Governance in Estonian Agricultural Cooperatives: Structures and Processes

Constantine Iliopoulos (), Rando Värnik, Taavi Kiisk, George Varthalamis and Liis Sinnott
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Constantine Iliopoulos: Agricultural Economics Research Institute (AGRERI), Kourtidou 56-58, 11145 Athens, Greece
Rando Värnik: Economics in Rural Economy, Estonian University of Life Sciences, F.R. Kreutzwaldi 1a, 51006 Tartu, Estonia
Taavi Kiisk: Economics in Rural Economy, Estonian University of Life Sciences, F.R. Kreutzwaldi 1a, 51006 Tartu, Estonia
George Varthalamis: Co-opAbility Institute, Thrakis 2, 16777 Athens-Elliniko, Greece
Liis Sinnott: Economics in Rural Economy, Estonian University of Life Sciences, F.R. Kreutzwaldi 1a, 51006 Tartu, Estonia

Sustainability, 2022, vol. 14, issue 23, 1-24

Abstract: Little is known about the board structures and processes adopted by agricultural cooperatives, particularly in Eastern European countries. We address this substantial knowledge gap by focusing on Estonian agricultural cooperatives. Using survey results from a sample of 23 Estonian agricultural cooperatives, we identify board structures and processes, measure organizational health, and compare our findings to similar studies in other countries. We find both similarities and differences between sample cooperatives and their counterparts in other countries. Estonian agricultural cooperatives tend to perform better than those without a board. However, more research at the member level is needed in order to draw definite conclusions. Member preference heterogeneity emerges as a potential future threat to organizational health and, thus, demands the attention of cooperative leaders in Estonia. We conclude that there exists considerable room for improvement through the introduction of a more flexible legal framework and the adoption of professional board governance processes, which includes director orientation training, inclusion of additional financial expertise and board evaluation routines.

Keywords: board of directors; cooperatives; Eastern Europe; governance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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