Can cooperatives brand? Exploring the interplay between cooperative structure and sustained brand marketing success

Beverland, Michaël

doi:10.1016/j.foodpol.2006.10.004

Cited by 48 publications

(45 citation statements)

References 23 publications

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“…Similar to IOFs, cooperatives should deliver higher value to customers through the implementation of market orientation (Bijman, 2010). Cooperatives are no longer sheltered from the current competitive market pressures (Beverland, 2007) and should respond by becoming more market-oriented enterprises (Kyriakopoulos et al, 2004).…”

Section: Market Orientation and Cooperativesmentioning

confidence: 99%

“…Market orientation relates to the systematic generation and dissemination of information about customers and competitors plus ensuring coordinated actions, with the aim of creating higher value for customers (Lafferty & Hult, 2001). Cooperatives need to ensure that they realise the benefits of being market-oriented to deliver higher value to customers (Kyriakopoulos et al, 2004;Beverland, 2007).…”

Section: Introductionmentioning

confidence: 99%

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The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

Sisay

Verhees

Trijp

2017

Agrekon

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The positive effects of market orientation and its components on firm performance are empirically supported by studies conducted for large firms in developed economies. However, its influence on performance in developing and emerging (D&E) economies, particularly under a cooperative's context, has been under-researched. This paper examines the impact of market orientation components on the performance of seed producer cooperatives (SPCs) in Ethiopia. Results show that customer orientation, interfunctional coordination, and supplier orientation, but not competitor orientation, contribute to higher business performance. Our findings confirm that customer orientation is the key factor for superior business performance in D&E economies. Business performance has a mediating effect between market orientation components and livelihood performance. Interfunctional coordination and supplier orientation influence the livelihood of member farmers both directly and indirectly via business performance. The study concludes that market orientation of SPCs is very important for business performance and provides a strong basis for the livelihood of seed producer families. SPCs can improve their performance and the livelihood of member-farmer families by implementing market oriented strategies, emphasising the key components of market orientation.

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Section: Market Orientation and Cooperativesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

Sisay

Verhees

Trijp

2017

Agrekon

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“…Unable and unwilling to be price takers on the international market, the Kiwifruit Marketing Board developed the ZESPRI brand to pursue product differentiation. Also, to secure a year-round supply, ZESPRI licensed the use of its new kiwi fruit varieties to growers in Europe and South America to expand its market coverage [41].…”

mentioning

confidence: 99%

An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments

Grashuis

2018

Sustainability

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Farmer cooperatives have been portrayed in the literature as flawed and complex organizations with ambiguous objectives. However, research on the observed survival of farmer cooperatives in spite of their weaknesses and limitations is scarce, in part because academic attention to cooperative performance has been static and introspective. Using evidence collected from case studies and print media publications, this paper contributes to the literature with a qualitative study of farmer cooperatives which spurred survival and longevity by means of strategic adaptation in response to four current developments in the external environment: industry consolidation, consumer segmentation, price volatility, and policy change. The qualitative study concludes farmer cooperatives in general respond to such developments by means of organizational growth. Common strategies are vertical integration, geographic expansion, and portfolio diversification. While survival and longevity are promoted in theory, strategic adaptation also often facilitates the pursuit of investor-oriented as opposed to user-oriented objectives. In some scenarios, member ownership and control may become burdensome to the business and prompt conversion to another structure if further adaptation to internal and external developments is unsuccessful. More research is therefore needed to explore the dynamic and variable impact of strategy on cooperative survival.

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“…If the firms use their own brand to sell their product, they are considered as vertically integrated . In research based on five case studies, Beverland () showed that long‐term brand positioning requires a supportive governance structure but did not quantify the agency costs of inefficiency. The second proxy refers to the volume of bottled wine.…”

mentioning

confidence: 99%

Agency costs of vertical integration—the case of family firms, investor‐owned firms and cooperatives in the French wine industry

Cadot

2015

Agricultural Economics

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Vertical integration theory has long suggested internal costs related to changes in incentives due to vertical integration, which means that vertical integration may lead to agency costs. In this work, we specify the notion of agency costs of vertical integration and extend Ang et al. (2000)'s measurement of agency costs to provide an empirical assessment of these costs in the French wine industry. Our econometric analysis finds that the agency costs of vertical integration may reach 2-3% of sales. It also showed that operating expenses of vertical integration are lower for cooperatives than for other firms, while vertical integration is less rewarding for them. This raises questions on the relation between agency costs in cooperatives and their performance.JEL classifications: G320, D230, Q130

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Can cooperatives brand? Exploring the interplay between cooperative structure and sustained brand marketing success

Cited by 48 publications

References 23 publications

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments

Agency costs of vertical integration—the case of family firms, investor‐owned firms and cooperatives in the French wine industry

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