A grammar of the distinctive competence development at the firm for the solution of systemic problems

Abstract

Competitiveness results from factors beyond the structural conditions and organisational boundaries, such as inter-organisational cooperation. Using evidence gathered in Brazilian credit unions, this work reveals a type of social process for generating organisational capabilities and economic goods in firms satisfying needs defined by social structures in order to solve market failures and structural deficiencies in their socioeconomic systems. An exploratory and descriptive multiple case study with longitudinal qualitative data collected from a sequence of decision-making events of deterministic nature has made possible theoretical refinements to the model of competence development in the firm. It relies upon a systematic, computer-supported Process Tracing technique using a formal language model. Two case studies showed that firms hold relationships of cooperation and contribution with partners and nonmarket structures in their organisational and environmental surroundings whenever their performance is constrained by competitive problems of systemic nature, for which there is no solution based on the mechanisms of market price and state intervention.