Critical Areas and Entry Points for Sustainability-Related Strategies in the Sugarcane-Based Ethanol Industry of Brazil

ABSTRACT

This study reveals five critical areas that Brazil's sugarcane-based ethanol industry could capitalize on to incorporate sustainability into their firms' strategies. The emergent theoretical framework represents a starting point for further investigations aimed at integrating the sustainability construct and strategies for the industry. A growing body of literature calls for strategic management to adapt to complex and ever-changing environments and sustainability trends. For many firms in developing economies, sustainability remains isolated from mainstream strategy, resulting in reactive approaches on the part of management. A qualitative research method – grounded theory – was used to induct from data. Five themes emerged from the analysis providing guidance on where sustainability-related strategies ought to begin. This research posits that existing sectoral innovation systems could be used to channel sustainability-driven innovations. In addition, a combination of public and private efforts to foster innovations based on the emergent themes could increase the value of industry under study, while lessening its social and environmental footprint. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.