Work

Managerial vision bias and cooperative governance

Year: 2015

Type: article

Abstract: What causes firms to behave the way they do when they face different investment opportunities? We argue that both people and processes are behind the decision-making of project implementation. Member and professional CEOs of cooperatives differ regarding their managerial vision towards upstream and downstream projects. Cooperatives with member CEOs are upstream focused and it is reflected by the cascading effect of negative vision bias towards downstream projects. When downstream activities become more important, cooperatives need to replace the member CEOs with professional CEOs. However, a cooperative with a professional CEO may still be in a disadvantageous position if the member-dominated Board of Directors' negative bias towards downstream projects is too strong, which may result in an investor owned firm being the efficient governance structure.

Source: European Review of Agricultural Economics

DOI: 10.1093/erae/jbv017

Authors: Wendong Deng, George W. J. Hendrikse

Institution: Erasmus University Rotterdam

Language: English

Topic: Cooperative Studies and Economics

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2274583696

FWCI: 6.025

Cites: 55

Cited by: 24

Related to: 10