Agricultural and Rural Cooperative Viability: A Management Strategy Based on Cooperative Principles and Values
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We examine some characteristics of agricultural and rural cooperatives and
their management challenges, in order to illustrate possible applications of
Jim Collin’s management concept, catalytic mechanisms, in the cooperative
context. Agricultural cooperatives are experiencing complex governance issues,
particularly in light of increased heterogeneity of member interests,
and increased market and regulatory pressures. Member commitment is often
recognized to be a necessary ingredient in the cooperative success, and
while primary agricultural cooperatives are built on that commitment, new
generation cooperatives need not be. In this article we argue that some of
the governance issues may be alleviated by the application of creating catalytic
mechanisms, a process that builds cohesion, preserves cooperative
identity, and is based on cooperative principles and values. We illustrate
this technique with examples of successful agricultural and rural cooperatives
that already use such mechanisms in their management strategies.