IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v31y2015i2p198-214.html
   My bibliography  Save this article

Governance Structure of Chinese Farmer Cooperatives: Evidence From Zhejiang Province

Author

Listed:
  • Qiao Liang
  • George Hendrikse
  • Zuhui Huang
  • Xuchu Xu

Abstract

ABSTRACT The governance of farmer cooperatives in China is addressed regarding democratic decision‐making procedures, participation in decision making, member exit, and profit allocation. Empirical results from a survey of fruit and vegetable cooperatives in the Zhejiang province (China) indicate that the distribution of ownership rights, decision rights, and income rights in a farmer cooperative is quite skewed towards a small proportion of members. Several governance practices by cooperatives are not in line with the requirements specified by the Law. [EconLit classification; D210; Q130].

Suggested Citation

  • Qiao Liang & George Hendrikse & Zuhui Huang & Xuchu Xu, 2015. "Governance Structure of Chinese Farmer Cooperatives: Evidence From Zhejiang Province," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 198-214, April.
  • Handle: RePEc:wly:agribz:v:31:y:2015:i:2:p:198-214
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.21400
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Murray Fulton, 1995. "The Future of Canadian Agricultural Cooperatives: A Property Rights Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1144-1152.
    2. Braverman, A. & Guasch, J.L. & Huppi, M., 1991. "Promoting Rural Cooperatives in Developing Countries," World Bank - Discussion Papers 121, World Bank.
    3. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    4. Royer, Jeffrey S., 1999. "Cooperative Organizational Strategies: A Neo-Institutional Digest," Journal of Cooperatives, NCERA-210, vol. 14, pages 1-24.
    5. Rey, Patrick & Tirole, Jean, 2000. "Loyalty and Investment in Cooperatives," IDEI Working Papers 123, Institut d'Économie Industrielle (IDEI), Toulouse.
    6. Qiao Liang & George Hendrikse, 2013. "Core and Common Members in the Genesis of Farmer Cooperatives in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(3-5), pages 244-257, April.
    7. Oliver Hart & John Moore, 2005. "On the Design of Hierarchies: Coordination versus Specialization," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 675-702, August.
    8. Lemeilleur, Sylvaine & Codron, Jean-Marie, 2011. "Marketing cooperative vs. commission agent: The Turkish dilemma on the modern fresh fruit and vegetable market," Food Policy, Elsevier, vol. 36(2), pages 272-279, April.
    9. Sultan, Tursinbek & Wolz, Axel, 2012. "Comparison of the Agricultural Cooperative Development in China and Vietnam Since De-Collectivization," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126242, International Association of Agricultural Economists.
    10. Baker, George P. & Gibbons, Robert & Murphy, Kevin J., 2008. "Strategic alliances: Bridges between "islands of conscious power"," Journal of the Japanese and International Economies, Elsevier, vol. 22(2), pages 146-163, June.
    11. Li Feng & George W. J. Hendrikse, 2012. "Chain interdependencies, measurement problems and efficient governance structure: cooperatives versus publicly listed firms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(2), pages 241-255, April.
    12. Cook, Michael L. & Plunkett, Brad, 2006. "Collective Entrepreneurship: An Emerging Phenomenon in Producer-Owned Organizations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(2), pages 1-8, August.
    13. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    14. 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.
    15. Baarda, James R., 1982. "State Incorporation Statutes for Farmer Cooperatives," Cooperative Information Reports (CIR) 313521, United States Department of Agriculture, Rural Development.
    16. Harris, Andrea & Stefanson, Brenda & Fulton, Murray E., 1996. "New Generation Cooperatives and Cooperative Theory," Journal of Cooperatives, NCERA-210, vol. 11, pages 1-15.
    17. Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
    18. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.
    19. Dunn, John R., 1988. "Basic Cooperative Principles and Their Relationship to Selected Practices," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3, pages 1-11.
    20. Henriksen, Ingrid & Hviid, Morten & Sharp, Paul, 2012. "Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives," The Journal of Economic History, Cambridge University Press, vol. 72(1), pages 197-224, March.
    21. Feng, Li & Hendrikse, George W.J., 2011. "Coordination and Governance: The case of Cooperatives versus IOFs," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114359, European Association of Agricultural Economists.
    22. Sultan, Tursinbek & Wolz, Axel, 2012. "Agricultural Cooperative Development in China and Vietnam since Decollectivization: A Multi-Stakeholder Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-21.
    23. Bernard, Tanguy & Spielman, David J., 2009. "Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia," Food Policy, Elsevier, vol. 34(1), pages 60-69, February.
    24. George Baker & Robert Gibbons & Kevin J. Murphy, 2002. "Relational Contracts and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 39-84.
    25. Anoop Madhok, 1996. "Crossroads---The Organization of Economic Activity: Transaction Costs, Firm Capabilities, and the Nature of Governance," Organization Science, INFORMS, vol. 7(5), pages 577-590, October.
    26. Rathbone, Robert C. & Wissman, Roger A., 1993. "Equity Redemption and Member Equity Allocation Practices of Agricultural Cooperatives," Research Reports 257202, United States Department of Agriculture, Rural Development.
    27. Baker, George & Gibbons, Robert & Murphy, Kevin J, 1999. "Informal Authority in Organizations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 56-73, April.
    28. Jos Bijman & George Hendrikse & Aswin Oijen, 2013. "Accommodating Two Worlds in One Organisation: Changing Board Models in Agricultural Cooperatives," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(3-5), pages 204-217, April.
    29. Condon, Andrew M. & Cotterill, Ronald W. & Rhodes, V. James & Shaffer, James D. & Staatz, John M., 1987. "Cooperative Theory: New Approaches," Service Reports (SR) 280614, United States Department of Agriculture, Rural Development.
    30. Cook, Michael L. & Plunkett, Brad, 2006. "Collective Entrepreneurship: An Emerging Phenomenon in Producer-Owned Organizations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 421-428, August.
    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. Qiao Liang & Xinxin Wang, 2020. "Cooperatives as competitive yardstick in the hog industry?—Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 127-145, January.
    2. Luo, Jianli & Guo, Hongdong & Jia, Fu, 2017. "Technological innovation in agricultural co-operatives in China: Implications for agro-food innovation policies," Food Policy, Elsevier, vol. 73(C), pages 19-33.
    3. Guoqiang Liu & Dakuan Qiao & Yuying Liu & Xinhong Fu, 2022. "Does Service Utilization Improve Members’ Welfare? Evidence from Citrus Cooperatives in China," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    4. Mateos-Ronco, Alicia & Guzman-Asuncion, Sandra, 2018. "Determinants of financing decisions and management implications: evidence from Spanish agricultural cooperatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    5. Wanglin Ma & Awudu Abdulai, 2017. "The economic impacts of agricultural cooperatives on smallholder farmers in rural China," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 537-551, September.
    6. Qiao Liang & Kangwei Ma & Wenhao Liu, 2023. "The role of farmer cooperatives in promoting environmentally sustainable agricultural development in China: A review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 741-759, September.
    7. Shahin Ghaziani & Gholamreza Dehbozorgi & Mohammad Bakhshoodeh & Reiner Doluschitz, 2023. "Unraveling On-Farm Wheat Loss in Fars Province, Iran: A Qualitative Analysis and Exploration of Potential Solutions with Emphasis on Agricultural Cooperatives," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    8. Julia HÖHLER & Rainer KÜHL, 2018. "Dimensions Of Member Heterogeneity In Cooperatives And Their Impact On Organization – A Literature Review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 697-712, December.
    9. Xiangyu Wu & Yunlong Ding, 2018. "The Service Supply Effect of Cooperatives under Economic Transformation: A Demand-Supply Perspective," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    10. Yi Qu & Jing Zhang & Zhenning Wang & Xinning Ma & Guangcheng Wei & Xiangzhi Kong, 2023. "The Future of Agriculture: Obstacles and Improvement Measures for Chinese Cooperatives to Achieve Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    11. Anassaya Chawviang & Supaporn Kiattisin & Montree Thirasakthana & Theeraya Mayakul, 2023. "A Smart Co-Operative Management Framework Based on an EA Concept for Sustainable Development," Sustainability, MDPI, vol. 15(9), pages 1-22, April.
    12. Manouchehrabadi, Behrang & Letizia, Paolo & Hendrikse, George, 2022. "Democratic versus elite governance for project selection decisions in executive committees," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1126-1138.
    13. Anassaya Chawviang & Supaporn Kiattisin, 2022. "Sustainable Development: Smart Co-Operative Management Framework," Sustainability, MDPI, vol. 14(6), pages 1-25, March.
    14. Guangcheng Wei & Xiangzhi Kong & Yumeng Wang, 2022. "Will Joining Cooperative Promote Farmers to Replace Chemical Fertilizers with Organic Fertilizers?," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    15. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    16. Miguel Hernández‐Espallardo & Narciso Arcas‐Lario & Jorge L. Sánchez‐Navarro & Gustavo Marcos‐Matás, 2022. "Curbing members' opportunism in first‐tier and federated agricultural marketing cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 195-219, January.
    17. Qiao Liang & Rongrong Bai & Zhi Jin & Linlin Fu, 2023. "Big and strong or small and beautiful: Effects of organization size on the performance of farmer cooperatives in China," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 196-213, January.
    18. Lei Wu & Chuanjian Li & Yang Gao, 2022. "Regional agricultural cooperatives and subjective wellbeing of rural households in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 138-158, November.

    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. Liang, Q.X. & Hendrikse, G.W.J. & Huang, Z. & Xu, X., 2012. "Core and Common Members in Chinese Farmer Cooperatives," ERIM Report Series Research in Management ERS-2012-002-STR, 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.
    2. George Hendrikse & Li Feng, 2013. "Interfirm cooperatives," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 26, Edward Elgar Publishing.
    3. Grashuis, Jasper & Cook, Michael, 2016. "Capital, Ownership, and Governance: Analyzing the Structure of U.S. Farmer Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235677, Agricultural and Applied Economics Association.
    4. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    5. Cook, Michael L. & Burress, Molly J. & Iliopoulos, Constantine, 2008. "New Producer Strategies: The Emergence of Patron-Driven Entrepreneurship," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44397, European Association of Agricultural Economists.
    6. Grashuis, Jasper & Cook, Michael, 2016. "Governance and Performance in the U.S. Agri-Food Industry: A Comparative Study of Firms and Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235676, Agricultural and Applied Economics Association.
    7. Dinesh Dhakal & David O’Brien & Peter Mueser, 2021. "Government Policy and Performance of Agricultural Cooperatives: A Case Study in Chitwan District, Nepal," Sustainability, MDPI, vol. 13(21), pages 1-20, November.
    8. Hendrikse, G., 2006. "Challenges facing Agricultural Cooperatives: Heterogeneity and Consolidation," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.
    9. 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.
    10. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    11. Jasper GRASHUIS & Michael COOK, 2018. "An Examination Of New Generation Cooperatives In The Upper Midwest: Successes, Failures, And Limitations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 623-644, December.
    12. Salazar Idana & Galve Górriz Carmen, 2011. "Determinants of the Differences in the Downstream Vertical Integration and Efficiency Implications in Agricultural Cooperatives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-26, February.
    13. Bontems, Philippe & Fulton, Murray, 2009. "Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 322-343, October.
    14. Jasper Grashuis, 2018. "An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    15. Jos Bijman & Markus Hanisch & Ger Sangen, 2014. "Shifting Control? The Change of Internal Governance in Agricultural Cooperatives in the EU," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 641-661, December.
    16. Oliver Hart & Bengt Holmstrom, 2008. "A Theory of Firm Scope," NBER Working Papers 14613, National Bureau of Economic Research, Inc.
    17. 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.
    18. Giannakas, Konstantinos & Fulton, Murray & Sesmero, Juan, 2016. "Horizon and Free-Rider Problems in Cooperative Organizations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-21.
    19. Yi Qu & Jing Zhang & Zhenning Wang & Xinning Ma & Guangcheng Wei & Xiangzhi Kong, 2023. "The Future of Agriculture: Obstacles and Improvement Measures for Chinese Cooperatives to Achieve Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    20. Hu, Y. & Huang, Z. & Hendrikse, G.W.J. & Xu, X., 2005. "Organization and Strategy of Farmer Specialized Cooperatives in China," ERIM Report Series Research in Management ERS-2005-059-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.

    More about this item

    Statistics

    Access and download statistics

    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:wly:agribz:v:31:y:2015:i:2:p:198-214. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.