International Demand Shaping Governance Mechanisms in Brazilian Beef Agri-systems: The Case of the Three Main Processors

Abstract

Drawing inspiration from international institutions and how they influence American organizations and their internal arrangements, this paper discusses the emergence of coordination between beef cattle producers and processors as a transition of neoclassic market transactions to a contractual form to participate in international trade. Three case studies from the largest Brazilian processors show the rise of strictly coordinated sub-systems to address new demands that rose from export requirements. The key finding from the case studies is that institutional shocks can drive new architectures in the system because it can generate new ones, described as strictly coordinated sub-systems that demand different organizational and technical support. In addition, the cases provide findings about organizational tolerance and its relationship with different formal institutions, based on an analysis of national and international supply in quality systems.