Marketing cooperatives and financial structure: a transaction costs economics analysis

Hendrikse, George; Veerman, Cees

doi:10.1111/j.1574-0862.2001.tb00064.x

Cited by 80 publications

(31 citation statements)

References 16 publications

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“…94-103, 390-391). Cooperation among farmers is explained by the economies of scale and the effort of minimizing transaction costs [5,8,51]. If one or both of these purposes is met, collective action benefits farmers.…”

Section: Systems Approach To Dynamic Complexitymentioning

confidence: 99%

“…A larger membership allows an increment of both productive capital and stock of reputation, which produces benefits from collective action, yet it takes some time before this influence can be realized (Figure 1). Cooperation among farmers is explained by the economies of scale and the effort of minimizing transaction costs [5,8,51]. If one or both of these purposes is met, collective action benefits farmers.…”

Section: Systems Approach To Dynamic Complexitymentioning

confidence: 99%

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Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Chlebicka

Pietrzak

2018

Sustainability

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Agricultural producer organizations are considered to be an efficient way for farmers to build up bargaining power, thereby increasing farmers' incomes. While making a contribution to the research on the longevity of cooperatives, we tried to identify some regularities concerning the survival of these entities in the specific context of transition economies. In this paper, we look more closely at potential relationships between the development of producers' organizations (POs) and the size of their membership. Then, we link the size of the membership with the concept of social capital. For our purposes, it is necessary to depart from using a general concept of social capital and to differentiate between bonding and bridging social capital. Our results, based on two unique datasets from Poland, clearly showed that relatively larger POs have higher rates of survival. This, in turn, is correlated with the stock and the type of social capital. The main contribution of the study is in identifying the relevance of the size of the membership of newly-established POs to their survival. The findings are followed by policy recommendations that may be useful in the context of promoting farmers' cooperation in recognizing the low stock of social capital, specifically bridging social capital.

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Section: Systems Approach To Dynamic Complexitymentioning

confidence: 99%

Section: Systems Approach To Dynamic Complexitymentioning

confidence: 99%

Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Chlebicka

Pietrzak

2018

Sustainability

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“…He argues that in the course of time with changing general economic and market environment, the TAMCs in West Europe gradually adapted their goal of realising a maximum price for the products supplied by farmer-members into the more general goal of a satisfactory income and continuity of business (marketing, processing). Meulenberg (1978) also showed that marketing instruments to achieve the TAMCs' objectives are the same as for investor firms, however, the internal governance of cooperatives might considerably limit their efficient use (see also Hendrikse and Veerman 2000;Krol et al 2010).…”

Section: Strategies and Effects Of Milk Producers' Organisations In Tmentioning

confidence: 99%

Strategies and effects of milk producers' organisations in the Czech Republic

Ratinger¹,

Bošková²

2013

AGR ECON-CZECH

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Abstract:In the Czech Republic, milk producers' organisations arose spontaneously from farmers' initiatives in the late 1990s as a response to the need to secure fair market conditions for dairy farmers. At present, there are 39 milk producers' organisations operating locally, nationwide or even on the central European markets. Th e paper aims at a better understanding what market conditions and transaction attributes have favoured the emergence and the success of the Czech milk marketing cooperatives as well as if their current objectives and strategies are suffi cient for securing their future success. Th e methodological approach rests largely in the theory of industrial organisation combined with the new institutional economics. Establishing marketing cooperatives, dairy farmers balanced market power with processing industry. It is showed on six case studies that the Czech milk marketing cooperatives follow traditional objectives (securing sales, fair price and payment discipline); however, their priorities and strategies diff er according to their market environment. If the concentration of the dairy industry continues, there will be a need for reconsidering the objectives of milk marketing cooperatives toward a more vertical coordination in the dairy chain.

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“…Bonus (1986, p335) summarizes his position as 'The cooperative association is a hybrid organizational mode …', although he states later on the same page that '… a firm jointly owned by the holders of transaction-specific resources …'. Hendrikse and Veerman (2001) classify a cooperative as a hierarchy. 9 We agree with Sexton (1984, p429) when he writes 'Labor-managed firms are closely analogous to agricultural marketing cooperatives.…”

Section: Conclusion and Further Researchmentioning

confidence: 99%

On the Nature of a Cooperative: A System of Attributes Perspective

Hendrikse

2008

Contributions to Management Science

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In the 1950s and 1960s there was a debate about the nature of an agricultural cooperative: the cooperative as extension of the farm, the cooperative as vertical integration or the cooperative as a firm. We revisit this debate with various concepts from the theory of the firm that have been formulated since 1990. Two concepts shed light on this debate: the enterprise as a system of attributes and the delineation of a governance structure in terms of ownership rights, control rights and income rights. We argue that viewing the cooperative as a system of attributes integrates these three views. It emphasizes that a cooperative is a firm in itself, with many input suppliers as owners. The feature of many input suppliers as owners implies that the behavioral differences between a cooperative and an investor owned firm have to be addressed by highlighting the unique aspects of the stakeholder owning the enterprise. AbstractIn the 1950s and 1960s there was a debate about the nature of an agricultural cooperative: the cooperative as extension of the farm, the cooperative as vertical integration or the cooperative as a firm. We revisit this debate with various concepts from the theory of the firm that have been formulated since 1990. Two concepts shed light on this debate: the enterprise as a system of attributes and the delineation of a governance structure in terms of ownership rights, control rights and income rights. We argue that viewing the cooperative as a system of attributes integrates these three views. It emphasizes that a cooperative is a firm in itself, with many input suppliers as owners. The feature of many input suppliers as owners implies that the behavioral differences between a cooperative and an investor owned firm have to be addressed by highlighting the unique aspects of the stakeholder owning the enterprise. KeywordsCooperative, vertical integration, extension of the farm, governance 1 The authors are at RSM Erasmus University Rotterdam, Office T8-56,

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Marketing cooperatives and financial structure: a transaction costs economics analysis

Cited by 80 publications

References 16 publications

Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Strategies and effects of milk producers' organisations in the Czech Republic

On the Nature of a Cooperative: A System of Attributes Perspective

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