IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v154y2022ics0305750x22000523.html
   My bibliography  Save this article

Trade-offs or synergies? Hybridity and sustainable performance of dairy cooperatives in India

Author

Listed:
  • Nath, Sanchayan
  • Arrawatia, Rakesh

Abstract

India has come a long way in achieving milk security since it attained independence in 1947. During the 1950s India had to import about 55,000 tons of milk powder. By the year 2018–19 it had become one of the largest producers of milk in the world. The credit for this goes to the successful promotion of dairy cooperatives (DCs) in India. However, milk productivity in the country has continued to lag behind global averages. To increase milk productivity in India, the National Dairy Plan (NDP) was launched in 2011–12. Limited research appears to have been conducted on the effect of NDP on DC performance. Therefore, this article analyzes the effect of NDP on DC performance by conceptualizing DCs as hybrid organizations. However, there is limited research on how the hybrid character of cooperatives affects their performance. Regression analysis using 2-stage doubly robust, augmented inverse probability weighted (AIPW) estimator based on the potential outcomes framework on DC data collected via surveys and secondary reveals that NDP is imbibing characteristics of hybrid organizations in Indian DCs. Hybridity is statistically significant after controlling for village-level and DC-level variables. Financial hybridity is significant for four dependent variables: unit profit, quality of milk, human capability-building and community support. Autonomy, the other measure of hybridity, is significant for two dependent variables: growth of sales and unit profit. In other words, Indian DCs with hybrid characteristics actually pursue three different kinds of objectives: a) maximization of market-based logics (pursuit of self-interest, economic efficiency and profit maximization); b) maximization of community-oriented logics (pursuit of values such democracy, solidarity and autonomy); and, c) maximization of public benefit (public-sector led local economic development). The above discussion shows that Indian DCs are characterized by synergetic outcomes and not by trade-offs which contrasts with theoretical literature.

Suggested Citation

  • Nath, Sanchayan & Arrawatia, Rakesh, 2022. "Trade-offs or synergies? Hybridity and sustainable performance of dairy cooperatives in India," World Development, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:wdevel:v:154:y:2022:i:c:s0305750x22000523
    DOI: 10.1016/j.worlddev.2022.105862
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X22000523
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2022.105862?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lele, Uma, 1981. "Co-operatives and the poor: A comparative perspective," World Development, Elsevier, vol. 9(1), pages 55-72, January.
    2. Ermanno C. Tortia & Vladislav Valentinov, 2018. "Internal organization and governance," Chapters, in: Bruce A. Seaman & Dennis R. Young (ed.), Handbook of Research on Nonprofit Economics and Management, chapter 14, pages 285-299, Edward Elgar Publishing.
    3. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    4. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, September.
    5. Sandra Contzen & Jérémie Forney, 2017. "Family farming and gendered division of labour on the move: a typology of farming-family configurations," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(1), pages 27-40, March.
    6. Ye Su & Michael L. Cook, 2015. "Price Stability and Economic Sustainability-Achievable Goals? A Case Study of Organic Valley®," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 635-651.
    7. Ostrom, Elinor & Basurto, Xavier, 2011. "Crafting analytical tools to study institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 7(3), pages 317-343, September.
    8. Cook, Mike, 1993. "Cooperatives and Group Action," Food and Agricultural Marketing Issues for the 21st Century - FAMC 1993 Conference 265931, Food and Agricultural Marketing Consortium (FAMC).
    9. 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.
    10. Donald B. Rubin, 2005. "Causal Inference Using Potential Outcomes: Design, Modeling, Decisions," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 322-331, March.
    11. Ortmann, Gerald F. & King, Robert P., 2007. "Agricultural Cooperatives I: History, Theory and Problems," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-29, March.
    12. de Janvry, Alain & Sadoulet, Elisabeth & Fargeix, Andre, 1991. "Politically feasible and equitable adjustment: Some alternatives for ecuador," World Development, Elsevier, vol. 19(11), pages 1577-1594, November.
    13. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development.
    14. Saskia Crucke & Adelien Decramer, 2016. "The Development of a Measurement Instrument for the Organizational Performance of Social Enterprises," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    15. Keith Taylor, 2015. "Learning from the Co-operative Institutional Model: How to Enhance Organizational Robustness of Third Sector Organizations with More Pluralistic Forms of Governance," Administrative Sciences, MDPI, vol. 5(3), pages 1-17, August.
    16. Smith, Wendy K. & Gonin, Michael & Besharov, Marya L., 2013. "Managing Social-Business Tensions: A Review and Research Agenda for Social Enterprise," Business Ethics Quarterly, Cambridge University Press, vol. 23(3), pages 407-442, July.
    17. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    18. Soto Alarcón, Jozelin María & Sato, Chizu, 2019. "Enacting peasant moral community economies for sustainable livelihoods: A case of women-led cooperatives in rural Mexico," World Development, Elsevier, vol. 115(C), pages 120-131.
    19. Pratap S. Birthal & Ramesh Chand & P. K. Joshi & Raka Saxena & Pallavi Rajkhowa & Md. Tajuddin Khan & Mohd. Arshad Khan & Khyali R. Chaudhary, 2017. "Formal Versus Informal: Efficiency, Inclusiveness and Financing of Dairy Value Chains in Indian Punjab," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 57-87, Springer.
    20. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dervillé, Marie & Manriquez, Diego & Dorin, Bruno & Aubron, Claire & Raboisson, Didier, 2023. "Indian dairy cooperative development: A combination of scaling up and scaling out producing a center-periphery structure," World Development, Elsevier, vol. 170(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gian Nicola Francesconi & Fleur Wouterse, 2022. "The potential of land shareholding cooperatives for inclusive agribusiness development in Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 161-176, March.
    2. Gian Nicola FRANCESCONI & Fleur WOUTERSE, 2019. "Building The Managerial Capital Of Agricultural Cooperatives In Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 141-159, March.
    3. Jasper Grashuis, 2018. "An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    4. Malvido Perez Carletti Agustina & Hanisch Markus & Rommel Jens & Fulton Murray, 2018. "Farm Gate Prices for Non-Varietal Wine in Argentina: A Multilevel Comparison of the Prices Paid by Cooperatives and Investor-Oriented Firms," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(1), pages 1-14, January.
    5. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    6. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    7. Nazik Beishenaly & Frédéric Dufays, 2023. "Entrepreneurial ecosystem for cooperatives: The case of Kyrgyz agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1173-1198, December.
    8. Theo Benos & Nikos Kalogeras & Frans J.H.M. Verhees & Panagiota Sergaki & Joost M.E. Pennings, 2016. "Cooperatives’ Organizational Restructuring, Strategic Attributes, and Performance: The Case of Agribusiness Cooperatives in Greece," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 127-150, January.
    9. Eeva ALHO, 2019. "Farmers’ Willingness To Invest In New Cooperative Instruments: A Choice Experiment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 161-186, March.
    10. Hans Groeneveld, 2020. "Reconciling different truths about isomorphic pressure and distinctive behavior at European cooperative banks: Back to the future with Raiffeisen's principles," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 359-386, September.
    11. Damien Rousselière, 2019. "A Flexible Approach to Age Dependence in Organizational Mortality: Comparing the Life Duration for Cooperative and Non-Cooperative Enterprises Using a Bayesian Generalized Additive Discrete Time Survi," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 829-855, December.
    12. Hueth, Brent & Marcoul, Philippe, 2007. "The Cooperative Firm as Monitored Credit," Staff Paper Series 508, University of Wisconsin, Agricultural and Applied Economics.
    13. Bijman, W.J.J. & Hendrikse, G.W.J. & van Oijen, A.A.C.J., 2012. "Accommodating Two Worlds in One Organization: Changing Board Models in Agricultural Cooperatives," ERIM Report Series Research in Management ERS-2012-015-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    14. Maryline Filippi, 2014. "Using the Regional Advantage: French Agricultural Cooperatives' Economic and Governance Tool," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 597-615, December.
    15. Keith Taylor, 2015. "Learning from the Co-operative Institutional Model: How to Enhance Organizational Robustness of Third Sector Organizations with More Pluralistic Forms of Governance," Administrative Sciences, MDPI, vol. 5(3), pages 1-17, August.
    16. Ewert, Joachim & Hanf, Jon H. & Schweichert, Erik, 2014. "Adaptation of South African Wine Cooperatives to Challenging Business Environments," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 42(2), pages 1-16.
    17. Karin Hakelius & Jerker Nilsson, 2020. "The Logic behind the Internal Governance of Sweden’s Largest Agricultural Cooperatives," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    18. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    19. Liang, Q.X. & Hendrikse, G.W.J., 2012. "Cooperative CEO Identity and Efficient Governance: Member or Outside CEO?," ERIM Report Series Research in Management ERS-2012-019-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    20. Salil Bhattarai & Michael C. Lyne & Sandra K. Martin, 2015. "Analysing the robustness of spice chains in Nepal from a smallholder perspective," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 5(4), pages 88-102, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:154:y:2022:i:c:s0305750x22000523. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.