Abstract

This paper deals with the insertion of commitment as a critical success factor in a model of strategy’s translation and control in agro-industrial cooperatives in the context of the Brazilian reality, and more specifically of an agro-industrial cooperative, located in the State of Parana. Based on the theoretical background of strategy’s translation and control and on agro-industrial cooperatives, interviews were conducted with experts on cooperatives, followed by thematic content analysis, cooccurrences and structural analysis. Subsequently an instrumental case study in an agro-industrial cooperative was performed, also by means of interviews with managers, followed by thematic content analysis, co-occurrences and structural analysis. The paper discusses several interactions that commitment has with other factors of the strategy’s translation and control model in agroindustrial cooperatives. It follows that such model must consider the commitment, as a critical success factor, related to the control lever of the cooperative positioning. Commitment leads to the establishment of incentives for cooperation by the cooperative; and the emergence, strengthening and consolidating of member’s fidelity; fundamental conditions for the sustainability of the cooperative system. It also concludes that fidelity is positively influenced by the organizational culture of the cooperative; by the satisfaction of members - derived from the economic performance of their farms -; and also by the integration and control exercised by the technical assistance. This conclusion, regarding the cultural question, refers to the theoretical concept of commitment as the member’s preference associated with something that is offered, in a different way, by the cooperative, in relation to investor owned firms, and which had its beginning in the cooperative doctrine.

Highlights

  • Cooperative societies have their appearance usually associated with a response to some market failure (FULTON, 1999)

  • The above identified categories, in addition to significant co-occurrences among them, were often associated with analytical categories related to the cooperative’s organizational culture; to the integration promoted by the technical assistance to members; to the economic performance of members’ farms; to the members’ satisfaction; to the production delivered to the cooperative; to the economic performance and financial surpluses of the cooperative and to the distribution of surpluses to members

  • This paper discusses the insertion and influences of mutual commitment between members and cooperative in the process of translation and control of strategy regarding the context of Brazilian agro-industrial cooperatives

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Summary

Introduction

Cooperative societies have their appearance usually associated with a response to some market failure (FULTON, 1999). 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 At this time, the cooperative changes the scope of its business. The cooperative was intended only to increase the members’ bargaining power, it becomes a new agro-industrial agent of market, competing with other companies, investing in industrial plants, calculating costs, margins and scale; and being faced with problems related to logistics, brand development, among many others From this moment, it becomes more complex to establish objectives in the cooperative, given the need for conciliation of interests between the cooperative's needs as a company and the economic and social promotion of members, the reason of its foundation. This increased complexity is reflected in the process of translation and control of strategy in agroindustrial cooperatives

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