The role of agricultural development cooperatives in establishing social capital

Kuştepeli, Yeşim; Gülcan, Yaprak; Yercan, Muırat; Yıldırım, Batuhan

doi:10.1007/s00168-019-00965-4

Cited by 19 publications

(14 citation statements)

References 26 publications

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“…On the one hand, cooperatives are part of the ideal, more sustainable model of rural entrepreneurship proposed by Korsgaard et al [14]. The functioning of agricultural cooperatives as "user-owned, Sustainability 2021, 13, 534 2 of 18 user-controlled, user-benefited agricultural producer organisations" [15] (p. 103) heavily relies on trust, reciprocity, and interpersonal relationships, which helps to overcome market failures, reduce transaction costs, and diminish asymmetric information-related problems [16]. This type of entrepreneurship involves new combinations of local resources that create value not only for entrepreneurs but also for rural areas [14].…”

Section: Introductionmentioning

confidence: 99%

“…A large number of studies have considered social economy organizations as fundamental vehicles for the generation and extension of social capital in communities by strengthening cooperative and solidarity values, social norms, trust, and civic attitudes [9,62,63]. Associations and other cooperative organizations are, thus, situated as nuclei that create social capital, with particularly important effects in rural areas by strengthening their socio-economic development through the reduction of production costs, minimization of risks, greater ease of access to credit, reinvestment, rooting of capital in the territory, and increased involvement and integration of rural actors in the local community [15,16].…”

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confidence: 99%

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Cooperatives and Social Capital: A Narrative Literature Review and Directions for Future Research

2021

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How cooperatives generate and absorb social capital has attracted a great deal of attention due to the fact that they are collective organizations owned and democratically managed by their members, and, accordingly, are argued to be closely linked to the nature and dynamics of social capital. However, the extant literature and knowledge on the relationship between cooperatives and social capital remain unstructured and fragmented. This paper aims to provide a narrative literature review that integrates both sides of the relationship between cooperatives and social capital. On the one hand, one side involves how cooperatives create internal social capital and spread it in their immediate environment, and, on the other hand, it involves how the presence of social capital promotes the creation and development of cooperatives. In addition, our theoretical framework integrates the dark side of social capital, that is, how the lack of trust, reciprocal relationships, transparency, and other social capital components can lead to failure of the cooperative. On the basis of this review, we define a research agenda that synthesizes key trends and promising research avenues for further advancement of theoretical and empirical insights about the relationship between cooperatives and social capital, placing particular emphasis on rural and agricultural cooperatives.

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Section: Introductionmentioning

confidence: 99%

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confidence: 99%

Cooperatives and Social Capital: A Narrative Literature Review and Directions for Future Research

2021

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“…By disallowing the goal of profit maximization, cooperatives bring within the ambit of this code new activities that would have remained unrealized otherwise. Once these activities are brought in, the economic function system undergoes adjustment processes, which may take the form of the yardstick effect (Liang and Wang 2020;Liang and Hendrikse 2016;Sexton 1990) or other positive external effects, such as the promotion of trust and social capital (Saz-Gil et al 2021;Kustepeli et al 2020;Sabatini et al 2014). In the Luhmannian view, the local enhancements of inclusiveness of the payment/nonpayment code do not require these effects to be large-scale, pervasive, or game-changing in any way.…”

Section: The Role Of Cooperativesmentioning

confidence: 99%

“…This double nature is hardwired in cooperative routines and governance rules, enabling democratic participation and deliberation (Sacchetti and Tortia 2021). However, it follows from Deng et al's (2021) reasoning that these routines and rules work best when supported by sufficient social capital resources, which evidently cannot be themselves conserved therein, even though it is not uncommon for cooperatives to cultivate the development of trust among their members (Saz-Gil et al 2021;Kustepeli et al 2020;Sabatini et al 2014). While cooperatives can, in principle, generate and reinforce their own social capital (Imami et al 2021), there are no guarantees that the social capital actually available to cooperatives will enable the smooth functioning of their routines and governance rules.…”

Section: Introductionmentioning

confidence: 99%

Social capital in cooperatives: an evolutionary Luhmannian perspective

Valentinov

Iliopoulos

2021

J Evol Econ

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In a recent contribution to this journal, Deng et al. (2021) draw on an extensive range of theoretical and empirical literature to make the case for the tendency of social capital resources of agricultural cooperatives in the Western world to decline over time. The present paper revisits this argument by drawing on a Luhmannian systems-theoretic perspective that takes the capitalist economic system to be limitedly sensitive and receptive to a broad variety of human needs. Whereas many of these needs remain marginalized and neglected, some of them may be codified or translated into a profit-making calculus. Cooperatives are shown to present one of the channels through which this codification may be possible; namely, the codification effect of cooperatives enables the incorporation of a multitude of mutual self-help activities into the economic system. This incorporation gives rise to intrasystemic adjustment processes that can be considered complete when the mutual self-help activities introduced by cooperatives no longer require the cooperative form and are integrated into the activities of investor-owned firms. If this view is accepted, then declining social capital may be an indicator of the successful codification process, which helps to make the economic system less exclusionary and more sensitive to human needs.

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“…Y. Kustepeli, Y. Gulcan, M. Yercan, et al focus on the possibilities of activating the social component in rural areas and the cooperative component of agricultural production [4]. As a result of the surveys, the authors have found that agricultural cooperation can significantly affect the growth of the social component and income of the rural population.…”

Section: Related Workmentioning

confidence: 99%

Social Aspects of State Regulation of Agricultural Production

2021

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State regulation of agricultural production in Ukraine is aimed at increasing production and ensuring food security of the country and its population. However, the low level of social development, as well as social problems, which in rural areas among the population have now become particularly acute, reduce the potential of this area of the national economy. That is why the question arises of finding active incentives, tools and mechanisms that would encourage the rural population to act and create a promising basis for improving its social status. One of the main existing problems of state regulation of agricultural production in Ukraine is the provision of financial incentives to large agricultural producers. And although such a policy has allowed to increase export potential, but has led to the destruction of rural areas and the impoverishment of the rural population. The intensive activities of these producers on the basis of intensive technologies have led to significant imbalances in the development of the industry with the prevalence of crop production and the decline of livestock, reduced soil quality, as well as rising unemployment of the rural population. This has led to an increase in the shadow sector through illegal activities and hidden income.

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The role of agricultural development cooperatives in establishing social capital

Cited by 19 publications

References 26 publications

Cooperatives and Social Capital: A Narrative Literature Review and Directions for Future Research

Cooperatives and Social Capital: A Narrative Literature Review and Directions for Future Research

Social capital in cooperatives: an evolutionary Luhmannian perspective

Social Aspects of State Regulation of Agricultural Production

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