Implementation of Brazil's energy policy through the national oil company: From institutional chaos to strategic order

Hugo Consciência Silvestre, Ricardo Corrêa Gomes, Jorge Routte Lamba and Aldenisio Moraes Correia

Energy Policy, 2018, vol. 119, issue C, 87-96

Abstract: This study aims to understand the implications for strategy and organizational structures of state-owned enterprises (SOEs) facing chaotic events. Applying chaos theory, this case study focuses on Petrobras, a listed corporation controlled by the Brazilian government, in its role of implementing the national energy policy. The main findings of semi-structured interviews show that the slump in oil prices in 2015 associated with a corruption scheme in the company led to institutional and organizational chaos. Recent events led to Petrobras’ internal reorganization in favor of the national market instead of internationalization. Nowadays, strategic management policy is the board of directors’ primarily responsibility, and without political interference at the organizational decision-making level, Petrobras can be a social and economic policy tool while achieving its own financial goals. SOEs can make strategic decisions that allow facing chaotic events, thus restoring the internal equilibrium. Finally, the political will to define institutional rules leading to improved corporate governance is essential for successful organizational achievements.

Keywords: Chaos theory; Policy implementation; State-owned enterprises; Business strategy; Oil industry; Petrobras (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518302477
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:119:y:2018:i:c:p:87-96

DOI: 10.1016/j.enpol.2018.04.028

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().