Brazilian Business Review <p>BBR - Brazilian Business Review publishes high quality research across all fields of business. Themes include, but are not limited to, management, accounting, controllership, finance, information management, innovation management, strategy, and economics. We welcome papers developed in public, private, or third sector organizations. Published six times a year, BBR is supported by FUCAPE, a top Brazilian business school.</p> <p><img src="/public/site/images/ojsadmin/bbr_scopus_pagina_frontal.png"></p> FUCAPE Business Shool en-US Brazilian Business Review 1808-2386 <p>© Brazilian Business Review</p> Editorial <p>Dear readers, in this September/2018 issue we would like to welcome a new member of our Scientific Editorial Body, Prof. Marcia Juliana d'Angelo. She holds a PhD in Business Administration from Mackenzie Presbyterian University and currently is an associate professor at FUCAPE Business School. Ms. d’Angelo’s interests include strategy and organizations, and is a fine complement to our editorial body, especially regarding qualitative methodologies.</p> <p>We would also like to announce a new feature. Now, submitting authors may indicate suitable reviewers for their article. Although it is only a recommendation and it is not binding nor mandatory, we believe it will help our editors in choosing reviewers with strong expertise on the theme of the paper.</p> <p>Our issue begins with an article on audit rotation and earnings quality by Silvestre, Costa and Kronbauer. It brings insights on the mandatory audit rotation adopted in Brazil, and should be of interest to regulators and practitioners. Their results point that not all rotations are equal. <a href=""><u>link</u></a></p> <p>Next, Júlio and Tureta bring an analysis on the organization for the parade of a samba school. It is a qualitative research that indicates material reuse on an attempt to balance luxury and scarce resources. <a href=""><u>link</u></a></p> <p>Yoshikuni, Favaretto, Albertin and Meirelles study the relation between strategic information systems (SIS) and innovation, ambidexterity and performance. It appears that SIS are strongly and positively related to these outcomes, a result of interest for managers and firms. <a href=""><u>link</u></a></p> <p>The fourth paper, by Santos, Pereira &amp; Rodrigues, is an example of the importance of analyzing efficiency on the use of taxpayers’ money. Their results indicate that the lack of oversight leads to the waste of public resources, a first-order problem in a developing country like Brazil. <a href=""><u>link</u></a></p> <p>The next paper, by Cezar and Fantinel, studies social representations and the solidarity economy. Their findings indicate that crafts are seem as a therapy, in addition to work, and that solidarity economy is judged as the fittest format for commercialization. <a href=""><u>link</u></a></p> <p>On another information systems-related article, Pedron, Picoto, Colaco and Araújo investigate how Customer Relationship Management (CRM) software is related to innovation. The interviewees point that CRM leads to innovation by allowing the organization to sense, seize, and reconfigure both market opportunities and threats. <a href=""><u>link</u></a></p> <p>We hope you enjoy the diversity of themes of this issue. Good reading!</p> <p>Fabio Motoki – Editor-in-Chief - <a href=""></a></p> Fabio Motoki Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 Audit Rotation And Earnings Quality: An Analysis Using Discretionary Accruals <p>This article aims to measure the effect of the audit firm rotation on the earnings quality of Brazilian public companies listed on BM&amp;FBOVESPA in the period from 2008 to 2015. We use discretionary accruals as a measure of earnings quality, using two approaches: earnings management and the estimation errors. Results show that audit firm rotation reduced the volume of discretionary accruals and, thus, increases the earnings quality, when these are measured from the perspective of earnings management. However, we do not observe the effect of audit firm rotation on earnings quality when the discretionary accruals are measured from the perspective of accounting estimation errors. The results also show that companies that rotate audit firms voluntarily have greater discretionary accruals and, consequently, lower earnings quality.</p> Adalene Olivia Silvestre Cristiano Machado Costa Clóvis Antônio Kronbauer Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 410 426 10.15728/bbr.2018.15.5.1 “Turning garbage into luxury”: the materiality in practices of the carnival production <p>This paper analyzes the organization of the carnival production of a samba school. Specifically, we investigate the effort to balance the demand for luxury and the scarcity of resources. To understand these phenomena, we use Schatzki’s epistemology of practice. This is a qualitative research that resorts to participant observation, in-depth interviews and documentary research. The findings revealed that the practice of material reuse is incorporated in the carnival production. We show evidence that the balance between luxury and the scarcity of resources occurs through what we call material understandings, a central element in the creative process. These understandings are produced from the interaction of the actors with a set of material arrangements, through which the creative process takes place. We also emphasize that they can be transformed throughout carnival production, as practitioners seek solutions to emerging problems.</p> Ana Carolina Júlio César Tureta Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 427 443 10.15728/bbr.2018.15.5.2 The Influences of Strategic Information Systems on the Relationship between Innovation and Organizational Performance <p>This study aims to identify the influences of strategic information systems (SIS) on the relationship of innovation (exploration/exploitation), ambidexterity and organizational performance (OP). We used the statistical technique of Partial least squares path modeling (PLS-PM) with a sample of 256 Brazilian companies from different sectors. The data revealed that exploitative innovation was positively associated with OP. As a result of the study, it was confirmed that a strong SIS presence increases the influences of innovation (exploration and exploitation) and ambidexterity on OP. Ambidexterity was positively associated with OP and presented higher path coefficients compared to the relationships between exploratory and exploitative innovation and OP. This relationship shows that ambidextrous organizations have higher OP. The study also confirmed that 96% of ambidextrous organizations have a strong SIS presence. This study may have implications for the management practices of organizations that use SIS in their strategic planning stages by enabling innovation focused on improving OP.</p> Adilson Carlos Yoshikuni José Eduardo R. Favaretto Alberto Luiz Albertin Fernando de Souza Meirelles Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 444 459 10.15728/bbr.2018.15.5.3 Relationship Between Performance of the FUNDEB Municipal Board and Active and Passive Waste <p>This research verifies the relationship between the lack of action of the FUNDEB Monitoring and Social Control Councils with the indicators of active waste (corruption) and liabilities (mismanagement). The main sources of data used were CGU's audit reports and the websites of FNDE, IBGE and UNDP. The sample is composed of 173 municipalities supervised by the auditors of the CGU, drawn in the 38th, 39th and 40th public draws. The methodological strategies used were the content analysis and the regression for count-data, based on the negative binomial model by maximum likelihood. The results indicated a positive and significant relationship between the lack of action of the FUNDEB Monitoring and Social Control Council and the waste of public resources allocated to basic education related to poor management. This result has a general implication in evaluating the effectiveness of the FUNDEB Control Council's audit function, in accordance with its attributions established by the government’s policies and norms.</p> Nálbia de Araujo Santos Luana Aparecida Pereira Daniele Silva Rodrigues Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 460 474 10.15728/bbr.2018.15.5.4 The sales of craft over a Lively Talk and a cup of Coffee: social representations in a commercialization center of solidarity economy <p>The purpose of this article is to analyze the social representations about solidarity economy, work and crafts, circulating among the craftswomen of the Solidarity Economy Commercialization Center of the municipality of Cariacica-ES. For this purpose, we use the collection technique of data triangulation based on non-participant observation of ethnographic inspiration, interviews, and documentary research. The main results point to the valuation of crafts as a therapy and not only as work, with solidarity economy being pointed out by the craftswomen as the best format, given the possibility of performing shared management and the valorization of the human being. The conception of being able to do something with the hands dictates the rhythm of producing the crafts, reflected in the way of conducting management in a particular way, overcoming the difficulties encountered.</p> Layon Carlos Cezar Letícia Dias Fantinel Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 475 493 10.15728/bbr.2018.15.5.5 CRM System: the Role of Dynamic Capabilities in creating Innovation Capability <p>Customer relationship management (CRM) is a topic discussed, mainly, by information systems and marketing management areas. Many organizations are already using CRM systems. When a company uses CRM, it develops different organizational capabilities some of which lead to innovation. Whilst there are some studies that already analyze the creation of innovation capabilities resulting from the usage of a CRM system, how this is achieved has not been understood. The present study aims to contribute to this debate by building on the dynamic capabilities theory to develop a conceptual model for understanding the innovation capabilities development through CRM usage. The research question that guides this paper is: “What is the role of Dynamic Capabilities in the creation of innovation capabilities through CRM usage?” We conduct an exploratory study based on qualitative experts’ interviews. Our findings support the argument that CRM drives innovation through dynamic capabilities. In fact, by sensing, seizing and reconfiguring market opportunities and threats, CRM allows organizations to generate innovation.</p> Cristiane Drebes Pedron Winnie Ng Picoto Miguel Colaco Cintia Cristina Araújo Copyright (c) 2018 Brazilian Business Review 2018-09-01 2018-09-01 15 5 494 511 10.15728/bbr.2018.15.5.6