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Factors That Influence the Commitment of Members to Their Cooperative Organization

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Author Info

  • Fulton, Joan R.
  • Adamowicz, Wiktor L.

Abstract

This research explores the factors that influence the commitment of members to their cooperative organization. Previous empirical and theoretical research is reviewed. The cooperative members' decisions regarding patronage are then described in terms of a random utility model. Logit analysis, with data from member surveys of a large grain marketing cooperative. indicates that the factors that influence member patronage are: the ability to share in profits through dividends. The ability to purchase chemicals and fertilizers at the grain elevator, and the percentage of the total farm income obtained from grain operations. There is some evidence that farmers' patronage is positively associated with competitive grain pricing and negatively associated with the firm being active in the community. Additional analysis reveals that the age of the farmer significantly affects the importance the member places on the ability to share in profits through dividends.

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File URL: http://purl.umn.edu/46391
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Bibliographic Info

Article provided by National Council of Farmer Cooperatives in its journal Journal of Agricultural Cooperation.

Volume (Year): 8 (1993)
Issue (Month): ()
Pages:

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Handle: RePEc:ags:joagco:46391

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Keywords: Agribusiness;

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Cited by:
  1. Fulton, Murray E. & Gibbings, Julie, 2000. "Response And Adaption: Canadian Agricultural Co-Operatives In The 21st Century," Miscellaneous Publications 31768, University of Saskatchewan, Centre for the Study of Co-operatives.
  2. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114354, European Association of Agricultural Economists.
  3. Mensah, Edouard R. & Karantininis, Kostas & Adegbidi, Anselme & Okello, Julius Juma, 2012. "Determinants of Commitment to Agricultural Cooperatives: Cashew Nuts Farmers in Benin," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125946, International Association of Agricultural Economists.
  4. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.
  5. Ortmann, Gerald F. & King, Robert P., 2006. "Small-Scale Farmers in South Africa: Can Agricultural Cooperatives Facilitate Access to Input and Product Markets?," Staff Papers 13930, University of Minnesota, Department of Applied Economics.
  6. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(1).
  7. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Discussion Papers 108551, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  8. Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.

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