Artikel
Agency costs and organizational architecture of large corporate farms: evidence from Brazil
Drawing inspiration from American institutionalism and new institutional economics, this paper discusses the rise of large corporate farms as the transition from the classic capitalist firm to the corporate form of organization based on the separation of ownership and control. Three case studies from the Brazilian cerrado show the rise of large corporate farms to be enabled and impelled by the advance of agricultural production technologies and the search for scale economies. The key finding from the case studies is that complex technology not only necessitates large-scale farming but also generates technical and organizational solutions to the potentially pervasive agency problems. In addition to the use of sound corporate governance practices, these solutions include organizational architecture encompassing computer-aided accounting and budgeting systems, incentive-based compensation, clear definition of performance goals, and delegation of operational decisions to farm managers. Furthermore, organizational architecture has been shown to promote a culture of trust and accountability, which counteract the opportunistic tendencies of farm managers and workers.
- Language
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Englisch
- Bibliographic citation
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Journal: International Food and Agribusiness Management Review ; ISSN: 1559-2448 ; Volume: 20 ; Year: 2017 ; Issue: 2 ; Pages: 201-220 ; Wageningen: Wageningen Academic Publishers
- Classification
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Wirtschaft
Organizational Behavior; Transaction Costs; Property Rights
Firm Organization and Market Structure
Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Subject
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corporate farms
separation of ownership and control
organizational architecture
corporate governance
- Event
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Geistige Schöpfung
- (who)
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Chaddad, Fabio
Valentinov, Vladislav
- Event
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Veröffentlichung
- (who)
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Wageningen Academic Publishers
- (where)
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Wageningen
- (when)
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2017
- DOI
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doi:10.22434/IFAMR2016.0009
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Chaddad, Fabio
- Valentinov, Vladislav
- Wageningen Academic Publishers
Time of origin
- 2017
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Local agency costs of political centralization
Agency costs in primary dealer systems
Agency Costs, Credit Constraints and Corporate Investment
Agency costs, risk shocks and international cycles
Agency costs and the monetary transmission mechanism