20
R. F. Barreiros et al.
In this way, cooperative societies have their appearance, usually associated with
a response to some market failure (Fulton 1999). Thus, agricultural cooperatives
emerge and enable themselves as an advantageous alternative in providing services
to members, compared to investor-owned firms (IOFs). So, the virtue of agricultural
cooperatives, in their initial stage, is present in the possibility of offering services
such as technical assistance; sale of inputs; reception, storage, and marketing of
products, with economic advantages for farmers, the cooperative’s members.
However, while the growth of agricultural cooperatives, arises another opportunity, not present at the time of their creation: the possibility of making use of
the production capacity of raw materials by the members and invest themselves in
agro-industries. Doing so, the members envision another complementary objective
that relies on the possibility of increasing control over the downstream stage of the
supply chain of agricultural products and consequently reducing the risk of holdup problems (Hendrikse and Veerman 2001a, b). By investing in agro-industry, the
primary agricultural cooperative becomes another category, identified in the literature as marketing cooperative, but which in this paper is named as agro-industrial
cooperative.
This evolution in the field of agricultural cooperatives is in line with the
phenomenon that has been occurring in the agribusiness sector concerning increased
complexity resulting from disruptive innovations, globalization, brand development,
and the need for increased competitiveness. Understanding these more complex cooperatives justifies research that enables the design of appropriate management models
that take into account the duality of these organizations (Hanel 1994).
In this context, the social advancement arises as an essential conditioner factor
for the sustainable development of the communities, in line with the doctrine and
principles of the cooperative movement, and that should be considered in a model of
translation and control of strategy in this kind of organization.
Agro-industrial cooperatives are of great economic and social importance in the
State of Paraná—Brazil and compete with other large, professionally structured
agribusiness companies. For the proper strategic positioning in highly competitive markets, whose product prices often derive from agricultural commodities,
cooperatives feel a strong need for professionalization in their management.
Having peculiar characteristics regarding their corporate governance, which
significantly differentiate them from IOFs, there is a lack of more specific studies,
in particular about models of strategic control, regarding the development of
management methods adapted to the peculiar characteristics of agro-industrial
cooperatives.
In light of the theoretical foundation about translation and control of strategy
and about cooperatives and their relations with the sustainable development, arises
the problem of this research: How to insert the social advancement and its effects
on sustainable development, in the process of translation and control of strategy in
Brazilian agro-industrial cooperatives?
R. F. Barreiros et al.
In this way, cooperative societies have their appearance, usually associated with
a response to some market failure (Fulton 1999). Thus, agricultural cooperatives
emerge and enable themselves as an advantageous alternative in providing services
to members, compared to investor-owned firms (IOFs). So, the virtue of agricultural
cooperatives, in their initial stage, is present in the possibility of offering services
such as technical assistance; sale of inputs; reception, storage, and marketing of
products, with economic advantages for farmers, the cooperative’s members.
However, while the growth of agricultural cooperatives, arises another opportunity, not present at the time of their creation: the possibility of making use of
the production capacity of raw materials by the members and invest themselves in
agro-industries. Doing so, the members envision another complementary objective
that relies on the possibility of increasing control over the downstream stage of the
supply chain of agricultural products and consequently reducing the risk of holdup problems (Hendrikse and Veerman 2001a, b). By investing in agro-industry, the
primary agricultural cooperative becomes another category, identified in the literature as marketing cooperative, but which in this paper is named as agro-industrial
cooperative.
This evolution in the field of agricultural cooperatives is in line with the
phenomenon that has been occurring in the agribusiness sector concerning increased
complexity resulting from disruptive innovations, globalization, brand development,
and the need for increased competitiveness. Understanding these more complex cooperatives justifies research that enables the design of appropriate management models
that take into account the duality of these organizations (Hanel 1994).
In this context, the social advancement arises as an essential conditioner factor
for the sustainable development of the communities, in line with the doctrine and
principles of the cooperative movement, and that should be considered in a model of
translation and control of strategy in this kind of organization.
Agro-industrial cooperatives are of great economic and social importance in the
State of Paraná—Brazil and compete with other large, professionally structured
agribusiness companies. For the proper strategic positioning in highly competitive markets, whose product prices often derive from agricultural commodities,
cooperatives feel a strong need for professionalization in their management.
Having peculiar characteristics regarding their corporate governance, which
significantly differentiate them from IOFs, there is a lack of more specific studies,
in particular about models of strategic control, regarding the development of
management methods adapted to the peculiar characteristics of agro-industrial
cooperatives.
In light of the theoretical foundation about translation and control of strategy
and about cooperatives and their relations with the sustainable development, arises
the problem of this research: How to insert the social advancement and its effects
on sustainable development, in the process of translation and control of strategy in
Brazilian agro-industrial cooperatives?