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.