Practices in the internal governance of European agricultural cooperatives and possibilities for practice in Bulgaria
Angel Sarov
Abstract: In the context of the global economy, liberalization of markets and the intensifying competition Agricultural Cooperatives in Europe adapt its government, whish is getting approximates to capital companies. According to the European Commission on restructuring of the agricultural sector in the synthesis driven innovation in organizational and social models, ensuring sustainable development of the environment. The Commission believes that innovation “is generated not only through research and technology but also through new marketing management decisions”. The opposite statement is also applicable, namely, that the adoption of different management models as constant limits the deployment of new scientific methods of analysis and improvement of governance structures. The purpose of this article is to analyze the innovative management approaches in European agricultural cooperatives and attitude of the management of these governance structures in Bulgaria to implement them. Under study are agricultural cooperatives in the country, the subject of analysis, governance and in particular the possibilities for implementing best practices.
Production and market developments require adaptability and flexible methods of management, often necessitating the transfer of responsibility for decision-making by members of the managers. Internal governance refers to the structure, the relationships between the authorities of the organization, delegation of rights to decision-making responsibilities, distribution of benefits. Management structurally defined as a way of arranging for management, the links between them and the environment functions delegated rights and responsibilities for achieving purposes. Nilsson (1999) focuses on five of the financial structure of the cooperative. Bijman (2012) developed a classification of cooperatives in the corporation governance. Implementation of management practices by a company can lead to negative effects on cooperatives relating to the discrepancy with the conventional cooperative identity. Since the beginning of 2013 are in-depth studies (case study) on agricultural cooperatives in Bulgaria, which have been extensively analyzed relations between the management and the attitudes of the presidents of cooperatives innovative management approach. Case study requires the use of a qualitative method for gathering information. The methodology requires the information gathered be confirmed by own observations on the management approaches. Categorical rejection case the question was argued that it would violate the cooperative principles of autonomy and independence. As evidence of this is pointed out that cooperative is “community” and any outside intervention would lack the cooperative identity. Agricultural Cooperatives in Bulgaria are oriented to the traditional model of organization and management. Still cooperative associations are perceived as organizational structure, the successor of the recent past that trouble its modernization and implementation of innovative approaches in management. However stand out are those who would gladly adapted European management practices, provided for the preservation of cooperative value and principles.
Production and market developments require adaptability and flexible methods of management, often necessitating the transfer of responsibility for decision-making by members of the managers. Internal governance refers to the structure, the relationships between the authorities of the organization, delegation of rights to decision-making responsibilities, distribution of benefits. Management structurally defined as a way of arranging for management, the links between them and the environment functions delegated rights and responsibilities for achieving purposes. Nilsson (1999) focuses on five of the financial structure of the cooperative. Bijman (2012) developed a classification of cooperatives in the corporation governance. Implementation of management practices by a company can lead to negative effects on cooperatives relating to the discrepancy with the conventional cooperative identity. Since the beginning of 2013 are in-depth studies (case study) on agricultural cooperatives in Bulgaria, which have been extensively analyzed relations between the management and the attitudes of the presidents of cooperatives innovative management approach. Case study requires the use of a qualitative method for gathering information. The methodology requires the information gathered be confirmed by own observations on the management approaches. Categorical rejection case the question was argued that it would violate the cooperative principles of autonomy and independence. As evidence of this is pointed out that cooperative is “community” and any outside intervention would lack the cooperative identity. Agricultural Cooperatives in Bulgaria are oriented to the traditional model of organization and management. Still cooperative associations are perceived as organizational structure, the successor of the recent past that trouble its modernization and implementation of innovative approaches in management. However stand out are those who would gladly adapted European management practices, provided for the preservation of cooperative value and principles.
Keywords: agricultural cooperatives; cooperative identity; good governance; governance structures
Date published: 2017-10-03
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