Although being one of the most important economic industry, the Brazilian sugar and ethanol industry is scarcely studied with regard to transactions between production and distribution actors. This article deepens the study of this topic focusing on ethanol trading groups, an initiative of ethanol manufacturers for joint sale exhibiting characteristics of company networks. Therefore, this study aims to show the forms of organization of the ethanol trading groups and their governance mechanisms. Case studies were conducted with three groups operating in the Mid-south region of Brazil indicating a multi-faceted network governance, which changes the dynamics of transactions and the information flow between the actors. The trading groups play the role of transactions' intermediaries, and they also create a new dynamics providing better access to markets, promoting price signaling, managing contracts, and organizing logistic arrangements.
Network of companies; Transaction governance; Sugar and ethanol industry; Trading groups
