A Hybrid Method (ANP-SWOT) to Formulate and Choose Strategic Alternatives for Development of Rural Cooperatives in Iran

Authors
A. A. Barati 1
K. Kalantari 1
M. R. Nazari 2
A. Asadi 1
1 Department of Agricultural Management and Development, Faculty of Agricultural Economics and Development, University of Tehran, Islamic Republic of Iran.
2 Department of Natural Resources and Environmental Economics, Environmental Sciences Research Institute, Shahid Beheshti University, G.C., P. O. Box 19835-196, Tehran, Islamic Republic of Iran.
Abstract
Rural cooperatives, as a small member-owned organizations, are the potential to facilitate socio-economic development in rural areas. Despite this fact, in Iran and many other developing countries, they have not had remarkable successes in this regard. Because strategy formulation and management is a plan to obtain far-reaching development effects of any organization. This study aimed to present a hybrid method to formulate and choose strategies for rural cooperatives development. It combined SWOT analysis, TOWS matrix, and the Analytic Network Process (ANP). We applied brainstorming technique to analyze the external and internal environment of rural cooperatives using the contributions of an experts’ team comprising 10 individual CEOs of rural cooperatives and senior employees of the Central Organization of Rural Cooperatives. When this team identified key SWOT factors, TOWS matrix was constructed to create good strategic alternatives. Finally, ANP was applied to prioritize the strategies. According to results, 19 key strategic factors such as lack of management knowledge (W4), and ability to improve value and supply chains (S4) were identified. In addition, this team identified 11 strategic alternatives which among them Implement public policy and provide technical and financial services (SO2), Facilitate procurement of inputs and develop supply and value chains (SO1) and Involve rural cooperatives in policy planning (ST1), had greater priority in Iran. The experts’ team believed that the presented combined approach helps decision makers and managers to make and choose the best alternative strategies and factors that affect rural cooperatives development.

Keywords

1. Altman, M. 2015. Cooperative Organizations as an Engine of Equitable Rural Economic Development. J. Coop. Organ. Manage., 3(1): 14-23.
2. Aslan, I., Çınar, O. and Kumpikaitė, V. 2012. Creating Strategies from TOWS Matrix for Strategic Sustainable Development of Kipaş Group. J. Bus. Econ. Manage., 13(1): 95-110.
3. Babaesmailli, M., Arbabshirani, B. and Golmah, V. 2012. Integrating Analytical Network Process and Fuzzy Logic to Prioritize the Strategies: A Case Study for Tile Manufacturing Firm. Expert. Syst. Appl., 39(1): 925-935.
4. Chase, J. 2003. Regional Prestige: Cooperatives and Agroindustrial Identity in Southwest Goiás, Brazil. Agr. Human Value., 20(1): 37-51.
5. Choobchian, S., Kalantari, K., Asadi, A. and Taghavi Motlagh, S. A. 2015. Measurement and Comparison of Different Dimensions of Sustainable Coastal Fishing Management in Beach Seine Cooperatives in Guilan. J. Agr. Sci. Tech., 17(6): 1463-1472.
6. Eslamipoor, R. and Sepehriar, A. 2014. Firm Relocation as a Potential Solution for Environment Improvement Using a SWOT-AHP Hybrid Method. Process. Saf. Environ. Prot., 92(3): 269-276.
7. FAO. 2012. Agricultural Co-operatives: Key to Feeding the World. FAO. Rome.
8. Franks, J. R. and Mc Gloin, A. 2007. Environmental Co-operatives as Instruments for Delivering Across-Farm Environmental and Rural Policy Objectives: Lessons for the UK. J. Rural. Stud., 23(4): 472-489.
9. Fred, R. D. and Forest, R. D. 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases. 16th edition, Pearson, New Jersey.
10. Getnet, K. and Anullo, T. 2012. Agricultural Cooperatives and Rural Livelihoods: Evidence From Ethiopia. Ann. Public Coop. Econ., 83(2): 181-198.
11. Görener, A., Toker, K. and Uluçay, K. 2012. Application of Combined SWOT and AHP: A Case Study for a Manufacturing Firm. Proc. Soc. Behav. Sc., 58: 1525-1534.
12. Henry, H. and Schimmel, C. 2011. Cooperatives for People-Centred Rural Development: ILO. Publisher Name???
13. Herbel, D., Rocchigiani, M. and Ferrier, C. 2015. The Role of the Social and Organisational Capital in Agricultural Co-operatives’ Development Practical Lessons from the CUMA movement. J. Coop. Organ. Manage., 3(1): 24-31.
14. IFAD. 2014. International Day of Cooperatives: Rural Cooperative Enterprises Boost Sustainable Development. From: http://www.ifad.org/media/events/2014/cooperatives.htm
15. Lee, S. and Walsh, P. 2011. SWOT and AHP Hybrid Model for Sport Marketing Outsourcing Using a Case of Intercollegiate Sport. Sport Man. Rev., 14(4): 361-369.
16. Lorendahl, B. 1996. New Cooperatives and Local Development: A Study of Six Cases in Jämtland, Sweden. J. Rural. Stud., 12(2): 143-150.
17. Osborn, A. F. 1963. Applied Imagination; Principles and Procedures of Creative Problem-solving: Principles and Procedures of Creative Problem-solving. Scribner. What kind of publication?? Publisher name???
18. Pesonen, M., Kurttila, M., Kangas, J., Kajanus, M. and Heinonen, P. 2001. Assessing the Priorities Using A'WOT among Resource Management Strategies at the Finnish Forest and Park Service. For. Sci., 47(4): 534-541.
19. Saaty, T. L. 2004. Decision Making: The Analytic Hierarchy and Network Processes (AHP/ANP). J. Syst. Sci. Syst. Eng., 13(1): 1-35.
20. Saaty, T. L. 2006. The Analytic Network Process Decision Making with the Analytic Nnetwork Process. Springer, PP. 1-26.
21. Saaty, T. L. and Vargas, L. G. 2013. Decision Making with the Analytic Network Process: Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks. Second Edition, Springer US, New York.
22. Sadighi, H. and Darvishinia, A. A. 2010. Farmers’ Professional Satisfaction with the Rural Production Cooperative Approach. J. Agr. Sci. Tech., 7(1 and 2): 1-8.
23. Sevkli, M., Oztekin, A., Uysal, O., Torlak, G., Turkyilmaz, A., and Delen, D. 2012. Development of a Fuzzy ANP Based SWOT Analysis for the Airline Industry in Turkey. Expert. Sys. Appl., 39(1): 14-24.
24. Shakoor Shahabi, R., Basiri, M. H., Rashidi Kahag, M. and Ahangar Zonouzi, S. 2014. An ANP–SWOT Approach for Interdependency Analysis and Prioritizing the Iran׳s Steel Scrap Industry Strategies. Resour. Policy, 42: 18-26.
25. Shrestha, R. K., Alavalapati, J. R. R. and Kalmbacher, R. S. 2004. Exploring the Potential for Silvopasture Adoption in South-Central Florida: An Application of SWOT–AHP Method. Agr. Sys., 81(3): 185-199.
26. Spulber, D. F. 1994. Economic Analysis and Management Strategy: A Survey Continued. J. Econ. Manage. Strat., 3(2): 355-406.
27. Suh, J. 2015. Communitarian Cooperative Oganic Rice Farming in Hongdong District, South Korea. J. Rural. Stud., 37: 29-37.
28. United Nations. 2013. Cooperatives in Social Development and the Observance of the International Year of Cooperatives. Session of the General Assembly, New York, A/68/168.
29. Wanyama, F. O. 2014. Cooperatives and the Sustainable Development Goals: A Contribution to the Post-2015 Development Debate. Publisher name?? ILO.
30. Weihrich, H. 1982. The TOWS Matrix: A Tool for Situational Analysis. Long. Range. Plann., 15(2): 54-66.
31. Wheelen, T. L. and Hunger, J. D. 2012. Strategic Management and Business Policy: Toward Global Sustainability. 13 Edition, Pearson/Prentice Hall, New York.
32. World Bank. 2007. World Development Report 2008: Agriculture For Development. The World Bank, Washington DC.
33. World Bank. 2014. World Bank Annual Report 2014. The World Bank, Washington DC.
34. Yang, H., Klerkx, L. and Leeuwis, C. 2014. Functions and Limitations of Farmer Cooperatives as Innovation Intermediaries: Findings from China. Agr. Sys., 127: 115-125.
35. Yüksel, İ. and Dagdeviren, M. 2007. Using the Analytic Network Process (ANP) in a SWOT Analysis: A Case Study for a Textile Firm. Inform. Sci., 177(16): 3364-3382.
36. Zarafshani, K., Sahraee, M. and Helms, M. 2015. Strategic Potential of the Vermicompost Agribusiness in Iran: A SWOT Analysis. J. Agr. Sci. Tech., 17(6): 1393-1408.
Journal of Agricultural Science and Technology
Volume 19, Issue 4
July and August 2017
Pages 757-769