SHIFTING CONTROL? THE CHANGES OF INTERNAL GOVERNANCE IN AGRICULTURAL COOPERATIVES IN THE EU

Jos Bijman · Markus Hanisch · Ger van der Sangen

147 citations0/0 files storedAnnals of Public and Cooperative Economics

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Cooperative Studies and Economics Agricultural economics and policies Banking Systems and Strategies

Abstract

ABSTRACT Governance describes a firm´s system of decision‐making, direction and control. Over the last decades agricultural cooperatives in Europe have been pursuing innovations in internal governance structures. As a response to changing market environments, cooperatives adjust the size and composition of boards, the labour division between supervision and management and the representation of members‐owners. Changes in the cooperatives´ internal governance mechanism are motivated by the need to enhance market orientation, attract professional managers, strengthen member commitment, and reinforce entrepreneurship. We present data on innovations in the internal governance mechanisms of a sample of 500 agricultural cooperatives in the EU. In addition, we present theoretical explanations for these innovations, and we discuss their implications for member control and manager accountability, as well as for performance and further development of the cooperatives.

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References

1983Separation of Ownership and Control 1997A Survey of Corporate Governance 1986The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration 1990Property Rights and the Nature of the Firm 1997Formal and Real Authority in Organizations 2010The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey 2013Handbook of the Economics of Finance 2001Corporate Governance

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