Strategic Institutional Management in Dairy Cooperatives - a theoretical appointment

Simão, Gustavo Leonardo; Antonialli, Luiz Marcelo; Souza, Túlio Carvalho C. de; Santos, Antonio Carlos dos

doi:10.1590/1234-56781806-94790550405

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Revista de Economia e Sociologia Rural

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Article • Rev. Econ. Sociol. Rural 55 (4) • Oct-Dec 2017 • https://doi.org/10.1590/1234-56781806-94790550405 copy

Strategic Institutional Management in Dairy Cooperatives - a theoretical appointment

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract:

The competitive agribusiness environment has been pressing organizational actors of dairy cooperatives to implement new structures. In this sense, many scholars advocate the existence of isomorphic practices that are not suitable for cooperative enterprises. This theoretical paper assumes that there are strategic actions related to the institutional demands, implemented by cooperative decision makers in relation to environmental pressures. Thus, we aimed to analyze how can be structured such strategic actions in relation to the institutional pressures of two organizational subfields related to cooperative business, in order to maintain the legitimacy of the business. For this, we drafted the projection of five analytical frameworks. As conclusions, it is inferred that a cooperative business restructuring not always tends to express an atomism of decision makers in relation to institutional demands of the organizational field, given that the demands are ambivalent and need to be met in order to obtain minimum level of legitimacy necessary for the organization survival.

Key-words:
cooperativism; institutional ambivalence; strategy action

Estratégias	Táticas	Definição
Acquiesce	Habit; Imitate; Comply;	Following invisible, taken-for-granted norms; Mimicking institutional models; Obeying rules and accepting norms;
Compromise	Balance; Pacify; Bargain;	Balancing the expectations of multiple constituents; Placating and accommodating institutional elements; Negotiating with institutional stakeholders;
Avoid	Conceal; Buffer; Escape;	Disguising nonconformity; Loosening institutional attachments; Changing goals, activities, or domains;
Defy	Dismiss; Challenge; Attack;	Ignoring explicit norms and values; Contesting rules and requirements; Assaulting the sources of institutional pressure;
Manipulate	Co-opt; Influence; Control;	Importing influential constituents; Shaping values and cntena; Dominating institutional constituents and processes

Internal Perspectives	Definition
Influenced only by one side	All members are engaged in one side of the institutional pressures of conflict, so it will play actions for its promotion and defense.
Influenced by multiple sides (at least two)	Different intraorganizational groups linked to different ambivalent institutional provisions also reveal ambivalent compromises tending for the defense of template of your connection.
Influenced only by external actors	It presupposes an absence of institutional ambivalent representations in the internal context (rare). The internal constitution becomes impartial in the dispute.

Cooperativism subfield	Dairy business subfield
Management professionalization (BIALOSKORSKI et al., 2012)	Economic competitiveness (profit maximization) (OLIVEIRA and SILVA, 2012; GOMES, 2000): Reducing operational costs; Productivity improvement; Vertical and horizontal integration (added value to the production and industrial concentration); Increasing the quality (pay by the quality) -variable pricing; High productivity (pricing per quantity); Genetics qualification of flock; Efficiency (high productivity and low operating costs); Diversification of business portfolio; High marketing investment.
Education and training of membership (ICA, 2017)	Animal health and adequate storage of milk (LEITE and GOMES, 2001; GOMES, 2000): Installation of analysis laboratories; Dissemination of courses for technical training; Adjustment to existing formal standards and laws; Construction of appropriate physical infrastructure for the storage and transport of the final product.
Involvement of members in decision-making and enterprise management (ICA, 2017): Democratic decision-making (singularity of the vote, access to information, etc.); Decentralization of decisions.	Extensive technical assistance (OLIVEIRA and SILVA, 2012)
Dissemination of the cooperation culture (Somerville, 2007)	High capitalization (expansion, specialization and improvement of business activities) (GOMES, 2000)
Social and environmental responsibility with the local community (NECK et al., 2009; ICA, 2017)	High degree of specialization in dairy business (LEITE and GOMES, 2001)
Cooperative Governance (BIALOSKORSKI et al., 2012): Transparency in decision-making and management; Separation of ownership and management; Reduction of opportunistic action.	Managerial behavior (advanced managerial knowledge) Ex. Economic analysis of the actions undertaken etc. (GOMES, 2000)
	Search by constant innovation (modernization) (VIEIRA FILHO and SILVEIRA, 2012)
Technical assistance to the membership (emphasize the provision of services rather than capital accumulation) (Verhofstadt and Maertens, 2014)	Environmental sustainability (efficiency in soil treatment etc.) (CAPPER et al., 2009)
Nonprofit purpose in its economic activities (Pires, 2011)	Technological investment (TUNICK, 2009): Workforce reduction; Development of more efficient cultivars (inputs).
Isonomic treatment (equal rights for all) (ICA, 2017; BIJMAN et al., 2011)	Management professionalization (LEITE and GOMES, 2001)
Technical management (contract employees) with a background in cooperatives (BIALOSKORSKI et al., 2012)	Portfolio diversification (LEITE and GOMES, 2001; TUNICK, 2009)
Altruism (PIRES, 2011)
Reluctance to changes (preference in status quo) (BIJMAN, et al., 2011)
Importance of governmental support (BIJMAN and HU, 2011)	Contractual formalization between producer and industry (NAKHLA, 1995): Definition of volume, quality, form of payment etc.
Recognition among members (homogeneity) (NASSAR and ZYLBERSZTAJN, 2004; ÔSTERBERG and NILSSON, 2009)
Associate loyalty (PIRES, 2011)	Global presence (expansion of the operation area) (EBNETH and THEUNSEN, 2005)
Protagonist of local actors (members) (PIRES, 2011): Consolidation of social networks; Autonomy of farmers associated in the face of big organizations; Socialization to macro environment.
Membership orientation (PIRES, 2011)

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E-mail: sober@sober.org.br

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[TFN1] Source Oliver (1991OLIVER, C. Strategic responses to institutional processes. Academy of Management Review, v. 16, n. 1, p. 145-179, 1991.).