Common cultural background: The key to success of two Bolivian agricultural cooperatives

Abstract

Agriculture in Bolivia faces a series of challenges regarding the structure, development, and size of farms across the country. Agricultural cooperatives in Bolivia have played a significant role in improving the economic and social development of small-scale farmers. However, little is known about the factors that drive the cooperatives’ success and the challenges they face under the country’s unstable economic and political environment. This study aims to analyze the success factors and challenges for two agricultural cooperatives in Bolivia that have established a strong reputation over time. The qualitative method used enabled deep insights into how this has been achieved. The success factors identified included training and leadership development, economic incentives for members, strategic management, member services, member control, a strong sense of ownership by members, and a common cultural background. These factors were observed to be important for both cooperatives, despite having different approaches to their implementation. The common cultural background stood out as one of the most influential success factors. The existence of culturally and ethnically influenced practices determined the formal management structure of the cooperatives and increased its acceptance by the members. The challenges faced by both cooperatives refer to internal and external factors such as free-rider problems and increased complexities generated by their growth and the change in cooperative legislation.