Diversification types of agricultural business organizations activity and factors determining them
2006
Caplikas, J. | Rutkauskaite, J.
The article analyzes the diversification types, forms and their choice conditioned by the inner and outer environmental factors in agriculture business organizations. The analysis of the agriculture census data showed that external diversification of agriculture business organizations is more popular compared to internal diversification. The former diversification ensures extra incomes and higher employment of human resources without additional investment and with minimal risk. Wage labour is the main form of the external diversification. The internal diversification implements 5.9 % of agriculture business organizations. Mostly these organizations choose closely related forms of internal diversification (non-traditional agriculture, ecological agriculture). Above mentioned agriculture business organizations are aimed of the synergy in more rational usage of available inner resources and less activity risk. The diversification of agricultural business organizations activity (when applying unrelated forms, e.g., wood reprocess and trade of wood ware, crafts, rural tourism) prevails in unfavourable for farming localities and is characteristic to organizations with higher intellectual and management potential.
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