DOI: https://doi.org/10.36719/2663-4619/114/216-219
Gulnara Guliyeva
Azerbaijan State Agrarian University
https://orcid.org/0009-0004-8206-0652
gulnaraguliyeva210@gmail.com
Kamil Majidli
Azerbaijan State Agrarian University
Master student
https://orcid.org/0009-0008-1361-0787
kmecidov0@gmail.com
Management of Agribusiness and its Social Aspects
Abstract
Agribusiness management is considered one of the most important issues in the new institutional economy. The main feature of the modern agrarian economy is the need for a rapidly developing management mechanism that leads to the creation of network forms of agribusiness subjects. From this point of view, networks can be seen as a combination of management structures with multi-level vertical and horizontal connections. Network governance can be defined as an institutional mechanism that includes configurations of multi-stage business contracts. Thus, the main components of network management are the mechanism for the distribution of its structures and the development of their interconnections. However, networks between farmers and participants in vertically coordinated supply chains have only started to play an important role in Europe in the last 20 years.
The purpose of cooperative ownership is explained as an operational strategy to minimize operating costs. When farmers own and therefore control and manage the agricultural cooperative, they avoid situations of potential robbery arising from the local and temporary nature of the asset. Cooperatives are often referred to as social groups with a corporate spirit. The formation of interdependence among farmers in local cooperatives is explained as the result of close personal acquaintance and strong social ties, which are the main distinguishing features of rural communities.
Keywords: agribusiness, structure, strategy, cooperation, social aspect