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Property Right and Organizational Characteristics of Producer‐owned Firms and Organizational Trust

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  • Harvey S. James
  • Michael E. Sykuta

Abstract

**: We examine how organizational characteristics of producer‐owned firms are correlated with the level of perceived trust among cooperative members, using survey data from a sample of U.S. agricultural cooperatives. Our results indicate trust is correlated with property right and organizational structures previously identified in the literature as significant for cooperative performance. We find that the norm of equality and the homogeneity of member interests are key correlates of organizational trust in producer‐owned firms. We also find that some property right structures that improve organizational trust are counterproductive for member investment incentives.

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  • Harvey S. James & Michael E. Sykuta, 2005. "Property Right and Organizational Characteristics of Producer‐owned Firms and Organizational Trust," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(4), pages 545-580, December.
    • Handle: RePEc:bla:annpce:v:76:y:2005:i:4:p:545-580
    DOI: 10.1111/j.1370-4788.2005.00289.x
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    References listed on IDEAS

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    1. Harvey S. James, 2003. "The effect of trust on public support for biotechnology: Evidence from the U.S. Biotechnology Study, 1997-1998," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 155-168.
    2. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 1005-1032, December.
    3. Cook, Michael L., 1994. "The Role of Management Behavior in Agricultural Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 9, pages 1-17.
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    6. Carman, James M., 1997. "Federated Structures for Cooperative Growth," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-23.
    7. Antonio Afonso, 2003. "Understanding the determinants of sovereign debt ratings: Evidence for the two leading agencies," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 27(1), pages 56-74, March.
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    10. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    11. Harvey S. James Jr. & Michael E. Sykuta, 2006. "Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 135-153.
    12. Michael L. Cook, 1995. "The Future of U.S. Agricultural Cooperatives: A Neo-Institutional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1153-1159.
    13. Harvey S. James Jr., 2002. "On the Reliability of Trusting," Rationality and Society, , vol. 14(2), pages 229-256, May.
    14. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1005-1032, December.
    15. Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
    16. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
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