Fuel Distribution in Brazil： Profile and Stability of Plural Governances

This paper is dedicated to the study of governances adopted by fuel distributors in their transactions with gas station retailers in the State of Sao Paulo. With the deregulation of the market, plural forms were allowed and have been a recurring presence. The main aim of the paper is to investigate why these plural forms have remained on the market. The main hypothesis of this paper is that the plural forms found are transitory, not as a result of increased efficiency and reduced transaction costs, but because plural forms have become a key strategic step in securing business partners and promoting greater growth of the firm. Moreover, it is argued that the institutional environment has a significant influence on the coordination of plural forms, directly interfering with their stability. The research method was qualitative research with a group of 25 distribution companies which account for about 80% of sales of ethanol and gasoline in the domestic market.

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