Application of the principles of corporate governance in agriculture cooperatives

Maričić, Goran; Škorić, Sanja; Radenković, Danijela

doi:10.5937/ekopolj1802827m

Cited by 1 publication

(1 citation statement)

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“…Corporate governance, however, is the priority of cooperatives and corporations as it offers opportunities to add value and manage risks (Sobel & Reding, 2004). The principles of corporate governance are considered important in the global economy for business success and competitiveness (Hill et al, 1992;Maricic et al, 2018). The cooperative strategies can enhance competitiveness by combining capabilities and skills, joint knowledge creation, transfer of knowledge, and risk sharing for innovation (Momaya et al, 2017;Manthri, et al, 2015) and can facilitate cooperative enterprises to register global growth with resilience (Raj Kumar Patra, 2015).…”

Section: Literature Review Theoretical Framework and Hypothesismentioning

confidence: 99%

Good Governance Practices and Competitiveness in Cooperatives: An Analytical Study of Kerala Primary Agricultural Credit Societies

Tripathy

Paliwal

Nistala

2021

JGBC

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Cooperatives play an important role in rural development and financing. Primary Agricultural Credit Societies (PACS)the bottom tier of cooperative credit structure, form the largest number of Cooperative institutions in India. Bringing good governance into operating system leads to competitiveness in cooperatives. The performance of PACS depends upon how it is being governed and how the size of PACS acts as an indicator of competitive enhancement. The study examines various business activities of select PACS in India's southern State of Kerala and provides insight into their governance practices and its relationship with competitiveness. The study adopts a descriptive-analytical approach with a blend of primary as well as secondary data. The research study concludes that participation, accountability, and transparency are the effective pillars of cooperative governance in the presence of diversification strategy which further leads to improved competitive performance of Kerala's PACS. The competitive process led by good governance has been demonstrated as a key determinant for the growth and development of cooperatives. Good practices of PACS enhance the reputation and stakeholder value of the cooperatives in the long run. This further improves their productivity and enhances their capability to produce goods and services, which presents as a competitive growth. The study supports that the system of governance should not be rigid and imposed on cooperatives, rather be flexible and adaptive to each evolving situation.

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