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Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives

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Author Info

  • Peter Österberg

    (Department of Economics, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden)

  • Jerker Nilsson

    (Department of Economics, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden)

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    Abstract

    This study explores the extent to which members' assessment of their cooperatives' degree of success is related to various member attributes, notably the members' perception of their participation in the governance of the cooperatives. Three categories of member attributes are identified: satisfaction with the profitability of farm operations, age of the member, and experience from board work. The cooperatives' degree of success is measured as members' commitment towards cooperatives, and members' trust in the board of directors. The data originate from a mail survey among 2,250 Swedish farmers. The results indicate differences in members' commitment and their trust towards directors to be due to farm profitability, the members' age and experience as directors. After adding members' perception of their participation in the governance as a covariate, most of the other differences are explained by this variable. Age is still partly associated with trust towards directors; older farmers have less trust. [EconLit Classifications: Q13, D23, D72]. © 2009 Wiley Periodicals, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.20200
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 25 (2009)
    Issue (Month): 2 ()
    Pages: 181-197

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    Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:181-197

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Richards, Timothy J. & Klein, Kurt K. & Walburger, Allan M., 1998. "Principal-Agent Relationships in Agricultural Cooperatives: An Empirical Analysis from Rural Alberta," Journal of Cooperatives, NCERA-210, vol. 13.
    2. Fulton, Joan R. & Adamowicz, Wiktor L., 1993. "Factors That Influence the Commitment of Members to Their Cooperative Organization," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
    3. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development Business and Cooperative Programs.
    4. Sanjib Bhuyan, 2007. "The "People" Factor in Cooperatives: An Analysis of Members' Attitudes and Behavior," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 275-298, 09.
    5. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    6. Kostas Karantininis & Angelo Zago, 2001. "Endogenous Membership in Mixed Duopsonies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1266-1272.
    7. Dunn, John R., 1988. "Basic Cooperative Principles and Their Relationship to Selected Practices," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
    8. Wadsworth, James J., 1991. "An Analysis of Major Farm Characteristics and Farmers' Use of Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6.
    9. Cain, Jarvis L. & Toensmeyer, Ulrich C. & Ramsey, Stewart, 1989. "Cooperative and Proprietary Firm Performance as Viewed by Their Customers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 4.
    10. Sukant K. Misra & Dale H. Carley & Stanley M. Fletcher, 1993. "Dairy farmers' evaluation of dairy cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 9(4), pages 351-361.
    11. Linda Robinson & Donald Lifton, 1993. "Convincing growers to fund cooperative marketing activities: Insights from the New York wine grape industry," Agribusiness, John Wiley & Sons, Ltd., vol. 9(1), pages 65-76.
    12. Hakelius, Karin, 1999. "Farmer Cooperatives in the 21st Century: Young and Old Farmers in Sweden," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 27(1).
    13. Zeuli, Kimberly A. & Bentancor, Andrea, 2005. "The Effects of Cooperative Competition on Member Loyalty," 2005 Annual Meeting, November 8-9 31823, NCERA-194 Research on Cooperatives.
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    Cited by:
    1. Arcas-Lario, Narciso & Martín-Ugedo, Juan Francisco & Mínguez-Vera, Antonio, 2014. "Farmers’ Satisfaction with Fresh Fruit and Vegetable Marketing Spanish Cooperatives: An Explanation from Agency Theory," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(1).
    2. Alexopoulos, Yiorgos & Goglio, Silvio, 2011. "Financial Cooperatives: Problems and Challenges in the Post-Crisis Era," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(1).

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