Cooperatives’ Organizational Restructuring, Strategic Attributes, and Performance: The Case of Agribusiness Cooperatives in Greece

Abstract

We develop a classification of traditional versus restructured cooperative organizational attributes based on an inductive approach. Using this classification and integrating concepts from the business literature (i.e., market and brand orientation), we hypothesize three types of relationships: (a) the influence of organizational attributes, i.e., ownership, control and cost/benefit allocation, on organizational performance; (b) the influence of strategic, i.e., market and brand orientation, attributes on organizational performance, and (c) the influence of organizational attributes on market orientation. We examine these relationships empirically in two studies. In study 1, using data from 114 agribusiness cooperatives, we demonstrate that strategic attributes have a greater influence on organizational performance than organizational attributes. In study 2, we replicate the design from study 1, i.e., tracking attribute scores over time, with a subsample of 25 cooperatives 4 years later. This second study generally confirms the findings of study 1. Taken together, the results suggest that greater emphasis should be placed on strategic attributes both in the literature and in practice. C 2015 Wiley Periodicals, Inc.

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

“…Empirical evidence for the contribution of market orientation on the performance of the cooperative is very scarce compared with IOFs (Benos et al, 2016). In particular, information on the relationship between market orientation and performance of agricultural cooperatives in the D&E context is very scant.…”

“…Prior studies indicate that strengthening of customer orientation has been claimed to be essential for the success of marketing cooperatives (Bijman, 2010). Benos et al (2016) reported the positive influence of cooperative organisational attributes on the implementation of market orientation. They also found the positive influence of market orientation on the performance of the cooperative (sales volume, new market entry and market share).…”

“…As a general principle from the marketing literature, organizations that perform market-oriented activities score better than their less-oriented rivals in a wide variety of indicators (Cano et al, 2004). Studies suggest the need to assess market orientation in cooperative perspective considering the issue of internal governance mechanisms, organisational structures and strategic attributes of the cooperatives (Benos et al, 2016).…”

“…The commonly used objective performance measures (profit, sales growth, return on investment) typically in use at IOFs, are difficult to obtain or are insufficiently reliable, particularly for small cooperatives in the D&E economies. Performance measures should consider the specific context of the cooperatives in terms of firm structure, firm culture and governing objectives (Benos et al, 2016).…”

“…The empirical relationship has not been well quantified and information about the relationship is scarce. Benos et al (2016) have suggested a need to study the link of market orientation with performance in a cooperative's perspective. Hence, this study examines the role of market orientation and its components on the business performance of the seed producer cooperatives (SPCs) in Ethiopia and ultimately their impact on the livelihoods of seed grower members.…”