Competitive Advantage in the Creation of a Network of Solidarity Based Economy: the case of Ceará Bee Network

Abstract

The fast growth of solidarity based economic networks and their acting power within businesses’ development is one of the remarkable phenomena of the last decade. The Bee Network of economic solidarity illustrates the dynamics of this new form of productive organization, in which entrepreneurs get together, in cooperation, aiming at raising their competitiveness. The main research objective in this study was to investigate the perception of the Bee Network members about the competitive advantages resulting from their participation in the network. Furthermore, the study sought to identify the solutions reached by the Bee Network in relation to solidarity based cooperation that creates competitiveness. Porter´s (1996) model of five forces was used as a theoretical framework. The methodology was a case study and the data analyzed through descriptive and content analysis. The results indicated that the network formation has become a competitive advantage for the group of honey producers, who emphasized its benefits for their business, especially related to scale gains from the group´s purchases, governmental support for financing and training for honey production.