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Type: Journal Article
Journal title: Journal on Chain and Network Science
Year of publication: 2016
Source:
AGRERI
Subject:
agricultural economics
agribusiness and cooperatives
cooperative farming
Description:
For years, scholars and policy makers have argued that cooperatives, particularly agricultural cooperatives, exhibit organizational inefficiencies primarily caused by individual member behaviour that is often independent and non-cooperative conflicting with the formation of effective coalition building. This free riding tendency creates significant challenges for a continued joint collaboration between and among member patrons. Yet, agricultural cooperatives have a long history of surviving as successful business enterprises. This paper presents a framework that proposes generic solutions effective as design principles in addressing the negative consequences of high organization costs, thus leading to sustainable common group interest activities.
Related Resources
Support for Farmers' Cooperatives-Experiences of non-EU OECD CountriesProvider: Subject: policies agricultural policies socioeconomic development economics agricultural economics cooperatives agribusiness and cooperatives agriculture agricultural practices farming systems cooperative farming Funded by: |
Incentives to Efficient Investment Decisions in Agricultural CooperativesRecent studies have questioned the competitiveness of agricultural cooperatives in an industrialized food system, based on empirical results and economic theory. New organizational institutions have been proposed to overcome the cooperative main weaknesses (the so called new generation cooperatives). In this paper, we provide a simple model based on a financial approach to address the issue of cooperative competitiveness and to assess the investment efficiency of both traditional and new generation cooperatives. The main conclusions of the analysis are: i) cooperatives (both traditional and new generation ones) may have incentive to adopt projects that do not maximize the Net Present Value of the firm ii) the institutions of new generation cooperatives are not sufficient to ensure net present value maximization, even though they address some of the main concerns of traditional cooperatives iii) traditional cooperatives may have a competitive advantage in businesses that require the aggregation of a large number of farmers. Provider: Subject: cooperatives agribusiness and cooperatives Collected from: |
AGRERI Library
Support for Farmers' Cooperatives-Experiences of non-EU OECD CountriesProvider: Subject: policies agricultural policies socioeconomic development economics agricultural economics cooperatives agribusiness and cooperatives agriculture agricultural practices farming systems cooperative farming Funded by: |
External Library
Incentives to Efficient Investment Decisions in Agricultural CooperativesRecent studies have questioned the competitiveness of agricultural cooperatives in an industrialized food system, based on empirical results and economic theory. New organizational institutions have been proposed to overcome the cooperative main weaknesses (the so called new generation cooperatives). In this paper, we provide a simple model based on a financial approach to address the issue of cooperative competitiveness and to assess the investment efficiency of both traditional and new generation cooperatives. The main conclusions of the analysis are: i) cooperatives (both traditional and new generation ones) may have incentive to adopt projects that do not maximize the Net Present Value of the firm ii) the institutions of new generation cooperatives are not sufficient to ensure net present value maximization, even though they address some of the main concerns of traditional cooperatives iii) traditional cooperatives may have a competitive advantage in businesses that require the aggregation of a large number of farmers. Provider: Subject: cooperatives agribusiness and cooperatives Collected from: |
