Multiple rational management and governance in agriculture cooperatives

Abstract

Purpose This study aims to analyze how multirational management relates to cooperatives’ corporate governance. Design/methodology/approach A typology of agricultural cooperatives’ potential for multirational management in relation to corporate governance is proposed. Coordinates based on data from assembly participation and separation of ownership and control are used to map cooperatives among these typologies. Four case studies representing each typology were conducted, allowing analysis of propositions. Findings By mapping the cooperatives from Mato Grosso do Sul, a reduced potential for multirational management is noted. By analyzing the four case studies, coded as Coop 1, 3, 13 and 16, this study found convergence with P1, P2 and P3. “Coop 1” shows signs of adopting exploitation practice. In “Coop 3,” evidence points to avoidance practice and, analyses of “Coop 13” indicates adoption of tolerance practice. In Coop 16, however, P4 could not be confirmed. Instead of polarizing practices, there is evidence of avoidance practice. Therefore, a positive relation between corporate governance and multirational management can partially be observed. Originality/value There are no records of a paper that has explored the relation of governance and multirational management. Therefore, this research broadens the understanding of how corporate governance can function in the context of cooperative organizations. As well, insight is given on how different mechanisms of corporate governance can influence organizations to adopt explicit or implicit and monorational or multirational methods of dealing with multiple rationalities.

Corporate governance and COVID-19: a literature review

“…For instance, case studies could examine more complex concepts (Süsi and Jaakson, 2020), such as the COVID-19 effects. Moreover, industries, such as agriculture, (Teixeira et al , 2020) could also be examined.…”

Governance and performance model for agricultural cooperatives

“…Although the absolute number is limited, it is noteworthy that studies -through a survey of the Brazilian reality and for this particular audience -present a low rate of respondents; however, the amount obtained in this research is superior to other studies (Londero & Figari, 2018). The quality of the completed forms was preserved, and that significant number would allow a quantitative analysis within the limits of the adjustment parameters, thus expanding conventional results on this topic from case studies (Teixeira, Caleman, & Américo, 2020).…”

“…The discussions on governance structures in cooperative organizations started due to the growth in cooperative activities and, consequently, the demand for improvements in their management processes (Carpes & Cunha, 2018;Teixeira, Caleman, & Américo, 2020). The topic is relatively new and related studies are in the initial phase (Hannachi, Fares, Coleno, & Assens, 2020;Maciel, Seibert, Silva, Wbatuba, & Salla, 2018).…”

“…The literature has consolidated agency problems as the leading cause of conflicts (Jensen & Meckling, 1976). The theme is widely debated in traditional capitalist companies in which the separation of ownership and management provides vast informational asymmetries (Teixeira, Caleman, & Américo, 2020;Arévalo-Alegría, Acuña-Duarte, & King-Domínguez, 2020). However, this approach cannot be extrapolated in an identical way to traditional companies without considering the distinctive features of a cooperative (Costa & Melo, 2017).…”

“…Implementing good governance practices is relevant to encourage the sustainable development of cooperative organizations, strengthening them against the market, reducing conflicts of interest (Maciel, Seibert, Silva, Wbatuba, & Salla, 2018); and also to attract investments by reducing exposure to risk (Bijman & Iliopoulos, 2014). The scandals that have already occurred in Brazilian and international companies have made good governance practices paramount even for cooperative organizations (Teixeira, Caleman, & Américo, 2020).…”