Adoption and management of plural forms of governance in the transport of sugarcane in Brazil

Purpose This study investigates why different governance structures have been adopted to organize similar operations in sugarcane transport transactions, resulting in the plural forms of governance. Design/methodology/approach Based on a panel of 10 Brazilian mills, covering the 2009–2019 period and employing an econometric strategy grounded mainly on the count data and traditional panel-regression models, this study used the Transaction Cost Economics perspective to investigate how the frequency of transactions, uncertainty and asset specificity influence the decision to adopt the Plural Forms of governance. Moreover, we employed two distinct measures of these Plural Forms and included governance alterations over time. Findings The results suggest that Transaction Cost Economics is a valid theoretical background for studying the plural forms of governance and that the interviewed Brazilian mills seemed to use these plural forms in their strategic transport planning, thus generating lower transaction costs and reducing issues, such as market uncertainties and opportunistic risks. We also found that the plural forms are gradually maintained but are not being adopted as a transitory management solution because they are aligned with the characteristics of price, the quality of service, contractual clauses and fidelity in negotiations. Originality/value The plural forms of governance are strategies for efficiently managing transport, promoting the security of supply and financial benefits related to transaction costs and improving environmental sustainability. Analyzing the plural forms of governance with two different measures (absolute and entropy-related), this study contributes to the ever-growing debate on governance, which is particularly important for the sugar-energy sector.