Governance in Brazilian Coffee Clusters: A Comparative Study

In Brazil, a program known as Local Productive Arrangements (LPAs) has been established to support business clusters with significant development potential through public policies. This paper investigates interorganizational governance within two significant LPAs in the coffee sector situated in the state of São Paulo, Brazil. The study adopts a perspective on relational and contractual governance, as articulated by Roehrich et al., (2020), recognizing the pivotal role of Brazil's coffee culture. The research aims to comprehend the governance mechanisms implemented by the selected LPAs. Employing a qualitative approach, the study conducts interviews with managers/founders. The criteria for evaluating Interorganizational Governance encompass antecedent factors, governance mechanisms, and resultant outcomes. The findings indicate that these LPAs manifest two distinct models of interorganizational governance: one characterized by relational predominance, marked by a substantial presence of reliability, and another contractual model displaying a heightened level of governance maturity.