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Agroholdings, turbulence, and resilience: The case of Ukraine

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  • Gagalyuk, Taras
  • Valentinov, Vladislav

Abstract

The agricultural sector in transitional and emerging market economies is marked by the prominence of agroholdings, i.e., conglomerates of agricultural enterprises controlling up to hundreds of thousands of hectares of farmland. Drawing on secondary information from Ukraine, this paper explores how institutional turbulence gives rise to agroholdings. The key hypothesis is that membership in an agroholding presents a strategy for agricultural enterprises to remain resilient in the midst of the severe institutional turbulence characteristic of a transitional economy. The focus on resilience provides a tentative explanation of why the remarkable growth of agroholdings fails to be accompanied by evidence of their superior efficiency.

Suggested Citation

  • Gagalyuk, Taras & Valentinov, Vladislav, 2019. "Agroholdings, turbulence, and resilience: The case of Ukraine," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(3), pages 484-496.
    • Handle: RePEc:zbw:espost:313536
    DOI: 10.5771/0949-6181-2019-3-484
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    1. Angappa Gunasekaran & Nachiappan Subramanian & Shams Rahman, 2015. "Supply chain resilience: role of complexities and strategies," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6809-6819, November.
    2. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2013. "Rediscovering the Virgin Lands: Agricultural Investment and Rural Livelihoods in a Eurasian Frontier Area," World Development, Elsevier, vol. 43(C), pages 164-179.
    3. Carolyne Smart & Ilan Vertinsky, 1984. "Strategy and the environment: A study of corporate responses to crises," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 199-213, July.
    4. Gagalyuk, Taras, 2017. "Strategic role of corporate transparency: the case of Ukrainian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 257-278.
    5. Hermans, Frans L. P. & Chaddad, Fabio R. & Gagalyuk, Taras & Senesi, Sebastian & Balmann, Alfons, 2017. "The emergence and proliferation of agroholdings and mega farms in a global context," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(2), April.
    6. Andriy Matyukha & Peter Voigt & Axel Wolz, 2015. "Agro-holdings in Russia, Ukraine and Kazakhstan: temporary phenomenon or permanent business form? Farm-level evidence from Moscow and Belgorod regions," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 370-394, September.
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    Cited by:

    1. Tleubayev, Alisher & Bobojonov, Ihtiyor & Gagalyuk, Taras & Glauben, Thomas, 2022. "Business group affiliation and financial performance in the agricultural sector of transition economies: The case of Russian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(2), pages 280-310.

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    More about this item

    Keywords

    agroholdings; environmental turbulence; firm growth; resilience; transition economy;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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