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Governance Of Production Co-Operatives In Russian Agriculture

Author

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  • Jerker NILSSON
  • Svetlana GOLOVINA
  • , Sebastian HESS
  • Axel WOLZ

Abstract

Many Soviet kolkhozy and sovkhozy were transformed into agricultural production co-operatives, because the farm workers would have had large transaction costs in any other type of organization. These co-operatives still hold a strong market position. This study explores the hypothesis that this market strength could be due to low governance costs, obtained through strong manager power. As managers want the co-operative to survive, they make limited investments in the co-operative and pay low wages. The members, however, do not consider this to be problematic. They appreciate the community within the village, their private plots of land and the co-operative's services. Hence the existence of the co-operatives is not threatened.

Suggested Citation

  • Jerker NILSSON & Svetlana GOLOVINA & , Sebastian HESS & Axel WOLZ, 2016. "Governance Of Production Co-Operatives In Russian Agriculture," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(4), pages 541-562, December.
    • Handle: RePEc:bla:annpce:v:87:y:2016:i:4:p:541-562
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    File URL: http://onlinelibrary.wiley.com/doi/10.1111/apce.2016.87.issue-4/issuetoc
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    Cited by:

    1. Julia HÖHLER & Rainer KÜHL, 2018. "Dimensions Of Member Heterogeneity In Cooperatives And Their Impact On Organization – A Literature Review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 697-712, December.
    2. Golovina, Svetlana & Hess, Sebastian & Nilsson, Jerker & Wolz, Axel, 2019. "Networking among Russian farmers and their prospects for success," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 31(4), pages 484-499.

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