RESEARCH PAPER Geographical indications and territorial development: A soft‐system methodology analysis of the Serro Case Mirna de Lima Medeiros 1 | Leonardo Augusto Amaral Terra 2 | João Luiz Passador 3 1 Programa de Pós‐Graduação em Ciências Sociais Aplicadas, Centro Interdisciplinar de Pesquisa e Pós‐Graduação, Universidade Estadual de Ponta Grossa (UEPG), Ponta Grossa, Brazil 2 Centro de Estudos em Gestão e Políticas Públicas Contemporâneas (GPublic/USP), Ribeirão Preto, Brazil 3 Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo (FEA‐RP/ USP), Ribeirão Preto, Brazil Correspondence Mirna de Lima Medeiros, Programa de Pós‐Graduação em Ciências Sociais Aplicadas, Centro Interdisciplinar de Pesquisa e Pós‐Graduação, Universidade Estadual de Ponta Grossa (UEPG), sala LP 109, Avenida Carlos Cavalcanti, 4748, 84030‐900, Ponta Grossa, PR, Brazil. Email: mirnadelimamedeiros@gmail.com Abstract The present work aims at understanding the system (components and inter‐ relations) of the indication of provenance type of geographical indication for territorial development. A case study of a Brazilian region that has a cheese indication of provenance, Serro, was performed with a systemic approach based on the soft system methodology. Data were collected through document analysis, direct observation, and interviews (with 15 subjects) and analysed through content analysis. Results indicate that the registration itself does not generate all aspects of territorial development. The recognition of a geograph- ical indication can stimulate the process, but its success depends on actors' Weltanschauung and the systems' interconnections. Thereby, leaderships assume a fundamental role in modelling this type of structure. This opens possibilities for government policy linked to development, which can benefit from a systemic perspective, because it involves complex demands, ambiguous relations, conflicts of interests, and interconnected solutions involving multiple institutions. KEYWORDS artisanal cheese, indication of provenance, place of provenance, public policy, soft system methodology 1 | INTRODUCTION Geographical indications (GIs) are distinctive labels that relate to the place from which goods or services originate, that is, when a geographical name designates a product. Champagne, Cognac, and Roquefort are some examples. This type of distinctive label denotes tradition, typicity, and terroir as well. These are attributes demanded by consumers around the world, making it strategic to agri- business and local communities, especially in developing countries (Porto, 2012; Tregear & Giraud, 2011). Accord- ing to Brazilian Law, there are two kinds of GI: indication of provenance and denomination of origin (Law No. 9279, 1996). The formal protection of GIs was established due to commercial issues, in order to protect farmers against unfair competition (forgeries and misappropriation; Gonçalves, 2008; Rodrigues & Menezes, 2000). The trade‐related aspects have been the main reasons for the recognition of GIs (Barjolle, Sylvander, & Thévenod‐ Mottet, 2011; Sautier, Biénabe, & Cerdan, 2011). In addi- tion to adding value to the process and the resulting behaviour of local and nonlocal actors towards a specific product (Barham & Sylvander, 2011), GIs tend to specify the territory from where they originate, and to generate business opportunities directly and indirectly related to the registered product (Sautier et al., 2011). Furthermore, although they were not designed for the purposes of rural Received: 25 March 2017 Revised: 20 March 2019 Accepted: 28 March 2019 DOI: 10.1002/sres.2601 82 © 2019 John Wiley & Sons, Ltd. wileyonlinelibrary.com/journal/sres Syst Res Behav Sci. 2020;37:82–96.