The new agri-food market is considered a detrimental factor for the competitiveness and financial equilibria of agricultural cooperatives. According to this view, as a result of market saturation and globalisation processes, shifting investments to supply chain forward activities (e.g., for brand development or for research and development activities) would represent a serious threat to the cooperative model. Taking a contrasting view, this paper aims at demonstrating that the cooperative model continues to play a strategic role in the current competitive environment. In particular, the adoption of the knowledge-based theory of the firm combined with the "open innovation" approach permits a renewed interpretation of the role of modern agricultural cooperatives as knowledge developers and disseminators, for the benefit of members and their communities. This theoretical approach will be tested by studying a sample of agricultural cooperatives operating in the province of Trento, in North-East Italy.

The form of association ... which if mankind continue to improve, must be expected in the end to predominate, is not that which can exist with capitalist as chief, and workpeople without a voice in the management, but the association of the labourers themselves on terms of equality, collectively owning the capital with which they carry on their operations, and working under managers elected and removable by themselves."

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