Agricultural cooperatives have changed considerably in recent decades. In witnessing these structural changes, scholars have proffered analyses of nontraditional ownership models focusing on residual claim rights. However, crucial information on the allocation of control rights in cooperatives is missing. This study sheds light on alternative ownership-control models adopted by agricultural cooperatives in different regions across the world. In each of these models, we describe the allocation of formal control rights with a focus on decision management and decision control rights. We thus provide empirical evidence on the "separation of ownership and control" in agricultural cooperatives. We also analyze each of the governance models in terms of the associated ownership costs, including risk-bearing costs, the costs of controlling managers, and collective decision-making costs. In doing so, we are able to better understand the forces influencing the organizational efficiency of each cooperative model.
The importance of cooperatives for European farmers has often been claimed but empirical studies to support this claim are scarce. This special issue presents a number of articles on the recent development and status of agricultural cooperatives in the European Union, based on original data collected in the EU-wide study 'Support for Farmers' Cooperatives'. The articles focus on trends in the internal organization, the institutional environment, and the strategies that cooperatives have developed in supply chains and markets. This introductory article presents data on the market shares that cooperatives hold in different sectors and countries, and introduces the three key determinants of performance of cooperatives: policies, strategies and internal organization. Finally, the article develops a future research agenda.
Purpose
The purpose of this paper is twofold: first, it identifies distinct organizational models in a sample of small and medium enterprises operating in the Sicilian wine industry; and second, it identifies the key factors enabling a superior export success.
Design/methodology/approach
Internal resources were analyzed theoretically in order to achieve the aims of the study. Subsequently the empirical investigation was carried out administering a questionnaire to a sample of 102 wineries in Sicily, Italy. A cluster analysis was performed in order to group these firms into homogeneous categories.
Findings
The findings show that success in the international market is more common among wineries characterized by a larger physical and economic size, a longer experience in the international market, managed by entrepreneurs-owners who are highly educated and proficient in foreign language, and implement voluntary certifications.
Research limitations/implications
The results need to be interpreted within the context of the study’s research design; more specifically, the reader should take into account that the study focuses exclusively on one industry and on one region (wine in Sicily).
Practical implications
The findings offer a valid support for managers who could use this results to better focus their effort and choose the most appropriate strategy in order to improve their performance in foreign markets.
Originality/value
Very few empirical studies have been carried out on the impact that internal and in particular organizational resources have on the firms’ organizational models operating in the wine industry.
For years, scholars and policy makers have ar gued that cooperatives, particularly agricultural cooperatives, exhibit organizational inefficiencies primarily caused by individual member behavior that is often independent and non-cooperative conflicting with the formation of effective coalition building. This free riding tendency creates significant challenges for a continued joint collaboration between and among member patrons. Yet, agricultural cooperatives have a long history of surviving as successful business enterprises. This paper presents a framework that proposes generic solutions effective as design principles in addressing the negative consequences of high organization costs, thus leading to sustainable common group interest activities.
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