%0 Journal Article
%T Governance costs and the problems of large traditional co
%A Jerker Nilsson
%J Outlook on Agriculture
%@ 2043-6866
%D 2018
%R 10.1177/0030727018761175
%X During recent decades, there have been many failures among large and complex agricultural co-operatives with a traditional organizational structure, that is, with mainly collective governance and collective ownership. Many co-operatives have been converted into the so-called hybrid co-operatives, owned together with external financiers. This article applies governance cost theory to explain this development. The results show that members are not able to govern a collectively owned firm that is large and complex; members are thus reluctant to invest in co-operatives; and members do not perceive that co-operatives benefit them economically. Thus, strong leaders take control and non-member investors gain ownership and influence
%K governance cost
%K traditional co-operative
%K co-operative conversion
%K hybrid co-operative
%K co-operative governance
%U https://journals.sagepub.com/doi/full/10.1177/0030727018761175