About Management and Efficiency of Agri-Business OrganisationsHrabrin Bachev*
Institute of Agricultural Economics, Sofia, Bulgaria
- *Corresponding Author:
- Hrabrin Bachev
Institute of Agricultural Economics
E-mail: [email protected]
Received Date: August 18, 2014; Accepted Date: September 03, 2014; Published Date: September 13, 2014
Citation: Bachev H (2014) About Management and Efficiency of Agri-Business Organisations . Int J Econ Manag Sci 3:188. doi:10.4172/2162-6359.1000188
Copyright: © 2014 Bachev H. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Unprecedented development in theory of economic organisations in past decades has brought about to significant evolution in understanding of essence and efficiency of agri-business organizations. Nevertheless traditional approach for assessing management and efficiency of economic organisationsis (“black-box” approach, through “technical or financial efficiency” of production factors, “productivity of employed resources”) is widly used. Concequently it cannot be excplained: why there are so many organizations performing with great variation in efficiency for long period of time. This paper incorporates achievements of interdisciplinary New Institutional Economics and suggests a framework for assessing management and efficiency of organizations for agri-biusiness and innovation. According to this new approach we have to study firm and farm as a governing rather than as production structure; assess comparative efficiency of alternative market, contract, internal, and hybrid modes of governance; take into account transaction costs and institutional, behavioral, dimensional, technological and natural factors; enrich (reformulate) criteria of economic efficiency of business organization; and better determine effective horizontal and vertical boundaries of business organisations. Specificity in the area of agri-business research and innovations is also clarified. Effective boundaries of different governing modes are assessed, and needs and forms for public intervention in agrarian research and innovation are clarified.