consultancy firm.
Asta’s sales processes are the setting for another dilemma. Internet sales have been growing and they cost less to Asta, but sales by the advisers, in spite of consuming more of the organization’s structure and thus increasing costs, are the most stimulating channel, because the salespeople help disseminate the network’s social and environmental cause. Numbers alone (regarding revenue and costs) have not been sufficient to prioritize one sales channel over another.
Another performance dilemma involves the beneficiaries. When asked about a gender emphasis, Asta’s founder stated that the network values diversity and does not focus exclusively on women. Several observations fail to confirm this statement, however: their website declares women to be their partners; over 90% of the production group members are female; Rede Asta has been acknowledged by gender equality organizations; the managers are female; and the founder understands that women contribute more than men to increase social impact. This appears to demonstrate a dilemma regarding the target audience to be prioritized by Asta.
Another category of tensions and dilemmas affects organizational aspects, which for Rede Asta means dealing with different structures, cultures, processes and practices. The production groups differ not only as to the products they offer, but also due to their history, values and cultures. Some of the groups in the network are more structured, established by middle-class women; others are smaller, formed by women from low-income communities. The interviews with the production groups revealed different practices in delivering larger requests. Trying to balance between respecting the particular conditions of each group and delivering large orders is a challenge, and there are frequent delays. In other words, situations demanding an increase in productivity illustrate part of the tensions and dilemmas in harmonizing the organizations that make up Rede Asta: in order to improve financial results, Asta needs to increase scale, but artisanal production does not always follow the market’s demand.
Given the diversity of people involved in the network, its three-pronged goal generates a constant tension in meeting Asta’s stakeholder expectations. After interviews with several different actors, we were able to identify an ongoing effort to balance results, so as to provide income-generation, enfranchise the artisans and support recycled or reused material. This effort appears to be paying off, as the interviews unanimously showed that Asta has been satisfactorily meeting stakeholder expectations, which contributes to their feeling of belonging with the network.
Establishing and consolidating Rede Asta has required constant learning on behalf of managers, chiefly from practice: each challenge led to experiments in finding solutions. A legal issue, for instance, led to organizational duality: the path recommended by lawyers and accountants was to simultaneously operate with both the association and the corporation. The sale of corporate gifts required an invoice, which only a corporation could provide, while partnerships with companies to reuse and recycle materials occurs through the association. Asta’s managers explained that they operate with one organization or the other depending on each demand.
The compensation structure is another example of Asta’s learning tensions and dilemmas. The managers initially researched traditional catalog and direct sales models, usually of cosmetic companies. They found that those salespeople typically worked with several brands; they were mostly low-income women who did not habitually consume artisanal products and had little adherence to the network’s social and environmental goals. The advisers, on the other hand, claimed to identify with Asta’s nonfinancial objectives; these are mostly middle-class women who occasionally consume artisanal products. This nature of Asta’s salespeople is relevant for direct sales to expand consistently in the future.
Finally, the managers are currently learning to value Rede Asta’s brand, with technical assistance from a French company that boasts a worldwide household brand. The managers understand that strengthening the brand is a necessary and meaningful strategic path to advance the social business. Indeed, traditional successful businesses have established brands. This process will yield results, however, in the medium or long term, and may require the help of investment funds. As the Asta founder declared, the business’ financial stability will be reached only after at least two more years – during which time there are likely to be challenges involving learning tensions and dilemmas.
The above findings regarding the tensions and dilemmas faced by Rede Asta involving performance, organizational aspects, perceptions of belonging and learning have been summarized in Exhibit 3.
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Exhibit 3. Summary of results observed in Rede Asta
Types of tensions Facts related to Rede Asta’s history and operations
Performance- Asta attempts to disseminate the concept of fair trade throughout the production chain;- Financial results alone are not enough to define priorities among sales channels;- The network’s stated target audiences are inconsistent (focusing on women or valuing diversity?).
Organizations- Each group’s singular production speed may compromise the delivery schedule for requests of large quantities of items;
- The network needs to operate with two organizations: an association and a corporation (also applicable in learning).
Belonging- The Rede Asta cause, based on the triple bottom line, has so far served as the means to create a feeling of belonging to the organization, especially considering that the expectations of different internal stakeholders are as yet being met.
Learning- The sales team worked hard for years to combine financial return with their social and environmental causes:- Starting in 2011, the network realized the need to strengthen its brand in order to consolidate itself as social business and has been investing in this purpose;
- Meanwhile, Asta also understood the importance of production scale in order to establish itself in the market.
Rede Asta case has proven to be auspicious for examining tensions and dilemmas in social and financial performance, organizational aspects and learning; on perceptions of belonging, despite the identification of consensus (as opposed to dilemmas), we must bear in mind that this is not necessarily a permanent state, since the tensions that require said consensus remain dynamic.
CONCLUSIONS
The theoretical essay by Smith et al. (2013), which addressed the tensions in social businesses using four variables (performance, organizational aspects, belonging and learning) contributed to a greater understanding of Rede Asta as a social business: the investigations and interviews with stakeholders helped elucidate the dilemmas experienced by the organization’s managers.
From a theoretical perspective, this study has added, via the analysis model, three analytical elements: that tensions entail dilemmas for managers and stakeholders; that tensions and dilemmas help provide meaning and understand social businesses; and, finally, that such conflicts lead to an ongoing process of meanings and understandings on social businesses, according to Weick’s (1995) proposal in his sense-making approach. From an empirical standpoint, the study has brought in-depth information on the operations of a social business, emphasizing the tensions and dilemmas that emerged throughout Asta’s five years of existence. In light of both these contributions, this research has fulfilled its intended purposes.
Asta’s effort to generate income for 650 artisans merits broad recognition. For most Brazilian artisans, selling their products is the main difficulty. In this context, Rede Asta offers
an alternative to increase and professionalize sales of artisanal products in the country. The network’s construction process proved to be challenging, with the several tensions and dilemmas described in the analysis above. There are, in any case, specific aspects that may contribute to the understanding of social businesses.
To begin with, Asta consists of two organizations (a non-profit and a for-profit) – as advised by legal and accounting counsel to adapt to legislation in Brazil, which does not yet acknowledge social businesses. In several other countries, these hybrid organizations are provided with legal status, such as the United Kingdom, with its Community Interest Companies (CICs), Italy, with Social Co-operatives, and the United States, with Low-profit Limited Companies (L3Cs).
The case study also revealed that Rede Asta is a complex type of social business, because socially and economically enfranchising artisans is an inclusive business that, in theory (Comini et al., 2012), would not seek to scale operations. The managers indicated, however, that they plan to scale productivity by valuing their brand. In addition, Rede Asta may also be classified as a form of commercial ‘activism’, in which the advisers are more than simply salespeople. They are indeed activists for Rede Asta, for the advisers do more than sell products: they champion the social and environmental cause addressed by the organization. This situation may be relevant to other social businesses: can they differentiate by hiring activists?
Asta’s managers assess that the adviser team demands more time, effort and resources from the network, not always accompanied by greater sales. Despite entailing lower financial results when compared to other channels, the network plans to
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keep the advisers as a sales force, due to their contribution in disseminating the cause.
Another noteworthy aspect of Rede Asta is its focus on gender, or lack thereof. The distance between the claim to “include women in production systems” and the manager’s interview statement of “seeking to value diversity” seems to indicate a dilemma on which audience to target. As argued by Primeaux and Veness (2009, p. 13): “opportunity-cost decision-making assumes that (1) choices have to be made, (2) everyone and everything has value, precisely as a scarce resource, especially in the long term, and (3) accordingly, the benefits attached to the accepted option are offset by those attached to the rejected option (fairness in business)”. In other words, opting to favor women may indicate progress for the social impact that Asta can in fact deliver.
Despite one of the network’s goals being the practice of fair trade, some limitation to this ideal were identified in interviews with the managers and production groups, given that the funds obtained via the network are distributed to group coordinators, which does not necessarily ensure that they are arriving to each artisan with equity and transparency.
Rede Asta is, as mentioned, under construction – the investigation revealed an ongoing process of building meanings and understandings (Weick, 1995) on the definition of a social business and its limits and possibilities. The tensions and dilemmas experienced by the organization are elements that contribute to this process.
One of the investigation’s main limitations concerns the single case study. Although Rede Asta is a pioneer social business in direct sales of artisanal products, multiple case studies could yield more solid conclusions. In addition, the number of interviewees, despite involving the main stakeholders, was reduced due to available resources. In that light, potential future researches could, among other options, investigate more social businesses, using the same analysis model; examine the decision process of social business managers, seeking to understand their choices in face of tensions and dilemmas; or apply quantitative measurements to the categories of tensions in social businesses. Despite said limitations, we believe this article has contributed to the theoretical and empirical knowledge of social businesses.
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RAFAEL MAGNUS BARBOSA [email protected]’s in European and International Studies from the Scuola di Studi Internazionali, Università degli Studi di Trento - Trento - Italy
LAURO [email protected] at Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo – São Paulo – SP, Brazil
FORUMSubmitted 11.29.2013. Approved 05.14.2014Evaluated by double blind review process. Scientific Editors: Edgard Barki, Graziella Comini, Ann L Cunliffe, Stuart Hart and Sudhanshu Rai
MICROFINANCE AND CLIMATE CHANGE IMPACTS: THE CASE OF AGROAMIGO IN BRAZILMicrofinanças e impactos das mudanças climáticas: o caso do Agroamigo no Brasil
Microfinanza y los impactos de los cambios climáticos: el caso del Agroamigo en Brasil
ABSTRACTThis paper reports an empirical case study on the interface between microfinance and climate change actions. Climate change, which until recently seemed a luxury for the microfinance sector, now appears to be crucial for its future. For their low adaptive capacity, the millions of microfinance clients worldwide happen to be the most vulnerable to a changing climate. However, such an arena is still blurred from an academic viewpoint, and inexistent among Brazilian academia. Therefore, by investigating Brazil’s largest rural MFI, Agroamigo, we aim at providing an empirical contribution to green microfinance. The main conclusion is that, albeit Agroamigo offers important links to climate change initiatives, it will need to take better account of specific vulnerabilities and risks to protect its portfolio and clients better from climate change impacts.KEYWORDS | Green microfinance, climate change, Pronaf, vulnerability, Agroamigo.
RESUMOEste artigo relata um estudo de caso empírico sobre a interface entre as microfinanças e temáticas da mudança do clima. Tais temáticas que até recentemente pareciam um luxo para o setor, agora pare-cem ser cruciais para o seu futuro. Coincidentemente, pela baixa capacidade adaptativa, os clientes microfinanceiros mundo afora estão entre os mais vulneráveis à mudança do clima. No entanto, tal arena é ainda pouco conhecida pela academia e inexistente no discurso acadêmico brasileiro. Por-tanto, investigando o maior programa de microfinança rural do Brasil, Agroamigo, o presente estudo tem por objetivo prover uma contribuição empírica para as microfinanças verdes. A principal conclu-são é que, embora Agroamigo ofereça importantes sinergias com iniciativas da mudança climática, ele terá de levar mais em consideração vulnerabilidades e riscos específicos para melhor proteger o seu portfólio e clientes dos impactos advindos das mudanças climáticas.PALAVRAS-CHAVE | Microfinanças verdes, mudanças climáticas, Pronaf, vulnerabilidade, Agroamigo.
RESUMENEse artículo presenta un estudio de caso empírico sobre la interrelación entre microfinanza y acciones de cambio climático. El cambio climático, que hasta recientemente parecía un lujo para el sector de microfinanzas, ahora parece ser crucial para su futuro. Por su baja capacidad adaptativa, los millones de clientes de microfinanzas alrededor del mundo son los más vulnerables a un clima cambiante. Sin embargo, dicha área aún está borrosa desde un punto de vista académico e inexistente entre la academia brasileña. Por lo tanto, al investigar el mayor MFI?? de Brasil, Agroamigo, pretendemos proveer un aporte empírico a la microfinanza ecológica. La conclusión principal es que no obstante el Agroamigo ofrezca vínculos importantes a las iniciativas sobre el cambio climático, necesitamos tener mejor en cuenta los riesgos y vulnerabilidades específicas para proteger mejor su portfolio y clientes de los impactos del cambio climático.PALABRAS CLAVE | Microfinanza ecológica, cambio climático, Pronaf, vulnerabilidad, Agroamigo.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150404
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INTRODUCTION
Over the last few decades, a great deal has been written about the importance of microfinance (MF) in promoting financial access to the world’s poor, as well as an effective tool in achieving Millen-nium Development Goals (MDGs) (Littlefield, Morduch, & Hashemi, 2003). Such attractive MF attributes, however, could be jeop-ardised if predictions of the Intergovernmental Panel on Climate Change (IPCC) about global warming and associated changes in Earth’s climate pattern come true. According to the IPCC (2013), toward the end of the 21th century, global mean temperatures are projected to range between a best case [low-carbon economy model] of 1°C and a most stringent case scenario [carbon inten-sive economy model] of 3.8°C, with some climatologists arguing that 1.5°C is the least realistic increase we can expect. In Brazil, alone, a gradual increase in mean temperatures varying between 1 and 6°C is expected in the course of the century (Painel Bra-sileiro de Mudanças Climáticas [PBMC], 2013). In spite of such differences in temperature outcomes, scientists do agree that a warmer planet will bring profound transformations in the climate system as we know it today.
As a result, the changing climate “will impact individuals at the most basic level” (United States Agency for International Development [USAID], 2009, p. 2), and will fall unevenly among regions, with less-developed countries facing the greatest risks (IPCC, 2013). Therefore, poor countries and persons in the global south will bear the worst consequences of climate change and its associated disturbances (Bretschger & Valente, 2011; Schell-nhuber et al., 2013). In addition, global warming is projected to lower the level and growth of GDP and thus increase poverty, undermining progress towards achievement of the MDGs (Stern, 2007). “Like everything else, microfinance will not be spared” (Rippey, 2012, p. 215).
In fact, global climate change will affect microfinance institutions (MFIs) and their clients in myriad ways. For exam-ple, increased incidence of droughts, flooding, storms, extreme weather events, as well as rising sea levels are very likely to endan-ger assets—such as homes, crop yields, micro-businesses, and livestock—of many MF clients worldwide, and thus, undermine their ability to repay loans (Dowla, 2009). In addition, decline in quality and quantity of water sources compounded with increased incidence of vector-borne diseases because of climate change may affect clients’ health, and thus, indirectly affect an MFI’s port-folio. Greater stress on natural resources in extreme climate areas may also lead to forced migration and perhaps impact several MFIs and clients in these regions. Furthermore, natural disas-ters and extreme events are very likely to have a direct impact on physical infrastructure—such as equipment, offices, records
and information systems—of several MFIs (Dowla, 2009). Ulti-mately, if no coping strategy is put in place, climate change may well affect, both directly and indirectly, the portfolio of many microfinance providers.
The marriage of microfinance with climate change is par-ticularly relevant to Brazil. From a climate change perspective, Brazil is both a major international actor in the fight against cli-mate change and a major victim of its adversities (see, for instance, Loiselle et al., 2010; Marengo, Alves, & Valverde, 2009). In a 22-year timeframe (1990-2012), greenhouse gas (GHG) emissions from Brazil have increased by 7%—with land-use change [in par-ticular, deforestation], fossil-fuel burn, and the agricultural sector as the main contributors (Sistema de Estimativa de Emissões de Gases de Efeito Estufa, 2014)—, ranking Brazil seventh among the world’s largest emitting countries (Teixeira, 2013), and con-sequently, as a central player in terms of climate change actions.
Such an increase in anthropogenic GHG emissions was suf-ficient to ignite extreme climatic events in most Brazilian regions that caused significant life and asset losses. Through 1991 and 2010, for instance, more than 96 million Brazilians were affected by climate-related disasters, in particular throughout Brazil’s Northeast (Centro Universitário de Estudos e Pesquisas sobre Desastres-Universidade Federal de Santa Catarina [CEPED-UFSC], 2012). Temperatures increase over the 21th century, the ever-chang-ing climate will bring further natural and socioeconomic impacts to Brazil.
On the other hand, favoured by governmental actions, microfinance in Brazil has experienced a big boom over the last decade (Gonzalez, Piza, & Garcia, 2009). The sector saw its lend-ing capacity and number of clients served increase considerably, peaking at US$2.5 billion and US$2.7 million in 2013, respectively (Mix Market, 2014). And yet, with 44 million people still working in the informal sector and some 10 million informal microenter-prises lacking access to credit in the country (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas [SEBRAE], 2010), much of its potential remains untapped. Accordingly, when these two realms combine they offer an attractive and overlooked vehicle to deliver climate change strategies to the poorest segments of Brazil’s society.
To date, however, academia has drawn little attention as to the impact of climate change on MFIs and their clients. By com-bining a priori uncorrelated realms the article aims to contribute to awareness raising and research on such a promising and, con-temporarily, underdeveloped field, having Brazil as a case study. More specifically, guided by the general questions: What is the interface between products offered by an MFI and climate change actions?, and what actions can be bolstered to take better con-sideration of climate change vulnerabilities?, the study aims to
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provide an empirical and contextualised assessment of the links between a Brazilian microfinance provider and localised climate change initiatives. This paper is, in fact, the first in Brazil that seeks to assess eventual synergies empirically between these two realms, and as such, served as impetus for our investigation.
To do so, we applied a case study on the largest rural micro-credit programme in Brazil, namely Agroamigo. The Programme was founded in 2005 as a rural microfinance pilot project aimed at improving the socioeconomic conditions of smallholder farm-ers across Brazil’s Northeast, which accounts for over 82.9% of the regional rural labour force (Banco do Nordeste, 2013), and is directly related to food security issues. It also sought to minimise exces-sive default rates, as high as 37%, which the Programa Nacional de Fortalecimento da Agricultura Familiar (Pronaf [National Pro-gramme for Strengthening Family Farming]) faced when lending to poorest segments of rural communities in the region.
Since then, with an average default rate of 3.26%, Agroa-migo has evolved considerably both in terms of number of borrowers and outstanding loan portfolio. In fact, in 8 years, Agroamigo has provided about US$2 billion in 2.3 million micro-loans through its 170 branches covering over 1,954 municipalities throughout North-eastern states as well as Minas Gerais (Banco do Nordeste, 2013). In 2013, alone, it operated 421,482 micro-loan contracts, averaging US$1,300 per loan, and amounting over US$562,000, remaining unrivalled as Brazil’s largest rural microfinance programme.
The remainder of the study is structured as follows. In sec-tion two, we review the handful of authors investigating green microfinance and the fusion of microfinance with climate change. Next, we provide the methodological approach applied to this empirical study, followed by a discussion of the analysis. Finally, in the last section we draw some recommendations.
LITERATURE REVIEW
Albeit there is limited literature addressing the topic, the fusion of microfinance with climate change offers a compelling case for action. As Rippey (2012) put it, it is no coincidence that a year after Muhammed Yunus was awarded the Nobel Peace Prize for his com-mitments in fostering socioeconomic development from below, the same happened to the IPCC for its work on climate change. For many decades, climate change seemed a “luxury” that the microfinance industry could not afford or dream of (McKee, 2008, p. 35). However, the last decade witnessed a growing perception that “incorporating a climate change lens to microfinance is essen-tial and urgent” […] “as well as critical to the future of the sector” (McKee, 2008, p. 37). In fact, for their low adaptive capacity, the
millions of microfinance clients globally are the most vulnerable to climate variability (Ahmed, Diffenbaugh, & Hertel, 2009; Stern, 2007) and their “plight is linked to the ability of MFIs to adapt to the consequences inflicted by climate change” (Dowla, 2009, p. 5).
In this light, green microfinance can be thought of as micro-finance products coupled with adaptation to and mitigation of climate change. Adaptation refers to adjustments in natural or human systems in response to actual or expected climatic stimuli or their effects, with a view of moderating harms or exploiting ben-efits and opportunities associated with climate change (Brooke, 2008). In turn, mitigation involves human interventions to reduce GHG emissions by sources and/or enhance their removal from the atmosphere by “sinks”—forests, oceans, and plants absorb-ing CO2 (Vijayavenkataramana, Iniyan, & Goic, 2012).
To date, though, MFI initiatives have focused primarily on GHG mitigation via financing of cleaner/renewable energy sources (Agrawala & Maëlis, 2010; McKee, 2008; Rippey, 2012). For exam-ple, since 2006, SEWA Bank, in partnership with SELCO-India, has offered loans for solar lighting, bio-digesters and improved cook-ing stoves to its members (McKee, 2008). Since 1996, Grameen Shakti, a Grameen Bank’s affiliate, has provided about 2.5 mil-lion people with affordable solar energy system loan schemes (Majumber, 2009). Further, a partnership between HSBC, Span-dana and MicroEnergy Credits, has facilitated access to affordable solar-powered lighting to about 1 million poor people via the selling of resulting carbon offsets on the international voluntary market (Allet & Hudon, 2013).
Microfinance institutions also offer an attractive vehicle to deliver adaptation at the customer level. The few studies com-bining microfinance and adaptation (see, for example, Agrawala & Maëlis, 2010; Hall, Collins, Israel, & Wenner, 2008; Hammill, Matthew, & McCarter, 2008) argue that MFIs, through the combi-nation of both financial and non-financial services, can increase clients’ adaptive ability by helping them accumulate assets and diversify income sources, as well as coping mechanisms over time [e.g. savings and microinsurance]. They can also share knowledge and information to influence their behaviour. In addition, MFIs can be used as distributional channels for donors to deliver adapta-tion to millions of poor people worldwide, especially women, who are particularly vulnerable to climate change impacts (Agrawala & Maëlis, 2010; Hammill, Matthew, & McCarter, 2008).
To our knowledge, the sole green microfinance institution idealised specifically for adaptation is the Micro-Insurance Facility (MIF) in Cambodia. Through a revolving fund, the community-led project provides productive microloans to poor rural women and all related dividends and reserve funds are reinvested in rice stock as a protection mechanism against harvest shocks and food short-age. Forcella (2011) argues that, albeit some adjustments need
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to be considered, the MIF helped increase the community’s resil-ience to cope with natural disasters mainly by fostering savings and local project ownership, building up the clients’ asset base and promoting diversification of income sources.
Also, at the MFI/institutional level there are several ways in which microfinance providers can promote both adaptation and mitigation. For instance, management can assess an MFI’s carbon footprint in order to estimate its impact in terms of GHGs emissions and, upon that, devise carbon-offsetting strategies (Hall et al., 2008). MFIs can also promote risk assessment plans in order to respond better to and benefit from climate change. Further, they can strengthen personnel capacity to deal with cli-mate change through training activities (Rippey, 2012).
Nonetheless, there remain trade-offs to consider in micro-finance actions in terms of climate change. While microfinance seems to thrive in the provision of financial and non-financial ser-vices to the active poor, it struggles to reach the poorest of the poor (Cull, Dermigüç-Kunt, & Morduch, 2009, p. 179), which are, after all, the most vulnerable to climate change. Also, MFIs will need to weigh the balance between short-term livelihood needs of clients and long-term commitments needed for adaptation and mitigation (Hammill, Matthew, & McCarter, 2008; Rippey, 2012). Additionally, as the 2010 crisis in India’s southern state of Andhra Pradesh revealed, microcredit may end up increas-ing the debt burden of customers (Taylor, 2012), placing added pressure on their adaptive ability (Hammill, Matthew, & McCar-ter, 2008). Besides, climate change actions at the customer and MFI/institutional level may also entail risks for MFIs’ portfolio as they seek to adapt products and forge new competencies in terms of adaptation and/or mitigation (Rippey, 2012). Lastly, a
“climate-proof” MFI would require additional skills and capacities that many MFIs, especially the smallest ones, simply lack. There-fore, MFIs in responding to climate change will need to balance between costs and benefits entailed in fostering climate change strategies, as well as keep expectations realistic as microfinance actions in this terrain are certainly no panacea.
METHODOLOGICAL APPROACH
This study seeks to replicate previous analysis derived from Agrawala and Maëlis (2010) in Nepal and Bangladesh to the Brazilian context. More specifically, it seeks to examine poten-tial synergies between products and programmes offered by a Brazilian MFI and localised adaptation/mitigation strategies as well as assess what strategies can be harnessed to take better considerations of localised climate change vulnerabilities. To address our research questions, this study relied on a qualitative
approach and on the triangulation of methodological techniques to offset eventual biases (Berg, 2004; Moran-Ellis et al., 2006). Among these were field observation, documentation, interview-ing, and case study.
In order to facilitate understanding and provide insight into our subject matter, we applied a single instrumental case method as designed by Stake (2005). According to Robert Stake (1995, 2005), by putting emphasis on a holistic treatment of a particular phenomenon, instrumental case studies serve the purpose of advancing knowledge of a specific topic under scru-tiny (Stake, 1995, 2005). The selected case was Agroamigo of the Banco do Nordeste do Brasil (BNB), the largest rural micro-finance programme in Brazil. We believe that Agroamigo offers an interesting context for research on the combination of microfi-nance with climate change because, on the one hand, it finances highly climate-sensitive activities such as agricultural products and, on the other, it operates in one of Brazil’s most vulnerable regions for extreme climatic events, i.e. the Northeast region. In fact, through 2012-2013 the Northeast was stricken by the worst droughts in 50 years, inflicting several losses to poor smallholder farmers (United Nations, 2013).
Data collection
The article draws on a variety of information and data stemming from different sources: financial reports, interviews, and field observation. During four months the authors collected, processed and analysed relevant data at the Centro de Estudos em Microfinanças (CEMF [Centre for Microfinance Study]) of the Fundação Getulio Vargas in São Paulo/Brazil. In particular, this study has reviewed forty-six programmes, products and services from Agroamigo’s annual financial reports in recent years, usually for 2010-2013. A list of products was then built and further confirmed during field research and interviews. Second, we sought to analyse such products in light of the theory guiding green microfinance to assess eventual synergies between climate change actions and Agroamigo’s products before, finally, drawing some conclusions. In addition, data from the Mix Market platform was also used for the purpose of this research.
During the design and preparation of the field research and interviews, we identified five main social groups within Agroamigo considered relevant for our investigation. These include national programme managers, regional programme managers, coordina-tors, credit agents and clients. National programme managers are responsible for the general supervision of Agroamigo’s branches in all states in which it operates as well as for the setting up of business strategies. Regional programme managers are respon-sible for the supervision of regional and local units. Coordinators
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are charged with specific areas in the surroundings of an Agroam-igo’s branch and they supervise local credit agents. Credit agents, in turn, are the point of contact between clients and Agroamigo, as well as responsible for credit information, contract analysis, and so forth. Lastly, clients are smallholder farmers, often very poor, who benefit from rural micro-lending and other services.
This process was followed by an on-site field study at Agroamigo headquarters and in inland/coastal Ceará whereby we carried out interviews and field observations as well as col-lected further documents. Three localities spread over the state of Ceará were chosen for the application of interviews: Poço da Pedra located in inland Ceará, a rural community within the munic-ipality of Canindé, one of the most arid regions of the state; on the coastal area, the municipality of Icapuí, a poor rural village; and, the Agroamigo’s headquarters in Fortaleza, the capital of the State. During the field research, we also had the opportu-nity to attend an informative session held by credit agents and dedicated to prospective clients in the rural community of Poço da Pedra as well as the “Tribute to Nature” event hosted by local Agroamigo staff in the village of Icapuí.
Twenty-one respondents were selected in loco based on their belonging to specific social groups and availability to par-ticipate in the interviews. Accordingly, two national managers, one regional manager, two coordinators, six credit agents, and twelve clients were interviewed. For each social group we applied a specific questionnaire pertinent to their activities, experiences and contextual perception of our subject matter. For instance, to national and regional programme managers we posed questions related to the overall design, administration, and performance of Agroamigo’s products as well as questions related to the perfor-mance of such products during hazardous weather events—e.g. programmes aimed to reduce client vulnerability ahead of extreme climatic events; coping mechanisms against losses arising from such events, and so forth. To coordinators and credit agents we sought to design questions that better reflected their percep-tions and experiences regarding the performance of products during extreme weather events. For instance, perception about exposure of clients to drought events and how Agroamigo usu-ally reacts with weather-related losses faced by clients. Lastly, to clients we designed questions associated to their own expe-riences vis-à-vis actual impacts of climatic events on their rural activities, for example, by asking whether they have already suf-fered drought-related losses; how they usually deal with such shocks; and whether they received disaster relief aid from Agroa-migo. Interview length varied from fifteen minutes, for clients, to one hour for managers.
After reviewing documentation and transcribed data from interviews, we identified the most relevant localised climate change
impacts for Agroamigo and its clients. Then, we clustered the forty-six programmes and products offered by Agroamigo and reviewed by this analysis into specific categories to reflect sector finance activities better. Among these are: forestry, employment and income generat-ing activities in agricultural/livestock as well as in the non-agricultural sector, water/disaster relief/preparedness, education, technical assistance/information transfer, health, and savings schemes.
Next, we proceeded with the analysis of links between Agroamigo’s products and site-specific climate change impacts, as suggested by Agrawala and Maëlis (2010). More specifically, we compiled the data into four categories: indirect link, direct link, climate proofing, and no link. The first refers to activities which, albeit not explicitly aimed at adaptation/mitigation, have positive impacts on the livelihood of clients as they either help them diversify income sources, accumulate assets, and/or pro-mote employment creation and, as such, would naturally enhance their adaptive ability. Activities that explicitly consider adapta-tion/mitigation strategies fall into the direct link. Climate proofing, meanwhile, refers to those programmes that may need adjust-ments to take better account of site-specific climate change vulnerabilities. Lastly, no link activities, as the name suggests, have neither direct nor indirect connection with adaptation/miti-gation to climate change. It is noteworthy that, in particular cases, a programme may fall into different categories.
Analysis and discussion of results
In this section we seek to introduce the context in which Agroa-migo operates before addressing and presenting our analysis and related results.
Agroamigo: Geographic context, products, and climate change vulnerabilities
Most of the villages where Agroamigo operates are characterised by semiarid climate and covered by caatinga, an endemic, semi-arid climate biome. Average annual precipitation in those regions is 700mm and evapotranspiration losses are three times as high as annual rainfalls (Silva et al., 2012). They also have high spatial and temporal rainfall variability with roughly 80% of total annual precipitation concentrated around 4 months. Statistically, the Northeast has reported between 18 and 20 years of droughts per century, with the last century the driest ever recorded (Marengo & Valverde, 2007).
For its climate specificities and its harsh socioeconomic conditions, the Northeast Region is in the frontline of climate change as one of Brazil’s most vulnerable areas to a changing climate (Baettig, Wild, & Imboden, 2007). Surface air tempera-
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tures, for instance, are projected to increase and rainfalls to decrease substantially during the XXI century compared to past trends. Accordingly, temperatures are likely to increase by 0.5ºC and 1ºC and rainfalls to decrease by 10% and 20% until 2040. Between 2041 and 2070, the climate in the region is projected to get even warmer, up 1.5ºC to 2.5ºC, and precipitation is expected to drop by between 25% and 35%. Toward the end of the cen-tury, temperatures are likely to rise by 3.5ºC to 4.5ºC, whereas rainfall distribution will decrease markedly between 40% and 50% (PBMC, 2013). As a result, there will be a significant reduc-tion in water supply, reaching 100% by the end of the century (Marengo et al., 2012).
Other changes in the climate pattern predicted for Brazil’s Northeast include: drier air and increase in the number of con-secutive dry days; reduction in extreme rainfall events leading to increased frequency of droughts; increased evapotranspiration; decreased river runoff; and, eventual rise in sea level in coastal areas, especially in the city of Recife (Marengo & Valverde, 2007, Muehe, 2006). Such changes in climate patterns are likely to trigger major natural and socioeconomic impacts across North-eastern Brazil.
Exhibit 1 ranks key site-specific climate change impacts and vulnerabilities for the Northeastern region based on scien-tific projections and on responses by interviewees. Significant among these are variables related to water resources/access and agriculture/livestock, ranked at the top, as being of highest prior-ity in terms of socioeconomic impacts as well as urgency. Added
pressure on water access and irrigation, reduction in arable land caused by desertification, and associated decrease in agricultural yields will substantially affect the Region’s rural population as they rely greatly on such resources for their livelihoods. In fact, during interviews all five social groups argued that water scarcity already constitutes a major challenge for rural activities in the region, in particular during extreme drought periods. For all inter-viewed clients, the lack of quality water for consumption and for rural activities was perceived as the major threat to sustain their businesses, especially for those clients raising livestock. For two interviewed smallholder farmers, this was the primary cause of total harvest loss during the 2012-2013 intense droughts.
Human Health is ranked next mainly due to the expected increase in vector-borne diseases because of climate change as well greater stress on water access. Some clients emphasised that at least one member of their household has already had health issues due to tropical diseases and/or poor quality water. This is followed by energy generation in particular because a reduc-tion in river runoff would pose significant threats on the regional energy matrix, markedly reliant on hydropower. In fact, as a side effect of the recent large-scale drought, in February 2014, costly and polluting thermoelectric generators needed to be activated to offset lowering energy production of hydroelectric plants in the region (Warth, 2014). Lastly, forced migration flows, a historical burden on the Northeast’s semiarid population, would increase considerably as social, economic conditions deteriorate in the incidence of intensified climatic events, and thus is ranked next.
Exhibit 1. Resource ranking of key climate change priorities and vulnerabilities for Brazil’s Northeast
Climate change forecast Weather-related events Major socioeconomic impacts Timing of impacta Importance of resourceb
Decreased rainfall
Increased temperature
Drought
Decreased river runoff
Evapotranspiration/water deficit
Desertification/aridisation
Water resources/Access Short High
Agriculture/Livestock Short-Medium High
Human Health Short-Medium High
Energy generation Medium-Long Medium-High
Migration Medium-Long Medium-High
Note: a. Short (2011-2040) - Medium (2041-2070) - Long (2071-2100). b. Importance of resource based on relevance for the socio-economic aspects of the region.Source: Based on Marengo et al., 2012; PBMC, 2013; Interviews.
When it comes to assessing products, services and programmes available, we notice that, broadly, Agroamigo oper-ationalises various public lines of credit under Pronaf. Each line has its own eligibility requirements, interest rates and specific clientele varying according to the sector financed. In addition, according to managers interviewed, about 98% of Agroamigo’s lending programmes are channelled to investment projects. For instance, Pronaf Women and Youth, as well Pronaf Crescer and Mais are aimed at financing employment and income gener-
ating activities in agriculture/livestock and, to a lesser extent, non-agricultural sectors. Pronaf Crescer and Mais finance loans for investment and working capital of up to R$ 2.500 (US$1,080) and R$15.000 (US$6,450), respectively, and constitute the vast major-ity of disbursed lending. Annual interest rates may vary between 0.5 and 3% and loan terms may last 10 years in some cases.
Pronaf Semiárido provides loans of up to R$2.500 (US$1,080) at a 1% annual interest rate destined to financing water systems and drought-tolerant infrastructure. Pronaf Forest
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provides loans of up to R$15.000 (US$6,450) at a 1% annual inter-est rate dedicated to environmentally-friendly projects such as tree planting. Other lines include, for example, Pronaf Eco for the financing of techniques that minimise the impact of rural activities on the local environment; Pronaf Agroindústria for investments in micro agro-industries; and, Pronaf Agroecologia for the financing of agro-ecological production and/or organic systems. Through such lending programmes, Agroamigo guarantees credit access to poor smallholder farmers, contributing to enhance their pro-ductive capacity and, ultimately, progressive insertion into local markets (Abramovay et al., 2012).
Although there has been an institutional effort to diversify the portfolio towards non-agricultural products, livestock and agricultural activities constitute the great bulk of Agroamigo’s lending. In an 8-year time-series, livestock such as dairy cattle has accounted for 79% of products financed by Agroamigo. Managers as well as coordinators highlighted that albeit actions to nudge income source diversification are in place, the final choice falls onto clients. They also pointed to an intergenerational tradition of livestock production, which is difficult to break. Abramovay et al. (2012), using the Herfindal-Hirschman index to measure the degree of diversification among Agroamigo’s clients, noticed a de facto tendency towards livestock activities. In effect, when questioned about diversification of income sources, ten out of twelve clients said they were reticent to change and/or diversify their income generating activities, even if they were offered incentives to do so. Such a tendency could also be explained by the fact that since most clients are beneficiaries of public cash transfer programmes, e.g. Bolsa Família, they do not get incentives to diversify income sources (see, Instituto de Pesquisa Econômica Aplicada, 2013).
Right next are agricultural products totalling 11% of Agroamigo’s financing, with fruit and grain production the vast majority. Other activities include non-agricultural products such as extractivism and services [e.g. tourism, arts and crafts, retail, agro-industry, transportation] and combined constitute 10% of total 2013’s portfolio. In addition, Agroamigo offers savings accounts—according to Abramovay et al. (2012), 40% of clients save money—, insurance [health and life] schemes, as well as financial and environmental education. All these programmes and products were presented to prospective clients during the informative session attended by the authors.
Disaster relief loans were also implemented in 2012 as an effort to cope with losses clients had faced because of the recent intense drought, namely Pronaf Semiárido 2012. To this regard, national and regional managers stated that the BNB, following a government directive, rescheduled and granted an 80% bonus on maturing loans for clients living in semiarid zones and allocated about US$ 1.5 billion in emergency loans to help clients with-
stand drought-related losses. At least 50% of such loans, of up to R$2.500 (US$1,080) each, were to be directed to financing water wells and more efficient irrigation systems, leaving the remain-ing 50% to meet working capital for agricultural/livestock needs.
However, during interviews, two major issues related to the delivery and design of the emergency loans emerged. The first is related to concerns voiced by some interviewees about the lengthy and procrastinated delivery of such emergency loans, which can take months to be actually delivered. Secondly, various interviewees, in particular clients, argued that the amount of each loan was insufficient to cover the full cost of water well construc-tion, which according to them, costs around R$3.000 (US$1,300).
Agroamigo also seeks to promote synergies between its products and governmental programmes, as for instance, the Pro-grama de Garantia de Preços para a Agricultura Familiar (PGPAF [Guaranteed Price for Smallholder Farmers]), the Programa de Aquisição de Alimentos (PAA [Food Acquisition Programme]), the Programa Nacional de Alimentação Escolar (PNAE [National School Feeding Programme]), the Agricultural Zoning, and crop insurance schemes such as Proagro Mais and Investimento. In addition, it also integrates governmental technical assistance programmes into its pool of products, even though some interviewed manag-ers claimed that there is room for improvement in its provision.
When refined into specific financing categories, as shown in Graphic 1, we observe that the vast majority of Agroamigo’s products and programmes, i.e. 71%, fall into activities that gener-ate income and/or employment for clients, either in agricultural/livestock or non-agricultural sectors. Next are water/disaster relief/preparedness and forestry programmes, accounting for 7% and 5%, respectively. The remaining categories make up, each, 4% of total sector programmes. Among these are: education, techni-cal assistance/information transfer, health, and savings schemes.
Graphic 1. Programmes and products financed by Agroamigo by sector categories
Technical assistance/information
transfer 4%
Employment and income generating activities in
agriculture and livestock
47%
Employment and income generating activities in
non agricultural sector 24%
Water/disaster relief/preparedness
7%
Education 4%
Health 4%
Forestry 4%
Savings schemes 4%
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Links to climate change adaptation and mitigation
At a first look, it emerges that there are important overlaps between products and programmes financed by Agroamigo shown in Graphic 1 and site-specific climate change impacts and vulnerabilities illus-trated in Exhibit 1. In particular, agriculture, livestock, health as well as initiatives intended to enhance the resilience of rural com-munities in the semiarid Northeast [under water/disaster relief/preparedness] all stand out among Agroamigo’s key priorities. A second look, however, shows that links between Agroamigo’s prod-ucts are encompassing and adaptation/mitigation strategies are rather nuanced. As Agrawala and Maëlis (2010) argued, activities that a priori may seem plausible from an adaptation/mitigation per-spective may end up increasing climate change vulnerability, and thus, lead to maladaptation. This is because financing activities in sectors which are vulnerable to climate change impacts may entail significant risks both to a MFI’s portfolio and its clients, and Agroa-migo portfolio’s concentration on livestock lending goes exactly in that direction. On the other hand, activities that help rural com-munities to diversify and generate extra income also contribute to enhance their adaptive capacity, as in the case of most of Agroa-migo’s lending products. Therefore, ‘a more nuanced approach is needed’ (Agrawala & Maëlis, 2010, p. 20).
The amalgamation of Agroamigo’s programmes/products and localised climate change vulnerabilities is shown in Graphic 2. Accordingly, 66% of programmes and products financed by Agroamigo have indirect links with climate change strategies. These include all loans aimed at job creation and income gener-ation both in agricultural, livestock and non-agricultural sectors. Because of their business-induced nature, they contribute to reduce client vulnerability and thus enhance their adaptive abil-ity to cope with climate change. In addition, health/life insurance and savings schemes also fall into this category as they convey coping mechanisms to climate change.
Direct link, in turn, accounts for 12% of Agroamigo’s pro-grammes and products. Among these are programmes dedicated to finance improved water systems, drought-resistant infrastructure, and forestry activities—the Pronaf Semiárido, Pronaf Semiárido 2012, Pronaf Eco, Pronaf Florestal —, crop insurance schemes, e.g. Proagro, as well as technical assistance, environmental education, inputs for biofuel production, and agricultural zoning. Moreover, adaptation activities are the great bulk of Agroamigo’s programmes under direct link. These two categories combined constitute what Agrawala and Maëlis (2010) coined “win-win” microfinance pro-grammes, i.e. “programmes which, as currently structured, would automatically contribute to adaptation and [to a lesser extent] mit-igation to climate change” (Agrawala & Maëlis, 2010, p. 21).
Agroamigo’s no link programmes and products make up 8% of the total and include debit card provisions. Lastly, the climate-proofing activities account for 14% of Agroamigo’s prod-ucts and programmes. These include programmes that need to take better consideration of site-specific climate change vul-nerabilities as they may entail significant risk to Agroamigo’s financial performance as well as its clients. Although there has been an effort to diversify its lending towards non-agricultural activities, Agroamigo portfolio’s concentration on financing cattle production may put its portfolio at greater risk if climatic events such as the 2012-2013 droughts become more frequent and intense in the future. Accordingly, extreme weather events, in particular in the Semiarid Northeast, impact the ability of Agroamigo’s borrowers to do business, and the market value of their asset base, which ultimately compromises their abil-ity to service their microloans. By way of example, during the recent drought, the livestock market value in Northeast Brazil fell by 28%, and in certain villages the reduction reached 50% (Alves, 2012). It occurred more frequently, and in larger scale, in the absence of a sound coping mechanism. Drought-related losses may cause solvency issues to the Programme’s portfo-lio, eventually leading Agroamigo to call on the government for financial leverage.
From a client perspective, on the other hand, such climate-proofing microfinance programmes may lead to malad-aptation as the resources these people rely on for their livelihood may be the most sensitive to a changing climate. All twelve inter-viewed clients stated having already had weather-related losses that affected partially or totally their activities and none of them are insured against such losses. In April 2013, various of Agroami-go’s clients from various northeastern states deposited carcasses of cattle, victims of the large-scale drought, outside Agroamigo’s branch in the village of Campina Grande, state of Paraiba, in pro-test for their debts to be written off.
Managers interviewed said that only roughly 2% of Agroa-migo’s loans are covered by Proagro policies, leaving most of its portfolio unprotected against eventual climatic shocks. They fur-ther argued that this is because Proagro primarily insures working capital for agricultural activities, and since most of Agroamigo’s financing is channelled to investments in livestock production, most of its loans remain uncovered by the public insurance scheme. They also argued that in the occurrence of large-scale losses because of extreme weather events, rural trade unions usually call on the government for disaster relief actions. This is precisely what happened during the 2012-2013 drought events where the BNB, following a government’s directive, allocated about US$1.5 billion in emergency loans, i.e. nearly three time as much as Agroamigo’s total outstanding loan portfolio.
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Lastly, although services and products aimed at adaptation and mitigation such as Pronaf Eco, Florestal, and, Agroecologia fall into the direct link category, their share in total Agroamigo lend-ing remains very limited and thus underused. When questioned about this issue, national managers stated that the programme is about to launch a campaign for the 2014 UN’s International Year of Smallholder Farmers, namely Agroamigo Sustentável [Sustain-able Agroamigo], as an attempt to encourage the use of existing eco-friendly financing mechanisms. Also, the campaign aims at raising awareness on environmentally friendly practices in the pursuit of rural activities. Furthermore, credit agents will be encouraged to strengthen information sharing and best practices on such techniques during informative sessions for current and prospective borrowers.
Graphic 2. Categorisation of links between Agroamigo’s products and climate change strategies
No link8%
Climate-proofing14%
Direct link12%
Indirect link66%
CONCLUSION
In this study, we sought to show that Agroamigo, Brazil’s larg-est rural microfinance provider, offers important links to climate change initiatives. The focus on the rural poor, who happen to be particularly vulnerable to climate change; its distribution chan-nel covering 10 Brazilian states and reaching out over 800,000 clients; the local knowledge it possesses as well as its ability to help the rural poor generate extra income are all elements that reinforce the broader idea of microfinance as a potential instru-ment to deliver adaptation and mitigation strategies to the poorest segments of society.
We showed, for instance, that Agroamigo already offers important lending mechanisms that will help clients better respond to climate change impacts, such as saving and insurance schemes, eco-friendly programmes such as the Pronaf Florestal, Pronaf Eco, and Pronaf Semiárido. In addition, the promotion of sustainable development, imbued in Agroamigo’s mission, and its environmental literacy education represent an important step towards the adoption of a triple bottom line approach [people, planet, profit]. Also, disaster relief loans, flexible repayments and bonuses and rescheduling on maturing loans during the 2012-2013 large-scale droughts were considered very satisfactory by interviewed clients and credit agents. Besides, at the institutional level, Agroamigo already promotes an environmentally friendly approach to business by reducing its ecological footprint, e.g. reducing waste and paper use.
Nevertheless, in light of pertinent literature on green microfinance, climate vulnerabilities, analysed and transcribed interview data, field observation and relevant documents, we believe that programmes and products offered by Agroamigo can be enhanced to take better consideration of localised cli-mate change vulnerabilities. Therefore, our recommendations are as follows:
Recommendation 1: we suggest that Agroamigo consider applying a climate change lens to its products and embark on a more proactive role to consider risks and vulnerabilities stem-ming from global warming better, particularly water resources. For instance, greater effort towards portfolio diversification could be enhanced, in particular towards non-agricultural lending and drought-tolerant crops; and here, Agroamigo’s credit agents are placed in a strategic position to circumvent local tradition in live-stock production and nudge clients towards the diversification of income sources. Agier (2012), for example, showed the potential of credit agent abilities in the microcredit cycle, in particular at the screening stage. Moreover, loans for acquisition of more effi-cient irrigation/water technologies were retained by clients and credit agents as insufficient to cover the full cost and, therefore, could be revisited by Agroamigo. There is also room for improve-ment in technical assistance provisions.
Recommendation 2: we suggest extending insurance schemes to areas not covered by the Proagro, for instance, live-stock investment projects. At present, roughly 2% of Agroamigo’s outstanding loans are insured against climate-related losses via Proagro policies. This is because such a scheme primarily insures working capital to meet agricultural production needs, and most of Agroamigo’s lending is channelled to livestock purposes, leav-ing its portfolio and clients unprotected against weather shocks. A solution could be implementing index-based insurance schemes, considered a prominent tool in the green microfinance sector, to
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serve as a complement to the government’s Proagro, especially in not-covered areas such as livestock investment projects. These are insurance schemes which are triggered according to established local weather thresholds, or indexes, and thus, avoid problems related to individual misbehaviour and costly harvest loss assess-ments (see, for example, Wang, Karuaihe, Young, & Zhan, 2013).
Recommendation 3: we suggest that more room for manoeuvre be given to Agroamigo administration in the design and planning of products and programmes. This is because the programme has institutional and legal constraints in planning and designing programmes, services and products. More spe-cifically, Agroamigo operationalises various public credit lines and thus acts upon governmental instructions and directives. If extreme weather events occur with more frequency and inten-sity in the future, such excessive reliance on the government may hinder Agroamigo’s ability to deliver ready and quick disaster relief responses, and thus, may exacerbate the climate change burden on the business performance of clients. In fact, a major concern voiced by some interviewees was the lengthy delivery of disaster relief programmes.
Recommendation 4: we believe that there is room for Agroamigo to foster mitigation strategies, which, at present, remain virtually unexplored. Abramovay et al. (2012) claims that although most clients have access to electric power, 40% of them use coal or wood burning stoves. Therefore, renewable energy sources such as biodigesters and improved cooking stoves beyond constituting a new market opportunity for Agroamigo can be financed through existing tools such as the Pronaf Eco. To this regard, the campaign Agroamigo Sustentável may work in that direction. In addition, Agroamigo may consider engaging in the Mecanismo de Desenvolvimento Limpo (Clean Development Mechanism), the international voluntary market, and/or partner [e.g. energy suppliers, intermediary organisations] to finance mitigation initiatives.
Nevertheless, we also acknowledge there are trade-offs in promoting a green microfinance industry by Agroamigo. For exam-ple, finding the balance between shorter-term livelihood needs of Agroamigo clients and the longer-term commitments needed for adaptation and mitigation may represent a major constraint in fostering climate change actions. Moreover, in some cases, Agroamigo’s loans may increase the debt burden of borrowers, placing added pressure on their adaptive ability. Also, climate change actions at the customer/institutional level may entail risks for Agroamigo’s portfolio. Lastly, “climate proofing” Agroamigo would require additional employee skills, in particular to coor-dinators and credit agents, which may increase administration costs. Therefore, Agroamigo, in responding to climate change, will need to weigh the balance between costs and benefits entailed
in fostering adaptation and mitigation strategies, and be aware that its actions in this arena are certainly no panacea.
More research is needed to understand the actual design and implementation of our recommendations better, though. Yet, there is a unique study on green microfinance that we believe will constitute a relevant empirical contribution to such an incipient realm. In addition, with our study, we hope to encourage Brazilian academia to investigate this contemporary, and yet overlooked, pressing domain further.
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JUAN PABLO ROMÁN-CALDERÓN [email protected] at Universidad Eafit, Departamento de Organización y Gerencia – Medellín, Colombia
CARLO ODOARDI [email protected] at Università Degli Studi Firenze, Dipartimento di Scienze Formazione e Psicologia – Firenze, Italy
ADALGISA BATTISTELLI [email protected] at Université de Bordeaux, Laboratoire de Psychologie – Bordeaux, France
FORUMSubmitted 12.09.2013. Approved 09.10.2014Evaluated by double blind review process. Scientific Editors: Edgard Barki, Graziella Comini, Ann L Cunliffe, Stuart Hart and Sudhanshu Rai
CAUSE-FIT, POSITIVE ATTITUDES AND BEHAVIORS WITHIN HYBRID COLOMBIAN ORGANIZATIONSAdesão à causa, atitudes e comportamentos positivos nas organizações híbridas colombianasAdhesión a la causa, actitudes y comportamientos positivos en organizaciones híbridas colombianas
ABSTRACTSocially oriented ventures have provided livelihoods and social recognition to disadvantaged communities in different corners of the world. In some cases, these ventures are the result of Corporate Social Responsi-bility (CSR) programs. In Latin America, this type of undertaking has responded positively to unmet social needs. The social cause drives these organizations and their human resources and they give high value to organizational cause-fit. This paper presents empirical evidence of the effects of perceived cause-fit on several worker attitudes and behaviors. Psychological contract theory was adopted as theoretical back-ground. Employees working in a hybrid (for-profit/socially oriented) Colombian organization created by a CSR program participated in the survey. Data provided by 218 employees were analyzed using PLS structural equation modeling. The results suggest the ideological components of the employee-employer relationship predict positive attitudes and cooperative organizational behaviors towards hybrid organizations.KEYWORDS | Hybrid organizations, Corporate Social Responsibility, social cause, cooperative beha-viors, social entrepreneurship.
RESUMOEmpreendimentos orientados ao social fornecem sustento e reconhecimento social para comunidades des-favorecidas em diferentes partes do mundo. Em alguns casos, estes empreendimentos são o resultado de programas de Responsabilidade social empresarial (RSE). Na América Latina este tipo de empreendimento tem respondido positivamente às necessidades sociais. A causa social dirige essas organizações e seus recursos humanos, e valoriza a adesão à causa organizacional. O artigo apresenta uma evidência empírica em relação aos efeitos percebidos de adesão à causa sobre as atitudes e comportamentos dos trabalhadores. O estudo foi baseado na teoria do contrato psicológico. Empregados de uma empresa colombiana híbrida (fins lucrativos/orientação social) criada a partir de uma iniciativa da RSE participaram da investigação. Os dados foram analisados através da modelação por equações estruturais (PLS). Os resultados indicam que os componentes ideológicos da relação empregado-empregador tem atitudes positivas e comportamentos cooperativos paras as organizações híbridas.PALAVRAS-CHAVE | Organizações híbridas, Responsabilidade Social Empresarial, missão social, comporta-mentos colaborativos, empreendedorismo social.
RESUMENLas empresas orientadas hacia lo social proveen reconocimiento social y sustento para comunidades en situación de desventaja. En algunos casos, estas empresas son el resultado de programas de Responsabili-dad Social Empresarial (RSE). En América Latina, este tipo de emprendimiento ha respondido positivamente a necesidades sociales. Los recursos humanos de dichas empresas están altamente motivados por la misión social de la organización y le dan mucho valor al grado en el cual la empresa se ajusta a esta. El presente artículo presenta una investigación empírica acerca del ajuste de dichas organizaciones a su misión social y el efecto que este tiene sobre las actitudes y comportamientos de los trabajadores. El estudio se basó en la teoría del contrato psicológico. Los empleados de una empresa colombiana híbrida (ánimo de lucro/orientación social) creada a partir de una iniciativa de RSE participaron en la investigación. Los datos fueron analizados a través de la modelación por ecuaciones estructurales (PLS). Los resultados indican que el ajuste de las organizaciones híbridas a su misión social tiene efectos positivos sobre la satisfacción de los trabajadores y sobre comportamientos colaborativos hacia la empresa.PALABRAS CLAVE | Organizaciones híbridas, Responsabilidad Social Empresarial, misión social, com-portamientos colaborativos, emprendimiento social.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150405
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INTRODUCTION
Inequity, social needs and economic development affect the lives of millions of human beings in Latin America. According to World Bank data, Colombia has been paradigmatic with regard to socio-eco-nomic inequality. With a GINI index reaching 50 points over the last 5 years, an index of 100 points meaning perfect inequality, Colom-bia is still among the more unequal countries worldwide. In face of this, a number of initiatives to alleviate social and economic disparity are taking place in Colombia. New public and private ventures directed to enhance socio-economic wellbeing and the strengthening of existing socially oriented ventures are shaping the Colombian socio-economic landscape positively. In develop-ing countries, Corporate Social Responsibility (CSR) programs have different organizational outcomes (Jamali & Mirshak, 2007). Orig-inated by Corporate Social Responsibility (CSR) programs, many of these social undertakings intend to be independent organiza-tions and have a dual/hybrid nature. Hybrid organizations have a double mission (Austin, Stevenson, & Wei-Skillern, 2006). On the one hand, they pursue economic sustainability. On the other hand, they have a salient social mission (Levi & Davis, 2008). The social mission of a hybrid organization can be defined as “an orga-nizational commitment to address human needs that are unmet by state and markets providers or arise because of their efforts to satisfy other needs” (Doherty, Foster, Mason, Meehan, Rotheroe, & Royce, 2009). Research on hybrid organizations in Colombia is important given that this type of organization can help to tackle social issues such as the violence and socioeconomic inequality that have characterized the country for years.
Hybrid organizations created by CSR programs have a declared social orientation. Furthermore, people working in these socially oriented ventures have a specific value orientation. Socially oriented organizations with good corporate social perfor-mance attract people to whom the values and norms expressed by corporate social responsibility actions have special mean-ing (Greening & Turban, 2000). According to Bhattacharya, Sen, and Korschun (2008) some individuals want to align themselves to the organization’s social values and commitments. Recently, Michailides and Lipsett (2013) investigated frontline employee attitudes towards CSR. In their study, they did not find significant evidence of the relationship between organizational climate, edu-cational level and CSR worker orientations (Michailides & Lipsett, 2013). In their view, these findings may be explained by “the effec-tiveness of CSR communications at stimulating some degree of alignment of individual values to corporate purpose” (Michailides & Lipsett, 2013, p. 313). The authors of this paper contend there may be other individual variables exerting an important influence on the positive relationship between worker values and organi-
zational goals. Specifically, they posit that much of the workers alignment with the organizational social values depends on the perceptions, interests and ideological orientations of the individ-uals. Furthermore, several scholars suggest that this alignment would have a positive effect on other worker attitudes and behav-iors such as organizational commitment and intentions to leave (Bhattacharya et al., 2008; Chong, 2009). Bhattacharya et al. (2008) research results suggest that employee commitment to the corporate social responsibility (CSR) program led to pro-com-pany citizenship behaviors and feelings of pride, which in turn positively related to employee performance and negatively to intentions to quit. These authors suggest that company char-acteristics such as cause-fit may lead to worker identification, increased job satisfaction and commitment to continue employ-ment (Bhattacharya et al., 2008). However, more needs to be done to identify the psychological mechanisms through which:
• Employees of hybrid enterprises coming from CSR programs align to the organizational socially oriented values and norms.
• This psychological/ideological bond boosts positive attitudes and behaviors directed to these organizations.
This paper presents an empirical research that intended to disentangle some of the psychological mechanisms explaining these relationships. In particular, the study inquired if perceived cause-fit had positive effects on the worker’s social identification with the organization, job satisfaction and cooperative behaviors towards the organization. In order to validate this set of theoretical assertions simultaneously, empirical data collected in a Colombian socially oriented enterprise were analyzed using second-genera-tion statistical techniques. This hybrid organization was created by a for-profit organization in order to cope with high local unem-ployment rates. Both organizations lead the regional textile sector. They produce and commercialize underwear, respectively. One of the top executives of the for-profit organization created the hybrid organization. His leit-motif was to help a group of disadvantaged women in his hometown by creating a new economic activity. Fol-lowing successful experiences in the region, he gathered public and private resources to create an enterprise deemed to be man-aged and owned by the employees. Women affected by political violence were the targets of the CSR program. Right from the begin-ning, the business has been fully independent from the parent organization. Almost 30 years of activities animating the regional economic landscape and integrating local women to the economic and social life, have granted this hybrid organization the acknowl-edgement of locals, and the right of being used by other hybrid Colombian enterprises as a model. Furthermore, the organization
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is considered a good place to work, inside and outside the walls. Largely, these perceptions seem to be the result of the organiza-tion’s commitment to the social mission. In particular, this research studied the perceptions related to the organizational commitment to the social mission. More specifically, the results of this study pro-vide further empirical results to Bhattacharya et al. (2008, p. 38) assertion according to which “the specificity with which a company supports or engages in a social initiative makes a big difference to how it is perceived by employees”.
IDEOLOGICAL OBLIGATIONS, RESPECT AND COOPERATIVE BEHAVIORS DIRECTED TO THE ORGANIZATION
Prior research in socially oriented enterprises has demonstrated that non-monetary remunerations are key in order to improve worker compensation (Amin, 2009; Mosca, Musella, & Pastore, 2007). Because people working in these enterprises care about non-monetary compensations, some researchers argue that people working in non-profits are characterized by a specific ideological profile (Borzaga & Bacchiega, 2001). Despite empir-ical evidence showing that people working in different sectors care about non-monetary compensations, virtually no research has inquired the ideological profile in terms of employee attach-ment to the goals of organizations resulting from CSR programs. As suggested before, worker alignment with the values represented by CSR programs would depend on organizational characteristics such as perceived cause-fit. Psychological contract theory can help to shared light on how workers’ perceived cause-fit modify their attitudes and positive behaviors towards the organization.
Theory and research on the employer-employee exchange suggest that the psychological contract (PC) approach is suitable to study employment relationships based on ideological grounds. PCs are unwritten arrangements based on the belief of reciprocal obligations (Rousseau, 1989, 1995). These obligations are differ-ent in nature. According to Rousseau (2001), and Thompson and Bunderson (2003), along with economic and emotional contents, the employee-employee exchange is shaped by ideological terms. Ideological contents are employer and employee perceived recipro-cal obligations with respect to the social cause of the organization (Bingham, 2005). These ideological psychological obligations com-pose the ideological psychological contract (IPC). Up to date, the ideological terms of the PC have been studied in the for-profit, non-profit, health care and educational organizations (Bal & Vink, 2011; Bingham, 2005; Thompson & Bunderson, 2003). The IPC construct has demonstrated predictive validity in both the for-profit and non-
profit sectors (Bingham, 2005; Vantilborgh et al., 2013). Arguably, the IPC construct is suitable to study the effects of the links between ideological obligations within hybrid organizations in terms of pos-itive attitudes and behaviors directed to the organization.
Organizational citizenship behavior (OCB) studies have a long-standing tradition (Dalal, 2005). The OCB construct refers to off-role behaviors highly related to cooperation (Smith, Organ, & Near, 1983). From the point of view of their consequences, OCBs encompass “contributions to the maintenance and enhancement of the social and psychological context that support task perfor-mance” (Organ, 1997, p. 91). OCBs directed to co-workers (OCBI) and those directed to the organization (OCBO) should be distinguished (McNeely & Meglino, 1994; Organ, 1997; Williams & Anderson, 1991). OCB’s antecedents have been profusely studied. Williams and Anderson (1991) found that job satisfaction was an important antecedent of OCBs (Williams & Anderson, 1991). Further, accord-ing to Tyler and Blader (2002), cooperative behaviors on behalf of the organization are likely to occur when workers feel the organi-zation respects them. Recently, Boezeman and Ellemers (2007) studied the influence of workers’ feelings of respect by the orga-nization on cooperative behaviors directed to the organization. Respect refers to the assessment that one is accepted as a member of the organization (Tyler & Blader, 2002). This assessment is one of the processes through which the employee’s social identifica-tion process is consolidated with the organization. Thus, the more respected the employee feels, the more he or she identifies with the organization. Using intentions to remain in the organization as a proxy variable, Boezeman and Ellemers (2007) found that organizational respect had an indirect and positive influence on cooperative behaviors directed to the organization in a sample of volunteers (Boezeman & Ellemers, 2007). Boezeman and Ellemers’ (2007) results indicate that the influence of respect on intentions to remain is mediated by organizational commitment. However, pos-itive organizational behaviors directed to the organization widely overcome the intentions to remain. The authors of this paper posit that in hybrid organizations the effect of respect on a wider array of cooperative behaviors (i.e. OCBs directed to the organization and turn over intentions) would be mediated by job satisfaction. Given the social orientation of hybrid organizations and the fact that people related to them are attracted by such orientation, the more identified (i.e. respected) with the organization, the more satisfied the employee is with his (her) job. In turn, within these organiza-tions, respect would mediate the effect of ideological obligations on job satisfaction. People perceiving organizational ideological obligations would feel obligated to accomplish the organizational social goal, identified with the organization, and satisfied with their job. Prior studies on the effects of PCs indicate that job dissatis-faction mediates the effect of psychological contract violations on
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several organizational outcomes (Turnley & Feldman, 2000). Fur-ther empirical evidence demonstrates that IPC content also predicts job satisfaction. Bingham (2005) found a significant relationship between fulfillment of the IPC and job satisfaction. However, no research has investigated the mediating variables intervening in the relationship between IPC content, job satisfaction and coop-erative behaviors altogether.
Specifically, the hypotheses of the study were:
H1: Organizational ideological obligations positively influ-ence workers’ ideological obligations.
H1a: Workers’ ideological obligations mediate the positive effect of organizational ideological obligations on organi-zational respect.
H2: Organizational ideological obligations have a positive direct influence on organizational respect.
H3: Organizational respect enhances job satisfaction.
H4: Job satisfaction has a negative influence on workers’ turnover intentions.
H5: Job satisfaction boosts organizational citizenship be-haviors directed to the organization
These hypotheses conform the hypothetical model repre-sented in Figure 1. Noteworthy, hypotheses 1 and 2 have never been tested in any type of enterprise. Further, hypotheses 3, 4 and 5, as proposed in Figure 1, have never been validated in organizations created by CSR programs. Thus, testing the entire hypothetical model (see Figure 1) contributes not only to CSR literature, but also to psychological studies interested in the mechanisms through which socially oriented ideologies posi-tively influence cooperative behaviors directed to the organization.
Figure 1. Theoretical model
Organizationalideologicalobligations
Workerideologicalobligations
H1a H5
H4H2
H3
Turnoverintentions
Organizationalcitizenship
behavior
Organizationalrespect
Jobsatisfaction
H1
METHOD
A back-translated questionnaire (Schaffer & Riordan, 2003) was administrated to 290 paid employees of a Colombian hybrid orga-nization. The participants responded voluntarily to the survey. This enterprise was created by a for-profit organization through a CSR program. For almost 28 years, the enterprise has functioned inde-pendently in the regional textile sector and provided employment to local disadvantaged women. The survey obtained a response rate of 80%. At the end, 218 questionnaires were usable for sub-sequent analyses. Questionnaires with missing data were not included for the statistical analysis. Nearly, 93% of the partici-pants were women whereas the mean tenure was 13 years. The average age of the respondents was 34 years.
Measures
The questionnaire was previously presented to the administra-tive staff. The procedure was adopted in order to guarantee the fitness of the questionnaire to the organizational context. Bing-ham’s (2005) measure was used to assess organizational and workers’ ideological obligations (Vantilborgh et al., 2013). Two self-reported scales compose this measure. Each IPC scale is conformed by 7 items (Bingham, 2005). The first scale (IPCOO) evaluates the perception of workers regarding the organization’s obligations with regard to the organizational social cause. The second scale (IPCWO) measures the perception of workers with regard to their ideological obligations. Like in all measures used in the survey, respondents used a 5 points Likert scale. While the IPCOO scale began with the header “X is obligated to”, the IPCWO was introduced by the statement “As a worker at X I feel I’m obligated to”. Examples of the items of the scales are: “con-tribute to the stated cause” and “maintain a company culture that promotes our corporate principles”.
Workers feelings of being respected by the organization were assessed through an adapted version of the Autonomous Respect Scale developed by Tyler and Blader (2002). Previous research has showed good reliability indices for this three-item measure; the scale obtained an α = 0.84 in Boezeman and Elle-mers’s (2007) study and an α = 0.95 index in Tyler and Blader’s (2002) investigation. Sample items are: “I feel respected as an employee by X and X cares about my opinion as an employee”.
Job satisfaction was measured using three items of The Michigan Organizational Assessment Questionnaire (Cammann, Fichman, Jenkins, & Klesh, 1979). This measure has been widely used in organizational research. Examples of the items of this scale are: “All in all I am satisfied with my job” and “In general, I don’t like my job”.
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Organizational citizenship behaviors directed to the orga-nization were assessed with Lee and Allen’s (2002) subscale. The subscale was introduced to the respondents by the following statement: “This section of the questionnaire regards the way you act towards your organization”. Sample items are: “Attend func-tions that are not required but that help the organizational image” and “defend the organization when other employees criticize it”.
Finally, turnover intentions were measured with the two-item scale developed by Bentein, Vandenberg, Vandenberghe and Stinglhamber (2005). The heading “Regarding my future... preceded the items of this scale”. Examples of these items are:
“I often think about quitting this organization” and “I intend to search for a position with another employer within the next year”.
Analysis
Smart PLS (version 2.0 beta) statistical software was used for data analysis (Ringle, Wende, & Will, 2005). The Partial Least Squares Structural Equation modeling method (PLSSEM) was chosen to test the theoretical model. As covariance-based SEM (CBSEM), PLSSEM consents the analyses of different complex relationships between latent variables (LVs) belonging to the same model. Furthermore, like CBSEM, PLSSEM provides statistics on the psycho-metric properties of the measurement instruments. Summarizing, PLSSEM produces results to evaluate the structural and measure-ment models included in theoretical models with LVs. Conversely, compared with CBSEM, PLSSEM is less restrictive in terms of sam-ple-size (Haenlein & Kaplan, 2004). Moreover, PLSSEM can be used in both exploratory and confirmatory studies. As is the case for this exploratory study, PLSSEM is particularly suitable to test, through the usage of new measures, theoretical models including new relationships between constructs (Chin, 2010).
The PLSSEM methodology is a two-step approach. The first step consists in assessing the measurement model. The evalu-ation of the PLSSEM measurement model implies an analysis of the construct validity for all LVs. To conclude about the conver-gent validity of the LVs, the researcher has to weigh the average variance extracted (AVE) and the communality of the observed variables (OVs). The composite reliability (CR) index and Cron-bach’s Alpha (α) are habitually used to conclude on the reliability of the scales. In order to validate the measurement model, its sta-tistics need to overcome the following critical values: AVE > 0.5; communalities > 0.5; CR > 0.7; α > 0.6 (Chin, 2010; Götz, Liehr-Gob-bers, & Krafft, 2010).
The OVs’ cross-loadings and the AVE test provide evidence on the divergent validity of the LVs. In PLSSEM, OVs loadings on the expected LVs need to be up 0.7 (Hulland, 1999). Noteworthy,
PLSSEM algorithm tends to increase OVs’ loadings to favor the anal-ysis of the explained variance (R2) of the endogenous LVs. This is the reason for the presence in PLSSEM measurement models of OVs cross-loadings exceeding the regular value of > 0.4. However, the OVs cross-loadings cannot overcome the loading on the the-oretical LV (Chin, 2010; Götz et al., 2010). The AVE test consists in comparing the square root of AVE with the construct correlations. When this value exceeds each pair of correlations, the LV’s diver-gent validity can be concluded (Fornell & Larcker, 1981).
The second phase of the PLSSEM methodology is the eval-uation of the PLS structural model. The PLSSEM structural model is examined by weighting the endogenous LVs’ R2, the standard-ized regression coefficients (β), the size effects of the predictors (f2), the statistical significance of each of the equations compos-ing the model and the Stone–Geisser test (Q2). Two Q2 statistics are used to evaluate the predictive validity of the PLS structural model: the cross-validated communality (H2) for all LVs and the cross-validated redundancy (F2) for the endogenous LVs. These two indexes refer to the PLSSEM model capability to predict the OVs (Götz et al., 2010). Rules of thumb for the statistics to assess the PLSSEM structural model are: R2 values of 0.67, 0.33, and 0.19 are described as substantial, moderate and weak (Chin, 1998). f2 values of 0.02, 0.15 and 0.35 indicate small, medium, and large effects (Cohen, 1988). H2 and F2 values exceeding zero support the predictive validity for the PLSSEM structural model (Chin, 2010; Götz et al., 2010). The overall predictive capability of the PLSSEM structural model can be confirmed through the evalua-tion of the global criterion of goodness (GoF index) (Tenenhaus, Amato, & Vinzi, 2004). GoF values of 0.10, 0.25 and 0.36 cor-respond to low, medium and high model predictive capability (Wetzels, Odekerken-Schröder, & Oppen, 2009).
Since PLSSEM analyses do not provide goodness of fit indexes allowing comparisons between competitive models. An alternative procedure was adopted to this end. An additional path was added to the original model in order to test another PLSSEM model. To decide between the two models, both the significance and the effects on LVs’ R2 of the additional path were weighted. At last, the significance of some of the indirect effects of the theoreti-cal model was assessed using bias-corrected bootstrap confidence intervals (Chin, 2010). First, the coefficients corresponding to the direct paths composing each indirect effect were calculated using bootstrap resampling. Then, the researchers followed the prod-uct-of-coefficients approach illustrated by Preacher and Hayes (2008). The product of the bootstrapped coefficients was calcu-lated. Finally, 99% bias-corrected bootstrap confidence intervals were extracted with SPSS statistical software (version 20). Following this approach, the significance of the indirect effects is supported by the absence of zero in the confidence intervals.
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Finally, we controlled for demographic variables and common method variance. This procedure was adopted in order to test if the inclusion of such variables affected the significance of the paths composing the hypothetical model. Given that all measures were self-reported we decided to test for common method variance. Common method variance is the “variance that is attributable to the measurement method rather than to the constructs the measures represent” (Podsakoff, Mack-enzie, Lee, & Podsakoff, 2003. p. 879). The common method factor (CMF) procedure has been recently adapted to the PLS SEM framework (Rönkkö & Ylitalo, 2011). The procedure con-sists in introducing a CMF within the PLS structural model. The CMF, composed by additional items poorly correlated with the observable variables under study, is related to all the latent
endogenous variables. In PLS SEM, if the paths composing the baseline model become non-significant with the introduction of the CMF there is evidence of data common method variance issues (Rönkkö & Ylitalo, 2011).
RESULTS
All findings regarding the PLS measurement model were satisfac-tory. According to the results of the analyses, construct validity can be concluded for all the LV’s. In particular, all OV’s adequately loaded on the corresponding construct (> 0.7) and there were no cross-loadings higher than the cut-off value for PLS SEM models (≥ 0.7) (see Table 1).
Table 1. Cross-loadings – PLS measurement model
Item OCB PCCO PCWO RESP SAT TOI
ocb1 0.79 0.28 0.37 0.41 0.44 -0.21
ocb2 0.84 0.37 0.38 0.52 0.53 -0.24
ocb3 0.75 0.18 0.28 0.29 0.36 -0.11
ocb4 0.76 0.26 0.29 0.32 0.27 -0.5
pcco1 0.35 0.68 0.37 0.29 0.33 -0.15
pcco2 0.27 0.82 0.60 0.31 0.22 -0.20
pcco3 0.34 0.86 0.56 0.34 0.32 -0.18
pcco4 0.28 0.82 0.57 0.26 0.19 -0.18
pcco5 0.24 0.80 0.51 0.32 0.15 -0.14
pcwo1 0.37 0.55 0.73 0.34 0.26 -0.16
pcwo2 0.40 0.57 0.83 0.33 0.26 -0.19
pcwo3 0.41 0.58 0.87 0.31 0.29 -0.19
pcwo4 0.22 0.47 0.80 0.21 0.18 -0.08
pcwo5 0.30 0.47 0.80 0.23 0.14 -0.03
resp1 0.47 0.34 0.33 0.87 0.48 -0.28
resp2 0.41 0.35 0.27 0.87 0.40 -0.24
resp3 0.40 0.26 0.31 0.77 0.24 -0.18
sat1 0.48 0.27 0.29 0.44 0.87 -0.32
sat2 0.28 0.15 0.50 0.26 0.69 -0.42
sat3 0.54 0.30 0.33 0.42 0.91 -0.39
toi1 -0.13 -0.20 -0.22 -0.24 -0.24 0.80
toi2 -0.23 -0.19 -0.12 -0.26 -0.48 0.95
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Further support for divergent validity of all LVs was found in subsequent analyses. The divergence between the constructs was confirmed by the AVE test (see Table 2). Noteworthy, the values of the AVE test for each construct exceeded all paired correlations. Moreover, acceptable values in all reliability coefficients were found for all LVs (see Table 2). In all cases, α matched the corresponding rule of thumb (> 0.6). Likewise, the CRs of all LVs overcame the cut-off value (> 0.8). As regards the convergent validity of the constructs, all values were satisfactory (AVE > 0.5). Moreover, as displayed in Table 2, each communality index overcame the critical value (> 0.5).
Table 2. PLS model LVs correlations, reliability and construct validity indexes
1 2 3 4 5 6 CRa αb AVEc
OCB 0.78* 0.86 0.80 0.61PCCO 0.37 0.80 0.90 0.86 0.64PCWO 0.43 0.66 0.81 0.90 0.87 0.65RESP 0.51 0.38 0.36 0.84 0.87 0.79 0.70SAT 0.54 0.30 0.29 0.46 0.83 0.87 0.77 0.69TOI -0.21 -0.21 -0.17 -0.28 -0.45 0.88 0.87 0.73 0.77Note: n = 218 a Composite Reliability. b Cronbach’s Alfa. c Average Variance Extracted (AVE). * AVE Test (Fornell and Larcker, 1981) = Squared root of AVE.
The results for the PLS structural model were satisfactory. All paths were significant when the effects of demographic vari-ables and membership were controlled. Besides, no evidence of common method variance was found after introducing the CMF in the baseline model. Globally, the values obtained by the PLS structural model supported the six hypotheses of the study (see Table 3). In particular, aside from the explained variance of Resp, all R2 values were suitable. Furthermore, the H2 and F2 results (> 0) confirmed the high predictive validity indicated by the GoF index. Thus, in general the statistical analysis supports all the hypothe-ses of the study. However, after post-hoc analyses, an additional path was added to the model.
Table 3. PLS model LVs explained variance, communalities and redundancies
Variable R2 Communality H2 Redundancy f2
PCCO 0.64 0.64PCWO 0.44 0.65 0.65 0.28 0.27RESP 0.17 0.70 0.70 0.09 0.10SAT 0.21 0.69 0.69 0.15 0.13TOI 0.20 0.77 0.77 0.14 0.13Average 0.28 0.68GoF* 0.43
Note: n= 2580, *Global criterion of goodness of fit.
Table 4 shows specific results for the post-hoc added path and for each of the six hypotheses constituting the theoretical model. As reflected by the t-values, aside from the regression coef-ficient from PCWO to RESP, the relationships among the variables under study were significant at the p < 0.01 level. Notwithstand-ing the lower power and significance of the relationship between PCWO and RESP, the presence of PCWO within the PLS model was guaranteed by the analysis of the indirect effect that PCCO exerts on RESP; zero was absent in zero in the 99% bias-corrected boot-strap confidence interval (0.12 – 0.13).
Table 4. PLS structural model
Paths β t-value f2 Ratings
PCCO → PCWO 0.66 150.46*
PCCO → RESP 0.25 20.78* 0.04 Small to medium
PCWO → RESP 0.19 20.29** 0.02 Small to medium
RESP → SAT 0.46 60.07* 0.13 Small to medium
RESP → OCB 0.34 40.37* 0.14 Small to medium
SAT → TOI -0.45 70.18* 0.15 Medium to large
SAT → OCB 0.38 50.36* 0.18 Medium to large
Note: n = 218. Bootstrapping 1000 samples.β = Standardized coefficients f2 = Effect size
*p < 0.01; **p < 0.05
The results regarding other paths of the PLS structural model are interesting as well. Conversely to prior research, no direct relationship was found between RESP and TOI. In their Tyler and Blader (2002) research, by means of CBSEM and the use of the parceling technique, they found that, in a number of for-profit organizations, autonomous respect significantly predicted turnover intentions. Again, differences in method and distinct organizational contexts could explain these differences in results. Still, according to the results presented here, there is a relation-ship between RESP and TOI, but this relationship appears to be indirect. In fact, the significance of this indirect effect was con-firmed by the absence of zero in the 99% bias-corrected bootstrap confidence interval (-0.21 -0.20). Put differently, further statistical analysis confirmed the hypothesis that SAT mediated the indirect influence of RESP on TOI. With regard to the path between SAT and TOI, the results of this study support the findings of a study recently conducted by Ohana and Meyer (2010). These authors found a similar effect size for this relationship. They used the PLS SEM to analyze data collected from hybrid organizations. On the other hand, several studies have demonstrated the relationship between satisfaction and the other outcome variable of the study (i.e. OCB directed to the organization; Organ, 1988). According to Organ (1988), employees are likely to engage in OCB when they feel they aretreated fairly. More generally, the satisfactory
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results of the whole PLS SEM model are congruent with Organ’s argument. Specifically, the model indicates that when the orga-nization is truthful to its social cause, the employees will feel more attached to the organizational social goal. Moreover, as a result of the support of the commonly valued social organiza-tional cause, employees will feel respected by the organization, more satisfied, more engaged to OCB towards the organization and less tempted to leave the organization.
DISCUSSION
This study aimed at providing further empirical evidence of the impact of principles within for independent hybrid organizations created through CSR programs. Overall, the hypotheses of the study proposed that the engagement of these organizations with respect to their social mission, as perceived by paid employees, had a positive and significant effect on the employee-employ-ment exchange, and subsequently, on attitudes and behaviors towards the organization. The results presented above suggest that, in this type of organization, organizational ideological obli-gations with regard to the social cause favor paid employees ideological obligations, which in turn boost positive attitudinal and behavioral outcomes. Specifically, the findings of the study indicate that, in Colombian hybrid organizations, organizational ideological obligations predict paid employees ideological obli-gations with regard to the organizational social cause. Hence, empirical evidence is provided on the existence of an ideolog-ical profile among independent hybrid organizations resulting from CSR programs. That is to say that, arguably, people working in this type of organization care about the social impact of both the organizational activities and their own job. Furthermore, by introducing mediators like respect and job satisfaction, these findings enlarge the empirical evidence on the psychological mechanisms explaining some effects of ideology on positive organizational behaviors and attitudes (i.e. OCB and turnover intentions). Using second-generation statistical analysis and the inclusion of further psychological variables, this paper provides greater empirical support to economic analyses that situate the social cause of the organization as the main psychological drive within hybrid organizations (Borzaga & Tortia, 2006).
Practical implications
The results presented above have several practical implica-tions. Some scholars have asserted that hybrid organizations are facing more and more recruitment and retention problems (Tortia, 2009). In addition, literature on hybrid organizations
indicates that considering workers’ ideological orientation is fun-damental to manage these human resources issues adequately (Ohana & Meyer, 2010). Moreover, research has shown that per-ceptions of procedural fairness are correlated with intentions to remain with the organization (Tortia, 2009). This paper contin-ued in this line of research by indicating that IPC has a negative, indirect effect on turnover intentions within hybrid organizations. The results presented here suggest that socially oriented princi-ples are necessary when managing organizations that emerge from CSR programs. In order to enhance more durable employ-ment relationships in these organizations, practitioners need to be aware of the importance given by the employees to the social organizational cause. The perceived alignment of hybrid organi-zations with regard to their social cause seems to be a powerful antecedent of worker social identification with the organization. The findings presented in this paper suggest that positive behav-iors directed to the organization are likely to occur when workers in these organizations perceive that the organizational practices are congruent with the social cause. Thus, in order to reduce social-oriented enterprise withdrawal issues, managers of orga-nizations resulting from CSR programs need to be aware that employees assess the extent to which organizational strategy, goals and practices are aligned with the organizational social cause. Hence, effective strategies should to be put in place to communicate the social impact of organizational activities to the employees. In the same vein, more emphasis must be made on the fact that working in this type of organization also implies following a social cause. According to our findings, these strate-gies could be useful to cope with the recruitment and retention issues these organizations have to face.
Limitations and future research
No other PC dimensions were investigated. As a result, no con-clusions were drawn on the relative importance of ideological contents for the development of the employer-employee relation-ship within hybrid organizations. Future studies could contrast in this organizational setting perceived workers transactional and ideological obligations and specify the outcomes of each PC form. This would give managers of hybrid organizations more proximal clues about how to provide the adequate incentive mixes needed to avoid typical retention issues (Borzaga & Tortia, 2006; Imper-atori & Ruta, 2006; Tortia, 2009).
A cross-sectional design was followed to inquire on the organizational outcomes of ideological obligations within social oriented enterprises created through CSR programs. However, no causal relationships can be demonstrated based on this research approach. The exploratory results and conclusions discussed
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before are thus presented as proposals for future studies using more accurate research designs. For instance, CB-based latent growth models would help to inquire on the consequences of ful-fillment or break of ideological obligations within hybrid social oriented enterprises. Finally, although a CMF was introduced in the theoretical model to control common method variance, fur-ther research may consider other types of measures to assess organizational ideological obligations.
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JÚLIO LOBÃ[email protected] da Universidade do Porto, Faculdade de Economia – Porto, Portugal
NUNO MARQUES [email protected] em Finanças pela Universidade do Porto, Faculdade de Economia, Porto – Portugal
ARTIGOSSubmetido 26.03.2014. Aprovado 27.08.2014Avaliado pelo processo de double blind review. Editor Científico: Antonio Lopo Martinez
UM OUTRO OLHAR SOBRE A EFICIÊNCIA DOS MERCADOS: O CASO DAS BOLSAS DE APOSTAS DE TÊNISAnother look at the efficiency of markets: the case of the tennis betting exchanges
Otra mirada sobre la eficiencia de los mercados: el caso de las bolsas de apuestas de tenis
RESUMONeste artigo investiga-se a eficiência do principal mercado de apostas de tênis em nível mundial com recurso a uma base de dados original proveniente da bolsa de apostas Betfair. Em geral, os resulta-dos mostram que os preços constituíram uma boa previsão do resultado final das partidas. Apesar disso, existem evidências de que os apostadores sub-reagem à informação (o que é consistente com os enviesamentos de conservadorismo e de ancoragem) e de que atribuem uma probabilidade demasiada elevada de ganho aos jogadores que estejam dominando a partida (consistente com o enviesamento de representatividade). Foram encontradas várias estratégias de aposta lucrativas, o que coloca em questão a eficiência do mercado de apostas analisado.PALAVRAS-CHAVE | Mercados de apostas, eficiência de mercado, previsão de resultados esportivos, finanças comportamentais, apostas de tênis.
ABSTRACTIn this article, we investigate the efficiency of the top tennis betting market worldwide using an origi-nal database from the Betfair betting exchange. Usually, the results show that the prices have made up a good forecast on the outcome of the matches. Nevertheless, there are evidences that the punters react poorly to the information (which is consistent with the conservatism and anchoring biases) and that they assign a high gain probability to any players who happens to be dominating the match (con-sistent with the representativeness bias). Several lucrative betting strategies were found, which puts in check the efficiency of the reviewed betting market.KEYWORDS | Betting markets, market efficiency, sporting results forecast, behavioral finance, tennis betting.
RESUMENEn ese artículo es investigada la eficiencia del principal mercado de apuestas de tenis en nivel mun-dial con recurso a una base de datos original proveniente de la bolsa de apuestas Betfair. En general, los resultados muestran que los precios constituyeron una buena previsión del resultado final de los partidos. A pesar de eso, existen evidencias que los apostadores sub-reaccionan a la información (lo que es consistente con las desviaciones de conservadorismo y de anclaje) y que atribuyen una proba-bilidad demasiado elevada de ganancia a los jugadores que estén dominando el partido (consistente con las desviaciones de representatividad). Fueron encontradas varias estrategias de apuesta lucrati-vas, lo que pone en cuestión la eficiencia del mercado de apuestas analizado.PALABRAS-CLAVE | Mercados de apuestas, eficiencia de mercado, previsión de resultados deportivos, finanzas comportamentales, apuestas de tenis.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150406
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INTRODUÇÃO
A eficiência dos mercados financeiros é uma das questões mais debatidas em Finanças. Apesar dos numerosos estudos empí-ricos realizados – Andrew Lo (2007) quantifica-os na casa dos milhares – ainda não se chegou a um consenso acerca da maté-ria (e.g., Fama, 1998; Shiller, 2003).
É nesse contexto que, ao longo das últimas duas déca-das, têm surgido os testes à eficiência dos mercados de apostas esportivas. Esses mercados podem ser considerados, por várias razões, um campo privilegiado de testes à eficiência. Em primeiro lugar, porque partilham um conjunto importante de caracterís-ticas com os mercados financeiros tradicionais. Os resultados futuros são marcados pela incerteza, e em ambos os mercados participa um elevado número de agentes com diversos níveis de conhecimento, com incentivos financeiros altos e com acesso a informação abundante. Além disso, o comportamento dos agen-tes que intervêm num e noutro mercado apresenta semelhanças importantes (Kumar, 2009; Statman, 2002). Em segundo lugar, os mercados de apostas esportivas apresentam algumas carac-terísticas que os tornam os candidatos ideais para os testes à eficiência. Entre essas características, contam-se o fato de os possíveis resultados terminais serem conhecidos à partida e a facilidade de identificação, por parte de todos os intervenien-tes, das notícias relevantes e do momento da sua ocorrência. Essas características permitem mitigar algumas das limitações normalmente apontadas aos testes de eficiência aplicados aos mercados financeiros como o problema das hipóteses conjuntas (Fama, 1970, 1991). Por último, os mercados de apostas espor-tivas têm-se tornado crescentemente importantes ao longo das últimas décadas. Em 2012, verificaram-se na maior das bolsas de apostas em nível mundial (Betfair), cerca de 7 milhões de ordens por dia, um número superior às transações diárias rea-lizadas em todas as bolsas europeias combinadas (Croxson & Reade, 2013). Todos esses fatos tornam relevante o estudo da eficiência dos mercados de apostas para uma melhor compre-ensão dos mercados financeiros.
No presente artigo, estuda-se a eficiência de um mercado de apostas específico, o mercado de apostas na modalidade do tênis. Para o efeito, foi construída uma base de dados original, contendo 1.910 observações de preços relativas a 203 partidas de tênis disputadas entre outubro de 2012 e março de 2013 no circuito Association of Tennis Professionals (ATP). Os dados foram obtidos a partir da bolsa de apostas Betfair, a maior em nível mundial. Essa base de dados foi usada para investigar a eficiên-cia estatística e a eficiência econômica do mercado de apostas antes do início das partidas e no decorrer delas, nos momentos em que são conhecidas as suas principais incidências (conquista
de breaks e sets). Na eficiência estatística, tem-se o objetivo de investigar se os apostadores utilizam adequadamente a informa-ção ao seu dispor para prever o resultado das partidas. No caso da eficiência econômica, o objetivo é o de detectar e explorar algum tipo de resposta ineficiente, por meio do desenvolvimento de uma estratégia que permita obter rendibilidades positivas de maneira sistemática. Como se investiga a reação dos preços aos eventos dos jogos de tênis que vão sendo conhecidos publica-mente, a modalidade de eficiência sob teste é a denominada versão semiforte de eficiência de Fama (1970). Os resultados obtidos serão interpretados à luz dos enviesamentos decisionais que têm vindo a ser identificados ao longo das últimas décadas pelas Finanças Comportamentais.
A investigação da reação a eventos como os breaks e sets deve-se ao fato de, no tênis, estes constituírem os momentos mais relevantes para a definição do desfecho da partida (tal como o gol no futebol). É em face da ocorrência da informação mais relevante que se espera que as evidências acerca da efici-ência dos preços sejam mais claras.
O artigo insere-se no conjunto limitado de estudos que se debruçam sobre a eficiência dos mercados de apostas em reação a fatos relevantes que vão sendo conhecidos à medida que os eventos se vão desenvolvendo. Na maioria dos casos, a literatura existente investiga apenas a eficiência dos preços ime-diatamente antes do início dos eventos esportivos (e.g., Golec & Tamarkin, 1991; Gray & Gray, 1997). Para além disso, é também uma contribuição para o campo das Finanças Comportamentais na medida em que se investigam os enviesamentos decisionais que explicam as escolhas tomadas pelos apostadores. Isso con-tribui para evidenciar os pontos de contato existentes entre os mercados de apostas e os mercados financeiros.
O artigo está organizado da seguinte forma: na seção seguinte, abordam-se as principais características dos merca-dos de apostas esportivas. Depois, será realizada uma revisão à literatura acerca dos estudos de eficiência nesses mercados. Em seguida, descrever-se-ão a amostra e os métodos adotados para a analisar. A seção de apresentação dos resultados e sua discussão antecede as principais conclusões do estudo.
MERCADOS DE APOSTAS ESPORTIVAS
O presente estudo incide sobre uma bolsa de apostas, no caso, relativa ao tênis. Para se compreenderem as características desse mercado, é necessário ter em consideração a diferença entre as tradicionais casas de apostas e as bolsas de apostas.
Inicialmente, os mercados de apostas on-line funcionavam apenas na sua forma tradicional, isto é, por intermédio das denomi-
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nadas casas de apostas (bookmakers). Na prática, em vez de uma aposta ser realizada entre duas pessoas, nas casas de apostas tra-dicionais, é necessário que haja apenas uma pessoa interessada em apostar na ocorrência de um determinado acontecimento. A casa de apostas atua, nesse caso, como market maker, na medida em que funciona como a contraparte da aposta. Desse modo, para um determinado evento esportivo, cada casa de apostas define os diversos campos onde qualquer pessoa pode apostar antes do evento esportivo. Num jogo de futebol, por exemplo, é possí-vel apostar desde no vencedor da partida até no resultado exato do jogo ou no número de gols que serão marcados. Para cada um desses mercados, são também as próprias casas que definem os preços, a que se atribui o termo de odds, com base na informa-ção de que dispõem, podendo ajustá-las, caso se altere alguma circunstância que possa ter influência no resultado.
Além das casas de apostas que acabamos de descrever, surgiram, a partir do início do século, as denominadas bolsas de apostas (Croxson & Reade, 2013). Estas diferenciam-se dos tra-dicionais bookmakers em dois aspectos essenciais. Em primeiro lugar, porque, além de ser possível apostar a favor de um deter-minado acontecimento (back), existe também a possibilidade de apostar contra esse mesmo acontecimento (lay). Na prática, isso possibilita a qualquer apostador “comprar” e “vender” as suas apostas, tanto no período que antecede o evento esportivo como no seu próprio decorrer. Os apostadores podem, assim, a qualquer momento, rever as suas posições conforme novas incidências vão ocorrendo, bem como ajustar a sua exposição e o risco assumido. Esse é um dos aspectos em que o funcionamento das bolsas de apostas se assemelha mais ao dos mercados financeiros. Com a oscilação constante das odds como reação à nova informação, os apostadores podem negociar em qualquer momento do encon-tro, revertendo ou reforçando as suas posições conforme as suas expectativas. Uma segunda diferença importante diz respeito ao papel desempenhado pelas bolsas de apostas. Ao contrário do que ocorre com as casas de apostas, as bolsas de apostas não atuam como contraparte quando um apostador pretende apostar. Em vez disso, servem apenas como intermediárias do negócio, agregando todos os apostadores. Assim, para que qualquer pessoa possa realizar uma aposta, é necessário que haja um outro agente que pretenda realizar a aposta contrária. Ao contrário do que acontece nas casas de apostas tradicionais, as bolsas não têm qualquer interferência na colocação das odds.
As odds representam tanto o inverso da probabilidade atribuída de ocorrência de cada acontecimento como o valor que se obtém, em caso de sucesso, por cada unidade mone-tária apostada. Se uma odds assumir, por exemplo, o valor de 2,00 ou de 4,00, isso significa que, por cada unidade monetá-ria apostada, seriam obtidos 2,00€ e 4,00€, respectivamente.
As probabilidades atribuídas são calculadas como 1/odds, pelo que uma odds de 2,00 equivale a uma probabilidade de 50% e uma odds de 4,00 equivale a uma probabilidade de 25%. Assim, quanto menores forem as odds, maior é a probabilidade implí-cita de ocorrência do acontecimento. Maiores detalhes sobre o funcionamento das bolsas de apostas e sobre as odds podem ser obtidos, por exemplo, em Croxson e Reade (2013).
A proximidade entre o funcionamento das bolsas de apos-tas e dos mercados financeiros, que acabamos de descrever, foi um dos principais motivos para termos selecionado as bolsas de apostas esportivas (no caso, do tênis) para a investigação da efi-ciência de mercado.
ESTUDOS DE EFICIÊNCIAS EM MERCADOS DE APOSTAS ESPORTIVASAo longo dos últimos anos, surgiram diversos trabalhos acerca da eficiência nos mercados de apostas esportivas. Também aqui é útil fazer uma distinção entre aqueles que tiveram por base as casas de apostas tradicionais, onde as odds são disponibiliza-das apenas até o início dos eventos (com o começo do evento, o respectivo mercado é encerrado), e aqueles que se serviram das bolsas de apostas. Nesse último caso, é possível transacio-nar no decorrer da partida, e o seu funcionamento é, como já foi referido, bastante mais semelhante ao dos mercados financeiros.
No que respeita às casas de apostas tradicionais, a maio-ria dos estudos existentes incide sobre o futebol americano da National Football League (NFL). As evidências apontam, na maio-ria dos casos, para um grau elevado de eficiência das odds. Por exemplo, Gandar, Zuber, O’Brien, e Russo (1988) não conse-guiram rejeitar a hipótese de que esse mercado de apostas é eficiente. Num estudo mais completo, Golec e Tamarkin (1991) documentam que as odds da NFL constituíram previsões siste-maticamente enviesadas dos resultados das partidas. Embora esse resultado sugira que o mercado de apostas não é eficiente numa perspectiva estatística, não é claro que essa ineficiência possa ser explorada por intermédio de uma estratégia lucra-tiva depois de descontados os custos de transação. Gray e Gray (1997), num estudo posterior, mostram que os enviesamentos detetados por Golec e Tamarkin (1991) tenderam a desaparecer ao longo do tempo. Vergin (2001) considerou o período 1969-1995 para detectar uma sobrerreação à informação relativa aos jogos anteriores. Por fim, e ainda na mesma modalidade, Dare e MacDonald (1996) e Dare e Holland (2004) não encontraram evi-dências significativas de ineficiências nesses mercados.
Num estudo relacionado, Avery e Chevalier (1999) inves-tigaram o impacto do sentimento dos apostadores nos preços
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de mercado em que, como indicadores do sentimento, se incluem as recomendações dos especialistas, as referências na comunicação social e o desempenho positivo das equipas da NFL no passado recente. A conclusão é a de que esses fato-res provocam movimentos previsíveis nas odds e que seria possível obter lucros (ainda que reduzidos) explorando essa previsibilidade.
O segundo tipo de estudos surgiu, então, com o apareci-mento das bolsas de apostas, onde os agentes podem colocar apostas enquanto os jogos decorrem. O número de artigos é aqui mais reduzido e o balanço é inconclusivo. Alguns autores inves-tigaram as bolsas de apostas do futebol. É o caso de Spann e Skiera (2009), que utilizam dados acerca de 837 jogos referentes à Liga Alemã de Futebol para concluir que o mercado apresentou um nível elevado de eficiência.
Gil e Levitt (2007) estudaram o impacto das notícias rela-tivas aos gols marcados no Mundial de Futebol em 2002 nas odds. Observaram que os preços começam a reagir de imediato, mas que a resposta é prolongada no tempo. Há uma sub-reação das odds entre 10 e 15 minutos após a marcação do gol, o que, segundo os autores, constitui evidência de ineficiência. Apesar disso, as oportunidades de aproveitamento da ineficiência são limitadas. Croxson e Reade (2013) desenvolveram um estudo semelhante analisando mais de um milhar de jogos de futebol. A principal conclusão é a de que as odds respondem de maneira rápida e completa à ocorrência de gols.
Num estudo mais recente, Choi e Hui (2014), numa análise de 2.017 jogos, observam que, em geral, os apostadores reagem menos do que o esperado à ocorrência de gols. No entanto, a intensidade e natureza da reação dos apostadores depende do nível de surpresa que a nova informação apresenta. Assim, se ocorre algo expectável, os participantes do mercado tendem a evidenciar uma reação incompleta (sub-reação), mas um fato surpreendente leva a que esses mesmos participantes sobrea-valiem a importância do evento (sobrerreação).
Outros trabalhos acerca da reação das odds à informação foram realizados noutros esportes. Assim, Williams (2010) investi-gou a existência do efeito momentum nas apostas em 115 jogos de basquetebol da National Basketball Association (NBA). Os resul-tados obtidos revelam que é possível desenvolver estratégias que geram lucros significativos, uma vez que as odds tendem a evoluir na direção prevista pela nova informação durante vários minutos após a sua chegada (sub-reação). Easton e Uylangco (2007, 2010) desenvolveram dois estudos muito semelhantes, no críquete e no tênis, sobre a evolução das odds durante os eventos. Em ambos os mercados, concluíram pela incorporação rápida da informação nas odds e pela elevada eficiência esta-tística dos mercados.
AMOSTRA E MÉTODOS
Os dados da amostra dizem respeito a 203 partidas de tênis pro-fissional masculino disputadas entre outubro de 2012 e março de 2013 no circuito ATP. Todos as partidas foram disputadas em melhor de três sets. Para cada uma desses partidas, foram, numa primeira fase, recolhidos as odds observadas desde o início até o final das partidas, o volume final transacionado (em euros) e o resultado da própria partida. Para isso, procedeu-se à recolha dos dados por meio da gravação, simultaneamente e de maneira sincronizada, da emissão televisiva do desenrolar de cada uma das partidas e da evolução das odds no mercado respetivo.
Depois, o trabalho de recolha das odds prosseguiu para uma segunda fase. Assim, de modo a testar se a reação do mer-cado reflete uma eficiente atualização da previsão quanto ao vencedor em face dos principais eventos observados no decor-rer das partidas (isto é, quando se concretizam breaks e sets), é necessário selecionar, do conjunto de todas as odds recolhidas, apenas aquelas observadas na sequência desses momentos-
-chave. Para esse efeito, adotou-se o critério de registro da odds observada 10 segundos após a ocorrência de cada evento, de maneira a permitir que o mercado incorpore a nova informação. Adicionalmente, entendeu-se ser necessário considerar um cri-tério de investimento mínimo. Assim, registrou-se, após os 10 segundos referidos, a odds máxima para cada jogador vencer a partida que possuía um valor mínimo de 50€ para serem cor-respondidos.
Na Tabela 1, apresentam-se os acontecimentos ocorridos durante as partidas e sobre os quais incidiu a recolha das 1.910 odds referidas.
É de realçar que, apesar de se considerar que se trata de 14 acontecimentos diferentes, para os quais se estuda a efi-ciência individualmente, em vários casos, trata-se do mesmo momento da partida, mas visto sob a perspectiva de cada um dos jogadores. Por exemplo, quando um jogador conquista um break de vantagem, isso implica naturalmente que o seu adver-sário tenha um break de desvantagem.
Para averiguar se as odds ao longo de uma partida cons-tituem boas previsões para o seu resultado final (eficiência estatística), efetuou-se essa verificação nos momentos-chave das partidas, ou seja, após a obtenção de um break ou após a conquista de um set. O procedimento adotado consistiu na comparação, para cada acontecimento apresentado na Tabela 1, entre as probabilidades objetivas de ganho para as apostas que se incluem num dado intervalo de probabilidades e as pro-babilidades subjetivas implícitas nas odds de mercado. Se essas duas probabilidades se situarem num mesmo intervalo, isso indica que o mercado é eficiente em termos estatísticos. Exem-
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plificando: na amostra recolhida, foram agregadas aquelas partidas em que um jogador, no final do primeiro set, tinha, segundo as odds de mercado, uma probabilidade (subjetiva) de vencer a partida entre 50% e 60% (ligeiro favorito). Verificou-se, depois, o resultado final de cada um dos jogadores na situação descrita de modo a averiguar se, no seu conjunto, a percentagem de jogado-res que obtiveram efetivamente a vitória (probabilidade objetiva) se encontra dentro desse intervalo ou não. Se a percentagem dos ligeiros favoritos no final do primeiro set que, no conjunto das partidas, acabou por vencer, se encontrar entre os 50% e os 60%, pode-se, então, afirmar que o mercado de apostas previu eficientemente o resultado das partidas.
Tabela 1. Acontecimentos sobre os quais foi realizada a análise das odds
Nº de acontecimentos
Momento de recolha das oddsQuantidade de odds por acontecimento
Designação abreviada do acontecimento
1 Imediatamente antes do início das partidas 406 Inicial
2 Após um break de vantagem 172 Break (+)
3 Após 2 breaks de vantagem 38 2 Breaks (+)
4 Após um set de vantagem 203 Set (+)
5 Após um set de vantagem + break de vantagem 112 Set (+) + Break (+)
6 Após um set de vantagem + break de desvantagem 69 Set (+) + Break (-)
7 Após um break de desvantagem 174 Break (-)
8 Após 2 breaks de desvantagem 38 2 Breaks (-)
9 Após um set de desvantagem 203 Set (-)
10 Após um set de desvantagem + break de vantagem 70 Set (-) + Break (+)
11 Após um set de desvantagem + break de desvantagem 111 Set (-) + Break (-)
12 Imediatamente antes do início do .º set 162 3º Set
13 No 3º set e após um break de vantagem 76 3º Set + Break (+)
14 No 3º set e após um break de desvantagem 76 3º Set + Break (-)
Para estudar se é possível obter rendibilidades siste-maticamente positivas por intermédio de uma dada estratégia (eficiência econômica), foram analisadas diferentes estratégias tendo por base os eventos referidos na Tabela 1. As estratégias consideradas passam por apostar tanto a favor como contra um jogador em qualquer um dos 14 eventos. É de salientar que, num jogo entre o Jogador A e o Jogador B, apostar a favor do Jogador A não é o mesmo que apostar contra o Jogador B, nem produz necessariamente os mesmos resultados, uma vez que é preciso ter em conta o bid-ask spread (diferencial entre as odds disponí-veis para se apostar a favor e contra um determinado desfecho). Foram calculados os resultados obtidos com a execução de cada uma dessas estratégias de modo a testar se alguma delas seria capaz de produzir rendibilidades não nulas, em média, para o apostador. A significância estatística da média dos resulta-dos obtidos foi aferida por meio do teste Wilcoxon signed-rank, um teste de hipóteses não paramétrico, uma vez que a base de dados não apresenta uma distribuição normal de acordo com o teste de Shapiro-Wilk.
No teste às duas formas de eficiência, a divisão da amos-tra, com base nas probabilidades implícitas nas odds que cada um dos jogadores tinha de vencer a partida, obedeceu aos inter-valos de probabilidade que se apresentam na tabela seguinte.
Tabela 2. Intervalos de probabilidades para ganhar a partida
Probabilidades odds
0 - 20 % 5 – 1000
21 – 40 % 2,5 - 4,99
41 – 50 % 2 – 2,49
51 – 60 % 1,67 – 1,99
61 – 80 % 1,25 – 1,66
81 – 100% 1 – 1,24
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RESULTADOS DO ESTUDO EMPÍRICO
Nesta seção, apresentam-se os resultados do estudo empí-rico acerca da eficiência estatística e econômica do mercado de apostas do tênis. Como vimos, os mercados de apostas partilham algumas características com os mercados finan-ceiros, pelo que procuraremos estabelecer a ligação entre os enviesamentos comportamentais detectados na litera-tura financeira e os que permitem explicar os resultados do nosso estudo.
As odds constituem boas previsões para o resultado final das partidas?
A correspondência entre a percentagem de vencedores das par-tidas e os intervalos de previsão implícitos nas odds de mercado encontra-se representada nas Tabelas 3, 4 e 5. Para cada um dos momentos referidos na Tabela 1 e para os intervalos definidos na Tabela 2, apresenta-se o número de observações correspon-dente, bem como a percentagem dos jogadores que conseguiu efetivamente triunfar.
Tabela 3. Precisão das odds na previsão dos resultados finais no início das partidas e após um break de vantagem, um set de vantagem, dois breaks de vantagem e um set mais um break de vantagem
Inicial Break (+) 2 Breaks (+) Set (+) Set (+) + Break (+)
Intervalos Obs. % Obs. % Obs. % Obs. % Obs. %
0-20% 56 10,71 5 0,00 0 - 1 0,00 0 -
21-40% 101 30,69 13 15,38* 1 0,00* 3 0,00* 0 -
41-50% 46 39,13* 14 35,71* 2 50,00 4 25,00* 0 -
51-60% 46 60,87* 15 40,00* 2 0,00* 12 58,33 0 -
61-80% 101 69,31 52 82,69* 7 71,43 59 76,27 5 100,00*
81-100% 56 89,29 73 83,56 26 92,31 124 88,71 107 95,33
Notas: Para cada acontecimento e intervalo de probabilidades, é apresentado o número de observações presentes na amostra, bem como a frequência observada de vencedores. As percentagens que não se encontram dentro dos intervalos respectivos encontram-se assinaladas com um asterisco.
Tabela 4. Precisão das odds na previsão dos resultados finais após um set de vantagem mais um break de desvantagem, um break de desvantagem, dois breaks de desvantagem, um set de desvantagem e um set de desvantagem mais um break de vantagem
Set (+) + Break (-) Break (-) 2 Breaks (-) Set (-) Set (-) + Break (+)
Intervalos Obs. % Obs. % Obs. % Obs. % Obs. %
0-20% 3 0,00 71 15,49 26 7,69 124 11,29 10 20,00
21-40% 9 33,33 50 20,00* 6 33,33 57 24,56 30 23,33
41-50% 10 40,00* 19 42,11 2 50,00 14 35,71* 9 33,33*
51-60% 7 57,14 12 66,67* 3 66,67* 4 75,00* 9 66,67*
61-80% 30 76,67 16 81,25* 1 100,00* 2 100,00* 10 60,00*
81-100% 10 80* 6 100,00 0 - 2 100,00 2 100,00
Notas: Para cada acontecimento e intervalo de probabilidades, é apresentado o número de observações presentes na amostra, bem como a frequência observada de vencedores. As percentagens que não se encontram dentro dos intervalos respectivos encontram-se assinaladas com um asterisco.
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Tabela 5. Precisão das odds na previsão dos resultados finais após um set de desvantagem mais um break de desvantagem, no início do 3º set, e após um break de vantagem e um break de desvantagem no 3º set
Set (-) + Break (-) 3º Set 3º Set + Break (+) 3º Set + Break (-)
Intervalos Obs. % Obs. % Obs. % Obs. %
0-20% 105 4,76 7 28,57* 0 - 49 10,20
21-40% 5 0,00* 43 25,58 1 0,00* 20 35,00
41-50% 0 - 30 53,33* 0 - 6 33,33*
51-60% 0 - 30 46,67* 3 66,67* 0 -
61-80% 1 100,00* 45 73,33 22 63,64 1 100*
81-100% 0 - 7 71,43* 50 90,00 0 -
Notas: Para cada acontecimento e intervalo de probabilidades, é apresentado o número de observações presentes na amostra, bem como a frequência observada de vencedores. As percentagens que não se encontram dentro dos intervalos respectivos encontram-se assinaladas com um asterisco.
Como se pode constatar, as probabilidades subjetivas de vitória implícitas nas odds coincidem, na maioria dos casos, com as probabilidades objetivas de cada intervalo de percentagem. Por exemplo, após a conquista de um set por parte de um dos jogadores (Tabela 3), há 124 casos em que esse mesmo jogador passou a ter uma probabilidade de ganho atribuída pelo mercado entre 81% e 100%. Na realidade, desses 124 jogadores, 88,71% venceram as suas partidas, um valor que se encontra, portanto, dentro do intervalo previsto.
Os casos em que as probabilidades objetiva e subjetiva não se enquadram no mesmo intervalo de probabilidades estão assinalados com um asterisco. Na maioria desses casos, os des-vios ou são de reduzido valor ou ocorrem quando o número de observações é bastante reduzido. Podemos, assim, concluir que a eficiência estatística do mercado de apostas foi elevada, uma vez que as odds aí geradas constituíram, em geral, boas previ-sões dos resultados das partidas. Essa conclusão corrobora a obtida noutros estudos, por exemplo, nos de Spann e Skiera (2009) e de Easton e Uylangco (2010).
A principal exceção a essa conclusão geral diz respeito ao que ocorre no início do terceiro set, ou seja, quando a partida se encontra empatada com um set conquistado por cada um dos jogadores. Nesse caso, nota-se que os jogadores considerados ligeiramente favoritos pelo mercado (intervalo de percentagens 51-60%), à entrada para o set decisivo, acabam por vencer com menos frequência do que os ligeiramente não favoritos (41-50%): 46,67% contra 53,33%, respectivamente.
Para a ocorrência dessa divergência, pode haver duas razões possíveis: a primeira passa pela possível elevada proximidade das probabilidades relativamente aos limites dos intervalos. Isto é, podia ocorrer o caso de a maioria dos jogadores considerados no intervalo de 41-50% estar bastante próxima do limite superior, enquanto para o intervalo de 51-60% se encontrar perto do limite inferior. No entanto, essa explicação pode ser excluída. O cálculo
da média das odds revela que esta é 1,83 para o caso do intervalo de probabilidades entre 51% e 60%, e 2,20 para o intervalo de 41% a 50%. Esses valores traduzem probabilidades de cerca de 54,64% para o primeiro intervalo e de 45,45% para o segundo intervalo, ou seja, valores sensivelmente a meio dos intervalos respectivos.
A segunda razão possível relaciona-se com o comporta-mento dos apostadores. Os dados mostram que a odds média, nos casos dos jogos que se mostraram equilibrados (ou seja, em que cada jogador conquistou um set), não se altera o suficiente desde o início da partida até ao começo do terceiro set. A probabilidade de vitória atribuída ao favorito era, em média, de 58,14% no início da partida e passou para os 54,64% antes do começo do set deci-sivo. Já a probabilidade média de vitória atribuída ao não favorito passou dos 42,02% para os 45,45%. Isso indica que os apostado-res não atualizaram as suas expectativas tanto quanto deveriam em função da evolução (equilibrada) da partida, o que se traduz, afinal, num erro na previsão dos resultados finais.
Em termos comportamentais, tal é consistente com dois enviesamentos identificados pela Psicologia: com os efeitos de conservadorismo (Edwards, 1968) e de ancoragem (Tversky & Kahneman, 1974). O efeito de conservadorismo postula que os indivíduos tendem a ajustar as suas expectativas de maneira demasiado lenta em face das novas evidências. Na medida em que quer os apostadores, quer os investidores podem sofrer de conservadorismo, pode registrar-se uma sub-reação dos preços à informação. No mercado de apostas do futebol, Gil e Levitt (2007) também encontram uma sub-reação das odds aos gols. A evidência empírica agora detectada no mercado de apostas corrobora outros resultados obtidos nos mercados financeiros. Por exemplo, Doukas e McKnight (2005) e Hou, McKnight e Lee (2012), em estudos às bolsas de ações europeias e asiáticas res-pectivamente, concluem que o conservadorismo está presente no comportamento dos investidores e que se manifesta no efeito de momentum dos preços (Jegadeesh & Titman, 1993).
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No caso do mercado de apostas de tênis, os agentes pare-cem ficar demasiado “presos” ao valor inicial de probabilidade de vitória/derrota atribuído aos jogadores. Isso é consistente com o efeito de ancoragem, que prevê que os indivíduos atri-buam muita importância a uma informação saliente, que lhes serve de “âncora”, e em relação à qual as suas estimativas pos-teriores se mostram demasiado próximas. No caso em análise, as odds iniciais constituem a “âncora” relevante. Esse resultado é consistente com outros obtidos nos mercados de apostas em que se encontraram enviesamentos a favor dos favoritos (e.g., Golec & Tamarkin, 1991; Gray & Gray, 1997). Existem várias analogias entre esse comportamento no mercado de apostas e a evidên-cia empírica acumulada nos mercados financeiros. Por exemplo, Aggarwal e Lucey (2007) comprovam que o efeito de ancoragem em torno dos números redondos se traduz em barreiras psico-lógicas significativas nos preços diários do mercado do ouro. E George e Hwang (2004) mostram que os investidores em ações dos EUA durante o período 1963-2001 tenderam a ficar “anco-rados” nos preços mais altos das 52 semanas anteriores, o que
se traduziu numa sub-reação à informação e no consequente efeito de momentum.
É possível obter rendibilidades sistematicamente positivas?
No teste à eficiência econômica do mercado de apostas, utiliza-ram-se os seis intervalos de probabilidades já apresentados e considerou-se a possibilidade de apostar a favor (back) e contra (lay) qualquer um dos jogadores em cada um dos 14 eventos men-cionados na Tabela 1.
Os resultados de cada uma das estratégias são apresen-tados na Tabela 6. Como referência, considerou-se que o valor a arriscar em cada aposta individual foi de 1€, e os resultados apresentados não incluem comissões sobre os ganhos. A rendi-bilidade apresentada normaliza os resultados. Trata-se da razão, em percentagem, entre o ganho ou perda que se obteria em cada uma das estratégias por cada 100 apostas de 1 euro realizadas em circunstâncias similares às verificadas na amostra.
Tabela 6. Resultados das várias estratégias aplicadas no início das partidas
Intervalos Obs.Apostar a favor (back) Apostar contra (lay)
Resultado (€) Rendibilidade (%) Resultado (€) Rendibilidade (%)
Inicial
0-20% 56 -13,80*** -24,64 -0,12*** -0,21
21-40% 101 -3,12 -3,09 -1,57 -1,55
41-50% 46 -6,16 -13,39 4,66 10,13
51-60% 46 4,76 10,35 -6,02 -13,09
61-80% 101 -1,43 -1,42 -3,02 -2,99
81-100% 56 -0,19*** -0,34 -14,43*** -25,77
(***): significante ao nível de 1%.
No que diz respeito às odds iniciais, verifica-se que um apos-tador que tivesse apostado 1€ a favor de cada um dos jogadores que se apresentavam como ligeiramente favoritos (probabilidades de vencer entre 51% e 60%), em todas as partidas da amostra reco-lhida, obteria um resultado de 4,76€. Tendo em conta os intervalos escolhidos, esse é o único cenário em que seria possível obter lucros apostando a favor de um dos jogadores antes do início da partida. No entanto, esse não é um resultado estatisticamente significativo. Como também se pode notar, apostar a favor de um jogador não produz exatamente os mesmos resultados que apos-tar contra o outro jogador. No exemplo dado, se apostássemos sempre contra o jogador ligeiramente não favorito (probabilida-des entre 41 e 50%), obteríamos um lucro de 4,66€, menos 0,10€ do que na estratégia descrita anteriormente.
Em geral, e no que diz respeito às odds iniciais, não se encontram estratégias por meio das quais fosse possível obter resultados positivos e significativos. Isso significa que é difícil para um apostador encontrar ineficiências nas odds disponí-veis antes de uma partida. Isso corrobora os resultados obtidos anteriormente de que os apostadores avaliam de maneira cor-reta as probabilidades de cada jogador vencer a partida quando não são obrigados a reagir aos acontecimentos num muito curto espaço de tempo.
As tabelas seguintes analisam os resultados de estratégias que procuram explorar a reação dos apostadores a acontecimentos que ocorrem durante a partida. Assim, na Tabela 7, abaixo, apre-sentam-se os dados referentes às estratégias aplicadas após a ocorrência de breaks e/ou sets de vantagem para um dos jogadores.
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Tabela 7. Resultados das várias estratégias aplicadas após um break de vantagem, um set de vantagem, dois breaks de vantagem e um set mais um break de vantagem
Intervalos Obs.Apostar a favor (back) Apostar contra (lay)
Resultado (€) Rendibilidade (%) Resultado (€) Rendibilidade (%)
Break (+)
0-20% 5 -5,00** -100,00 0,77** 15,40
21-40% 13 -6,70 -51,54 2,77 21,31
41-50% 14 -2,64 -18,86 1,98 14,14
51-60% 15 -4,15** -27,67 4,39 29,27
61-80% 52 8,91** 17,13 -17,43 -33,52
81-100% 73 -5,46*** -7,48 38,02*** 52,08
Set (+)
0-20% 1 -1,00 -100,00 0,19 19,00
21-40% 3 -3,00* -100,00 1,49 49,67
41-50% 4 -1,94 -48,50 1,73 43,25
51-60% 12 0,66 5,5,0 -0,68 -5,67
61-80% 59 4,37 7,41 -14,16 -24,00
81-100% 124 -2,85*** -2,30 39,58*** 31,92
2 Breaks (+)
0-20% 0 - - - -
21-40% 1 -1,00 -100,00 0,36 36,00
41-50% 2 0,04 2,00 -0,04 -2,00
51-60% 2 -2,00 -100,00 2,08 104,00
61-80% 7 0,09 1,29 -1,03 -14,71
81-100% 26 0,18*** 0,69 6,88*** 26,46
Set (+) + Break (+)
0-20% 0 - - - -
21-40% 0 - - - -
41-50% 0 - - - -
51-60% 0 - - - -
61-80% 5 1,72** 34,40 -5,00** -100,00
81-100% 107 0,82*** 0,77 52,09*** 48,68
(*): significante ao nível de 10%; (**): significante ao nível de 5%; (***): significante ao nível de 1%.
Dos resultados, emerge um padrão bastante evidente: as estratégias mais lucrativas e que apresentam resultados estatis-ticamente significativos com um número elevado de observações são as que consistem em apostar contra o claro favorito (pro-babilidade de ganho superior a 80%) quando este acabou de concretizar uma vantagem importante na partida (seja um set, um ou dois breaks ou um set seguido de um break). De fato, os resultados indicam que os apostadores sobrerreagem a even-tos favoráveis que acabaram de ocorrer para um dos jogadores o que os leva a sobreavaliar a probabilidade de vitória dos jogado-res nessas situações. Por exemplo, a aposta contra os jogadores francamente favoritos depois de estes terem ganho um break pro-porciona na amostra um ganho de 38,02€ se se tivesse apostado
1€ em cada jogador na situação descrita. Tal corresponde a uma rendibilidade de 52,05%.
A ineficiência referida parece ser persistente. Manifesta-se no momento em que o jogador francamente favorito obtém um break (rendibilidade de 52,08%) ou dois breaks (26,46%) e man-tém-se ao longo da partida quando esse jogador conquista um set (31,92%) ou quando acumula um break com um set (48,68%). Em todos esses momentos, a estratégia de apostar contra os claros favoritos quando estes estão dominando a partida conduz a resultados em média positivos e estatisticamente significativos. A lucratividade das estratégias não parece ser colocada em causa pelos custos de transação. No caso da Betfair, não são cobradas comissões fixas, ou seja, comissões independentes do resultado
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(ganho ou perda) obtido. Apenas é cobrada uma comissão de 5% sobre os ganhos do apostador e que até pode ser menor se o apostador acumular um longo histórico nessa bolsa de apostas. Assim, para os resultados apresentados, dada a magnitude das rendibilidades obtidas, os lucros das estratégias manter-se-iam relevantes mesmo após a cobrança da comissão.
Existem outros casos onde teria sido possível obter resul-tados positivos. No entanto, são baseados num número mais reduzido de observações e os ganhos são negligenciáveis quando comparados com os que acabamos de destacar.
Na Tabela 8, apresentam-se os dados relativamente a vários acontecimentos que podem ocorrer a desfavor de um joga-dor durante a partida (excluindo no terceiro set).
A Tabela 8 revela que a estratégia de apostar a favor de um jogador francamente não favorito (probabilidade de ganho entre 0% e 20%) quando este acabou de sofrer um revés importante na partida (como sofrer um ou dois breaks de desvantagem) se mostrou lucrativa de maneira significativa. Por exemplo, apostar na vitória dos jogadores francamente não favoritos após terem sofrido um break de desvantagem proporcionaria um ganho de 35,50€ se se tivesse apostado 1€ em cada um dos 71 jogadores da amostra nessa situação (rendibilidade de 50%). Esse resul-tado é consistente com a sobreavaliação da probabilidade de ganhar a partida que é atribuída ao claro favorito e a que já nos referimos acima.
As diferenças nos resultados das estratégias de aposta a favor de favoritos e de aposta contra os não favoritos decorrem da evolução do bid-ask spread. Quanto menor é a probabilidade de um jogador vencer a partida, maior tende a ser o bid-ask spread, uma vez que a liquidez para se transacionar nesse jogador tor-na-se muito reduzida ou mesmo inexistente. A deterioração das condições de liquidez no caso das apostas em jogadores que estão sofrendo reveses importantes e a que, por isso, são atri-buídas reduzidas probabilidades de ganho, dificulta a aposta a favor desses jogadores, e é por esse motivo que as estratégias baseadas numa atuação desse tipo são, em geral, mais difíceis de realizar do que aquelas em que se aposta nos jogadores fran-camente favoritos que dominam a partida.
Por fim, a Tabela 9 diz respeito aos dados das estratégias aplicadas imediatamente antes e durante o terceiro set da partida.
Foi detectada anteriormente uma ineficiência das odds no início do terceiro set, registrando-se uma maior percentagem de triunfos por parte dos jogadores ligeiramente não favoritos em relação aos jogadores ligeiramente favoritos. Conforme é possí-vel ver na Tabela 9, tal situação permite aos apostadores obter resultados positivos e estatisticamente significativos.
As estratégias de aposta contra o jogador francamente favo-rito (probabilidade de ganho superior a 80%) quando este obtém
um break durante o terceiro set ou a favor do jogador francamente não favorito (probabilidade de ganho inferior a 20%) quando sofre um break nesse mesmo set proporcionam ganhos significativos, mas, ainda assim, com menores rendibilidades (14,54% e 14,08%, respetivamente) do que as mencionadas anteriormente.
Em suma, os resultados mostram que foi possível obter ren-dibilidades positivas por meio da aplicação de estratégias capazes de explorar a sobrerreação dos apostadores a eventos ocorridos durante as partidas de tênis, nomeadamente, na sequência de breaks e sets. Os apostadores erram porque sobreavaliam as pro-babilidades de ganho dos jogadores francamente favoritos quando estes dominam a partida. Isso significa que estratégias de aposta contra esses jogadores ou a favor dos jogadores francamente não favoritos quando sofrem reveses importantes se traduzem em ganhos significativos. Os resultados contrariam, assim, a noção de que o mercado de apostas de tênis se mostrou eficiente, em termos econômicos, na amostra analisada.
Mas por que sobrerreagem os apostadores? Os estudos da Psicologia Cognitiva sugerem que os apostadores podem ser afeta-dos pelo efeito de representatividade (Tversky & Kahneman, 1974). Esse enviesamento leva a que os indivíduos tirem conclusões errô-neas a partir de um conjunto limitado de observações que julgam ser representativas do todo. Assim, no caso das partidas de tênis que analisamos, a parte inicial da partida, que os apostadores conhe-cem, e em que o jogador favorito tem vantagem com a conquista de breaks e/ou set,s é encarada, erradamente, como representativa de toda a partida. Tal leva a que se sobreavalie (subavalie) a pro-babilidade de vitória do jogador favorito (não favorito). No mundo do esporte, o efeito de representatividade dá origem ao efeito hot hand, que consiste no fato de se ter uma confiança exagerada no desempenho recente dos jogadores como indicador do seu desem-penho no futuro (Gilovich, Valone, & Tversky, 1985). Camerer (1989) debruça-se sobre o mercado de apostas do basquete para mostrar que os apostadores são também afetados pelo efeito de hot hand e que isso se reflete nas odds. Mais recentemente, num estudo com mais de 14 mil jogos de futebol americano, Sinkey e Logan (2014) concluem que esse efeito está na origem das ineficiências estatís-tica e econômica do mercado de apostas.
A literatura comportamental unifica os efeitos encontra-dos nos mercados de apostas e os que têm sido observados nos mercados financeiros. Por exemplo, Bondt e Thaler (1985) encon-tram uma sobrerreação dos investidores às rendibilidades das ações do passado consistente com os efeitos do enviesamento de representatividade, e Fisher e Statman (2000) mostram que os investidores tendem a extrapolar as rendibilidades observadas no passado, tornando-se excessivamente otimistas em relação ao desempenho das ações na sequência de rendibilidades ele-vadas no mercado.
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Tabela 8. Resultados das várias estratégias aplicadas após um break de desvantagem, um set de vantagem mais um break de desvantagem, dois breaks de desvantagem, um set de desvantagem, um set de desvantagem mais um break de vantagem e um set de desvantagem mais um break de desvantagem
Intervalos Obs.Apostar a favor (back) Apostar contra (lay)
Resultado (€) Rendibilidade (%) Resultado (€) Rendibilidade (%)
Break (-)
0-20% 71 35,50*** 50,00 -4,83*** -6,80
21-40% 50 -10,95 -21,90 4,78 9,56
41-50% 19 -1,62 -8,53 0,01 0,05
51-60% 12 2,66 22,17 -3,09 -25,75
61-80% 16 3,14 19,63 -7,32 -45,75
81-100% 6 0,99** 16,50 -6,00** -100,00
Set (+) + Break (-)
0-20% 3 -3,00 -100,00 0,36 12,00
21-40% 9 -0,60 -6,67 -0,16 -1,78
41-50% 10 -1,26 -12,60 0,63 6,30
51-60% 7 0,12 1,71 -0,57 -8,14
61-80% 30 2,93 9,77 -6,85 -22,83
81-100% 10 -0,28 -2,80 5,89 58,90
2 Breaks (-)
0-20% 26 8,80*** 33,85 -0,08*** -0,31
21-40% 6 -0,07 -1,17 -0,59 -9,83
41-50% 12 0,16 8,00 -0,38 -19,00
51-60% 3 0,91 30,33 -0,97 -32,33
61-80% 1 0,37 37,00 -1,00 -100,00
81-100% 0 - - - -
Set (-)
0-20% 124 5,80*** 4,68 -2,04*** -1,65
21-40% 57 -9,99 -17,53 2,62 4,60
41-50% 14 -2,70 -19,29 1,75 12,50
51-60% 4 1,73 43,25 -1,94 -48,50
61-80% 2 0,95 47,50 -2,00 -100,00
81-100% 2 0,37 18,50 -2,00 -100,00
Set (-) + Break (+)
0-20% 10 5,00 50,00 -0,42 -4,20
21-40% 30 -7,01 -23,37 2,36 7,87
41-50% 9 -2,58 -28,67 1,43 15,89
51-60% 9 1,65 18,33 -2,69 -29,89
61-80% 10 -1,13 -11,30 0,90 9,00
81-100% 2 0,21 10,50 -2,00 -100,00
Set (-) + Break (-)
0-20% 105 -46,80*** -44,57 0,26*** 0,25
21-40% 5 -5,00** -100,00 1,69** 33,80
41-50% 0 - - - -
51-60% 0 - - - -
61-80% 1 0,56 56,00 -1,00 -100,00
81-100% 0 - - - -
(**): significante ao nível de 5%; (***): significante ao nível de 1%.
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Tabela 9. Resultados das várias estratégias aplicadas no início do 3.º set, e após um break de vantagem e um break de desvantagem no 3º set
Intervalos Obs.
Apostar a favor (back) Apostar contra (lay)
Resultado (€) Rendibilidade (%) Resultado (€)Rendibilidade (%)
3º Set
0-20% 7 3,90 55,71 -1,43 -20,43
21-40% 43 -9,38 -21,81 3,86 8,98
41-50% 30 5,26** 17,53 -4,98*** -16,60
51-60% 30 -4,64*** -15,47 4,55** 15,17
61-80% 45 3,67 8,16 -8,74 -19,42
81-100% 7 -1,42 -20,29 4,11 58,71
3º Set + Break (+)
0-20% 0 - - - -
21-40% 1 -1,00 -100,00 0,60 60,00
41-50% 0 - - - -
51-60% 3 0,40 13,33 -0,77 -25,67
61-80% 22 -2,86 -13,00 5,60 25,45
81-100% 50 0,35*** 0,70 7,27*** 14,54
3º Set + Break (-)
0-20% 49 6,90*** 14,08 -0,10*** -0,20
21-40% 20 5,12 25,6 -2,90 -14,50
41-50% 6 -1,38 -23,00 0,58 9,67
51-60% 0 - - - -
61-80% 1 0,60 60,00 -1,00 -100,00
81-100% 0 - - - -
(**): significante ao nível de 5%; (***): significante ao nível de 1%.
CONCLUSÕES
O sucesso das bolsas de apostas proporciona a oportunidade de levar a cabo investigação acadêmica em mercados reais. No caso, a nossa investigação incidiu sobre a maior bolsa de apos-tas em tênis em nível mundial (a Betfair), a partir de uma amostra de 203 partidas disputadas entre outubro de 2012 e março de 2013. O estudo debruçou-se sobre a eficiência estatística e eco-nômica das odds antes e durante as partidas e, em particular, em reação aos eventos mais importantes que ocorrem durante os jogos (breaks e sets). O estudo empírico configura, assim, um teste à eficiência na versão semiforte na medida em que se analisa a reação dos preços à informação que estaria acessível a um apostador típico que seguisse a evolução das partidas por meio da emissão televisiva e, ao mesmo tempo, acompanhasse a sequência de odds na bolsa de apostas. Na análise à reação
dos preços à informação, recorreram-se aos enviesamentos com-portamentais identificados na literatura de modo a estabelecer analogias com os mercados financeiros.
Os resultados obtidos permitem concluir que o nível de eficiência estatística apresentado foi elevado, uma vez que as odds constituíram, em geral, uma boa previsão para o resultado final das partidas. Essa capacidade de previsão observa-se em praticamente todos os cenários analisados, mas é especialmente notória no que diz respeito às odds que vigoram antes do início da partida. Isso significa que as odds podem ser encaradas como uma boa alternativa às previsões realizadas por jornalistas ou especialistas da modalidade, corroborando, assim, os resultados obtidos por Boulier e Stekler (2003), por exemplo. Apesar disso, foram observadas algumas evidências de que os apostadores sub-reagem à informação quando as partidas estão equilibradas (o que é consistente com o efeito de conservadorismo), dando
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uma importância excessiva, ao longo do jogo, às expectativas que tinham antes de a partida se iniciar (o que é consistente com o efeito de ancoragem).
No que diz respeito aos testes à eficiência econômica, os resultados mostram que existem estratégias de aposta suscetíveis de proporcionarem rendibilidades positivas e estatisticamente significativas. Essas rendibilidades não são explicáveis por efei-tos de liquidez nem são eliminadas pelos custos de transação. Em geral, a ineficiência econômica encontrada decorre do fato de os apostadores sobreavaliarem a possibilidade de vitória do jogador favorito que domina a partida. A ineficiência denota que os apostadores reagem de maneira exagerada à vantagem em termos de breaks e/ou sets que o jogador favorito vai acumulando ao longo do jogo. A sobrerreação dos apostadores à vantagem evidenciada pelo favorito pode ser explicada por meio do envie-samento de representatividade.
A identificação de efeitos de sub-reação e de sobrerre-ação na amostra requer uma interpretação mais aprofundada. Como entender que a sub-reação e a sobrerreação à informação possam ocorrer num mesmo mercado? É que os enviesamentos de conservadorismo e de representatividade parecem contrariar-
-se entre si. A conciliação entre os resultados de sub-reação e de sobrerreação é um dos principais pontos de discussão entre as Finanças Comportamentais e os seus críticos (Lobão, 2002). Para Fama (1998), cabe às Finanças Comportamentais o ônus de especificar enviesamentos no processamento da informação que levem os mesmos investidores a sub-reagir a alguns tipos de eventos e a sobrerreagir a outros. Os resultados obtidos no presente estudo corroboram a explicação avançada por Griffin e Tversky (1992) de que os indivíduos tendem a sub-reagir a infor-mações quando os processos de geração de dados são difíceis de identificar, enquanto a sobrerreação se verifica nos casos em que existe uma sequência saliente de informações do mesmo teor. No caso do tênis, os apostadores atualizam as suas expectati-vas menos do que o devido quando a partida está equilibrada, mas reagem de maneira exagerada à sequência de pontos impor-tantes (breaks e sets) obtidos por parte de um mesmo jogador. Esse resultado parece, ainda, validar empiricamente o modelo proposto por Barberis, Shleifer e Vishny (1998), que se socorrem dos enviesamentos de conservadorismo e representatividade para explicar o momentum dos preços e a sua reversão para a média. Nesse modelo, os investidores reagem menos do que o devido a notícias isoladas acerca das empresas, mas sobrerre-agem quando observam uma sequência de notícias positivas ou negativas. Assim, o presente estudo empírico tem também relevância para o domínio das Finanças Comportamentais na medida em que contribui para responder à objeção colocada por Fama (1998).
Os mercados de apostas são um campo com ainda muito por explorar em termos de investigação acadêmica, sendo que, no futuro, seria interessante alargar o estudo a outras modali-dades esportivas.
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MUHAMMAD [email protected] Professor at GIFT University, School of Management Sciences – Gujranwala, Pakistan
SITI ZAKIAH MELATU [email protected] at Multimedia University, School of Business – Melaka, Malaysia
SYAMSULANG [email protected] Researcher at University of Malaya, School of Economics and Administration – Kuala Lumpur, Malaysia
ARTICLESSubmitted 01.06.2014. Approved 05.27.2014Evaluated by double blind review process. Scientific Editor: Eric Cohen
BRAND EQUITY OF LAHORE FORT AS A TOURISM DESTINATION BRANDBrand equity do Forte Lahore como uma marca de destino turístico
Brand equity del Fuerte Lahore como una marca de destino turístico
ABSTRACT Studies that measure the brand equity of destination brands by using the Customer-Based Brand Equity (CBBE) model in a developing country context are scarce. The present study investigates the destina-tion brand equity of the Lahore Fort by employing the CBBE model in a developing country context of Pakistan. Following the positivist tradition, we adopted a survey-based approach to collect data from 237 tourists visiting the Lahore Fort. Data were collected through a questionnaire developed to explain the relationship of brand awareness, brand image, brand association, and brand loyalty with Lahore Fort’s overall brand equity. We used various robust statistical techniques such as correlation, regression and confirmatory factor analysis (using PLS method) to reach meaningful conclusions and found that brand image and brand associations positively contribute to brand loyalty. Furthermore, brand loyalty significantly contributes towards overall brand equity. Pragmatically, this study measures the customer based brand equity of the Lahore Fort, a destination brand. The results are useful as they suggest a few strategies that can help policy makers to enhance Lahore Fort’s brand performance.KEYWORDS | Customer-based brand equity, destination-branding, Lahore Fort, brand equity, Pakistan.
RESUMO Estudos que medem brand equity de destino turístico utilizando o modelo Customer-Based Brand Equity (CBBE) no contexto de países em desenvolvimento têm sido escassos. O presente artigo inves-tiga a brand equity do Forte Lahore, empregando o modelo CBBE no Paquistão. Seguindo a tradição positivista, realizamos um levantamento com 237 turistas em visita ao Forte Lahore. Os dados foram coletados por meio de um questionário desenvolvido para explicar as relações do conhecimento de marca, imagem de marca, associação de marca, e fidelidade à marca com a brand equity do Forte Lahore. Utilizamos várias técnicas estatísticas robustas, como correlação, regressão e análise fatorial confirmatória (utilizando o método PLS) a fim de chegar a conclusões significativas. Descobrimos que a imagem e as associações da marca contribuem positivamente para a fidelização, por sua vez, contribui significantemente com brand equity. Pragmaticamente, o estudo mede a brand equity com base na percepção de clientes em relação ao Forte Lahore, uma marca de destino turístico. Os resul-tados são úteis na medida em que sugerem estratégias que podem ajudar responsáveis pelas leis do turismo local a melhorarem o desempenho da marca.PALAVRAS-CHAVE | Customer-based brand equity, destino turístico, Forte Lahore, brand equity, Paquistão.
RESUMEN Estudios que miden el valor de marca de marcas de destino utilizando el Customer-Based Brand Equity (CBBE) modelos en el contexto de un país en desarrollo son escasos. El presente estudio investiga la marca de valor de destino del Fuerte Lahore empleando el modelo CBBE en el contexto de un país en desarrollo en Pakistán. Siguiendo la tradición positivista, adoptamos un enfoque basado en encuesta para colectar datos de 237 turistas visitando el Fuerte Lahore. Los datos fueron coletados a través de un cuestionario desarrollado para explicar la relación de conciencia de marca, imagen de marca, aso-ciación de marca, y leadad de marca con el valor de marca total del Fuerte Lahore. Nosotros utilizamos varias técnicas estadísticas robustas como correlación, regresión y análisis de factores confirmativos (utilizando el método PLS) para alcanzar conclusiones significativas y descobrir que el imagen de marca y las asociaciones de marca contribuyen positivamente a la lealtad de marca. Además, la leal-tad de marca contribuye significativamente hacia la equidad de marca en general. Pragmáticamente, ese estudio mide el valor de marca basado en el cliente del Fuerte Lahore, una marca de destino. Los resultados son útiles ya que sugieren algunas estrategias que pueden ayudar los responsables por la formación de políticas a aumentar el desempeño de la marca.PALABRAS-CLAVE | Customer-based brand equity, destino turistico, Fuerte Lahore, brand equity, Pakistán.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150407
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INTRODUCTION
The services sector has grown exponentially all across the globe. In Asia, a significant growth trend has been observed regarding tourist visits to various destination brands (Morgan, Pritchard, & Pride, 2011). However, these brands are facing place-branding challenges which need careful attention from researchers and practitioners. Branding is critical for the growth of destination brands because of the close substitutability of various destinations (Pike, 2005). Over the years, branding has been acknowledged as the means to differentiate one company’s products and services among other competing firms (Aaker 1991; Keller, 2003). The brand management lit-erature started to appear in the journals in the early 1940’s (Guest, 1942). However, the concept of destination branding emerged as a discipline for marketing researchers in the late 1990’s (Pike, Bianchi, Kerr, & Patti, 2010). Since then, branding researchers have started to highlight various issues pertain-ing to destination brands. A number of studies supported the notion that core branding principles can be replicated to inves-tigate destination brands (Konecnik & Gartner, 2007). Although some significant research has been performed to unearth the nuances of destination brands, this field within the discipline of marketing is still in its infancy (Pike, Bianchi, Kerr, & Patti, 2010). A better understanding of brands from the perspective of consumers living in a developing country will surely help destination brand marketers to devise competitive strategies in order to sustain market share (Pike, 2009).
The core of branding a destination lies in creating mem-orable service experiences for customers, reducing risk and motivating them to revisit the destination again and again (Blain, Levy, & Ritchie, 2005). Meeting customer expectations has been central to the creation of a memorable service experience which will further strengthen the brand equity of a destination (Im, Kim, Elliot, & Han, 2012). The studies in destination branding have so far investigated the brand identity of destination brands, but the measurement of destination brand performance has been neglected (Pike, 2009). The measurement of brand performance has been pivotal to the success of destination brands due to two reasons. Firstly, there is an increase in competition as well as substitutability of destination brands where visitors now have more choices (Morgan, Pritchard, & Pride, 2002). Secondly, the investment made by destination brands has been held to higher accountability by stakeholders (Pike, 2005). These challenges trigger the need to investigate destination brand performance, which is rarely investigated in services (Kim, Kim, & An, 2003).
There are various branding matrixes championed to mea-sure performance. However, contemporary researchers of service
marketing have coined a new perspective to the measurement of brand equity: Employee Based Brand Equity (King & Grace, 2010). This perspective recognizes the critical role of employ-ees in contributing to the brand equity of a service organization. However, the model lacks empirical generalization, and contem-porary researchers recommend using CBBE to measure brand equity (Bianchi, Pike, & Lings, 2014).The Customer Based Brand Equity Model (CBBE) has been widely acknowledged (Pike et al., 2010; Im et al., 2012). It has been proposed by Aaker (1991, 1996) and Keller (1993, 2003) to measure the familiarity and superior-ity of brand identity. The model has four salient features: brand awareness, brand image, brand association, and brand reso-nance. The development of brand equity has been central to the success of brands, and managers must understand the custom-er’s point of view concerning brand equity (Qu, Kim, & Im, 2011). However, the theory underlying brand equity and its application to destination brands from a measurement perspective is scarce (Pike et al., 2010).
There are various knowledge gaps which must be acknowledged. Firstly, brand measurement has been performed for cultural and heritage brands, but investigations presented only a developed country perspective (Balmer, 2011). Investi-gations from developing countries, such as the present study, will add a few new insights to the current understanding of ser-vices marketing (Frimpong & Wilson, 2013). Secondly, given the importance of creating competitive advantage for destina-tion brands in an era of high substitutability and the lack of a sound theory to investigate brand equity for destination brands, the present study is aimed at extending the CBBE model to measure the brand performance of destination brands from a developing country context. The major contribution of this study lies not only in developing a destination brand equity model from a developing country context, but also in present-ing the strength of Lahore Fort’s brand equity. Pakistan has been an interesting country to investigate because of its people, culture, and traditions, all of which attract a large number of tourists. Pakistan is a Muslim state where a large number of places for spiritual and historical tourism exist, from shrines to places such as the Lahore Fort. It has been acknowledged that Muslims perceive brand promotions very differently and they must be considered a separate market for study (Behboudi, Vazifehdoust, Najafi, & Najafi, 2014). The country remains an excellent venue to investigate place branding, as no study has epitomized destination branding regarding the various destinations located all across Pakistan (Haq & Wong, 2010). The country differs from Western nations with regard to cul-ture. Theoretically, people living in different parts of the world interpret brand equity based on their self-references (Atilgan,
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Akinci, Aksoy, & Kaynak, 2009). People living in a collectivist cultural context interpret brands differently than their coun-terparts who score high on individualism and consider brand equity a context-specific phenomenon (Jerome, 2012). Since Pakistan is a collectivist society, we envision different results concerning the application of the CBBE model.
The Lahore Fort was inscribed as a UNESCO World Heri-tage site in 1981. The trapezoidal composition of the Lahore Fort reminds the era of Mughal emperors, who ruled the subcontinent for many centuries. The Lahore Fort was built by Mughal emperor Akbar in the years 1556-1605. The Fort attracts local as well as international tourists. Furthermore, there are various cultural and social events being organized at the Lahore Fort which also attract many tourists. However, no study has been initiated to measure the strength of Lahore Fort as a brand. This study will be useful for policy makers and other government officials in Pakistan to better position the Lahore Fort and other similar destinations in the minds of local and international tourists.
Given these theoretical and contextual gaps, the study seeks to answer the following research questions:
• What is the impact of brand awareness, brand image, brand association, and brand loyalty on Lahore Fort’s brand equity as a destination brand?
• What is the ‘model fit’ for CBBE in destination brand in a developing country context?
LITERATURE REVIEW
Destination brands
The replication and extension of the branding concept took a path which emerged from product brands to nation brands. It has generated a debate concerning the brand theory and its adaptation to related constructs such as tourism (Kotler & Gertner, 2002). Destination marketing researchers in particular have challenged the replication of brand theory to investigate tourist destinations (Gartner & Ruzzier, 2011). These research-ers believe that destination brands are complex to investigate and brand managers have very little control due to the involve-ment of many other stakeholders (Morgan, Pritchard, & Pride, 2002). Major stakeholders include: the government, interna-tional funding bodies, and the society. Despite this opposing view concerning replication, the investigation of destination brands has been well acknowledged in the literature (Pike et al., 2010). A critical review of literature on destination branding
presents some critical success factors such as: brand identity and personality; selection of appropriate target market; brand positioning; and mutual relationships among the partners deliv-ering the service (Im, 2003, p. 76). Baker and Cameron (2008) identified four critical success factors for a destination brand which include: (1) holistic orientation towards tourism planning; (2) managing the identity and image of the destination brand; (3) engagement and active participation of stakeholders; and (4) brand measurement.
There has been a growing interest of researchers and scholars to develop destination branding models by adapting the Keller (1993) CBBE model to tourism services (Boo, Busser, & Baloglu, 2009; Pike et al., 2010). Aaker (1996) holds the view that CBBE is a set of assets or liabilities to any brand name or symbol that add to, or reduce, the value of the brand in the minds of customers. These positive or negative associations predict consumer liking and disliking of any brand as well as purchase intentions. Keller (1993) conceived CBBE as “the differential effect of brand knowledge on consumer response to the mar-keting of the brand”. These classic models have been adapted by destination marketing researchers. Cai’s (2002) model has been highly acknowledged by tourism marketers. The author concluded there was a ‘brand mix’ for the success of a brand which consisted of brand image, brand identity, and other mar-keting activities. The branding model proposed by Konecnik and Gartner (2007) focused primarily on presenting the brand dimensions that can create a healthy relationship between the customer and the brand. Furthermore, the researchers acknowl-edged the role of brand image in contributing positively to brand equity (Boo et al., 2009). Pike et al. (2010) tested a relation-ship among the destination brand dimensions of image, quality, loyalty, and salience. How positively the brand is perceived by consumers affects their behavior and is a predictor of brand success or failure (Tasci & Kozak, 2006). These authors empha-sized not only brand image but also brand salience as means to foster strong customer-brand relationships that can be effec-tively employed by destination brand researchers.
Consumer-based destination brand equity
Brand equity studies consist of two broader categories. Firstly, the measurement of consumer perceptions of brand image, brand awareness, and brand associations. Secondly, the inves-tigation of consumer behavior in destination brands, which includes customer attitudes toward a brand, such as loyalty (Baker & Cameron, 2008). Brand loyalty in destination brands has been measured by integrating four distinct constructs;
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brand image, brand awareness, brand associations, and per-ceived quality (Aaker, 1996; Keller, 1993). Destination marketing researchers have separated these four constructs (Qu et al., 2011). Brand awareness measures the extent to which consumers are aware of the branding elements, while brand image mea-sures consumer perceptions of brand identity. Brand awareness is the extent to which a consumer can recall, recognize, and have sound knowledge of the brand (Aaker, 1996). Brand image has been a critical factor to the success of a brand. A low perceived difference between brand identity and brand image (consumer perceptions of destination brand identity) has been acknowl-edged as a strong element of a brand (Boo et al., 2009). On the other side, brand associations measure the attributes of a destination that strike the consumer’s mind once the brand is exposed to him/her (Qu et al., 2011). Finally, perceived quality measures the extent of functional performance according to the perceptions of consumers. Marketing researchers have focused on these elements of a brand and been able to establish a few other models. For instance, Yoo, Donthu, and Lee (2000) devel-oped a Multidimensional Brand Equity (MBE) scale based on the study of Aaker (1996). The results revealed a strong relationship among brand loyalty, brand awareness, perceived quality, and brand associations. Hence, it can be inferred that Brand equity can be created and expanded through strengthening these four dimensions (Yoo et al., 2000).
Destination marketers need to focus on these four aspects in order to enhance the brand equity of a destination brand. Des-tination brands promote their differential image to consumers, and this differential image is based on its unique identity (Baker & Cameron, 2008). Tourists like to visit places which also com-pete and deliver on functional qualities such as gardens, parking, restaurants, and culture through history (Hanna & Rowley, 2011). All these images and associations are pivotal for the success of a destination brand. Researchers recommend incorporating these four elements while measuring the brand equity of a particular destination brand (Qu et al., 2011).
Brand awareness
When consumers are able to recognize the category membership of a brand, it is assumed that they have a certain level of brand awareness (Aaker, 1996). The first step to create brand equity is the generation of brand awareness in the minds of consumers, which is also true in the case of destination brands (Gartner & Ruzzier, 2011). Brand awareness plays a central role in the choice of a destination (Chon, 1992). Before visiting any destination, tourists form an ‘awareness set’, i.e., recognition of the avail-
able destination brands in consumers’ minds (Kotler, Haider, & Rein, 1993). The ‘awareness set’ generally leads to developing a ‘consideration set’ that will assist in selecting a destination brand (Kotler et al., 1993). Once consumers attain more infor-mation about the brands, only a few brands remain to form a
‘choice set’ (Kotler et al., 1993). These are important facets for destination brand marketers, therefore they must be acknowl-edged in order to trigger destination brand choice (Boo et al., 2009). Destination marketers have stressed the need to impart brand knowledge, brand recognition, and brand recall, which are the determinants of brand awareness (Pike et al., 2010). A higher level of brand awareness positively contributes to des-tination brand equity, leading visitors to remain loyal (Boo et al., 2009). However, in a few cases, brand awareness does not directly lead enhancing brand equity. In case of destination brands, this is attributed to low spending in brand promotions (Blain, Levy, & Ritchie, 2005). A lesser focus of destination mar-keters on promotion through brand activities such as events can also lead to lower levels of brand awareness, which can affect brand equity (Hudson & Ritchie, 2009). Therefore, the path from brand awareness to brand loyalty can vary according to the destination brand under study, and this must be considered by destination branding researchers (Konecnik & Gartner, 2007). Generally, destination marketing studies support the notion that a strong brand loyalty is an indicator of higher levels of brand awareness, positive and favorable brand image, and is a signal of high perceived quality (Pike et al., 2010).
Brand associations
The role of brand associations is significant in the branding literature. Favorable brand associations offer several benefits to consumers which can be replicated to destination brand visitors. For instance, favorable brand associations influence consumers’ intention to visit a historical place, generate ref-erences to others, and increase their willingness to pay a premium (Agarwal & Rao, 1996). Brand associations assist consumers in organizing and retrieving brand-related informa-tion from their memory, leading to the realization of a reason to buy a specific brand (Aaker, 1996). Brand associations are attributed to benefits sought attitudes towards the product/service/destination, the outlining of functional advantages, and brand personality, all of which contribute highly to enhance brand equity (Keller, 1993; Pappu, Quester, & Cooksey, 2005). Research in destination branding has been limited with regard to studies that empirically test the combined effects of all these elements of brand associations and their divergent effects on
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brand equity (Im et al., 2012). These researchers recommend incorporating brand quality and brand attitude as strong pre-dictors of brand associations in the case of destination brands. These two elements have been found to strongly impact overall brand associations (Aaker 1991). Brand quality is interchange-ably used as ‘customer perceived quality’ which is defined as “the consumer’s judgment about a product’s overall excel-lence or superiority (Zeithaml, 1988, p. 3). Perceived quality is an effective tool against strong competition and provides consumers with a reason to buy a certain brand (Aaker 1991; Pappu et al., 2005). Visitor perceptions of brand quality can generate a positive attitude that is pivotal for enhancing des-tination brand equity (Boo et al., 2009). Generally, a favorable and highly positive attitude toward a destination brand helps enhancing overall brand equity (Pike et al., 2010). An under-standing of what visitors perceive and feel about the quality of a destination brand helps in devising brand strategies to gain competitive advantages (Baker & Cameron, 2008).
Brand image
Brand image is the set of memory-based associations that consumers perceive about a brand (Keller, 1993). Some informational nodes are created in the memory which helps consumers assign meaning to the brands. Once a node is acti-vated, it triggers some set of associations in a consumer’s mind which determines the strength of the association (Aaker, 1991). Destination brands also work through the activation of nodes in the consumer’s memory that help him/her define the brand in different situations (Pike et al., 2010). Destination brand image has been extensively researched and has been considered an important facet in enhancing destination brands’overall brand equity and loyalty (Cai, 2002; Boo et al., 2009). These researchers stressed the importance of brand image in the formation of a branding model for destination brands. Desti-nation brand image is comprised of six elements; (a) facilities offered; (b) culture of the destination; (c) environment and nature; (d) hospitality; (e) comfort; and (f) other elements of brand such as food items (Boo et al., 2009). It is noteworthy that destination brand image is an integrated phenomenon, i.e., a brand image will be unique once the associations are well planned out and the identity is clear to destination brand promoters prior to being communicated to visitors (Qu et al., 2011). A positive brand image offers benefits such as high brand loyalty to destination brands in the view of marketers who highlight the critical role of brand image on destination brand equity (Cai, 2002).
Brand loyalty
Loyalty in branding has been defined in two ways: attitudinal and behavioral (Chaudhuri & Holbrook, 2001). Consumers’ individual dispositions toward a specific destination brand and their repur-chase intentions form the attitudinal perspective to brand loyalty (Yoon & Uysal, 2005). These researchers also believed that visi-tors’ satisfaction lead to positive attitude formation. On the other side, behavioral loyalty has been attributed to repeat purchase of a brand (Pappu et al., 2005). Loyalty has been extensively inves-tigated in marketing studies; however, in destination branding, it is perceived as still in infancy (Pike et al., 2010). In tourism mar-keting studies, brand loyalty has been found to strongly influence tourist behavior during brand choice (Chon, 1992). Destination loyalty has been measured through visit intentions and the recom-mendation of various destinations to others (Baker & Crompton, 2000). However, brand loyalty is one element of brand equity which also encompasses brand attitude, awareness, performance, and image (Chen & Gursoy, 2001). It has been believed that a differential response toward brand communication should be understood as brand equity, while purchase intentions and loyalty are the outcomes of brand equity (Oppermann, 2000). Destina-tion marketing researchers hold the view that perceived quality, brand loyalty, and brand awareness are the common character-istics of brand equity (Yoo et al., 2000). The consumer’s positive intent towards these characteristics increase the overall brand equity of destination brands (Washburn & Plank, 2002). Brand awareness and image have been identified as core attributes which contribute to enhance destination brand equity (Boo et al., 2009; Gartner & Ruzzier, 2011). Hence, these elements are considered pivotal in studies where brand equity was measured for destination brands. Relying on existing knowledge, we pro-posed the following hypotheses:
H1: Destination brand awareness positively contributes to destination brand loyalty.
H2: Destination brand image positively contributes to des-tination brand loyalty.
H3: Destination brand associations positively contribute to destination brand loyalty.
H4: Destination brand awareness positively contributes to overall brand equity of destination brands.
H5: Destination brand image positively contributes to the overall brand equity of destination brands.
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H6: Destination brand associations positively contribute to the overall brand equity of destination brands
There are numerous studies where brand loyalty posi-tively contributes to enhance overall brand equity (Pike et al., 2010; Washburn & Plank, 2002; Yoo et al., 2000). In this study, we used brand loyalty to mediate the relationship with over-all brand equity; however, brand loyalty also affects directly overall brand equity. The following hypothesis explains the relationship proposed:
H7: Destination brand loyalty positively contributes to over-all destination brand equity.
Figure 1. Research Model
Brandawareness
Brandequity
Brandloyalty
Brandimage
Brandassociations
Hypothesis 5
Hypothesis 6
Hypothesis 2
Hypothesis 1
Hypothesis 4
Hypothesis 3
Hypothesis 7
RESEARCH METHODOLOGY
The study and its precincts
The current study was planned to understand the impact of each of the four dimensions of CBBE on the brand loyalty and overall brand equity of a destination brand. To achieve our objectives, we adopted a survey-based approach to measure Lahore Fort’s brand strength. Pakistan was chosen as the context due to absence of a country-specific study measuring the strength of the world heritage site of Lahore Fort. The Lahore Fort was selected as a
‘destination brand’ for this study as it has been listed a UNESCO world heritage site, and a large number of local and foreign tour-ists visit this place. An already used scale was selected from the study of Im et al. (2012). The decision for this scale was made after judging face validity. We invited a panel of six experts in
the field of marketing and brand management to comment the clarity and comprehensiveness of the instrument. The experts suggested minimal changes, which we incorporated, and the instrument was finalized.
Measurement
The scale used by Im et al. (2012) was employed, consisting of five constructs under CBBE: Brand Awareness, Brand Image, Brand associations, Brand Loyalty, and Brand Equity. The scale consisted of two parts: the five constructs under CBBE and visitor demographics such as gender and age. In total, there were 34 items, measured on a Likert scale where 1 = strongly disagree, and 5 = strongly agree. We adopted this scale over others due to several reasons. Firstly, the scale was devel-oped in the Asian setting of Malaysia, which is also a Muslim country and a collectivist society. Considering brand equity as a context-specific phenomenon, the congruence of both countries on account of culture and religion (i.e., collectivist and Muslim) can be beneficial as proposed by contemporary researchers (Jerome, 2012). Secondly, the scale was developed specifically to measure the brand equity of a destination brand, which is also the purpose of this study. Thirdly, the scale has never been tested so far. Therefore, this study will add to the generalizability of this scale a heritage destination brand, i.e., the Lahore Fort. The measurement with the scale is explained in sections bellow.
Brand awarenessThis construct consisted of three items, and interviewees were shown statements such as: “I am well aware of the Lahore Fort as a destination brand” and “I can recognize the Lahore Fort as a destination brand”.
Brand imageThis construct was measured by dividing it into two sub-themes: brand attitude and brand quality. In total, there were 20 items. Examples of the items are: “The Lahore Fort has a good infrastruc-ture” and “The cleanliness of the Lahore Fort is good”.
Brand associationsThis dimension was measured through four items such as: “I think the Lahore Fort is a high quality tourist attraction”.
Brand loyaltyThis dimension was measured through four items. Examples of statements are: “The Lahore Fort is my first choice” and “I would like to recommend this destination to others”.
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Brand equityThis dimension was measured through four items such as: “Even if some other destination has the same image, I would prefer to visit the Lahore Museum” and “Given the other art places in the city, I think visiting the Lahore Fort is a smart move”.
Data collectionFor the purpose of this study, an on-site survey was operational-ized to target the participants, who were visiting the Lahore Fort from September to October, 2013. The nature of our data collec-tion is cross-sectional. The survey questionnaire was administered by a group of three well-trained research assistants working in a large private sector university where the main researcher is employed. The main researcher held several meetings with the research assistants where they were briefed about their respon-sibilities during data collection at the Lahore Fort. Respondents were qualified based on age and a certain level of understanding of the questionnaire, which was developed in English. All local respondents were selected because of their having a better under-standing of local history and culture. We decided that everyone aged 20 years or more would be contacted to fill in the question-naire as our core focus was to gain a feedback from people mature enough in age to respond. A total of 500 people were contacted and asked to voluntarily fill in the questionnaire, distributed per-
sonally by the assistants. The visitors were requested to spare a few minutes, on site, to fill in the questionnaire. Since a large number of people visits the Lahore Fort with their families and are reluctant to provide feedback to strangers, a low response rate was expected. After screening out the incomplete forms, 237 questionnaires were finalized with a response rate of 47 percent, which is acceptable in marketing studies. The strength of this survey lies in the fact that a non-student sample was selected, as used in previous studies to investigate destination brands (Boo et al., 2009).
RESULTS
Table 1 shows the results of respondent demographics. As to gender, 48.1 percent of the respondents were male, while 51.9 percent were females. This shows a relatively similar number of respondents from both genders. With regards to age, 43.9 percent of respondents were in the age group of 30 and below, and 39.7 percent were in the group of 31-45 years. Finally, 16.5 percent were in the bracket of 45 years and older. This shows that the sample represents a mix of various generations in terms of age. This mix of age and gender supports the pur-pose of study.
Table 1. Respondent demographics
Variable Category Frequency Percent Variable Category (age) Frequency Percent
Gender
Male 114 48.1
Age
Below 30 104 43.9
Female 123 51.9 31-45 94 39.7
Total 237 100.0 45 and above 39 16.5
Total 237 100.0
Structural equation modelling using a Partial Least Squares (PLS) method was used to test the hypotheses. In order to run the analysis, the Smart PLS (Ringle, Wende, & Will, 2005) soft-ware was used by applying a bootstrapping technique to assess the significance of factor loadings and path coefficients. Before testing the structural model, validity and goodness of fit of the measurement model were estimated.
Measurement model
In order to refine all measures for the structural model, a mea-surement model was estimated. The initial 30 items developed for measurement were subjected to a Confirmatory Factor Analysis (CFA).
Based on the results of CFA, five items were deleted because of low factor loadings that include BI4, BI5, BI6, BI12 and BI18. Later, the measurement model was tested for convergent validity. This was assessed through factor loading, composite reliability (CR), and average variance extracted (AVE) (Hair, Black, Babin, Anderson, & Tatham, 2005). Table 2 shows that all item loadings exceeded the rec-ommended value of 0.6 (Chin, 1998) and are acceptable for further analysis. Composite reliability values depicting the extent to which the construct pointers indicate the latent construct exceeded the rec-ommended value of 0.7 (Hair, Sarstedt, Ringle, & Mena, 2012), while the average variance extracted, which reflects the overall amount of variance in the indicators accounted for by the latent construct, exceeded the recommended value of 0.5 (Hair et al., 2012).
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Table 2. Validity and reliability for constructs
Constructs Items StatementsFactor
LoadingsCRa AVEb
Brand awareness
BA1 Looks like 0.815
0.681 0.865BA2 Well aware 0.826
BA3 Cultural tradition 0.835
Brand association
BAs1 High quality tourist attraction 0.728
0.672 0.89BAs2 High quality 0.854
BAs3 High quality services 0.878
BAs4 Favorable attitude 0.812
Brand equity BE1 Prefer to visit 0.874
0.733 0.846BE2 Smart move 0.839
Brand image
BI1 Latest technology used 0.664
0.546 0.912
BI2 Good infrastructure 0.679
BI3 Shopping facility 0.666
BI7 Islamic culture 0.684
BI8 Halal food 0.690
BI9 Aesthetically appealing 0.606
BI10 Historical appealing 0.620
BI11 Friendly people 0.670
BI13 Entertainment is good 0.604
BI14 Accommodation is reliable 0.693
BI15 Barrier free communication 0.673
BI16 Good cleanliness 0.618
BI17 Staff guides 0.627
Brand loyalty
BL1 First choice visit 0.779
0.699 0.874BL2 Intention to visit 0.834
BL3 Strongly recommend 0.775
a Composite reliability = (square of the summation of the factor loadings) / [(square of the summation of the factor loadings) + (square of the summation of the error variances)]
b AVE = (summation of squared factor loadings)/[(summation of squared factor loadings) + (summation of error variances)]
Table 2 shows that the square root of AVE (diagonal values) for each construct is larger than its corresponding correlation coefficients, pointing towards adequate discriminant validity (Hair et al., 2012). Since the square root of AVE between each pair of factors was higher than the correlation estimated between factors, its discriminant validity is thus ratified (Hair et al., 2012).
Structural model
Following the measurement model, the hypothesized relationships in the structural model were tested. In order to achieve mean-ingful findings, a bootstrapping procedure with 1000 iterations was performed to examine the statistical significance of the weights of sub-constructs and the path coefficients.
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Figure 2, shows the results of the analysis. The corrected R2 in the figure refers to the explanatory power of the predictor variable(s) in the respective construct. All the three independent variables (Brand Awareness, Brand Image, and Brand Associa-tion) explain 54.7 per cent of Brand loyalty (R2 = 0.574), while these three variables and brand loyalty altogether explain 27.1
per cent of Brand equity (R2 = 0.271). With regard to model valid-ity, Chin et al. (2008) classified endogenous latent variables as substantial, moderate, or weak based on the R2 values of 0.67, 0.33, or 0.19 respectively. Accordingly, Brand loyalty (R2 = 0.574) can be described as moderate, while Brand equity (R2 = 0.271) can be described as weak.
Figure 2. Structural model
Brand awareness
Brand equity
Brand loyalty
Brand image
Brand associations
0.357
0.137
0.131
0.159
0.636
-0.006
-0.040
0.548
0.000
0.000
0.000
0.272
The complete results of the structural model and hypothe-ses testing are shown in Table 3. Results show a strong support for five of the seven hypotheses of the study. H1 hypothesized that brand awareness influences brand loyalty significantly, which was not supported by results (H1: b = -0.006, t = 0.091, sig > 0.05). H2 hypothesized that brand image significantly affects brand loyalty, which was supported by results (H2: b = 0.159, t = 2.266, sig < 0.05). A strong support was also found for H3, which hypothesized a significant effect of brand association on brand loyalty (H3: b = 0.636, t = 12.76, sig < 0.01). Results did
not support H4, which hypothesized that brand awareness pre-dicts brand equity significantly (H4: b = -0.040, t = 0.454, sig > 0.05). H5 hypothesized that brand image significantly affects brand equity, which was supported by results (H5: b = 0.357, t = 3.374, sig < 0.01). Support was also found for H6, which hypoth-esized a significant effect of brand association on brand equity (H6: b = 0.137, t = 2.313, sig < 0.05). The last hypothesis was H7, which hypothesized significant effect of brand loyalty on brand equity. Results supported this hypothesis (H7: b = 0.131, t = 2.410, sig < 0.05).
Table 4. Structural estimates (hypothesis testing)
Hypothesis Standard Beta Standard Error T Statistics Result
H1 Brand awareness → Brand loyalty -0.006 0.062 0.091 Not supported
H2 Brand image → Brand loyalty 0.159 0.070 2.266* Supported
H3 Brand association → Brand loyalty 0.636 0.050 12.76** Supported
H4 Brand awareness → Brand equity -0.040 0.087 0.454 Not supported
H5 Brand image → Brand equity 0.357 0.106 3.374** Supported
H6 Brand association → Brand equity 0.137 0.105 2.313* Supported
H7 Brand loyalty → Brand equity 0.131 0.092 2.41* Supported
*P<0.05; **P<0.01
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DISCUSSION
The present study is a scholarly response to the call for conducting some context-based marketing studies in developing countries (Frimpong & Wilson, 2013). The study provides an insight by mea-suring the brand equity of a cultural destination brand (the Lahore Fort) in a developing country context, i.e., the Pakistani context. This study empirically explored the impact of brand awareness, brand image, brand associations, and brand loyalty on brand equity, with brand loyalty as the mediating variable, by extend-ing the CBBE model introduced by Aaker (1991, 1996) and Keller (1993, 2003). The Pakistani context, the case study of a classi-cal historical place, i.e., the Lahore Fort, and the application of robust statistical and data analysis techniques are the major strengths and contributions of the present study.
Our results indicate some interesting findings: H1 and H4 were rejected, indicating that brand awareness does not lead to brand loyalty and brand equity for the Lahore Fort. These results initially contradict previous studies conducted to unearth the link between brand awareness and brand loyalty in tourism ser-vices (Pike et al., 2010). This can be attributed to a lack of brand promotion of the Lahore Fort as a destination brand in the minds of visitors. Even in previous studies, the lack of brand promo-tion has been found to cause lower levels of brand awareness (Hudson & Ritchie, 2009). This holds in the case of the Lahore Fort as explained before. The fort is a state-run organization, admin-istered by ministerial efforts in Pakistan. Despite its existence over the centuries, the government has not been promoting it as a destination brand to local and international visitors. Therefore, people would lack awareness of the Lahore Fort as a destination brand. So brand awareness is lacking and it does not support the link between brand awareness and brand loyalty. The path from brand awareness to brand equity has also been recognized as a brand-specific phenomenon in previous studies (Konecnik & Gartner, 2007). These researchers found that a brand’s high awareness does not always lead to higher levels of brand equity. Given the many historical places in the city of Lahore, such as the Shahi Mosque, the Anarkali Market, Shalamar Gardens, and many more, brand loyalty to the Lahore Fort as a first choice brand can be compromised. Another perspective is that the Lahore Fort may have sufficient levels of brand awareness, but the fort’s functional performance may not be in accordance with visitor expectations. The substitutes available and visitors’ focus on the functional attributes of a destination brand can be woven into a relation-ship in which higher brand awareness can lead to a lower level of brand equity (Hanna & Rowley, 2011). Thus, an understand-ing of brand awareness not supporting brand loyalty and equity in the case of the Lahore Fort can be justified.
The CBBE elements of brand image and brand association were hypothesized to positively contribute towards brand loyalty, and these hypotheses were supported. This means that the Lahore fort has a clear brand image and favorable brand associations in the minds of visitors. The results are in line with previous stud-ies conducted to unearth tourism branding perspectives (Boo et al., 2009). Moreover, brand image has been found to contribute significantly towards brand success (Tasci & Kozak, 2006). H2 assumed that brand image positively contributes to destination brand loyalty, while H5 hypothesized a relationship between brand image and its positive contribution towards overall brand equity. The analysis concluded that brand image strongly contributes towards brand loyalty, with a beta value of 0.357 at highest signif-icant level. This was consistent with previous studies conducted in the domain of destination marketing (Boo et al., 2009). The brand association construct has been acknowledged to contrib-ute positively towards building strong brand equity (Aaker, 1991). The variable brand associations have been assumed to signifi-cantly contribute to brand loyalty and brand equity, as we found in H3 and H6. Results indicate that an increase in brand associa-tions leads to an increase in brand loyalty, which will affect the number of tourists or customers visiting the historical site. Results reveal that ‘brand quality’ and ‘brand attitude’ positively contrib-ute towards brand equity. These results are in line with previous studies where a positive ‘brand association set’ leads to forming positive opinions about a destination brand, ultimately working as a ‘guard’ against strong competition (Pappu et al., 2005). The path from destination brand loyalty to destination brand equity has been acknowledged in previous studies (Konecnik & Gartner, 2007; Pike et al., 2010). The results of this study also reveal that brand loyalty positively contributes to brand equity. Strong brand loyalty to a brand generates repeat purchase and a strong recom-mendation to other customers (Atilgan et al., 2005). Brand equity can be strong if consumers have a positive image and favorable associations about a particular destination brand.
CONCLUSION
In a great many studies, CBBE has been employed to investigate brand equity. However, the major contribution of the present research lies in the fact that a brand equity measurement of the Lahore Fort as a destination brand has been conducted for the first time. Furthermore, brand equity so far has been limited to the application of the CBBE model, however, with brand equity as a separate dimension, and without brand loyalty as a media-tor (Yoo et al., 2000). Destination marketers and governments can extract some guidance from the results of this study, as it
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provides useful insights about a popular destination brand in Pakistan. We suggest that several strategies be used to enhance the brand equity of the Lahore Fort as a destination brand, which will positively impact the number of visitors to the site. Our results indicate that brand image significantly contributes to destination loyalty and an overall brand equity. Therefore, destination market-ers in Pakistan should focus on building an Islamic image of the destination, a safe and conducive environment, local hospitality, comfort for visitors, and other elements of a brand, such as food items. These were proposed by Boo et al. (2009) as the elements of brand image. Secondly, brand awareness should be enhanced through various communication strategies. The use of logos, slo-gans, brand colors, and other branding elements can help visitors feel more attached to the brand, and will surely influence their destination brand choice (Boo et al., 2009). In addition to that, it is worth noticing that merely increasing awareness levels may not work. The visitors to a destination brand also expect its func-tional attributes. Therefore, the functional elements highlighted in this study, such as parking facilities, cleanliness, overall guidance provided by staff, and good quality of food offered can improve the functional imagery of the Lahore Fort as a destination brand. Thirdly, brand loyalty to destination brands must be emphasized as it has been found to positively contribute towards brand equity. In order for this to happen successfully, destination marketers can segment the market according to the criteria outlined by Aaker (1996). The loyalty segments comprise consumers who are cus-tomers of competing brands, switchers, users of more than one brand, and the fully committed (Aaker, 1996, p. 22). Once identi-fied, these customers must then be approached through a highly customized marketing program. Generally, a separate communi-cation plan to attract locals and a separate promotion plan for international visitors can add to the brand equity.
Despite its significant knowledge contribution, this study has several limitations. Firstly, only one destination brand was selected for the purpose of this study, which limits the general-izability of results to other destination brands in Pakistan. Future studies are recommended to overcome this limitation and inves-tigate brand equity for other destination brands in the country. Secondly, data for this study were cross-sectional, which can affect the attitude of visitors toward brand performance. Given the activities performed at the Lahore Fort in different weather condi-tions, a longitudinal design is suggested in order to analyze the differences of brand performance measurement over time. Holis-tically, the study incorporates the customers’ point of view, which may not be enough to manage service brands. Therefore, another potential area to study is the employment of an Employee-Based Brand Equity scale, which can bring a more holistic perspective to the measurement of destination brand performance.
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ANITA MARIA DE [email protected]’s in Business Administration from Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade – São Paulo – SP, Brazil
GRAZIELLA [email protected] at Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade – São Paulo – SP, Brazil
ARMINDO DOS SANTOS DE SOUSA TEODÓSIO [email protected] at Pontifícia Universidade Católica de Minas Gerais, Programa de Pós-Graduação Stricto Senso em Administração – Belo Horizonte – MG, Brazil
ARTICLESSubmitted 12.06.2013. Approved 01.12.2015This article is co-authored by a member of RAE’s Scientific Editorial Board and was evaluated by double blind review process with impartiality and independence. Scientific Editor: Felipe Zambaldi
THE INTERNATIONAL GROWTH OF A SOCIAL BUSINESS: A CASE STUDYO crescimento internacional de um negócio social: um estudo de casoEl crecimiento internacional de un negocio social: un estudio de casoABSTRACTIn developing countries, initiatives have often been undertaken in order to fight social and environ-mental problems. Since the 1990s, an increase can be seen in corporate social responsibility actions, as well as increasingly strong activities by civil society organizations. Tweenty years ago, companies and civil society organizations stood wide apart from each other, with often conflicting agendas and resistance to mutual collaboration. This reality has changed significantly. Besides the phenomenon of cross-sector partnerships, we can also observe the expansion of a particular organization type, i.e., the social business, which combines two objectives that were previously seen as incompatible: financial sustainability and the generation of social value. This article aims to discuss the factors that influence the results of a social business operating in three countries: Botswana, Brazil and Jordan. The results allow understanding the challenges involved in constructing social businesses in develo-ping countries as well as a better understanding of the very nature of those businesses, considering the social realities where they operate.KEYWORDS | Social business, people with disabilities, social entreprenership, hydrid organizations, social shared value.
RESUMOEm países em desenvolvimento, tem sido frequente o surgimento de iniciativas para combater pro-blemas sociais e ambientais. Observa-se, desde a década de 1990, o crescimento das ações de reponsabilidade social empresarial, bem como a intensificação da atuação de organizações da sociedade civil. Há 20 anos, empresas e organizações da sociedade civil atuavam de maneira muito distante, com agendas próprias, muitas vezes conflituosas e resistentes ao trabalho colaborativo. Esta realidade tem se alterado significativamente. Além do fenômeno das alianças intersetoriais, é possí-vel também observar a proliferação de um tipo de organização, os negócios sociais, que combinam dois objetivos antes vistos como incompatíveis: sustentabilidade financeira e geração de valor social. O presente artigo tem por objetivo discutir os fatores que influencim os resultados de um negócio social em três países: Botswana, Brasil e Jordânia. Os resultados levam à compreensão dos desa-fios que envolvem o desenvolvimento de negócios sociais em países emergentes da própria natureza desses negócios considerando a realidade social em que se inserem.PALAVRAS-CHAVE | Negócios sociais, pessoas com deficiência, empreendedorismo social, organiza-ções híbridas, valor social compartilhado.
RESUMENEn países en desarrollo, iniciativas han sido emprendidas a menudo con el fin de combatir problemas medioambientales y sociales. Desde 1990 puede ser visto un aumento en acciones de responsabilidad social corporativa, así como cada vez más fuertes actividades por organizaciones de la sociedad civil. Hace veinte años compañías y organizaciones de la sociedad civil se apartaron unas de las otras, con agendas frecuentemente conflitantes y resistencia a la colaboración mutua. Esa realidad ha cambiado significativa-mente. Allá del fenómeno de parcerias entre sectores, podemos observar también la expansión de un tipo particular de organización, por ejemplo, el negocio social, que mezcla dos objetivos que son previamente vistos como incompatibles: sostenibilidad financiera y la generación de valor social. Ese artículo objetiva discutir los factores que influencian los resultados de un negocio social operando en tres países: Botswana, Brasil y Jordania. Los resultados permiten comprender los desafíos envueltos en la construcción del nego-cio social en países en desarrollo así como un mejor entendimiento de la verdadera naturaleza de aquellos negocios, considerando las realidades sociales en las cuales ellos operan.PALABRAS-CLAVE | Negocio social, personas con discapacidad, empresariado social, organizaciones híbrida, valores socialmente compartidos.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150408
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INTRODUCTION
In the last decades, civil society organizations (CSOs), gov-ernments, and corporations have been fighting social and environmental problems, particularly in developing countries. Nowadays, isolated actions and the conflict between CSOs and corporations are no longer the only way to promote sustainable development. Cross-sector colaboration is seen as a more efec-tive strategy to solve social and environmental problems, since both civil society and market actors (such as corporations) could join forces and share knowledge in order to promove sustainabil-ity (Rondinelli & London, 2003; Seitanidi, 2004/2005; Selsky & Parker, 2005, 2010). Whatever the reasons that have brought com-panies and civil society organizations together, the fact is that now dialogue is not only possible, but essential for sustainable devel-opment. (Haigh & Hoffman, 2012, 2014; Porter & Kramer, 2011)
Besides the phenomenon of cross-sector partnerships, we can also see the increase of a particular organization type, one which combines two objectives previously thought incompatible: financial sustainability and social value generation. Social enter-prises, inclusive businesses, and social businesses are some of the terms currently used to refer to organizations that aim to solve social problems efficiently and sustainably using market mecha-nisms. (Comini, Barki, & Aguiar, 2012; Karnani, 2007; Marques, Reficco, & Berger, 2010; Young & Lecy, 2012).
Because it is a relatively new topic, not much literature exists about it, and the understanding of these organizations’ specific characteristics is not yet homogeneous (Kolki, Rivera-San-tos, & Rufín, 2014; Haigh & Hoffman, 2012, 2014; Porter & Kramer, 2011). Much of the existing literature falls into one of three main lines of investigation of social businesses (Young, 2007): the European perspective, born from the Social Economy tradition (associations and cooperatives), strongly encourages businesses to carry out public duties; the North American view sees social businesses as businesses that use market logic to try to solve social problems; a third current, proposed by researchers from emerging countries, emphasizes business initiatives aimed at reducing poverty and transforming the social conditions of margin-alized individuals. (Comini & Teodósio, 2012; Defourny & Nyssens, 2010; Kerlin, 2006, 2013; Young & Lecy, 2012).
In this study, the meaning we adopt for ‘social business’ is based on the emerging countries’ perspective. To this end, we consider that this type of initiative is a type of business focused on generating both employment and income opportunities for people with low (or without) mobility in the labor market, within the standards of so-called decent work. (Comini & Teodósio, 2012). These opportunities must also be sustainable, generate prof-itability for the venture, and establish relations with for-profit
organizations, whether as service or product providers or as dis-tributors of products of traditional companies or businesses (Celli & González, 2010; Karnani, 2007; Prahalad & Hart, 2002). This cat-egory of workers includes: women and men over 40 year old; the poor and poorly educated; local communities with strong ethnic bonds and low education (indigenous, mestizo, etc.); youths without work experience and living in areas of great social vul-nerability; people with disabilities; and other groups in similar conditions. In sum, the absolute majority of the poor living in sit-uations of social and environmental risk in developing countries.
The present study aims to analyse the factors that facili-tate or hinder the implementation of a social business. To this end, we present an empirical study of an organization operating in three countries in different regions (Latin America, Africa, and the Middle East). The study takes into account the social variables affecting the implementation of the company’s business models in these different realities.
The analysed organization is recognized as a best practice case of social business by international humanitarian awards, international organization reports, and CSO documents because it operates in poor areas of emerging countries, sometimes in ter-ritories marked by conflicts, using market mechanisms - i.e. the sale of its products - as a means to generate social transformation. Solar Ear hires hearing-impaired young people to assemble hear-ing aids, solar-powered rechargers, and hearing aid rechargeable batteries. These products are distributed at an affordable price mainly to children from developing countries who suffer from hearing loss. The organization allows physically and economi-cally marginalized people to obtain affordable products that can improve their quality of life in addition to training and employing young people who previously lacked employment opportunities. The study’s analysis is focused on the organization’s operations in Botswana, Brazil and Jordan.
In the topics below, we discuss the teoretical approach that organizes the debate about social business, focusing on the nature of this type of organization and the rationale of its management model; we also present the methodogical procedures for data col-lection in three different countries, and a case analysis, discussing this social business’ management model and governance.
SOCIAL BUSINESS: HYBRIDISM, RATIONALE, AND MANAGEMENT MODELIn the late 20th century, Dees (1998) noted in one of his pioneering texts that although the language of social entrepreneurship might be new, the phenomenon itself was old. The importance of ter-minology would be to decrease the boundaries between sectors
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and actors, as in the case of social business: terminology opens the possibility of bringing together civil society organizations, cooperatives, small, medium or large for-profit organizations, donors, and government into the debate about their contribu-tion to lessen poverty, inequality, and social exclusion (Haigh & Hoffman, 2012, 2014; Kolki et al., 2014).
We can say that social businesses allow linking the low-in-come sector to the market and that they primarily aim to improve the living conditions of people in that sector. Currently, the terms
“socioenvironmental businesses” and “socioenvironmental entreprenership” have also been used to emphasize the need to incorporate the environmental dimension to solutions proposed by this type of business (Defourny & Nyssens, 2010; Fischer & Comini, 2012; Haigh & Hoffman, 2012, 2014). Improving living conditions, according to scholars such as Prahalad and Hart (2002), takes place through the granting of access to any goods and services that were previously available only to privileged upper strata. Karnani (2007) and Peredo (2003) are more critical of this consumerist, market-ori-ented perspective since, they argue, this kind of approach does not solve the problem of extreme poverty and still increases envi-ronmental risks due to excessive consumption.
Sen (2000) emphasizes that the main problem of poverty is the deprivation of human freedom. To reverse this social and economic problem, Sen (2000) believes that fair conditions must be created so the poor themselves can improve their own qual-ity of life, including access to education, health care, housing, and income generation. According to this view, it would be more useful to foster market initiatives that offer solutions to enhance the supply of products and services that meet basic needs related to education, health, energy, housing, and financial services.
A social business can be considered an inclusive business when it is focused on generating employment and income for poor people living in social and environmental risk areas (Comini & Teodósio, 2012). These opportunities could be self-sustaining by generating profits for businesses and establishing relations with regular business organizations, whether as suppliers of products or services or as distributors for traditional firms or businesses (Comini et al., 2012).
Another way to analyze social businesses refers to the driv-ers of development. Prahalad and Hart (2002) reinforce the role of multinationals as key actors in proposing solutions to fight poverty worldwide. On the other hand, a study conducted by the Social Enterprise Knowledge Network - SEKN (2010), a network of researchers from business schools in the Ibero-American region, reinforces the role of small and medium-size companies, coop-eratives, and civil society organizations in offering solutions for low-income populations. According to this view, low-income pop-ulations often take on the role of producers, rather than simply
consumers, in the management of social businesses. (Marques et al., 2010).
In the last 10 years, the bottom-of-the-pyramid (BoP) strategy became a discussion topic in the literature, receiving improvements as well as strong criticism from different authors (Kolki et al., 2014). Simanis and Hart (2008) presented a new approach called BoP 2.0, where the authors propose major changes in the social business governance model from: a) BoP as costumer to BoP as partner; b) deep listening to deep dialoguing; c) reducing price points to improving imagination; d) redesigning packing and extending distribution to marrying capabilities and building shared commitment; e) arm’s length relationship medi-ated by CSOs to direct, personal relationships facilited by CSOs. The main change was leaving the “selling to the poor” perspective towards “business co-venturing” in social business organizations.
In our study, we chose an approach based on the social and poverty sphere, typical of emerging economies like Brazil, in oppo-sition to Simanis and Hart’s (2008) BoP 2.0. Today, we find it more important to advance the understanding of environmental, social, and political contributions of civil society organizations, cooper-atives, and small business to promote sustainable development. Social business appears in this context as a type of organization that can offer major insights in face of the social and environ-mental challenges raised by traditional market and corporations (Haigh & Hoffman, 2012, 2014). In order to understand this type of business, situated on the boundaries of market and society, as well as political and cultural systems, we need more power-full approaches to discuss this hybridization.
Social businesses can vary in format: at one social extreme are market initiatives structured by non-profit organizations, and at the other extreme, market initiatives within a multinational com-pany that are aimed at the low-income segment. Because of this, Haigh and Hoffman (2012, 2014), Battilana and Dorado (2010), and Batillana and Lee (2014) write about “Hybrid Organizations” as they discuss the nature, perspectives, and impacts generated by differ-ent types of initiatives and organizations motivated by social and environmental issues and situated among civil society, the market, and the State. Porter and Kramer (2011) argue that boundaries are blurred between nonprofit and for-profit sectors in the creation and sharing of social values by different types of business organizations. In other words, the initiative can either be part of the core business of the organization or it can be part of a secondary or peripheral activity. Civil society organization initiatives that develop income gen-eration activities in order to obtain resources would be an example of a peripheral market activity, as would a business unit of a large multinational aimed at the low-income sector.
The disagreement on whether there is profit distribution or not is closely related to the form of the social business. Some lines
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of thought claim that profit distribution fits the logic of the market and would not preclude business growth; on the contrary, it would create conditions to receive more foreign investment (Chu, 2005; Young & Lecy, 2012). However, the approach of Yunus, Moingeon and Lehmann-Ortega (2010) and Yunus (2006) opposes this view as it argues that social businesses should maximize social wealth and not individual wealth. Therefore, Yunus and his research col-leagues advocate total reinvestment of profits in the venture.
Social business governance models have not received much attention in the literature produced by U.S. research centers. How-ever, European authors such as Mswaka and Aluko (2015) and Borzaga and Galera (2009) stressed the importance of introducing forms of decision-making that are more participatory and collective in social businesses. Involving beneficiaries in decision-making would be essential to organizations that take on activities carried out by governments (e.g., education and health) (Comini & Teodó-sio, 2012; Mswaka & Aluko, 2014; Peredo, 2003; Travaglini, 2012).
Social businesses intrinsically generate both economic value and social value at once (Porter & Kramer, 2011). Marquez et al. (2010) explain that for social businesses developed by civil society organizations, economic value should be defined as finan-cial sustainability, namely the capacity to operate indefinitely. For private firms, economic value equals profitability. According to the authors, subsidies would be acceptable in the following situ-ations: for startup ventures, as a temporary resource to help them reach sustainability; or when subsidies are horizontally offered to a sector or an industry as a whole. Celli and Gonzales (2010) point out the difference between firms that, since their beginning, oper-ate exclusively with the low-income sector, and firms that have incorporated that sector into their traditional activities, such as pilot projects carried out by large corporations. In this case, the internal rate of return on a project would have to be calculated. Due to information asymmetry and transaction costs, markets focused on the low-income segment could be costlier than other markets (Celli & Gonzales, 2010; Prahalad & Hart, 2002). Based on the analysis of 33 social businesses in the Ibero-American region, through a research conducted by the SEKN from 2006 to 2009, we can see that only initiatives that introduced technolog-ical innovations and new institutional arrangements were able to reduce costs along the distribution chain, gaining scale and increased profitability. (Marques et al., 2010).
Measuring social impact is not trivial. First, short-term results must be distinguished from social impact, which entails a longer-term observation of results (Comini & Teodósio, 2012). Besides, social value itself must be defined. Based on the above-mentioned analysis of 33 social businesses in the Ibe-ro-American region, Portocarrero and Delgado (2010) emphasize the importance of broadening the view of value creation for initia-
tives aimed at the low-income sector. According to these authors, this value generation should include the effective social inclusion, with services to the more marginalized or voiceless population, as well mitigation of the negative effects of economic growth. Sen (2000) notes that poverty is a complex and multidimensional phenomenon manifested through inequality, informality, and social exclusion. Therefore, initiatives aimed at the low-income segment should be measured in more tangible aspects (access to goods/services and income generation) as well as intangi-ble aspects (restoring citizenship and devolping social capital) (Comini & Teodósio, 2012). According to Portocarreo and Delgado (2010), there are legal, symbolic, and cultural obstacles involved in social exclusion which hinder the satisfaction of needs and the exercise of rights. A key aspect is the difficulty that the low-in-come sector faces to build an identity as members of a greater society and to have a sense of belonging that spreads across the limits of their own community. With regard to social capital, the authors argue that it is necessary to identify how market-based social initiatives enable the construction of a network founded on principles of trust, reciprocity, and mutual cooperation. Exhibit 1 sumarizes the categories used by the authors.
Nowadays, many non-academic actors have been sup-porting social business. Some of those are related to civil society, global corporations, and internacional organizations, and they have produced some applied studies that offer interesting tools for analyzing, evaluating, and supporting social businesses. A group of social business investors has created a network for exchanging experiences and defining patterns, called Global Impact Investment Network and, in 2009, the group proposed a standardized form of measuring and reporting social businesses’ social and environmental impacts, called Impact Reporting and Investment Standard (Iris, 2009). In 2010, with the purpose of cre-ating external rating agencies to monitor this type of investment, the Global Impact Investing Reporting Standards (GIIRS) was cre-ated. IRIS pursues tangible results, as we can see in Exhibit 2.
By analyzing the different definitions of social business proposed in the international literature - both the definitions adopted by organizations that work to accelerate social business (organizations created to improve social businesses’ matura-tion and consolidation), and the definitions proposed by social business investors (institutions that allocate national or interna-tional funds from individuals or corporations to invest them in businesses aimed at solving social problems) - we can draw a scale to visualize definitions that are closer to the market logic and definitions with a predominantly social logic (Exhibit 3). Just as Austin (2002) proposed a continuum to evaluate cross-sector partnerships, we could argue that a continuum also exists in the typology of social businesses.
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Exhibit 1. Social value creation elements in market-based initiativesIncreased incomeRaw materials produced for companies, mostly in rural areas, specially farming and farming-related productsProducers’ organization and association with or incorporation into productive chainsIncreased productivity as a result of training and technical adviceElimination of intermediariesCertification for differentiated productsBetter marketing channelsSavings through frequent purchase
Access to goods and servicesReduced pricesFragmented payment for goods and services, and pre-paid systemsPhysical presence in rural and poor urban areasPrivate investment in equipment, infrastructure and distribution networksFlexible access to loan mechanismsElimination of barriers to education
Promotion of citizenshipRecognition and exercise of basic rights (life, work, etc).Political advocacyIncreased visibility and dignity for LIS and excluded groupsLabor intermediation for handicapped people, excluded groups, poorly or non-qualified individualsIdentity validation for unregistered individualsPhysical access to market for LIS productionEnvironmental awarenessPromotion of good hygiene habits, order, and rational consumption
Social capital developmentNetworking, local relationship, and capability strengtheningBuilding a sense of belonging to a communitySocial networking; trust, reciprocity, and cooperation developmentGreater availability of own and third-party resources through contacts and interactionsLIS empowerment to streamline and express demandsSelf-esteem enhancementAssociation of individual interestsConnecting dispersed social groups with local administrations, companies, new markets, or customers
Source: Portocarrero and Delgado (2010).
Exhibit 2. Indicators proposed by Impact Reporting and Investment Standard
Increasing income and assets Improving basic welfare Mitigating climate change
Employment generationAccess to energyAccess to financial servicesAccess to educationIncome/productivity growthAgricultural productivityCapacity-buildingCommunity development
Conflict resolutionDisease-specific prevention and mitigationAccess to clean waterAffordable housingFood securityGeneration of funds for charitable givingHealth improvementEquality and empowerment
Biodiversity conservationEnergy and fuel efficiencyNatural resources conservationPollution prevention and waste managementSustainable energySustainable land useWater resources management
Source: Iris (2009).
Exhibit 3. Continuum in social business typology
Dimensions Emphasis on market Emphasis on social logic
OfferAny goods and services for the low income sector
Goods and services for basic needs (education, health, housing, food and credit)
Intentionality Generation of social value is secondary Generation of social value is the core business of the venture
Impact Indirect contribution to poverty alleviation Direct contribution to poverty alleviation
Clients Low-income sector is not the target market Exclusively low-income sector
Role of low-income Consumer Producer/Supplier
Scalability Relevant factor Not so relevant factor
Workers No priority Marginalized segments
Legal format For-profit business entitiesCivil society organizations, cooperatives, and other non- traditional forms of business organizations
Community involvement in the decision-making process
No participation in any instance Institutional mechanisms for collective participation
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This kind of approach to social business, i.e., based on the the idea of a continuum, is a powerfull framework for identifying, understanding, and analyzing different types of organizational proj-ects and activities intended to solve problems related to poverty, environmental, and social problems through business activities in different social, political, economic, and cultural realities.
METHODOLOGY
The present work is a case study based on a qualitative and explor-atory research approach. In order to deepen and systematize the existing concepts, as well as understand the phenomena of social business, we choose Solar Ear’s experience in three different countries. We chose this particular social business ini-tiative due to the following criteria: (i) it defines ifself as a social business; (ii) it is recognized for its social performance by inde-pendent, well-known organizations, such as international OSCs; (iii) it sells products that generate profit to support the social business’ activity.
Two types of data collection were conducted. First, second-ary data, i.e., documents and information about the organization studied, were collected. The data were related to the three coun-tries where the organization operates. This survey provided support for the case study analysis and for a better understand-ing of the organization in each country. Next, interviews were conducted, as they are a key data collection tool both for field work and for understanding of the phenomena we were studying in the organization. The purpose of this step was to compare the features of a social business operating in three different coun-tries by analyzing the factors that facilitated and hindered its implementation, thus highlighting the challenges in each country.
Business plan, reports, social report, and stakeholder rela-tionship diagnosis were some of the secondary data collected from Solar Ear and analysed in our research. We also collected information about the countries, particularly from government agencies and websites of international organizations such as the United Nations, World Bank, and the World Health Organi-zation (WHO).
The primary data base was collected through 22 semi-struc-tured, in-depth interviews. Our interviewees were: Solar Ear’s founder, three general managers (one in each country), three managers from partner organizations (suppliers and grantmak-ers), ten organization workers, and five customers (people who wear hearing aids and a humanitarian organization). The inter-views were conducted in each country from April to June, 2011, except for the young deaf workers at Solar Ear in Botswana, who received an email with the questions.
We analyzed the information collected (both secundary and primary data) in order to discuss the main theoretical points of our study: the organization’s creation; the rationale of its man-agement model; the management model itself; the organization’s governance; and the factors affecting results in each country. In the following topics, we present the data collected and the anal-ysis of our study.
SOCIAL BUSINESS IN DIFFERENT COUNTRIESThe organization analysed produces rechargeable hearing aids, which are made and distributed to people with hearing disabili-ties in developing countries. In each country where the initiative operates, it manufactures hearing aids, solar chargers, and battery packs. Deaf people are employed by the organization, thus learn-ing a new profession as they are trained to operate micro-welding machines. The organization produces and sells four different types of hearing aids, a solar charger, and three different types of hearing aid rechargeable batteries. The solar charger and the rechargeable batteries represent a technological innovation in the market.
This social business has already won various international awards for its products’ innovative character and quality, as well as humanitarian awards, and it has been featured in a number of magazines. The organization has two operations currently selling its products, i.e., Brazil and Botswana, and a third one is being implemented in the Middle East (Jordan, Palestine, and Israel).
The mission of this social business is to prevent hearing loss and reduce the impact of hearing impairment on people’s lives. The outcome expected from this mission is to turn people socially marginalized by hearing loss into active participants of society. Moreover, a strategic transformation of society itself is expected as a result of seeing deaf and hearing-disabled people as high level professionals.
This transformation, according to Solar Ear reports, is achieved through: (i) the availability of hearing equipment to hearing-impaired individuals, particularly children under 3 years of age who, by using hearing aids from an early age, can develop oral communication and attend regular public schools; (ii) the employment of deaf people, improving their self-esteem while developing their professional skills and, therefore, the ability to grow in their careers; (iii) a change in regular public opinion by showing that a disabled person can work as efficiently and with the same quality as someone without any disabilities. Unlike the common wisdom about people with desabilities, they could be high-performing workers at their jobs, even in high-tech pro-
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duction processes, as with Solar Ear, so long as proper training is provided. Because they already possess different motor skills and communicate with their hands using sign language, people with desabilities (deaf people in this case) can have great facil-ity to manufacture products.
In addition to this social business’ overall goals, a specific mission was set for each country, allowing greater involvement with civil society organizations. In Botswana, the specific mis-sion is to reduce HIV/AIDS rates among deaf people; in Brazil, it is the development of communication and speech therapy for deaf people; and in the Middle East, the goal is peacebuilding by engaging young deaf Israelis, Jordanians and Palestinians to work together.
In some social businesses, the founder has an important role in developing the organization and its business model. With Solar Ear, the CEO’s personal and professional life story can bring insights on the way of doing business and social business. He was the president of a large company in Canada when the unex-pected death of his eleven-year-old daughter and the loss of his job led hime to decide to travel to Botswana to perform human-itarian work. As soon as he arrieved in country, he met a deaf African child with the same name and birthdate as his late daugh-ter, and the child was asking for help to get a new hearing aid to continue school. At the same time, this businessman found an African CSO with a lot of managerial problems and a project to produce low-cost hearing aids. This organization was seeking an administrator to provide economic viability and raise funds for the project. The next step was the creation of a new organization, not a nonprofit, but a social business.
In the case of this initiative, there was an unmet need or demand, as well as the availability of someone capable of developing a business that could meet the demand of the deaf poor people living at risk in distant areas of developing countries. According the World Health Organisation, one of the main prob-lems among hearing aid users in poor, isolated regions was the lack of access to, and the high cost of, batteries. One battery costs about two dollars and lasts for about a week. Moreover, batteries are seldom found in areas far from large cities. Typically, human-itarian organizations that donate hearing aids do not donate the batteries, which nullifies the impact of their actions. Even those youths who did have a hearing aid were not using it, as they had no access to batteries nor money to buy them. Therefore, Solar Ear sought suppliers and partners ir order to develop their plan of rechargeable batteries for hearing aids.
Both the product development and the implementation of this social business in Botswana started with an English supplier who was willing to train deaf people to make their own hearing aids. The sole objective of this manufacturer was profit; how-
ever, this option was rejected. Here we can see that, sometimes, the model of a social business may not emerge as the result of a strategic decision, but by adapting to the local conditions of doing business, and thus generate solutions to social and envi-ronmental problems.
The role of local organizations and communities in design-ing, developing, and implementing this social business was essential because they possessed the expertise to manufacture the products and the solution to a problem that stemmed from their own reality. The deaf people in Botswana participated in the design of the solar charger by discussing the positive and negative aspects of each detail of the product with South Afri-can engineers.
In order to develop its products, Solar Ear started activi-ties in Botswana. The charger project was developed by a South African engineer, in the same place where both plastic and elec-tronic components were made. The organization contacted solar pannel suppliers in Taiwan and found the current supplier, who had a product that met the necessary requirements.
As for the hearing aid batteries, Solar Ear found seventy different battery makers who produced everything from watch batteries to standard formats like AA or AAA. They wrote to each company, explaining the social mission of their social business. Fifteen producers wrote back saying they might cooperate in some way, but only two accepted the task of actually making recharge-able batteries. One of them was rejected, since the minimum order had to be a few million units, an unfeasible number for distrib-uting in the interior of Botswana. A regular problem some social businesses face is related to production scale. Certain social prob-lems require mass production processes, which are not viable to a small social business, while others require a larger number of consumers than the poor population in question. The supplier who agreed to supply the batteries invested in tools and molds, understanding that as the initiative grew, so would revenue. There-fore, according to Solar Ear, suppliers are business partners who believe in the social mission and are motivated to grow together.
Solar Ear sells hearing aids at an average price ten times cheaper than other devices in the market, yet with the same qual-ity as the ones offered by the top five manufacturers. In addition, the organization proposes a reduction in the product’s main-tenance cost by using rechargeable batteries with a useful life of up to three years, and by developing a solar charger. With regard to technological innovation in inclusive businesses, we can see that product innovation can generate an opportunity for higher revenues, similarly to traditional businesses. Solar Ear’s access to the hearing aid market did not rely solely on these technological innovations (i.e., the solar charger and recharge-able batteries). Unlike most hearing aids, theirs were developed
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with manual adjustments that can be configured for the user by speech and voice therapists, instead of software programs in a computer. As a result, speech and voice therapists can adjust the device in poor areas with no computer infrastructure or even electric power supply.
During the development of the product, studies were made available comparing the quality of the Solar Ear product with equivalent products from the industry’s best-known companies, as well as their prices. According to reports of the organization, a study among patients with hearing loss was conducted and no difference in efficacy was found between a device costing $2,000 and the $100 Solar Ear device. By comparing Solar Ear products with commercial ones, we can see that their position in terms of price is aimed at reaching consumers in the low and mean income brackets, although it also reaches people considered to be at the
“bottom of the economic pyramid,” namely those living on less than a dollar a day. As for quality, according to Solar Ear, if prod-ucts currently in the market might be called the “Mercedes-Benz” of hearing aids, then the Solar Ear line would be a “Hyundai.” This means that the brands in the market possess qualities that are not only linked to improved hearing, but also to comfort and aesthetics, while Solar Ear is concerned with meeting consum-ers’ needs in a functional, efficient way.
Currently, Solar Ear still faces the problem of having to find skilled professionals in order to make their products available for the people who need them. More specifically, the problem is related to very poor, isolated areas where it is difficult to find professionals to perform the audiometric testing and adjustment of prostheses for people with hearing loss; difficulties exist also in preparing ear molds. Therefore, the initiative seeks, through partnerships with for-profit organizations, to develop a non-pre-scription hearing aid, a portable assessment tool (audiometer), and instant ear molds.
One of the essential parts of the Solar Ear operations is technical training, i.e., a practical and theoretical, 3 to 5-month-long course on electronic micro-welding taught by deaf teachers. In turn, the workers themselves become teachers to other deaf people in some other country where the social business is launched. Deaf teachers go through an adjustment period where they learn sign language, since each country has its own signs and alphabet. According to the organization, this training is part of the social mission, as it gives younger workers the opportunity to grow within their coaching career in electronics and within the social business organization itself. At the same time, new deaf students begin their careers in a better, more inclusive position in the labour market and in society; regular deaf school teachers are often hearing persons, so this training is students’ first con-tact with teachers who are deaf like themselves.
Technical training represents an innovation regarding the inclusion of the deaf workers who develop products. Workers who stand out are selected and trained to be teachers. They have the opportunity to teach the skills that were taught to them to new deaf workers from other countries. They must learn a new sign language, and therefore need an adjustment period. This was a significant innovation that differentiates Solar Ear train-ing patterns from those of other companies, as it is both a form of recognition and a career development for deaf workers.
According to managers at Solar Ear, the closest organi-zational concept to their business model is franchising. The organization uses standards to ensure the quality of their prod-ucts and to conduct global marketing, purchasing, contracts, strategic planning, and product development. An essential part of the business model is the close relationship with the entire production chain. The articulation of the whole supply chain is seen by Solar Ear managers as key to achieve the goal of bring-ing hearing aids to children under 3 years old. According to Solar Ear, this is only possible because each manager and worker at the social business treats the suppliers and distributors as their best customer. In this respect, Solar Ear’s management model can be seen as closer to a traditional model of doing business.
In order to start a new Solar Ear operation in a new country, the organization stresses the need to meet certain prerequisites and follow certain procedures. If they are not followed, or if short-cuts are taken, the initiative will run a greater risk of failure. The main points are: (i) formalizing a strong local partnership, operat-ing with both excluded groups and disable people, preferably deaf people; (ii) hiring a management team, particularly a general man-ager who is responsible for all activities in the project, and who must have some management training and experience, preferably in the social area; (iii) creating a formal organization, preferably a CSO, or at least an organization with a contract in which fulfilling the social mission is the priority, since profits should be reinvested in the initiative; (iv) mobilizing the financial resources necessary to start operating at own facilities (part of these funds must come from their own local partner, thus creating a relationship of owner-ship and financial liability); (v) selecting and training deaf persons through an exchange program with disabled people organizations from other countries where Solar Ear operates.
SOCIAL PROBLEM AND BUSINESS OPPORTUNITIESThe operations of this social business that started after the first experience in Africa were motivated by people who asked Solar Ear to teach them the model and transfer technology to them. Initially,
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the initiative had no intention to grow and multiply. Unlike other nonprofit organization initiatives for people with desabilities, Solar Ear managers affirm that the organization is not focused only on its activities, but rather on the results and impact it generates. Other CSOs have not developed a model that is easily multipli-able or economically sustainable to support deaf poor people.
At least 642 million people worldwide are affected by some type of hearing loss, 70 percent of whom live in develop-ing countries. Only one out of 40 deaf people has the opportunity to wear a hearing aid, according to data from the World Health Organization website. According to the WHO, only 9 million hear-ing aids are produced annually, and only 12 percent of these go to developing countries. This means that the market for hear-ing aids in developing countries is approximately 400 million consumers. This is a huge opportunity for companies produc-ing hearing aids. According to the World Health Organiztion, as long as there is poverty in the world and a lack of access to information about rearing loss prevention, it will remain a rel-evant worldwide problem.
With regard to the industry of hearing aid devices and parts around the world, 90 percent of it are companies based in North America and Europe. Generally, hearing aid manufactures in developing countries import all the parts and only assemble the devices. In some cases, already assembled products are imported and the companies are merely distributors.
There are five major hearing aid producers worldwide, as well as hundreds of low-quality, low-price producers in countries like China. The suppliers of parts for Solar Ear hearing aids are the same suppliers for the five largest hearing aid firms. Based on data on the cost of parts used by Solar Ear and the values of final sales to consumers, we can see that the products from the world’s major hearing aid companies reach the end consumer with a profit margin from 2,000 to 5,000 percent.
The two Solar Ear operations that market products have a geographic reach of 31 countries. Although the ultimate goal is the distribution of products in developing countries, sometimes humanitarian organizations from Europe and the United States buy these hearing aid devices to donate to institutions in poor countries. Currently, Solar Ear cannot sell its products in Brazil because it still awaits certification from health monitoring agen-cies; however, it markets them in most Latin American countries, where it has distributors or customers who are linked to human-itarian organizations.
The market in Brazil amounts to approximately 5 million people in need of a hearing aid, but only 300,000 units are sold annually. The public health system (SUS) was responsible for the distribution of 180,000 kits in 2010, according to data from the Brazilian Health Ministry website.
According the WHO, in the Middle East, including Gaza, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Palestine, Saudi Arabia, Syria, Turkey, the United Arab Emirates, and Yemen, 20 million people with hearing loss need hearing aids, which means an approximate average 7 percent of the population. In Africa the problem is even greater: for children alone, this percentage ranges from 7.5 percent in South Africa to 14 percent in Nigeria. According to Hear-it, an international CSO, in Kenya, Gambia, and Tanzania, 2.5 to 3.5 per thousand children suffer from severe or profound hearing loss.
As we can see, the market for hearing aids, particularly among the poor, has hardly been exploited. Traditional orga-nizations such as for-profits, CSOs, and government agencies, operating in their traditional way of management, have not been sucessfull in offering hearing aid devices to poor people in dif-ferent parts of the world. It was this reality that allowed a social business to be born.
ORGANIZING A SOCIAL BUSINESS
By examining the organizational structure and the relationship between the initiatives in each of the three countries, it was pos-sible to conclude that the initiatives are independent and do not respond to a hierarchical structure with a headquarters. There is not, therefore, a formal headquarters-branch structure. In gen-eral, the initiatives share a link through the figure of the founder, who currently works at the initiative in Brazil. He coordinates the purchase of raw material for all other initiatives, seeks out pro-spective clients globally, like humanitarian organizations, and coordinates educational programs, such as the deaf-to-deaf train-ing program.
As to all other decisions, the initiatives in each country run their business independently of each other. As we examined the organizations’ statutes, we found that Solar Ear Initiative is allocated within existing organizations in each country. Thus, in Botswana it operates with an organization called Godisa; in Brazil, it is run through the Instituto CEFAC; and in the Middle East (Jordan), under the patronage of the Royal Scientific Society.
Solar Ear’s organizational structure concerning workers is basically the same for all units. Some workers work in device pro-duction; a tactician is responsible for controlling product quality; the communication teacher is responsible for empowering deaf workers – and is normally a person who knows the deaf culture; the initiative manager is usually a professional in the field of business administration or social organizations; there is also a speech therapist (audiologist); and the sales force. Some exter-nal positions, such as lawyers, accountants, and advertising agencies, are part of a collaborative network. Volunteers, such
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as engineers and professionals responsible for social media or brand development, are also part of this network.
Among all the positions and functions, the role of the com-munication teacher is key in every market where the initiative operates. The teacher is responsible for developing the auton-omy of the deaf workers, while serving as a connection between the management team and the assembly line.
According to the organization, when there is not a commu-nication teacher, the self-esteem of the young deaf people ends up not being addressed, and their motivation fades. In addition, many management problems may occur due to communication failures between line workers and the management team.
In the case of Solar Ear, the main characteristic and com-petence of the people involved with the initiative is the motor skills that deaf workers have acquired by communicating with their hands in sign language, skills that are ideal for the preci-sion required in electronic micro-welding.
To manage an initiative, the manager is required to have corporate experience, overseas exerperience, and an ability to understand the realities of different countries, particularly being motivated to help people in social risk situations. The compe-tences required in a social business such as Solar Ear differ from those required by a manager in a for-profit organization, since besides the financial returns, the manager must ensure the social impact of the business. The initiative ensures that “competences are developed internally”, since - in the words of the founder - people are always being challenged; they receive the opportunity to grow and overcome themselves each day.
The internal organization at the three initiatives, i.e., Botswana, Brazil, and Middle East, differs in terms of hierar-chical structure, yet sharing the same profile of workers. In all three cases, the internal structure includes the following posi-tions: board of directors/management, production, and quality committee. All of them rely on external consultants or advisers, particularly for legal and accounting functions. Currently, the founder is the leading figure in the initiative. His role, similarly to that of a CEO or president in a business with a headquar-ters-branch model, is to ensure the continuity of all initiatives.
The structure in the Middle East is more complex and some-what beyond the business model above. This particular initiative has three different units, each with a different manager, and all of them are coordinated by a director at the top of the hierarchy. Of these three units, two are dedicated to producing the devices, while the third offers clinical care. Each unit is located in a differ-ent country (Jordan, Palestine, and Israel). Although the structure was planned this way, the initiative currently has just one unit, which is in Jordan. The justification for this ‘triadic’ structure plan is the difficulties regarding political issues: for example, the ban
on Palestinians from crossing Israeli borders, and the embargo by Arab countries on products from Israel. This alternative structure is still being tested, so we cannot know whether it will consol-idate in the years to come. The general manager at the Middle East initiative predicts a network of local salespeople and sales agents spread throughout regions like Russia, Eastern Europe, and North Africa.
Solar Ear sells its products to two types of customers. The first are non-profit, philanthropic, religious, or humanitarian orga-nizations who buy the devices to donate in developing countries, often to deaf schools in rural areas. The second group of typical clients is shops willing to serve low-income and middle-class cus-tomers who would not normally buy a hearing aid.
The initiative focuses on the low - and middle - income market, primarily children, although sells its products to any parties interested, which means it also competes with large com-panies that make hearing aids to high-end customers.
According to the organization, the suppliers are critical to Solar Ear’s results. They are not considered only a supplier, but also a partner. In the beginning of the project, they invested in new products, tools, and equipment without passing on costs, as they believed they would be able to grow with Solar Ear.
Raw material purchase orders are placed considering the needs of all three initiatives simultaneously. The Brazilian office is responsible for the purchasing, and because it has centralized purchase control, now it can realize gains of scale. Despite the fact that the Middle East initiative has not yet started to market goods, it has already started to buy supplies to build up a raw material inventory so it can manufacture its first products. Nor-mally, payments are separately made by each Solar Ear initiative directly to the supplier; in some cases they can be made by the initiative in Brazil, which is then reimbursed by the others. Deliv-eries are directly made to each of the countries.
Each initiative is responsible for the local sales of its hear-ing aids. In Botswana, during the first two years of the initiative’s implementation, there was not a sales team: all costumers were directly contacted by the founder. Most of them were human-itarian organizations, which bought the products to donate in African countries. In some cases, the founder traveled in order to develop partnerships with small retailers, but the number of products sold was small when compared to the investment of large humanitarian organizations.
In Brazil, partnerships were developed with sales represen-tatives of different hearing aid brands. Because Solar Ear hearing aids still cannot be marketed in the country due to health mon-itoring certification issues, these sales representatives are only selling solar chargers and batteries, since these can be used with any brand of hearing device that uses the same battery size
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(#675, 312, 313). In addition, Solar Ear Brazil has a Latin American sales agent who seeks out prospective customers in the region and develops contacts with major humanitarian organizations in Latin America. All representatives or sales agents receive a 40% margin on product sales, but product purchase is paid in advance since, unlike large hearing aid makers, Solar Ear lacks enough working capital to subsidize purchases prior to payment by final customers.
According to information provided by the organization, in the future, the business model of Solar Ear in Brazil could come to include an exclusive for-profit distributor, so that more capital can be injected into the initiative, with a concomitant increase in sales. But this new partner organization must sign a formal agreement that ensures compliance with the social mission of offering a product that is accessible to low-income consumers.
GOVERNING A SOCIAL BUSINESS IN DIFFERENT COUNTRIESIn the city of Otse, Botswana, where the pioneering initiative of Solar Ear’s inclusive business was established, the project started in a community of deaf people with the support of an international NGO. The local NGO that supported the Solar Ear initiative was called Godisa.
In Brazil, the initiative started within an organization based in São Paulo, but after many obstacles, another Brazilian CSO was invited to implement the business plan. Thus, the initiative formally emerged in Brazil as a branch of the Instituto CEFAC, which by then had nine years of volunteer work experience in the area of audiology.
Both in Botswana and Brazil, the initiatives emerged due to a strong local interest in developing the project’s social mis-sion: local organizations in both countries wished to develop low-cost hearing aids to benefit the communities in which they were already working.
In the case of Middle East, the initiative emerged through the interest of CISEP, a Canadian organization with access to funds for supporting a project relating health and peace between Israe-lis, Palestinians, and Jordanians. So CISEP chose Solar Ear as an initiative to develop this social mission. The initiative’s purpose was to hire young deaf people from the three countries to work together in the production of solar hearing aids. With the support of Jordan’s royal family, the project was initially to be implemented through a local CSO. However, due to internal conflicts of interest, the prince ordered the transfer of the implementation funds to a second organization chosen by the initiative’s managers. The organization that hosts the project is the Royal Scientific Society
(RSS), a Jordanian government research and innovation center which by then had no previous works in the area of audiology.
With regard to the specific difficulties of implementing the organization in each country, the issues vary according to each local context, but a pattern can be identified as recurrent in all three initiatives.
The first difficulties encountered during the implementa-tion of the initiative in Botswana were the same ones facing any organization that would start a business in a 6,000-inhabitant African town. Problems related to infrastructure, such as access to raw material, suppliers, or electricity, were the first ones that had to be overcome. Then there was the challenge of cultural differences, e.g., addressing the prevailing notion among the Afri-can population itself about white people as a superior race, and changing the attitude of some members of the board who were prejudiced and disrespectful to the African black female manager. A final challenge for the implementation was solving the conflicts between managers, deaf workers, and the board of directors. According to the manager of the organization in Botswana, there was a lack of transparency in the use of financial resources. The moment she decided to leave the management of the organiza-tion, young deaf workers organized themselves to create a new organization called Deaftronics, which is currently managed by the deaf workers themselves and by a hearing manager with a background in electronics.
In Brazil, as mentioned earlier, the initial partner was an organization based in the State of São Paulo which, after receiv-ing the implementation funds, diverted part of them to projects of personal interest unrelated to Solar Ear’s business model. Thus, Solar Ear decided to cancel both the project and the investment. Not until two years later were new funds obtained for the current partner, Instituto CEFAC.
During its implementation, the organization in Brazil has faced several challenges, particularly bureaucratic ones. Prob-lems range from import difficulties to – and more importantly
– obtaining the health monitoring agency certification required to market the products. Moreover, difficulty accessing information and high tax rates are factors that have delayed the initiative’s financial self-sustainability.
In the Middle East, the same sequence of events reported by the manager in Brazil regarding a conflict of interests in the partner organization occurred in Jordan. Currently, with the funds allocated by the new local organization, challenges are more related to the goal of having Israelis, Palestinians, and Jordanians working together. According to the management, accomplishing this mission would require a prior step, i.e., creating local struc-tures in the three countries. Only then can cooperation exchanges between the deaf occur, allowing a subsequent attempt at trans-
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national coexistence. This proposal, offered by the manager, differs from the original business model. According to Solar Ear, each organization has freedom to test new means, but it must always meet the essential pillars of the business model (working with deaf people in a workplace adapted for people with dis-abilities and offering hearing aid devices at low prices to poor costumers) — otherwise it will be at serious risk of failure.
If we compare the initiatives in terms of their legal environ-ment, we can see that in Botswana the rule of law is minimal, thus offering little impediment to an CSO willing to market its prod-ucts and collect some margin on revenues. There is little control and accountability between the organization and its stakehold-ers (including the State). On the other hand, both in Brazil and Jordan, bureaucracy threatens and obstructs innovation and the search for new ways of fundraising by NGOs. The laws in Brazil, for example, are often contradictory in relation to social busi-nesses. However, the need for more modern laws addressing social and inclusive businesses has been increasingly noticed in the country, and a reform of the legal framework of the third sector is under way.
According to Solar Ear, the initiative is always looking to improve current products or develop new hearing aids for new markets. The founder claims it is relatively easy to make improve-ments to products as he is always in contact with customers. So whenever improvements are suggested by customers, the ini-tiative tries to follow them. The process involves understanding the suggestion or complaint and contacting the supplier for the necessary modifications. As to developing new products, the initiative seeks partnerships with universities and technology centers. For each new product, design resources are sought from foundations or universities. According to the organization, none of the initiatives is presently able to invest in research and devel-opment using only the proceeds from product sales.
With regard to Solar Ear’s social mission, the main dif-ference between this business model and the for-profits in the industry is the former’s worker inclusion and empowerment pro-gram (capacity building). An example is the hiring of a professor of communications in order to help create conditions for the par-ticipation of deaf people in the process of learning and adapting to changes.
With regard to the factors that may prevent the popula-tion involved from joining Solar Ear, communication quality and motor skills are key in the selection of deaf workers. According to the manager in Brazil, many deaf people interested in joining the initiative are not approved during the selection process. Knowl-edge of sign language is essential in the micro-welding training program, as the program is both theoretical and practical. Like-wise, motor coordination is essential for the type of work that is
done. According to the manager in Botswana, no education back-ground is required. In her country, for example, some of the deaf youths did not go to school, but because they lived in deaf com-munities, they had excellent communication skills and very good visual and motor coordination.
Each country presents different obstacles that hold the organization back from reaching its market, particulary in early phases of implementation. In the case of Botswana, during the first two years, the initiative had to overcome barriers such as the cultural prejudice of the African members, who privileged the guidance of council members – European white men – while dis-regarding the authority of the manager, an African black woman. Moreover, the initiative in Africa still faces difficulties to achieve sustainability. This is due to two main reasons: (i) low individual purchasing power, since the products marketed by the initiative, although several hundred times cheaper than competing prod-ucts, are still beyond the purchasing power of the average rural African family; (ii) the shortage of trained personel to perform hearing aid ajustments and prepare ear molds. A third obsta-cle, which was mentioned at the interview with the manager in Botswana, is the issue of board governance.
In Brazil, the main obstacle that has held the organization back from reaching its market is the country’s regulatory proce-dures. However, once all bureaucratic requirements are met, this barrier will disapear. Currently, the initiative cannot sell its hear-ing aids in Brazil, as they await health authorities’ certification
– for nearly two years. What has kept the organization financially positive is international sales. In the case of the Middle East, a few bureaucratic obstacles as the ones faced in Brazil can already be foreseen, but the organization is not yet in the marketing phase.
In general, another barrier that must be overcome is the issue of product dissemination. According to the organization, the major hearing aid brands invest millions of dollars in adver-tising, which is a multiple of the initiative’s entire sales revenue. Unable to compete, the initiative works instead on the differen-tial of customer service, and relies on divulging its product in magazines that reinforce its social value; the social aspect of the initiative promotes products sales.
The barriers often faced by people who need a hearing aid include: (i) depending on relatives to acquire a unit; (ii) depending on the government; or (iii) depending on nonprofit organizations which donate these products. In addition, hearing aids require adjustments according to the individual’s hearing loss, so in case an individual is unable to undergo an audiometric test, or when there are no prosthetic technicians to prepare ear molds, people are unable to wear a device.
To overcome some of these barriers, Solar Ear is devel-oping: (i) a non-prescription hearing aid that does not require a
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specialized professional to ajust it, in partnership with the Mas-sachusetts Institute of Technology (MIT); (ii) an instantaneous ear mold, eliminating the need for a prosthetic technician, in partner-ship with a Canadian company; and (iii) software for a portable audiometer, which would eliminate the need for a practice fully equipped with a special chamber for audiological tests, in part-nership with a German company.
Currently, Solar Ear’s governance system is related to the mission and requirements of donnors, whose specific protocols must be followed. These requirements allow the organization to provide transparency. However, there is no system in place to ensure accountability and transparency. None of the three initia-tives has yet released reports on their websites, having met only the reporting requirements of donnors.
In Botswana, during the initial implementation period, a deliberation council was established. However, according to the manager, there was a lack of transparency in their decisions, which led to conflicts between managers, the deaf youths, and the council. The issue has now been solved with the creation of a new organization that is run by the deaf workers and by a man-ager with a background in electronics.
According to the manager in Brazil, governance problems also occurred in the country. Before the initiative began its activi-ties with the Instituto CEFAC, another organization was to function as a local partner. However, when the funds required were raised, they were deviated from the original mission by that organization. As a result, donnors requested their funds back and started look-ing for new a local partner. According to him, the organization has to be very transparent, as their fundraising success depends on the transparency and governance of previous initiatives. As mentioned earlier, one way of ensuring partners’ financial respon-sibility is having them raise some of the funds themselves.
According to Solar Ear, a for-profit organizational culture is also reflected in this initiative, which similarly depends on the personality of the manager and his or her ability to lead workers. Thus, if the manager is more focused on sales, the organization will have a marketing culture, or if the manager is more of a techni-cal person, then the organization will have a technology-oriented culture. But the Solar Ear business models requires their man-agers to produce value to deaf people both as workers and as consumers of hearing devices.
One of the prerequisites for creating a new Solar Ear unit is securing a donation of $300,000 to $400,000. According to the initiative’s business model, 80% of these funds should come from a lending agency, while 20% should be raised locally by the local partner organization as a form of commitment to the initiative.
Botswana and Brazil realized returns on sales after the first year. The amount received in Botswana corresponds to the sale of
approximately 340 units, or Solar Ear “kits,” which include: a solar charger, two batteries, and a hearing aid. From Brazil, approxi-mately 2000 kits were sold abroad in the first year – certifications have not yet been obtained to allow selling in the Brazilian market.
Based on the Solar Ear reports we analyzed, we found evi-dence of the profitability and financial sustainability of this social business experience. In Brazil, we found positive returns start-ing in the 18th month of the initiative. However, there are some higher cost items in the Brazilian initiative, such as travel and accommodation. The reason for this increased spending is the fact that the initiative founder is currently working with the Bra-zilian unit, so it incurs in travel expenses in order to formalize new partnerships that will benefit all units, or even create new units. In the case of the Middle East, the initiative is in its initial phase, i.e., it is currently undergoing a process of technical train-ing, which means it cannot sell any products yet.
In Botswana, products began to be marketed in the ini-tiative’s second year, but it took a great deal of initial effort to familiarize potential customers with the products. The initiative in Brazil has benefited from the product dissemination started by the Botswana unit. The analysis of the Brazilian initiative’s first 2 years of implementation clearly shows self-sustainabil-ity, although with virtually no surplus; the initiative has not yet been profitable. By deepening the analysis further, we were able to identify the above-mentioned travel and accommoda-tion expenses – to establish partnerships for new units or for the benefit of all units – as the cause.
In the case of the Middle East, although no products are being marketed yet, the manager believes financial sustainabil-ity can be achieve as early as by the 2nd year, because of the high visibility the products have already earned and the strategic part-nerships the organization has built.
According to Solar Ear, the economic value generated is reinvested in the organization for training new deaf workers, or in the social missions that each organization wants to develop. In the case of Botswana, this return is invested in actions for reducing HIV rates among deaf people. In Brazil, it goes to fund-ing speech development for low-income people (this service is provided by the Instituto CEFAC’s headquarters). In the case of the Middle East, returns will be invested in spreading peace through several collaborative activities between Israelis, Pales-tinians, and Jordanians.
Currently, no effective means of measuring the social value created by the initiative can be found, as none of the three ini-tiatives is developing any social reporting beyond what funding organizations require in terms of governance reports. But inter-views with the people involved show a strong improvement in living conditions, not only for individuals directly linked to the
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initiative, but also their families. This improvement is mainly related to three factors: increase in family income, personal devel-opment, and professional development. Examples include two workers who began pursuing higher education in 2010, and two others who have sought English instruction after living with deaf teachers from Botswana.
In the case analysed we found the following characteris-tics as factors that influence results in this social business: (i) strategic relationship with stakeholders; (ii) reduction of transac-tion costs through the support of organizations already working in the area (e.g. partnerships with distributors and local civil soci-ety organizations); (iii) the use of existing social infrastructure by implementing new activities in organizations already operating in the sector, thus benefiting from the rich portfolio of relationships and trust built up over the years with the low-income sector – a productive asset for generating economic resources while pursu-ing the mission; (iv) replication of the model in new initiatives to bolster “economies of scale,” so that as output increases, the cost per unit tends to fall; and finally, though not yet implemented, (v) projects to launch new products and develop complementary activ-ities, which will allow the initiatives to gain “economies of scope.”
These main aspects are related with Reficco and Vernis’ approach (2010) and presented below:
Exhibit 4. Factors that influence Solar Ear Social Business’ results
Dimensions Solar ear
Relationshipwith stakeholders
Suppliers and communities are business partners Inclusion of the deaf population in the labour marketParticipatory management in the workplaceGains of productivity by work of disabled people
Reduction of uncertainty in the investments(effective links between supply and demand)
Suppliers meet product modifications, as needed, without costsDistributors understand and support social missionDevice development program in connection with the communitiesInexpensive equipment for deaf peopleEasy support for hearing aid use and maintainance
Reductionof transaction costs
Improvment of reliability trhough partnerships with for-profit and civil society organizations
Source: Adapted from Reficco and Vernis (2010).
In the specific case of the studied initiative, we must take into account the following aspect, a critical one for its sustainability: it is necessary to treat very carefully the replicability of the model (processes), which involves among other things, a governance system (reports, accountability, and audits), specific definitions of the role of each unit, their rights and duties, as well as methods of measurement and evaluation of social and economic impacts.
These elements can arise through a headquarters structure yet to be created, or they could be placed under the responsibility of the founder, but it is important investing in aspects related to people management, particularly concerning a succession plan at directors’ level.
One issue that stands out is the lack of a governance system that includes extensive reporting, the creation of a board, and audits. As noted earlier, the governance system of Solar Ear is related to the mission and the requirements of funders who have specific protocols that must be followed. The requirements of funders allow the organization to create periodic reports, but there is no system to ensure the accountability and transparency It is important to emphasize the fact that none of the three units has published reports in its website.
Among the three units analyzed, the Jordan seems to be the one that is steering way from the business model expected for the initiatives. This happens, among other reasons, because the criteria set for the partner organizations have not been met in the country.
Here, we can raise the hypothesis that this factor only happened in Jordan because the founder was not present in the implementation as was the case in Botswana and Brazil. So, in the case of Jordan, the distance and the great autonomy given to the implementation of the initiative led to greater flexibility in the process of implementation and to differences in the model of management of the initiative compared the other countries. This flexibility alone is not actually a problem for this social busi-ness, since there are clear parameters for what the initiative is to achieve in each country it operates in, yet it is something that needs to be better structured and clearly established in the man-agement model of the organization.
By analyzing the three initiatives, we can see that the absence of a formal hierarchical structure can have a negative impact on its effective implementation, since the manager also responds to the interests of the organization where the initia-tive was implemented. According to the founder, the creation of a franchise-like structure should be part of the organizational structure of the initiative, which could minimize the problems mentioned above.
The founder is, therefore, the bond between the units; his main function is to support the continuation of all the initiatives
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and the creation of new ones. Thus, his absence from the orga-nization could generate a major problem for the continuation of all units, since no succession process has been initiated. At this point, we find the classic dilemmas of for-profit and nonprofit management which are described in the literature, particularly regarding transition management. In organizational environments highly dependent on the founder, the transition from a person-alist model of management to a more professionalized one can bring tensions and risks to the survival of the initiative. Further-more, it becomes clear that the different stakeholders of this social business need to deepen their involvement, which would result in more sustainability for the organization.
With regard to the market, it is important to overcome the challenges of distributing products that require professional exper-tise and sophisticated equipment. Some effort should also be made for reducing product price in order to reach the poorest segments.
The impact of the products on society as a whole lies in showing that deaf people can manufacture a quality product; for deaf workers, it is the opportunity to find professional training and growth; for the hearing impaired in general, it means access to cheaper products and rechargeable batteries, thus providing poor people a better acess to education, health, culture, and other aspects of social life that make someone a citizen, i.e., an actual member of society and the community.
FINAL REMARKS
Different names have been used to define an increasingly common phenomenon: the existence of organizations that aim to solve social problems through market mechanisms. The use of terms such as social enterprise and inclusive business to define a social business has sparked intense debate among academics and entrepreneurs.
Apart from terminology, the connection between social organizations and the private sector is becoming not only increas-ingly common, but also necessary in order to cause and expand the desired social impact. Two goals previously seen as incom-patible – financial sustainability and the creation of social value
– have become inseparable, and, together, they are the linchpin of the operations of such organizations.
Despite the ambiguity and diversity of terms, it is clear that this type of social enterprise requires a new format. Also new are the demands made on the managers of such enterprises, who must manage conflicts and tensions that occur due to the need to maximize both financial and social returns. It is therefore neces-sary to break the paradigms present both in the traditional way of doing business and in social work. From day one at the enterprise,
it is crucial to innovate and allow new institutional arrangements. It is not possible to reproduce the traditional model of business, just adding a social dimension to it; it is necessary to think and act differently. Civil society organizations are required to join hands with business organizations and think how they can work together under the laws of the market, with the common goal of helping to reverse situations of exclusion. In this environment, regardless of the name or classification given to the project or initiative, co-creation is the watchword. The main idea behind Social Business goes beyond social and economic value gener-ation: it assumes an effective commitment to introducing poor people and minority groups into the business.
It should be noted that productivity, ingenuity, and non-for-mal qualifications – or, rather, the ability to respond properly to everyday demands at work – can be quite significant in the case of workers involved in inclusive businesses. Therefore, it is not about philanthropy, but market transactions and relations based on profitability and economic performance.
However, there are risks associated with incorporating this workforce in social businesses, even when the agenda of respect for labor laws is adopted. Because these workers face limited employment opportunities and low mobility, the labor market cannot be an excuse for low wages or for demanding subservi-ence from these workers. Therefore, we must achieve a greater understanding of poverty and its social dynamics, which often include the dynamics of oppression and exclusion, but can also lead to democratic and emancipatory projects.
However, depending on who proposes a social business, one can find very questionable assumptions underpinning the promises that they make about poverty. The most important of these is a belief that the market itself is able to remedy all prob-lems, including and specially those of poverty. A more useful approach sees markets as necessary but not sufficient to account for the social problems that afflict contemporary society. Another serious risk for the strategies of inclusive businesses is the pos-sibility of expanding the consumption of goods and services with low eco-efficiency, leading to greater environmental degradation.
In sum, the initiative seems to combine high social and financial value due to the large unserved market. However, we still cannot see any forms of effective measurement of the social value created by the initiative because none of the three initia-tives is developing social reports different from the governance reports required by the funding organizations. Still, interviews with the people involved show a strong improvement in living conditions, not only for individuals directly linked to the initia-tive, but also their families. This improvement is related mainly to three factors: improvement in the level of family income, per-sonal development, and professional development.
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We should also reinforce that the distance from the found-er’s control, the lack of extensive reporting and accountability to ensure transparency at each unit, and the lack even of formal con-trats establishing the rights and duties of each stakeholder can be factors that complicate the replication of the model.
We hope this study will inspire other researchers to look into different elements of the discussion on social businesses, whether the ones we focused on here, or others that were not key to our goals in the present work. Likewise, it is necessary to compare dif-ferent international initiatives involving not only organizations from peripheral or developing countries, but also organizations aimed at vulnerable groups in more central countries.
It is extremely important to develop studies on social businesses based on comprehensive models that place poverty and social actors at social risk at the center of the analysis. This means highlighting elements such as the ability of self-organi-zation of excluded populations, the technical, management, and performance capabilities they have and can develop in social enterprises, and the various advances in terms of citizenship
– whether it be understood as access to goods and services essen-tial to life, or as the political self-determination of individuals and comunities. Studies that promote a dialogue between the traditional analysis of busines models and those dimensions of analysis effectively focused on the issues of poor populations, thus overcoming analyses based on traditional elements of busi-ness management, are proving one of the main frontiers for future studies of social businesses.
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MARIA BELEN LOZANO [email protected] at Universidad de Salamanca, Departamento de Administración y Economía de la Empresa – Salamanca, Spain
ARTICLESSubmitted 05.07.2014. Approved 12.17.2014Evaluated by double blind review process. Scientific Editor: Rodrigo Bandeira-de-Mello
STRATEGIC DECISIONS OF FAMILY FIRMS ON CASH ACCUMULATIONDecisões estratégicas de empresas familiares sobre acúmulo de dinheiro
Decisiones estratégicas de empresas familiares sobre acumulación de efectivo
ABSTRACTGiven the particular strengths, weaknesses, and peculiarities of family firms as well as the importance of liquidity in today’s marketplace, we analyze the distinct characteristics and strategies of family businesses related to the amount of cash a firm holds. We look beyond the traditional factors that influence decisions related to cash management to examine factors that are particularly important for family firms. Specifically, we outline the relevance of strategic decisions guided by family firms’ conservatism, flexibility, long-term view, and the active control that they have over family members. To our knowledge, no prior studies exist regarding family firms and their strategic adjustment of cash holding. Therefore, we investigate whether the ownership structure of the firm (through the presence of a controlling family) moderates decisions on cash holding. We found that family firms tend to accumulate cash for strategic reasons and as a result of their own idiosyncrasies. Thus, family firms can achieve optimal cash accumulation more efficiently than non-family firms.KEYWORDS | Family firms, ownership, cash, liquidity, family control.
RESUMODadas as forças, fraquezas e peculiaridades das empresas familiares, bem como a importância da liquidez no Mercado atual, foram analisadas as diferentes características e estratégias de negócios familiares com relação à quantidade de caixa que uma empresa mantém. Neste artigo, olha-se além dos fatores tradicionais que influenciam decisões relacionadas ao gerenciamento de caixa, a fim de examinar os fatores particularmente importantes para empresas familiares. Especificamente, foi deli-neada a relevância de decisões estratégicas guiadas pelo conservadorismo, flexibilidade e visão de longo prazo das empresas familiares, bem como do controle que exercem sobre os membros da famí-lia. Até onde sabemos, não existem estudos prévios com relação a empresas familiares e seus ajustes estratégicos de montante em caixa. Portanto, investigou-se a estrutura de propriedade da firma (atra-vés da presença de uma família controladora) possui efeito moderador sobre as decisões relativas ao montante em caixa. Conclui-se que empresas familiares tendem a acumular caixa por razões estraté-gicas, e também como resultado de suas próprias idiossincrasias. Assim, empresas familiares podem atingir acúmulo ótimo de caixa mais eficientemente do que empresas não familiares.PALAVRAS-CHAVE | Empresas familiares, propriedade, caixa, liquidez, controle familiar.
RESUMENDadas las particulares fuerzas, flaquezas, y peculiaridades de las empresas familiares así como la importancia de la liquidez en el mercado hoy en día, analisamos las características y estrategias distintas de negocios familiares en relación a la cantidad de efectivo que una empresa mantiene. Miramos más allá de los factores tradicionales que influencian las decisiones relacionadas a la gestión financiera para examinar factores que son particularmente importantes para las empresas familiares. Más especificamente, esbozamos la relevancia de decisiones estratégicas guiadas por el conservadurismo, la flexibilidad, visión a largo plazo de la empresa familiar, y el control activo que eso ejerce sobre los miembros de la familia. De acuerdo con nuestros conocimientos no existen estu-dios anteriores relacionados a empresas familiares y su ajuste de retención de efectivo. Por lo tanto, investigamos si la estructura de propiedad de la empresa (a través de la presencia de una familia dirigente) modera decisiones relativas a retención de efectivo. Descubrimos que empresas familiares tienden a acumular efectivo por razones estratégicas y como resultado de sus propias idiosincrasias. De este modo, empresas familiares pueden alcanzar óptimas acumulaciones de efectivo más eficien-temente que empresas no familiares.PALABRAS-CLAVE | Empresas familiares, propiedad, efectivo, liquidez, control familiar.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150409
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WHY STUDY THE CASH DECISIONS OF FAMILY FIRMS?
After a period of easy access to capital, the economic crisis caused firms to rethink their cash-holding strategy, with firms becoming more committed to holding a suitable amount of cash. Following the credit crunch associated with the economic crisis, firms, if pos-sible, accumulate cash to prepare for unforeseen circumstances. Brush (2008) argues that one of the three main strategies that suc-cessful entrepreneurs must employ to start and grow a business is managing cash for bootstrapping, that is, conserving finan-cial resources and using cash resourcefully. This topic has only recently attracted interest in the literature. Although corporate liquidity is an important strategic decision, research into the con-sequences of accumulating cash has been to a greater or lesser extent absent from the traditional literature. Cash management is a strategic decision that encompasses the whole spectrum of business activities, from long-run strategic planning to day-to-day operations (Chastain, 1986). In fact, cash decisions impinge on firms’ investment decisions and are affected by the existence of market imperfections such as information asymmetry, finan-cial distress, and agency conflicts.
Although cash management is clearly important to orga-nizations of any size and nature, these strategic decisions are even more significant when the organization is family run. Family control is a particularly interesting type of ownership structure, and much has been written about it theoretically and empiri-cally in an attempt to identify the characteristics of family firms (Kidwell, Eddleston, Cater, & Kellermanns, 2013). Family owners are the predominant type of controlling shareholders in many developing countries and in some of the world’s most developed economies. In fact, family control is found in many geographical regions and within different legal and financial systems, includ-ing the United States, Western Europe, and East Asia (see, e.g., Anderson & Reeb, 2003; Franks & Mayer, 2001; Gadhoum, Lang, & Young, 2005; Lee, 2006).
To our knowledge, no previous studies exist about family firms and their liquidity decisions. Therefore, we analyse the way in which family behaviour motivates the strategic adjustment of cash holding. That is, we analyse whether the ownership structure of a family firm moderates the determinants of its cash holding. More precisely, we attempt to disentangle whether the presence of a controlling family in the company mitigates or exacerbates the accumulation of cash.
Given this objective, we first define a family business because no consensus exists in the literature on the criteria to classify companies as family or non-family firms. Although prior research focuses on various criteria (e.g., ownership, manage-
ment and ownership, involvement of the family, etc.), the most important literature refers to publicly traded family-controlled firms. La Porta, Lopez-de-Silanes, and Shleifer (1999) argue that families that hold the majority of shares of a company also tend to participate in management. Public firms (family and non-fam-ily controlled) are usually large with a prior trajectory and good possibilities of resorting to capital markets for funding. This pro-file of family-controlled firms comprises listed firms in which the majority of the ownership is a family, although it also includes non-family shareholders and minority shareholders. Given this discussion, we do not take into account either very young family firms or firms with 100% family ownership (closely held firms).
The remainder of the paper is organized as follows. Section 2 briefly describes the main factors that affect cash accumulation. Section 3 posits the way in which family firms undertake this deci-sion. Finally, Section 4 offers our conclusions on the tendency of family firms to accumulate cash.
FAMILY FIRMS AND CASH ACCUMULATION: WHY DO FAMILY FIRMS ACCUMULATE CASH DIFFERENTLY?
All companies, regardless of their ownership structure, maintain a specific level of cash in their assets. Firms primarily accumu-late cash to meet daily operating needs. Holding cash is thus based on a precautionary motive: Firms must have the appro-priate amount of resources to invest in profitable projects and to ensure the ongoing operations of the firm.
Several other factors also affect cash accumulation, such as substitute liquid assets, cash flow volatility, leverage, investment opportunities, and size. Thus, accumulated cash first depends (using cash flow generated and size as the usual control variables) on the firm’s decision to hold liquid assets — instead of, or in addition to, cash — or to have available credit lines (Hardin, High-field, Hill, & Kelly, 2009). Cash flow volatility is also a relevant factor because it can cause firms to maintain higher cash levels to take advantage of the profits from new investment opportunities (Kim, Mauer, & Sherman, 1998). Finally, debt level can affect cash levels; however, the literature is mixed on just how these two fac-tors interact. In the context of family firms, other reasons can help to identify family firms’ differential behaviour when making stra-tegic decisions relating to liquidity. In fact, important differences exist between family and non-family firms with regard to intangible family assets, such as dedication and family effort. The literature also reflects differences related to profitability, capital structure,
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management, diversification, and size, although the evidence on differences in strategic management between family and non-family firms is not conclusive. Evidence also suggests that family-con-trolled firms outperform non-family firms around the world (Ali, Chen, & Radhakrishnan, 2007; Anderson & Reeb, 2003; Barontini & Caprio, 2006; Maury, 2006, among others), although research on this topic is mixed (Barth, Gulbrandsen, & Schønea, 2005; Dem-setz & Villalonga, 2001; Miller, Breton-Miller, Lester, & Cannella, 2007; Villalonga & Amit, 2006, among others). Certainly, however, family-controlled firms are different from non-family firms in terms of goals, vision, and culture (Arrègle, Hitt, Sirmon, & Véry, 2007; Chua, Chrisman, & Sharma, 1999; Gomez-Mejia, Nunez-Nickel, & Gutierrez, 2001; Gomez-Mejia, Takács, Nuñez-Nickel, Jacobson, & Moyano-Fuentes, 2007, among others).
The strategies of family firms also appear to be different from their non-family counterparts (Patel, Pieper, & Hair, 2012). A recent strand of literature focuses on the behaviour of individ-uals and how this behaviour can affect a firm’s decisions. For example, prior research argues that family-controlled firms are risk averse (La Porta et al., 1999), mainly because they have an undiversified ownership position (Morck & Yeung, 2003). How-ever, Gomez-Mejia et al. (2007) state that family-controlled firms are not risk averse but rather loss averse. These authors introduce the concept of socio-emotional wealth, which refers to a firm’s non-financial aspects that meet the family’s affective needs, such as identity, the ability to exercise family influence, and the per-petuation of the family dynasty. The family is concerned with this socio-emotional wealth, and therefore they act to avoid losing it.
STRATEGIC DECISION-MAKING IN CASH HOLDINGWe analyse the differences between how family and non-family firms make use of cash. Family firms are more likely to target cash accumulation not only because of the benefits associated with cash accumulation but also for other reasons directly related to the nature of the family firm, including its ownership structure.
Logically, family firms should tend to hoard higher levels of cash, but some additional reasons may help to explain this decision. To begin, almost by definition, family firms are highly conservative: their decisions are focused on increasing control and keeping the firm in operation as many years as possible and for as many generations of the family as possible, (Burkart, Panunzi, & Shleifer, 2003; Gomez-Mejia et al., 2007; Morck & Yeung, 2003). Miller, Le Breton-Miller, and Lester (2011) found that firms in which the family is the largest shareholder are more prone than other firms to pursue conservative strategies. Cash is
the most conservative means of payment, and it therefore takes on special relevance in regard to the firm’s strategic decisions. Family-controlled firms have longer investment horizons (Miller et al., 2011; Pindado, Requejo, & Torre, 2011), and therefore the family will likely act for the benefit of the firm most of the time. One way of maintaining this long-term perspective is by con-trolling the decision on cash holding so that the firm attains an objective cash ratio. The family tries to maintain a high enough level of available cash to undertake investments when necessary (Dittmar & Duchin, 2012).
Family firms’ flexibility in the decision-making process is an important factor that can influence a firm’s ability to adjust its cash holding, especially because these firms have certain advantages related to being family owned, such as the dedication of the family, commitment to the company, and interaction between ownership and management. Family firms can easily adapt to changes in the environment by adjusting strategies to specific situations that may arise. Decisions on cash holding constitute a strategic decision for family firms because cash availability provides flexibility. In this way, family firms obtain a competitive advantage, having the ability to invest in resources that create added value to the orga-nization. Flexibility allows them to compete with other firms in an uncertain environment, continually anticipate the environment, and have a great capacity for reacting in time. In addition, main-taining greater financial flexibility allows a firm to make important decisions, such as undertaking projects without having to resort to capital markets and reducing the costs of the information asym-metry between investors and managers.
Because the families act simultaneously as shareholder and manager, family firms can better predict possible future shocks to the cash flow (Ali et al., 2007) and therefore can also better predict the optimal level of cash holding. Furthermore, family-controlled firms see cash holdings as a way to accumu-late wealth and to avoid possible tax costs of taking the money out of the firm (Dittmar, Mahrt-Smith, & Servaes, 2003).
Accumulating cash has high potential costs because the firm may lose investment opportunities. However, if external financing is costly, firms have the incentive to hoard cash hold-ings to avoid the possible adverse consequences associated with sales shocks or investment opportunities (Denis, 2011). In addition, when we consider family-controlled firms, financial con-straint is not only due to external factors but may also depend on the strategic behaviour of families. Family-controlled firms are reluctant to obtain outside financing at the same pace as non-fam-ily firms (Barontini & Caprio, 2006; Faccio & Lang, 2002). In his study of external funding, Andres (2009) argues that family firms think of debt as a potential hazard due to the increase in the prob-ability of default. He suggests that family firms may avoid new
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share offerings because this action involves a reduction in the family control over the company. Consequently, cash holdings can serve as a hedge mechanism that family firms use to avoid any possible bankruptcy risk and to ensure that most valuable investments are undertaken.
According to the free cash flow theory (Jensen, 1986), the availability of funds at the disposal of the manager can lead to investments in non-profitable projects, acquisitions of industries familiar to the manager, and spending on perquisites that favour the manager and not the firm (i.e., overinvestment or expropria-tion). Liquidity thus has high potential costs because it facilitates conflict by inducing organizational inefficiencies that destroy shareholder wealth (Harford, 1999). However, when consider-ing this shareholder-manager conflict, family-controlled firms lack the typical agency problem between shareholders (princi-pal) and managers (agent). As previously discussed, the family as the major shareholder is also present in management, which aligns the objectives of both to the benefit of the family (Ali et al., 2007; Villalonga & Amit, 2006). Following this reasoning, in principle, we assume that cash holding in these firms do not lead to high agency costs.
Nevertheless, family-controlled firms are not without agency issues. Given their ownership structure, the family is likely to use different mechanisms to increase its control over the firm (Barontini & Caprio, 2006; Faccio & Lang, 2002; Faccio, Lang, & Young, 2001; Maury, 2006, among others). Sometimes these mechanisms enhance control rights over cash flow rights, and non-family shareholders may worry about possible expropri-ation from the controlling family owners (La Porta et al., 1999). In this scenario, the family may be tempted to extract private ben-efits from minority shareholders. Therefore, due to the problem of possible expropriation, all else being equal, family firms will likely hoard higher levels of cash to pursue family benefits to the detriment of minority shareholder value (e.g., minimizing the div-idend policy in favour of accumulating cash).
The discussion thus far suggests that the family effect on the cash holding policy depends on whether the effect of own-er-manager alignment on the one hand outweighs the effect of the potential agency problem between majority and minority shareholders on the other hand. If so, family-controlled firms will hold more cash than non-family firms. Thus, family-controlled firms are reluctant to obtain outside financing at the same pace as non-family firms (Barontini & Caprio, 2006; Blanco-Mazaga-tos, Quevedo-Puente, & Castrillo, 2007; Faccio & Lang, 2002; Gomez-Mejia et al., 2007, among others), and they will avoid monitoring mainly to maintain control.
Finally, the implications for cash holdings will likely depend on the legal and institutional framework to which the firms belong.
Several cross-country studies analyse the institutional frame-work and its influence on cash holdings, focusing on large firms listed on the financial markets (Dittmar et al., 2003; Ferreira & Vilela, 2004; Guney, Ozkan, & Ozkan, 2003; Kalcheva & Lins, 2007; Ozkan & Ozkan, 2004; Pinkowitz, Stulz, & Williamson, 2003, 2006). Kusnadi and Wei (2011) find evidence that the legal pro-tection of investors represents a first-order effect in influencing international firms’ cash policy. The literature in general agrees that the lower the protection, the larger the cash holding. Common law countries offer greater shareholder protection, which encour-ages market development (Djankov, La Porta, Lopez-de-Silanes, & Shleifer, 2008). In addition, firms in common law countries have easier access to external capital markets, and, consequently, are expected to be less aggressive in their cash holdings (Faulkender & Wang, 2006; Kusnadi & Wei, 2011). In contrast, companies in countries with low shareholder protection hold on to more of their cash. In the continental model, where the investors are less protected, more cash is likely accumulated due to the need for flexibility, and the system is more inefficient because the investor is not sufficiently protected. Along this line, Drobetz and Grüninger (2007) argue that median-sized Swiss firms hold nearly twice the cash and equivalents of median-sized US or UK firms.
Thus, the level of investor protection of a country plays a moderating role between the relation of family control and the firm’s cash holding. In countries with strong investor protection, the cash accumulation of family firms is less affected by the insti-tutional effect, and in countries with weak legal protection, cash holding in family firms can be particularly beneficial.
In sum, Figure 1 shows that cash holding in family firms is determined by the institutional framework and, apart from the traditional variables, strategic reasons and motives that are idio-syncratic to the unique characteristics of family firms, including conservative strategies, flexibility, financial constraints, and the trade-off between agency costs.
Figure 1. Cash holdings in family firms
Tradicional variables
Uniq
ue c
hara
cter
istic
s
Inst
itutio
nal f
ram
ewor
k
Conservative strategies
Flexibility
Financial constraints
Agency problems: Shareholders–Managers versus Major.–Minor. Shareholders
Cash holdings in family firms
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CONCLUSION
A firm’s ownership structure is vitally important to firms when determining their strategy related to cash holdings. Considering the unique characteristics of family firms, in principle we assume that a difference exists in the way that family and non-family firms approach cash holding. This issue is of particular interest because (a) prior research does not address the role of families in corporate cash holding decisions and (b) controversy remains concerning the advantages and disadvantages attributable to family control relative to other types of organizational forms.
In addition to identifying the main variables that affect the cash decision in firms, we show that family firms possess certain characteristics that affect their strategic decision-making. This issue, which is of particular interest due to its relevancy in the recent economy, especially in the family firm context, allows to highlight the advantages and disadvantages attributable to family control relative to other types of organizational forms.
The task of choosing the optimal level of cash holdings dif-fers depending on firms’ needs, structure, strategy, and future prospects. Family-controlled firms must balance the benefits and costs of cash holdings while considering what effect these family firm-specific characteristics and preferences will have on the family.
Family firms’ conservativism, flexibility, long-term perspec-tive, and active family control are factors that contribute to make cash holding decisions particularly important. Thus, for instance, when the decision arises whether to hold onto cash for precau-tionary reasons or to employ it in new investments of uncertain reliability, family firms will likely choose a conservative strategy and retain the cash.
In addition, the effect of the family depends on the trade-off between the agency problem between majority and minority shareholders on the one hand and the alignment of incentives between shareholders and managers on the other. In addition, family firms resist external funding due to high transaction costs and increased monitoring, which managers and family-controlled firms wish to avoid to retain more control.
We analyse whether this kind of behaviour motivates a strategic adjustment in family firms’ cash holding. We affirm that cash holding decisions are moderated by the ownership struc-ture of the firm and that the presence of a controlling family in the company exacerbates the accumulation of cash due to the special characteristics associated with family firms. However, no extreme is good. That is, firms should avoid excess cash accu-mulation not only for the previously discussed reasons (e.g., the high opportunity cost of cash if it lies idle) but also because some of the unique characteristics of family firms that are in principle beneficial to firm value can become problematic if the level of
cash is too high. In this case, firms may be prone to bad deci-sion-making if they have too much cash on hand.
We also point out some limitations and precautions that family firms should take into account when making decisions related to cash accumulation. First, family firms should not abuse their strengths; rather, they should be cautious in their decision-making and avoid becoming overconfident and overly conservative. For example, an excess of conservativism can lead them to resort too infrequently and inadequately to the markets. This attitude can weaken firms in the long run and may lead them to accumulate cash reserves that can postpone growth. Second, although family-controlled firms can reduce or even eliminate the agency problem between owners and managers, they are also able to extract private benefits from minority shareholders.
We show that, beyond the traditional factors, family firms tend to accumulate cash for strategic reasons based on their unique characteristics as family-owned firms, including conserva-tive strategies, flexibility, financial constraints, and the trade-off between agency costs. The institutional framework also affects family firms’ cash holding decision-making. Given this outline, we hope that this theoretical perspective provides justification for further study in this matter and that it contributes to the empiri-cal development of the literature on family firms and cash holding.
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RAFAEL SCHIOZER [email protected] da Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo – São Paulo – SP, Brasil
PENSATASubmetida 29.09.2014. Aprovada 26.03.2015Avaliada pelo processo de double blind review. Editora Científica: Fernanda Finotti Perobelli
GARANTIAS GOVERNAMENTAIS E COMPETITIVIDADE NO SETOR FINANCEIRO
A maioria dos sistemas financeiros conta com algum tipo de garantia a passivos bancários. Es-ses mecanismos foram criados com o objetivo de diminuir a incidência de corridas bancárias e garantir a poupança de pequenos investidores. Garantias governamentais (ou quase governa-mentais) dadas a passivos bancários podem assumir várias formas. A mais comum é o que se costuma chamar de seguro-depósito: uma garantia aos depositantes, com valor limitado, em caso de falência do banco. Essa garantia pode ser oferecida por meio de uma seguradora ofi-cial, como a Federal Deposits Insurance Corporation (FDIC), nos EUA, ou por uma entidade pri-vada, que funcione num mecanismo de cosseguro entre os participantes, como o Fundo Garan-tidor de Crédito (FGC) no Brasil.Durante a crise financeira global que se iniciou em 2007, houve uma série de intervenções governa-mentais que ampliavam as garantias aos passivos bancários, tanto em economias desenvolvidas quanto em emergentes. As medidas incluíam desde a ampliação dos valores de depósitos segurados até a nacionalização de instituições financeiras privadas. Por simplicidade, neste trabalho, eu me re-firo a esse conceito ampliado de garantias simplesmente como seguro-depósito, a menos que seja expressamente necessário distinguir os diversos mecanismos de garantia.
A literatura de Economia e Finanças tem tratado amplamente desse tema, e a pesquisa sobre os efeitos de garantias governamentais ganhou força após a crise. A contribuição principal do presen-te trabalho é sintetizar a literatura teórica, resumir e interpretar o conjunto de resultados empíricos a respeito do assunto e sugerir novas avenidas de pesquisa.
RAE-Revista de Administração de Empresas | FGV-EAESP
DOI: http://dx.doi.org/10.1590/S0034-759020150410
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Da maneira como estabelecido acima, esse objetivo pode soar muito ambicioso. Consequentemente, escolhi estreitar o es-copo para: i) as teorias sobre garantias go-vernamentais e ii) a interpretação conjunta dos resultados empíricos sobre o assunto, com atenção especial às pesquisas empíri-cas que tratam da recente crise financeira. Entendo que a compreensão conjunta des-ses estudos pode contribuir para a formu-lação de políticas que melhorem a estabili-dade financeira e auxiliem o gerenciamento de eventuais futuras crises.
Obviamente, não seria possível cobrir todos os artigos sobre o tema neste traba-lho. Consequentemente, escolhi os estudos que considero mais representativos sobre o assunto. Essa escolha naturalmente carre-ga um viés dado por meus próprios interes-ses e experiência, bem como minha visão particular sobre os efeitos positivos e nega-tivos das garantias governamentais sobre a estabilidade financeira.
Além desta seção introdutória, prosse-gue-se com as seguintes partes: a segunda seção descreve as vantagens e desvantagens dos esquemas de seguro-depósito; a terceira fornece um breve histórico dos esquemas de proteção vigentes no mundo; a quarta seção discute os efeitos do tratamento diferenciado dado a bancos sistemicamente importantes (too big to fail); a quinta apresenta avenidas para pesquisa futura, e a sexta seção con-clui o ensaio.
CORRIDAS BANCÁRIAS, VANTAGENS E DESVANTAGENS DO SEGURO-DEPÓSITO
Corridas bancárias podem ter dois tipos de origem. Elas podem ocorrer espontanea-mente, a partir de um pânico resultante da informação de que alguns depositantes es-tão sacando seus recursos (sunspot effect), como em Diamond e Dybvig (1983), ou po-dem ser causadas pela deterioração das
condições econômicas, que afetam o siste-ma bancário como um todo ou alguns ban-cos em particular (Allen & Gale, 1998; Ja-cklin & Bhattacharya, 1988).
No modelo seminal de Diamond e Dyb-vig (1983), cada depositante bancário apre-senta um fluxo de depósitos e saques ba-seado nas suas necessidades individuais de consumo e poupança ao longo do tem-po. Ao haver, por qualquer que seja o moti-vo, um aumento exógeno nas necessidades de liquidez de alguns depositantes (isto é, uma demanda por dinheiro – não correla-cionada com a qualidade da gestão do ban-co ou seu nível de risco – que ocasione al-guns saques), cria-se um pânico: os demais depositantes, mesmo que não precisem do dinheiro, têm um incentivo para sacar rapi-damente seus depósitos, sabendo que o banco é obrigado a negociar com descon-to seus ativos de baixa liquidez (fire sa-les) para honrar os saques. Isso ocorre por-que as perdas provocadas pelas transações com descontos ficam para os investidores remanescentes, já que o banco cobrirá os saques até ficar sem recursos (problema co-nhecido como first-come, first-served). Essa transferência de perdas incentiva todos os investidores a sacarem, independentemen-te da necessidade e da solvência anterior do banco.
No segundo tipo de motivação para corridas bancárias, apresentado por Jacklin e Bhattacharya (1988), os investidores di-ferenciam as instituições com bons e maus fundamentos, e a corrida bancária é restrita às instituições problemáticas.
Goldstein e Pauzner (2005) modificam os modelos de Diamond e Dybvig (1983) e Jacklin e Bhattacharya (1988), considerando os fun-damentos econômicos como estocásticos, argumentando que os investidores não têm acesso total à informação, mas somente a um ruído. Nesse cenário, quando se exacerbam os problemas de assimetria de informação, caso típico de crises financeiras, os depositan-tes começam a sacar seus recursos, tornando a probabilidade de ocorrer corrida bancária
endógena no modelo, dependente do nível de assimetria informacional sobre ativos e pas-sivos do banco. A corrida bancária continua sendo alimentada pelo receio dos deposi-tantes de que outros investidores tomem a decisão de sacar seus recursos. A literatura teórica e empírica sobre crises e corridas ban-cárias e suas consequências é extensa, e sua descrição fugiria ao escopo do presente texto. Uma ótima revisão sobre o assunto pode ser encontrada em Laeven (2011).
Vantagens do seguro-depósitoA visão dos pânicos de Diamond e Dybvig (1983) argumenta que corridas bancárias são profecias autorrealizáveis e que há múl-tiplos equilíbrios possíveis. Nesses mode-los, que associam corridas bancárias a pâ-nico, os depositantes sacam seus recursos se eles esperam que outros façam o mes-mo. Num primeiro equilíbrio, se nenhum depositante acreditar que vai ocorrer pâni-co, apenas aqueles depositantes com reais necessidades de liquidez sacarão seus re-cursos. No segundo equilíbrio possível, se os agentes acreditam que haverá muitos sa-ques, então isso se torna uma profecia au-torrealizável, porque as pessoas sacarão mesmo que não tenham necessidade de li-quidez. Como consequência, o banco tem que liquidar seus ativos de longo prazo a um custo e pode falir.
Nesse sentido, o seguro-depósito é uma ferramenta de seleção entre os equi-líbrios possíveis. Se os depositantes que não precisam de liquidez tiverem a certeza de que receberão seus depósitos, eles não terão incentivo para sacar os recursos. O efeito benéfico não é apenas ex-post, isto é, sobre os agentes que já tenham depósi-tos em bancos. Ex-ante, o seguro depósito incentiva os agentes a depositarem seus recursos e sacarem apenas quando necessi-tarem de liquidez. Assim, o seguro-depósito tem um valor social, associado à ampliação da capacidade de intermediação financeira e ao aumento da estabilidade do sistema ban-cário (Allen & Carletti, 2010).
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Desvantagens do seguro-depósitoSe as corridas bancárias decorrerem unica-mente de pânico entre os depositantes, en-tão a existência do seguro-depósito é sem-pre ótima. No entanto, Boot e Greenbaum (1993) apontam pelo menos dois pressu-postos de Diamond e Dybvig (1983) que, se relaxados, implicariam custos sociais im-portantes para o provimento do seguro-de-pósito. O primeiro é a pressuposição de que o seguro não tem nenhum efeito ex-an-te sobre o comportamento de bancos e de-positantes. O segundo é que nem o banco, nem o segurador incorrem em custo para provê-lo, visto que o único equilíbrio possí-vel é a não utilização do seguro.
Em Diamond e Dybvig (1983), o risco dos ativos bancários é exógeno e fixo. As-sim, o seguro-depósito não tem influência sobre o incentivo para que os bancos se comportem de maneira mais ou menos pru-dente, nem sobre os incentivos para que os depositantes monitorem a escolha de ris-co feita pelo banco e decidam entre bancos mais ou menos seguros para depositar seus recursos.
Boot e Greenbaum (1993) mostram que, na presença de passivos segurados, há um problema de risco moral (moral ha-zard): um incentivo para que o banqueiro desloque o risco para o segurador, ao re-munerar seus passivos a uma taxa inferior à taxa que seria “justa” para o nível de ris-co assumido nos ativos. Assim, se, por um lado, o seguro-depósito previne corridas causadas por pânico, o trade-off dessa van-tagem é o aumento do risco no sistema fi-nanceiro, que pode resultar em custos para o provedor de seguros.
Allen, Carletti, e Leonello (2011) des-tacam que, se os prêmios de seguro forem corretamente precificados, o financiamento do banco deixa de ser subsidiado pelo se-gurador, e o incentivo para assumir riscos em excesso é eliminado. Na prática, a es-timativa correta do risco dos passivos de uma instituição financeira é complexa e de-
penderia da observação perfeita de seus ativos pelo segurador. Um exemplo dessa dificuldade em estimar prêmios corretos de seguro pode ser visto na crise financeira ini-ciada em 2007: o seguro oferecido por meio de credit default swaps por agentes priva-dos carregava risco sistêmico não conside-rado nos prêmios de seguro.
Cooper e Ross (2002) mostram que uma segunda maneira de mitigar os proble-mas de risco moral é requerer capital sufi-ciente dos bancos, de modo que o banquei-ro seja o primeiro a assumir as perdas no valor dos ativos, incentivando o banco a se comportar prudentemente. Embora haja pouca dúvida de que o requerimento de ca-pital mitigue o problema de risco moral, a exigência regulatória de capital poderia di-minuir a oferta de crédito se houver custos associados a levantar capital (Elliot, 2010). No entanto, essa hipótese que sugere a existência de um trade-off entre a estabili-dade do sistema e a oferta de crédito é con-testada por autores como Admati e Hellwig (2013) e parece encontrar pouco respaldo empírico. Trabalhos como os de Francis e Osborne (2009), com bancos do Reino Uni-do; Berrospide e Edge (2010), nos EUA; e Yoshida e Schiozer (no prelo), no Brasil, en-contram que o volume de crédito concedi-do pelos bancos é pouco sensível a varia-ções do capital.
O segundo pressuposto fundamental do modelo de Diamond e Dybvig (1983) é a credibilidade do esquema de seguro. Le-onello (2013) mostra que a existência de garantias pode limitar a capacidade dos governos em se financiar no mercado de tí-tulos e, por sua vez, sua habilidade de hon-rar o seguro. Mais importante, a qualidade dos ativos bancários está ligada à solvência do governo, uma vez que as flutuações ma-croeconômicas que a afetam tendem a afe-tar também os bancos (uma recessão afe-ta negativamente tanto os ativos bancários quanto a credibilidade do seguro-depósito). Assim, a extensão de garantias pode impli-car uma dificuldade ainda maior de finan-
ciamento do governo e, eventualmente, a perda de credibilidade de que as garantias serão honradas.
Há, portanto, um efeito de retroali-mentação entre o risco soberano e o risco do sistema bancário. As recentes crises so-beranas da zona do Euro são um exemplo desse efeito. Leonello (2013) mostra que a introdução de garantias gera um trade-off: por um lado, as garantias reduzem a proba-bilidade de uma corrida bancária, ao limi-tar a coordenação entre depositantes; por outro lado, implicam um aumento do custo da dívida do governo e da probabilidade de um default soberano. O estudo conclui que a existência de garantias parciais é uma so-lução ótima, dependendo da relação entre os custos de uma corrida bancária e os de um default da dívida soberana.
De fato, a maioria dos países adota, em tempos normais, garantias limitadas a um valor máximo (Schich, 2009). No en-tanto, durante crises bancárias, essas ga-rantias são comumente ampliadas, incluin-do até a injeção de capital e o salvamento das instituições com problemas, de manei-ra não prevista no esquema oficialmente vi-gente.
Ennis e Keister (2009, 2010) e Chari e Kehoe (2010) mostram que a ampliação de garantias em situações excepcionais gera um problema aos bancos centrais: ex-ante, o banco central não pode se comprometer a salvar bancos insolventes, pois isso am-pliaria o risco moral. No entanto, ex-post, o banco central escolhe salvar bancos impor-tantes, mesmo que insolventes, para evi-tar crises sistêmicas. Nesse sentido, é difí-cil que a política de não salvar bancos seja crível. Pode haver uma percepção geral de que, uma vez adotadas em uma crise, as ga-rantias governamentais generalizadas esta-rão sempre disponíveis, caso necessário. Os agentes comportam-se esperando uma garantia implícita.
A expectativa de salvamento por parte dos investidores traz distorções importan-tes, que são ainda maiores se a expectativa
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de salvamento for diferenciada entre bancos. Alguns trabalhos recentes mostram evidência de que os agentes esperam o salvamento de alguns bancos (os chamados too big to fail), mas não de outros. Esses trabalhos serão discutidos nas considerações finais.
OS ESQUEMAS DE SEGURO-DEPÓSITO NO MUNDO
Os primeiros mecanismos bem documenta-dos de seguro-depósito surgiram nos EUA na primeira metade do século XIX. O New York Safety Fund foi estabelecido em 1829, financiado por contribuições de institui-ções financeiras participantes. Nos primei-ros anos, o sistema funcionou bem, mas, entre 1837 e 1841, as perdas passaram a corroer o patrimônio do fundo, até que, em 1842, ele se tornou insolvente por causa do grande número de falências bancárias. Ca-lomiris (1990) mostra que as perdas sofri-das pelo fundo foram derivadas de fraudes e práticas bancárias pouco apropriadas.
O primeiro esquema de seguro-depó-sito ligado ao governo federal nos EUA foi introduzido em 1933, em resposta às cor-ridas bancárias que aconteceram durante a grande depressão. Segundo Friedman e Schwartz (1963), a Lei Bancária de 1933 par-tiu do pressuposto de que a instabilidade financeira era derivada de um pânico da po-pulação, o que mostrava a necessidade de um instrumento que restabelecesse a con-fiança dos agentes no sistema bancário. A lei criou o FDIC, que provia seguro para os depósitos em bancos associados ao Fede-ral Reserve. Diferentemente dos esquemas anteriores, o financiamento do seguro-de-pósito era bancado pelo Tesouro america-no. O sistema restabeleceu a confiança dos agentes e foi fundamental para a recupera-ção econômica do país.
Grande parte dos países passou a adotar mecanismos formais de garantias a passivos bancários a partir da década de 1990 (Schich, 2009). No Brasil, foi criado, em 1995, o FGC,
associação sem fins lucrativos que gerencia o mecanismo de seguro-depósito no País. A criação do FGC seguia as recomendações prudenciais do Basel Committee for Bank Supervision (BCBS) e ocorreu no âmbito da estabilização econômica e da reestrutura-ção do sistema bancário de 1994-1995, que incluiu a recuperação de grandes bancos, em programas como o Programa de Estímulo à Reestruturação e ao Fortalecimento do Sis-tema Financeiro Nacional (Proer), o Programa de Incentivo à Redução do Setor Público Estadual na Atividade Bancária (Proes) e o Programa de Fortalecimento das Instituições Financeiras Federais (Proef), e a falência de alguns bancos de menor porte. A participa-ção no FGC é compulsória para as instituições do Sistema Financeiro Nacional, e o FGC é de propriedade dos membros participan-tes, caracterizando-se, portanto, como um mecanismo de cosseguro. Na data da cria-ção, o limite segurado era de R$ 20 mil por depositante. Esse limite vem sendo gradu-almente ampliado, tendo chegado a R$ 250 mil em 2014 (FGC, 2014). Uma excelente revi-são sobre os programas de reestruturação de 1994-1995 no Brasil pode ser encontrado em Goldfajn, Hennings, e Mori (2003).
EFEITOS DO TRATAMENTO DIFERENCIADO AOS BANCOS SISTEMICAMENTE IMPORTANTES
Durante crises, os reguladores costumam ampliar explicitamente as garantias do sis-tema bancário, o que está associado a um aumento do risco moral ex-ante. Outras ga-rantias, geralmente implícitas, privilegiam apenas um subconjunto de bancos, chama-dos sistemicamente importantes ou gran-des demais para falir (too big to fail). Há diversas definições para o conceito de ban-cos grandes demais para falir. Por exem-plo, para Kaufman (2014), uma empresa (ou banco) é definida como “grande demais
para falir” quando requer: i) regulação es-pecial para desencorajar a falência enquan-to estiver viva e/ou ii) um regime de resolu-ção de falência especial, em que o governo possa intervir de maneira que a firma não seja liquidada pelos processos usuais de falência que se aplicam às demais empre-sas. No caso de instituições financeiras, normalmente, a resolução de falência dá-
-se com a garantia (geralmente irrestrita) a seus passivos.
A coexistência, no mesmo sistema fi-nanceiro, de bancos que gozam dessa ga-rantia implícita com bancos que não têm expectativa de serem salvos gera distor-ções competitivas importantes. Os efeitos ocorrem não somente nos bancos que po-tencialmente serão salvos mas também na-queles que não serão.
A literatura empírica sobre as políticas de salvamento diferenciadas foca três as-suntos principais: i) seu efeito sobre o ris-co dos bancos; ii) o valor das ações e títulos desses bancos no mercado e iii) o compor-tamento dos depositantes e o maior acesso a liquidez por parte desses bancos durante crises financeiras.
A maior parte da literatura empírica so-bre o efeito das garantias sobre o risco ban-cário (Boyd & Runkle, 1993; Dam & Koetter, 2012; Schnabel, 2009, entre outros) indi-ca um aumento do risco bancário devido às garantias. Esses trabalhos, no entanto, des-consideram a existência de garantias dife-renciadas (implícitas ou explícitas) dadas aos diferentes bancos do sistema. Hakenes e Schnabel (2010) desenvolvem um modelo que conclui que bancos colocados em des-vantagem em termos de proteção governa-mental assumem maiores riscos (em com-paração a uma situação em que a proteção é homogênea). Gropp, Hekenes, e Schnabel (2011) confirmam empiricamente essa hipó-tese. Esse resultado advém principalmente do fato de haver seleção adversa na esco-lha dos ativos. Bancos com proteção gover-namental têm custo de captação reduzido, por isso são capazes de oferecer emprés-
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timos a taxas mais baixas. Os melhores to-madores migram para os bancos protegidos, e os bancos sem proteção acabam ficando com os piores tomadores. Essa distorção di-minui a eficiência do sistema bancário no longo prazo.
Em outra linha, O’Hara e Shaw (1990) investigam o efeito do anúncio pelo regu-lador americano de que alguns bancos se-riam grandes demais para falir. O anún-cio teve efeito positivo no preço das ações desses bancos e negativo nos demais. O efeito foi mais forte para os bancos me-nos solventes, evidenciando que a garan-tia significa um subsídio aos bancos pro-tegidos. Brewer e Jagtiani (2011) estimam um prêmio total de US$ 15 bilhões no pre-ço das ações em oito operações de fusão que deram origem a bancos too big to fail nos EUA, e Penas e Unal (2004) mostram uma valorização dos passivos emitidos por bancos quando há anúncio de fusões que dão origem bancos sistemicamente importantes.
Oliveira, Schiozer, e Barros (2015) investigam o efeito de garantias implícitas sobre os depositantes brasileiros. Durante a crise financeira que se seguiu à quebra do Lehman Brothers em 2008, houve uma fuga massiva de depósitos de bancos pequenos e médios para aqueles considerados sistemi-camente importantes, que não é explicada pelos fundamentos dos bancos, mas, sim, pela garantia implícita dada aos grandes bancos. Schiozer e Oliveira (2015) estudam a transmissão desse choque de depósi-tos ao crédito e mostram que, enquanto os bancos que perderam depósitos foram obrigados a cortar a oferta de empréstimos, os bancos que receberam depósitos não aumentaram a oferta de crédito. Assim, o choque de depósitos, que apenas redis-tribui os recursos entre os bancos, reduz a oferta global de crédito. Esse fenômeno pode ter duas explicações: i) empréstimos dependem de relacionamentos de longo prazo entre banco e cliente; assim, toma-dores que se relacionam com bancos sem
importância sistêmica não conseguem rapi-damente tomar crédito em outros bancos; ii) os bancos sistemicamente importantes deliberadamente decidiram manter mais liquidez, como uma espécie de seguro para a crise.
AVENIDAS FUTURAS DE PESQUISAA maioria dos resultados empíricos apre-sentados até aqui aponta na mesma dire-ção em vários aspectos, a saber: i) as garan-tias governamentais incentivam os bancos a assumirem mais risco; ii) garantias dife-renciadas entre bancos, mesmo que implí-citas, geram distorções competitivas; iii) os choques negativos de depósitos transmi-tem-se para a oferta de crédito bancário.
No entanto, não se explica por que choques positivos de liquidez não aumen-tam a oferta de crédito. A teoria (por exem-plo, Holmstron & Tirole, 1997) indica que a transmissão pode depender de três fatores:
• outros fatores que restrinjam os em-préstimos (por exemplo, o capital re-gulamentar): um choque positivo de liquidez pode ter efeito pequeno no re-laxamento dessa restrição, e o efeito no crédito seria pequeno ou nulo;
• o nível de incerteza sobre a liquidez fu-tura: se os gestores têm dificuldade em saber se o choque positivo de liquidez é permanente ou transitório, adotarão alguma precaução, mantendo liquidez adicional até que tenham indicações de que o choque é permanente;
• a existência de fricções que impeçam que relacionamentos bancários sejam estabelecidos rapidamente.Assim, uma avenida importante de
pesquisa que se desenha é a elucidação do mecanismo por trás dos resultados encon-trados por Schiozer e Oliveira (2015). Tes-tes em situações de crise e fora dela po-dem elucidar se a ausência de transmissão de choques positivos para a oferta de crédi-to, encontrada na crise brasileira, se deve a uma limitação por capital regulatório, à pre-
caução dos gestores em se desfazer de li-quidez ou à dificuldade em estabelecer re-lacionamentos bancários.
A identificação da causa precisa do mecanismo de transmissão é relevante, pois cada uma das possíveis explicações levaria a diferentes políticas públicas. Se o capital regulatório for um limitador, a adoção de um colchão de capital contra-cíclico (previsto no terceiro acordo de Ba-sileia) seria uma solução viável. Se hou-ver fricções que impeçam os tomadores de se relacionar com novos bancos rapi-damente, seria desejável a construção de um cadastro positivo de crédito, para que os bancos possam avaliar mais facilmen-te o risco dos clientes. Finalmente, se a ausência de transmissão se der por con-ta de receio dos gestores em se desfazer de liquidez, medidas que garantam o pro-vimento abundante e continuado de li-quidez, como o estímulo ao mercado se-cundário de operações de crédito, são as mais indicadas.
A segunda avenida de pesquisa está relacionada às proposições de Leonello (2013) sobre o efeito de retroalimentação entre garantias governamentais dadas aos passivos bancários e o risco soberano. Uma questão em aberto é se a deterioração da situação fiscal de um país reduz a expec-tativa de salvamento de bancos sistemica-mente importantes. Se sim, outra questão pertinente é se essa redução na probabili-dade de salvamento traz impactos nos ris-cos assumidos pelos bancos.
Finalmente, uma terceira avenida que se desenha consiste numa extensão em nível internacional da pesquisa de Oliveira, Schiozer, e Barros (2015), em especial sobre a percepção de credores bancários e depo-sitantes sobre garantias a bancos que têm importância sistêmica global. A designação, pelo Financial Stability Board, de um banco como Global Systemically Important Financial Institution (G-SIFI) pode ser uma informação importante aos agentes, que talvez reajam a essa designação.
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CONSIDERAÇÕES FINAIS
As deficiências dos sistemas vigentes no período anterior à recente crise financei-ra trouxeram o debate sobre reformas nos esquemas de garantias a depósitos à tona. Um esquema especificado ex-ante preten-de proteger pequenos depositantes e limi-tar o poder de intervenção governamental.
No entanto, por conta da importância do sistema bancário para a economia, os governos tendem a intervir mais do que o pré-especificado. Medidas de emergência adotadas durante crises, como o salvamen-to de bancos, reduzem os impactos negati-vos imediatos, restabelecendo a confiança dos investidores no sistema bancário, mas têm efeitos nefastos no longo prazo: cria-
-se a expectativa de que o governo salvará instituições financeiras importantes sem-pre que necessário. Essa garantia implícita enfraquece a disciplina de mercado, incen-tiva os bancos a assumirem mais risco, e gera distorções competitivas entre os ban-cos considerados grandes demais para falir e aqueles sem garantia. A literatura empíri-ca tem documentado que essas distorções são verificadas em vários mercados e em di-ferentes contextos.
Segundo Allen e Carletti (2010), seria desejável que o regulador pudesse compro-meter-se a não ampliar o sistema de garan-tias anunciado. Isso requer que haja uma série de condições para que o sistema de garantias seja crível e não haja expectativa de sua ampliação. É necessário que haja a possibilidade real de falência de bancos im-portantes, com uma legislação que restrinja o poder das autoridades de salvar bancos. Mas, para que os efeitos sejam minimiza-dos, é necessário que haja procedimentos para a rápida liquidação de bancos falidos.
Como mostram Leonello (2013) e Acharya, Pedersen, Philippon, e Richardson (2010), outro ponto fundamental para que se limite a ampliação de garantias aos ban-cos está relacionado à interação entre essas garantias e a situação fiscal do país. A ado-
ção de uma cobertura irrestrita coloca em dúvida a credibilidade do seguro, e pode dar origem a uma corrida bancária e à dí-vida soberana simultaneamente. Em espe-cial nas crises que tenham suas origens li-gadas à deterioração dos fundamentos dos bancos (e não a pânicos), há grande pos-sibilidade de que o segurador efetivamente enfrente prejuízos. A crise de dívida sobera-na que se seguiu à crise bancária de 2007-2009 em vários países, como Portugal, Ir-landa, Itália, Grécia e Espanha, mostra que a ampliação de garantias e as políticas de salvamento podem ter efeitos deletérios so-bre a solvência dos países, com consequên-cias negativas prolongadas sobre a ativida-de econômica.
No caso específico do Brasil, há uma série de desafios a serem enfrentados no que se refere ao seguro-depósito. Primeiro, o País adotou um esquema privado, de cos-seguro entre os bancos, protagonizado pelo FGC. Os esquemas de cosseguro podem indu-zir a uma quebra de confiança no sistema por receio de contágio durante crises financeiras. Como o mercado brasileiro é concentrado, isso é ainda mais grave: a falência de um grande banco traria perda substancial aos demais, uma vez que as perdas seriam repar-tidas entre poucos participantes relevantes. Segundo, o patrimônio do FGC é insuficiente para cobrir os valores segurados em caso de quebra de um dos cinco maiores bancos do País. Os resultados de Oliveira, Schiozer, e Barros (2015) indicam que os depositan-tes percebem uma garantia implícita dada aos grandes bancos pelo governo, indepen-dente da capacidade financeira e solvência do FGC, o que parece implicar que o Tesouro Nacional estaria necessariamente envolvido num processo de salvamento em caso de falência de um grande banco, seja aportando recursos no banco falido diretamente, seja capitalizando o FGC. Em outras palavras, as sucessivas ampliações do limite de depó-sitos segurados por depositante parecem indicar que há pouca preocupação com o baixo patrimônio do FGC, insuficiente para
cobrir depósitos segurados de um grande banco em caso de falência. Esse fato pode gerar uma percepção de que o próprio FGC seria salvo pelo Tesouro em caso de neces-sidade. Como não há previsão legal para tal tipo de operação, a maneira pela qual essa intervenção seria feita pode ser desordenada e complicada dos pontos de vista financeiro e jurídico. Assim, parece evidente a neces-sidade da melhor compreensão do papel do seguro-depósito e do FGC no sistema financeiro brasileiro, e do aperfeiçoamento da legislação vigente. Como evidenciado acima, há diversas avenidas de pesquisa que podem contribuir para o aperfeiçoamento do desenho do mecanismo de proteção a depo-sitantes e sua regulação no Brasil.
NOTA DE AGRADECIMENTOO autor agradece ao apoio financeiro da Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP), e aos comentários de dois revisores anônimos que contribuíram para o aperfeiçoamento do texto.
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INDICAÇÕES BIBLIOGRÁFICAS
Ação coletiva e ação públicaZilma Borges | [email protected]
Cooperação, arenas públicas e participação social fazem parte do contexto no qual a ação coletiva é construída, sob diferentes arranjos e relações entre atores. Para tratar de temas tão complexos, é preciso construir um referencial que inclua o debate de como operam os sistemas econômicos e sociais, e suas perspectivas de alteração. Em diálogo com essas questões, a professora Zilma Borges (FGV-EAESP), pesquisadora de novas formas de ação coletiva e ação pública, sugere cinco livros que investigam perspectivas do capitalismo, discutem a concepção de inovação social e de cidadania, e os suportes institucionais da ação pública. Temas fundamentais para entender as controvérsias que envolvem os negócios sociais e a materialização de projetos em arenas híbridas.
L’INNOVATION SOCIALEJuan-Luis Klein, Jean-Louis Laville e Frank Moulaert (Coord.). Toulouse: Éditions Érès, 2014. 246 p.
Políticas e projetos de inovação social vêm sendo criados em diferentes níveis (local, regional, nacional), constituindo sistemas complexos que incluem novas dinâmicas e atores. Com a colaboração de equipes de diversos países, os autores defendem, neste livro, a necessidade de uma nova discussão sobre a concepção de inovação social e se propõem a uma atualização teórica do tema.
DISPUTING CITIZENSHIPJohn Clarke, Kathleen Coll, Evelina Dagnino e Catherine Neveu. Bristol: Policy Press Editora, 2014. 224 p.
Escrito por pesquisadores do Brasil, França, Grã-Bretanha e Estados Unidos, o liv-ro apresenta uma nova perspectiva sobre a cidadania, tratando-a como um pon-to focal e contínuo de disputa. Oferece uma exploração interdisciplinar das difer-entes formas e práticas de cidadania, incluindo política, cultura e poder. Com isso, provoca o desafio de pensar novas maneiras de compreensão do contexto em que a cidadania é normalmente concebida.
L’INSTRUMENTATION DE L’ACTION PUBLIQUE: Controverses, résistances, effetsCharlotte Halpern, Pierre Lascoumes e Patrick Le Galès (Dir.). Paris: Press de Sciences Po, 2014. 520 p.
Este livro centra a atenção nos aspectos práticos e nos suportes materiais da ação coletiva: os instrumentos, ferramentas e dispositivos. Dos mesmos autores que disseminaram esse debate há 10 anos, a obra faz um balanço das atuais contro-vérsias sobre a instrumentação da ação pública. Rediscute o conceito, consid-erando a forma como ele é mobilizado hoje para analisar mercados, capitalismo, negócios e diferentes modos de ação coletiva relacionados à autoridade pública.
LE PRINCIPE DEMOCRATIE: Enquête sur les nouvelles formes du politiqueAlbert Ogien e Sandra Laugier. Paris: La Découverte, 2014. 282 p.
A obra traz uma análise sociológica e filosófica da efervescência política contem-porânea em diversos países (mobilizações transnacionais, desobediência civil, criação de novos partidos etc.) decorrente do sentimento de injustiça e descon-tentamento. Os autores discutem as novas formas de agir e sua capacidade de ampliar o poder dos cidadãos, a vida política e moral, além da expansão de es-paços democráticos extrainstitucionais, investigando as possibilidades de trans-formação social que estes comportam.
DOES CAPITALISM HAVE A FUTURE?Immanuel Wallerstein, Randal Collins, Michael Mann, Georgi Derluguian e Craig Calhoun. New York: Oxford University Press, 2013. 208 p.
Em um trabalho coletivo, cinco dos mais respeitados estudiosos mundiais de tendências globais criam um debate entre diferentes linhas de análise, para pensar o futuro do capitalismo. Evitando simplificações, colocam em perspectiva possíveis mudanças históricas e revelam as contradições do capitalismo do início do século XXI, como o declínio da classe média e os problemas de legitimação dos custos sociais e ambientais.
DOI: http://dx.doi.org/10.1590/S0034-759020150411
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Os negócios e a gestão do socialAndrea Leite Rodrigues | [email protected]
Ainda que negócios sociais recebam larga atenção, sempre pairam dúvidas sobre como caracterizá-los e distingui-los dos tradicionais. Nessa hora, é interessante conhecer obras seminais e de referência para resgatar o início da disseminação do uso do termo. Harmonizar a finalidade econômica de um empreendimento com as demandas sociais com as quais ele possa estar relacionado não é, certamente, uma ideia recente. Contudo, as primeiras décadas deste século merecem destaque na produção de obras que realçam as possibilidades de superar desigualdade e exclusão com mecanismos de mercado. Tem-se aqui um rol de referências de base, elaborado pela professora Andrea Leite Rodrigues, docente do Programa de Mestrado em Gestão de Políticas Públicas da USP-EACH e membro da Rede de Pesquisadores em Gestão Social (RGS).
CRIANDO UM NEGÓCIO SOCIAL: Como iniciativas economicamente viáveis podem solucionar os grandes problemas da sociedadeMuhammad Yunus. Rio de Janeiro: Elsevier, 2010. 232 p.
Por meio do Grameencredit, o banqueiro Yunus criou outras empresas, sempre com a filosofia de que pobreza é uma armadilha para a qual o microcrédito serve de superação. Este livro tem a qualidade de ser dirigido para aqueles que querem atuar em negócios sociais, trazendo sete princípios orientadores. Há longa parte dedicada a definições sobre o que é ou não um negócio social e qual a diferença em relação à responsabilidade social corporativa.
SOCIAL ENTREPRENEURSHIP AND SOCIAL BUSINESS: An introduction and discussion with case studiesChristine K. Volkmann, Kim Oliver Tokarski e Kati Ernst (Ed.). Wiesbaden: Springer Gabler Verlag, 2012. 298 p.
Os 13 capítulos do livro escrito por 21 pesquisadores europeus estão divididos em campo de estudo, pessoas e negócios. Cada capítulo traz vários recortes e defi-nições sobre negócios sociais e empreendedorismo, esclarecendo a relação en-tre esses dois conceitos e encerrando com extensa bibliografia e estudo de casos. Destaque para a discussão sobre a personalidade do empreendedor social, além do acompanhamento de performance, como se espera de um livro sobre negócios.
DICIONÁRIO PARA A FORMAÇÃO EM GESTÃO SOCIALRosana de Freitas Boullosa (Org.). Salvador: Editora CIAGS, 2014. Disponível em https://observatoriofgs.ufba.br/ObservatorioUfba/eixo_inovacao/dicionario.xhtml
Seu formato eletrônico, com sistema de busca, versão on-line e e-book gratuito, facilitará a consolidação do campo de estudo, pois, nas próximas edições, os 47 verbetes poderão ser modificados e ampliados. Caracterizado pela interdiscipli-naridade, seu conteúdo foi elaborado pela RGS, constituída por 44 autores de 21 instituições de todas as regiões do Brasil. Além da definição, cada verbete traz as respectivas referências e sugestões de leituras.
GESTÃO SOCIAL: Epistemologia de um paradigmaAirton Cardoso Cançado, José Roberto Pereira e Fernando Guilherme Tenório. 2ª. edição. Curitiba: Editora CRV, 2015. 218 p.
Obra dedicada a situar a gestão social como antítese da gestão estratégica, evo-cando modos de organizar que não são pautados por controle e hierarquia, mas por inclusão, polissemia e construção coletiva dos envolvidos no processo. Res-gata e amplia as ideias de referência do professor da FGV-EBAPE Guerreiro Ramos, orientador e mentor de Tenório. Destaque para o prefácio do professor Fernando Coelho, que posiciona a gestão social no Campo de Públicas.
DESENVOLVIMENTO COMO LIBERDADEAmartya Sen. São Paulo: Companhia das Letras, 2010. 464 p.
O economista indiano apresenta a ideia de que mecanismos de mercado podem estar a serviço do desenvolvimento sem promover a exclusão social. O livro aponta que o principal problema da pobreza é privar as pessoas de liberdades não apenas econômicas, mas de educação, saúde, moradia e renda. O desenvolvimento implica a remoção de vários tipos de restrições. Aumentar a liberdade é, ao mesmo tempo, meio e fim do desenvolvimento.
DOI: http://dx.doi.org/10.1590/S0034-759020150412
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GOVERNANÇA
Entidade de caráter técnico-científico e filantrópico, instituída em 20 de dezembro de 1944 como pessoa jurídica de direito privado, visando ao estudo dos problemas da organização racional do trabalho, especialmente nos seus aspectos administrativos e social, e à conformidade de seus métodos às condições do meio brasileiro.
Primeiro Presidente e Fundador: Luiz Simões Lopes
Presidente: Carlos Ivan Simonsen Leal
Vice-presidentes: Francisco Oswaldo Neves Dornelles, Marcos Cintra Cavalcanti de Albuquerque,Sergio Franklin Quintella.
CONSELHO DIRETORPresidente: Carlos Ivan Simonsen Leal
Vice-presidentes: Francisco Oswaldo Neves Dornelles, Marcos Cintra Cavalcanti de Albuquerque,Sergio Franklin Quintella.
Vogais: Armando Klabin, Carlos Alberto Pires de Carvalho e Albuquerque, Cristiano Buarque Franco Neto, Ernane Galvêas, José Luiz Miranda, Lindolpho de Carvalho Dias, Marcílio Marques Moreira, Roberto Paulo Cezar de Andrade.
Suplentes: Aldo Floris, Antonio Monteiro de Castro Filho, Ary Oswaldo Mattos Filho, Eduardo Baptista Vianna, Gilberto Duarte Prado, Jacob Palis Júnior, José Ermírio de Moraes Neto, Marcelo José Basílio de Souza Marinho, Mauricio Matos Peixoto.
CONSELHO CURADORPresidente: Carlos Alberto Lenz César Protásio
Vice-presidente: José Alfredo Dias Lins (Klabin Irmãos & Cia.)
Vogais: Alexandre Koch Torres de Assis, Antonio Alberto Gouveia Vieira, Andrea Martini (Souza Cruz S/A), Eduardo M. Krieger, Estado da Bahia, Estado do Rio Grande do Sul, Federação Brasileira de Bancos, Heitor Chagas de Oliveira, Luiz Chor, Marcelo Serfaty, Marcio João de Andrade Fortes, Pedro Henrique Mariani Bittencourt (Banco BBM S.A), Orlando dos Santos Marques (Publicis Brasil Comunicação Ltda), Raul Calfat (Votorantim Participações S.A), Leonardo André Paixão (IRB-Brasil Resseguros S.A), Ronaldo Vilela (Sindicato das Empresas de Seguros Privados, de Previdência Complementar e de Capitalização nos Estados do Rio de Janeiro e do Espírito Santo), Sandoval Carneiro Junior Suplentes: Cesar Camacho, José Carlos Schmidt Murta Ribeiro, Luiz Ildefonso Simões Lopes (Brookfield Brasil Ltda), Luiz Roberto Nascimento Silva, Manoel Fernando Thompson Motta Filho, Nilson Teixeira (Banco de Investimentos Crédit Suisse S.A), Olavo Monteiro de Carvalho (Monteiro Aranha Participações S.A), Patrick de Larragoiti Lucas (Sul América Companhia Nacional de Seguros), Clóvis Torres (VALE S.A.), Rui Barreto, Sergio Lins Andrade, Victório Carlos De Marchi
UNIDADES DA FGV-SPEscola de Administração de Empresas de São PauloDiretor: Luiz Artur Ledur Brito
Escola de Economia de São PauloDiretor: Yoshiaki Nakano
Escola de Direito de São PauloDiretor: Oscar Vilhena Vieira
FGV ProjetosDiretor Executivo: Cesar Cunha Campos
Diretor Técnico: Ricardo Simonsen
Diretor de Controle: Antonio Carlos Kfouri Aidar
Vice-Diretor de Projetos: Francisco Eduardo Torres de Sá
Vice-Diretor de Estratégia e Mercado: Sidnei Gonzalez
Diretoria da FGV para assuntos da FGV-SP
Diretor: Francisco S. Mazzucca
Diretoria de Operações da FGV-SP: Mario Rocha Souza
DIRETORIADiretor: Luiz Artur Ledur Brito
Vice-Diretor: Tales Andreassi
CONGREGAÇÃOPresidente: Luiz Artur Ledur Brito
CONSELHO DE GESTÃO ACADÊMICAPresidente: Luiz Artur Ledur Brito
DEPARTAMENTOS DE ENSINO E PESQUISAAdministração da Produção e de Operações:Susana Carla Farias Pereira
Administração Geral e Recursos Humanos:Maria Ester de Freitas
Contabilidade, Finanças e Controle: Jean Jacques Salim
Fundamentos Sociais e Jurídicos da Administração: Isleide Arruda Fontenelle
Informática e Métodos Quantitativos Aplicados à Administração: André Luiz Silva Samartini
Mercadologia: Inês Pereira
Planejamento e Análise Econômica Aplicados à Administração: Arthur Barrionuevo Filho
Gestão Pública: Henrique Fingermann
CURSOS, PROGRAMAS E SERVIÇOSCurso de Graduação em Administração:Nelson Lerner Barth
Curso de Graduação em Administração Pública: Fernando Luiz Abrucio
Curso de Especialização em Administração (pós-graduação lato sensu): Renato Guimarães Ferreira
Mestrado e Doutorado em Administração de Empresas: Ely Laureano Paiva
Mestrado e Doutorado em Administração Pública e Governo: Mario Aquino Alves
Mestrado Profissional em Administração de Empresas (MPA): Marina de Camargo Heck
Mestrado Profissional em Gestão e Políticas Públicas: Regina Silvia Viotto Monteiro Pacheco
Mestrado Profissionalem Gestão Internacional: Edgard Elie Roger Barki
OneMBA: Marina de Camargo Heck
Coordenação Acadêmica para Educação Executiva da EAESP com o IDE: João Carlos Douat
Núcleo de Pesquisas: Thomaz Wood Júnior
RAE-publicações: Eduardo Henrique Diniz
CENTROS DE ESTUDOSCentro de Empreendedorismoe Novos Negócios: Tales Andreassi
Centro de Estudos de AdministraçãoPública e Governo: Fernando Burgos Pimentel dos Santos
Centro de Estudos de Política e Economiado Setor Público: George Avelino Filho
Centro de Estudos em Planejamentoe Gestão de Saúde: Ana Maria Malik
Centro de Estudosem Sustentabilidade: Mário Prestes Monzoni Neto
Centro de Excelência em Logísticae Supply Chain: Priscila Laczynski de Souza Miguel
Centro de Excelência em Varejo: Jacob Jacques Gelman
Centro de Tecnologiade Informação Aplicada: Alberto Luiz Albertin
Instituto de Finanças: João Carlos Douat
Centro de Estudos de Microfinanças e Inclusão Financeira: Lauro Emilio Gonzalez Farias
Centro de Estudos em Finanças: William Eid Jr.
Centro de Estudos em Private Equity: Cláudio Vilar Furtado
Centro de Estudos em Competitividade Internacional: Maria Tereza Leme Fleury
Fórum de Inovação: Marcos Augusto de Vasconcellos
Núcleo de Comunicação, Marketinge Redes Sociais Digitais: Izidoro Blikstein
Núcleo de Estudos em Organizaçõese Pessoas: Maria José Tonelli
APOIOCentro de Desenvolvimento do Ensino e da Aprendizagem: Francisco Aranha
Coordenadoria de AvaliaçãoInstitucional: Heloisa Mônaco dos Santos
Coordenadoria de Estágiose Colocação Profissional: Beatriz Maria Braga
Coordenadoria de Extensão Cultural: Daniel Pereira Andrade
Coordenadoria de Relações Internacionais: Julia Alice Sophia von Maltzan Pacheco
Serviço de Apoio e Atendimento Psicológico e Psiquiátrico aos Alunos do Curso de Graduação em Administração: Tiago Luis Corbisier Matheus
Alumni GV: Francisco Ilson Saraiva Junior
ASSOCIAÇÃO DOS FUNCIONÁRIOS DA FGV-EAESPPresidente: Vagner Neres da Silva
DIRETÓRIO ACADÊMICO GETULIO VARGASPresidente: Gabriela Novaes Brepohl
DIRETORES DA RAEMaio/1961 a jun/65: Raimar Richers; jul/65 a dez/66: Yolanda F. Balcão; jan/67 a jun/68: Carlos Osmar Bertero; jul/68 a jun/69: Ary Bouzan; jul/69 a jun/71: Orlando Figueiredo;jul/71 a dez/72: Manoel Tosta Berlinck; jan/73 a jun/75: Robert N.V.C. Nicol; jul/75 a mar/80: Luiz Antonio de Oliveira Lima, abr/80 a mar/82: Sérgio Micelli Pessoa de Barros;abr/82 a dez/83: Yoshiaki Nakano; jan/84 a set/85: Sérgio Micelli Pessoa de Barros; out/85 a set/89: Maria Cecília Spina Forjaz; out/89 a dez/89: Maria Rita Garcia L. Durand;jan/90 a set/91: Gisela Taschner Goldenstein; out/91 a nov/95: Marilson Alves Gonçalves; dez/95 a dez/00: Roberto Venosa; jan/01 a dez/04: Thomaz Wood Jr.;jan/05 a ago/07: Carlos Osmar Bertero; ago/07 a ago/08: Francisco Aranha; set/08 a jan/09: Flávio Carvalho de Vasconcelos; fev/09: Eduardo Diniz
LINHA EDITORIAL
Foco
A RAE-Revista de Administração de Empresas tem interesse na publicação de artigos de desenvolvi-mento teórico, trabalhos empíricos e ensaios.
Aceitam-se colaborações do Brasil e do exte-rior, nos campos da Administração de Empre-sas. A pluralidade de abordagens e perspecti-vas é incentivada.
Como revista generalista na área, cobre um espec-tro amplo de subdomínios de conhecimento, pers-pectivas e questões.
O público primário da RAE é composto por acadê-micos - professores, pesquisadores e estudantes.
Submissão
Os trabalhos devem ser encaminhados à Redação pela internet por meio do ScholarOne, sistema de submissão e gerenciamento de artigos, disponibi-lizado em parceria com SciELO: http://mc04.ma-nuscriptcentral.com/rae-scielo.
Os artigos podem ser submetidos em português, inglês, ou espanhol, observando formato e nor-mas de padronização definidos em nosso Manual da Redação. Recomendamos que os autores con-sultem ainda as Orientações para Autores, com considerações sobre posicionamento, estilo e es-trutura antes de enviar seu trabalho para a Reda-ção. O Manual da Redação e as Orientações para Autores também podem ser acessados no Espaço do Autor.
Os autores só poderão submeter um artigo por vez, (a regra será aplicada também as chamadas de trabalhos), ou seja, enquanto existir um arti-go em processo de avaliação, o autor não pode-rá submeter um segundo, como autor principal ou em co-autoria. Caso o trabalho seja rejeitado em uma das etapas do processo, o autor poderá sub-meter o mesmo artigo ou um novo artigo.
Ineditismo e exclusividade
Os artigos submetidos à publicação na RAE devem ser inéditos e não devem estar sendo considera-dos por outro periódico.
Avaliação
O processo de avaliação de artigos submetidos à publicação na RAE-Revista de Administração de Empresas, após triagem preliminar por formato e rastreamento de similaridades pelo iThenticate®, consiste em três etapas:1ª) triagem realizada pelo Editor chefe, que exa-
mina a adequação do trabalho à linha edito-rial da revista e seu potencial para publicação;
2ª) avaliação preliminar por um membro do Corpo Edi-torial Científico que visa identificar a contribuição do artigo para a sua área de especialidade; e
3ª) avaliação double blind review.
A avaliação double blind review é coordenada por um membro do Corpo Editorial Científico da área de especialidade do artigo, e consiste na intera-ção entre os autores e dois pareceristas especia-listas que, ao avaliar os trabalhos, fazem comen-tários e oferecem sugestões de aperfeiçoamento. Essa etapa envolve reavaliações contínuas, reu-nindo esforços para aprimoramento dos artigos.
Para familiarizar-se com os quesitos levados em consideração pelos pareceristas, sugerimos aos autores que consultem os formulários-modelo, disponíveis em Orientações para Pareceristas. Ha-bitualmente, os editores científicos e editor-chefe acrescentam às sugestões dos revisores um acon-selhamento editorial, cujo objetivo é adequar o ar-tigo aos padrões da revista.
Preparação para publicação
Depois de aprovado, o artigo é submetido à edi-ção final e à revisão ortográfica e gramatical.
Direitos autorais
A FGV-EAESP/RAE detém os direitos patrimoniais dos artigos que publica, inclusive os de tradu-ção e adota a Licença de Atribuição Não-Comer-cial (BY-NC) do Creative Commons (http://creati-vecommons.org/licenses/by-nc/2.0) em todos os trabalhos publicados, exceto quando houver indi-cação específica de outros detentores de direitos autorais. Em caso de dúvidas, solicitamos consul-tar a Redação ([email protected]).
Mais informaçõesGrande São Paulo: (11) 3799-3717Outras localidades: 0800 16 [email protected]/gvcasos