Strategy as Context Inter-Firm - A Social Immersion and Institutional Theory analysis of Shrimp Sector in the federal state of Rio Grande do Norte

Abstract

Baum and Dutton (1996) pointed out that although the embeddedness of strategy have been highlighted a decade ago, strategy research still maintain more influenced by theorists of economic than theorists of sociology. The atomized conception is identified in the level of analysis and at the concept of environment. This paper stresses the strategy as context inter-firm. It grasps the institutional theory and embeddedness perspective for analyzing the shrimp farming sector at Rio Grande do Norte. It consists on a qualitative, historical study, based on archive analysis as well interview in deep with CEOs and Associations representatives of the sector. The aim was to appoint how the strategy adopted by the set of sector`s companies can be explained considering the social context dynamic. Thus, it was developed an analysis that integrated both the institutional and economic impediments for the market efficiency for explaining the sector´s strategy. It was carried on a historical account of its formation, stressing the main moments and facts, as well the role played by different actors. The results indicated that the dominant approaches in the strategy field such as Economic Costs Theory, Resource Based-View and, strategic management were not able to explain the strategic action of the sector`s companies. It is necessary put together this economic perspective with sociological perspectives, which take in count the socially constructed nature of the organizational processes, as well its non reflexive character.