Accommodating Two Worlds in One Organisation: Changing Board Models in Agricultural Cooperatives
Version of Record online: 17 DEC 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Special Issue: Governance of Franchising Networks, Cooperatives and Alliances
Volume 34, Issue 3-5, pages 204–217, April-July 2013
How to Cite
Bijman, J., Hendrikse, G. and van Oijen, A. (2013), Accommodating Two Worlds in One Organisation: Changing Board Models in Agricultural Cooperatives. Manage. Decis. Econ., 34: 204–217. doi: 10.1002/mde.2584
- Issue online: 8 APR 2013
- Version of Record online: 17 DEC 2012
While most economic organisation literature on cooperatives has focused on changes in income rights, we study changes in the allocation of decision rights between board of directors (representing members) and managers. The traditional role of the board is to direct the activities of the managers. However, professional management increasingly makes most strategic decisions, pushing the board into a supervisory role. We present two groups of findings on changing board–management relationships. We identify three corporate governance models: traditional, management and corporation. And we present an empirical illustration showing a relationship between the choice of board model, and product portfolio and performance. Copyright © 2012 John Wiley & Sons, Ltd.