Is there a need to evaluate the structure of small-scale producers? Are they using the proper arrangements (Rules) to exploit all the advantages and overcome the competition? Have anybody done research looking at the governance and managerial structure of these organisations?
Can/should they change their structure to perform better?
what are some of the literature/theory on corporate governance,earning management and firm characteristics?
Are you looking in the agribusiness sector? small or large institutions?
Santiago Jaramillo
Yes,for large instutions like government linked institutions
It depends on the nature of the actors who hold the specific assets in the business and who are assets necessary for investment and value creation. creating value and avoiding blocking the process of its creation depends on the motivation of the stakeholders who own the specific assets. Their motivation is realized when they receive a share of the created value that exactly compensates their contribution.
If the company operates in a highly competitive market, where innovation is important and the source of innovation is human capital, then the owners of specific assets are engineers, decision-makers, employees and possibly suppliers, including the consultants. If the company operates in a competitive market where only economies of scale and size increase are essential and where financing is scarce, risky and with little scope for diversification, then the owners of financial capital are the The most influential stakeholders and their motivation would create value.
I think you will use a set of theories and not one, which is known as triangulation.
Before choosing theories, I think that analyzes like competitive forces are needed to determine the characteristics of the environment in which the business operates.
These analyzes will determine the competitive dynamics and sources of competitive advantage.
The sources of competitive advantage are resources and skills. Their specificity is analyzed by the theory of resources. This will determine the assets that verify the conditions (such as those of the VRIST filter) to be considered specific.
Stakeholder theory makes it possible to know the stakeholders of the company, given the assets they possess and their specificity. It also makes it possible to know the order of influence of the stakeholders in the creation of value and it is possible to supplement the contributions of this theory by the theory of the dependence of the resources.
At the level of corporate governance stakeholder engagement in value creation is achieved through incentive compensation and participation in decision making. The positive theory of the agency allows to know forms of remuneration to better share the value created according to the contribution of the stakeholders. It also allows to know the access rights to the board of directors so that each stakeholder is represented by as many directors according to its contribution to the creation of value. Access to the board of directors is also studied by the theory of transaction costs.
So you have, in my modest opinion, a mixed frame of reference consisting of propositions from the following theories: agency, transaction costs, stakeholders, resource dependence and resources and skills. Your challenge will be to bring them together in one frame, although there are oppositions between their basic assumptions, according to Lakatos.