Organisational principles for co-operative firms

Nilsson, Jerker

doi:10.1016/s0956-5221(01)00010-0

Cited by 207 publications

(242 citation statements)

References 16 publications

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“…In a farmers' co-operative, the pooling of resources in the collective organization seems crucial as modern farming practices call for diversification and specialization (Hendrikse, Smit, & de al Vieter, 2007), which require significant investments in different processing technologies. What clearly speaks in favour of collectivistic motivations is that all the financial resources accumulated that go beyond the total sum of members' co-operative contributions are the members' (indivisible) common property to which no single individual can claim sole ownership rights (Bataille-Chedotel & Huntzinger, 2004;Nilsson, 2001). It is this collective resource pool that is a source of the co-operative's effectiveness in its environment and provides it with the ability to compete.…”

Section: Economic Exchange Interest and Expectation Of Economic Gainsmentioning

confidence: 99%

“…The history of co-operation leads us to believe that the acknowledgement of this interdependence is relevant in terms of continuity of co-operation (Nilsson, 1996). Also successful democracy (in the vein of 'one-member-one-vote') requires a high degree of interdependence among members (e.g., Johnson, 2006;Cornforth, 2004;Nilsson, 2001). The interdependence is embedded in the structure of economic rationality and scale and awareness of benefits of co-operation.…”

Section: Forms Of Exchangementioning

confidence: 99%

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Governance of Co-operative Organizations: A Social Exchange Perspective

Jussila¹,

Goel²,

Tuominen³

2012

BMR

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This paper introduces social exchange theory as a promising framework for analyzing co-operative organizations and a helpful tool for deepening our understanding of their governance. We suggest that social exchange is one of the foundational elements of co-operation among member-owners as it provides the impetus for initiating organized co-operative activity among those actors, which is then facilitated with formal co-operative arrangements. Further, we suggest that there is a connection between key constructs of social exchange, e.g. members' motivations for exchange, the resources they exchange, and the forms the exchange takes, and the sustainability and success of co-operative exchange relationships. Overall, the ideas set forth in this paper may offer a number of avenues for future research, especially in the area of formation, governance, and management of co-operative organizations.

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Section: Economic Exchange Interest and Expectation Of Economic Gainsmentioning

confidence: 99%

Section: Forms Of Exchangementioning

confidence: 99%

Governance of Co-operative Organizations: A Social Exchange Perspective

Jussila¹,

Goel²,

Tuominen³

2012

BMR

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“…to the farmer-members through raw material prices, will distort market signals to the farmers+ Producers will mistakenly interpret such incomes as a sign of increased demand for their products Nilsson, 2001! and will tend to supply more raw materials~Royer, 1995!+ Finally, lack of transferability of residual claims on cooperative assets creates the horizon problem Hendrikse & Veerman, 1997;Nilsson, 1998;Vitaliano, 1983!…”

Section: Hypothesesmentioning

confidence: 99%

The impact of cooperative structure and firm culture on market orientation and performance

2004

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Building on recent advances in cooperative literature and practice, we conceive two key organizational features of cooperatives: cooperative structure~in terms of control, ownership, and cost0 pricing policies resulting in traditional and re-engineered co-ops! as well as entrepreneurial cooperative firm culture+ Then we conceptualize and test the effect of these organizational features on the market orientation and performance of the cooperative firm relying on a sample of Dutch co-ops+ We cannot establish a systematic influence of the cooperative structure; however, a significant influence of individualized member ownership on performance and of cost0pricing policies on market orientation has been found+ Entrepreneurial firm culture has a significant effect on both market orientation and performance+ @EconLit citations: L200, M310, Q130+#

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“…the principals are a large number of individuals, each with their own -often conflicting -interests. There is no possibility for power concentration in co-operative membership, as is often the case in investor-driven firms (Nilsson, 2001). …”

Section: Costs Of Monitoring Managementmentioning

confidence: 99%

Governance of Production Co‐operatives in Russian Agriculture

Nilsson

Golovina

Heß

et al. 2016

Ann Public Coop Econ

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Many Soviet kolkhozy and sovkhozy were transformed into agricultural production co-operatives, because the farm workers would have had large transaction costs in any other type of organisation. These co-operatives still hold a strong market position. This study explores the hypothesis that this market strength could be due to low governance costs, obtained through strong manager power. As managers want the co-operative to survive, they make limited investments in the co-operative and pay low wages. The members do, however, not consider this to be problematic. They appreciate the community within the village, their private plots of land and the co-operative's services. Hence the existence of the co-operatives is not threatened.

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Organisational principles for co-operative firms

Cited by 207 publications

References 16 publications

Governance of Co-operative Organizations: A Social Exchange Perspective

Governance of Co-operative Organizations: A Social Exchange Perspective

The impact of cooperative structure and firm culture on market orientation and performance

Governance of Production Co‐operatives in Russian Agriculture

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