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Farmers’ reactions to the internationalisation of Finnish cooperatives

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  • Ollila, Petri
  • Nilsson, Jerker
  • Hess, Sebastian

Abstract

Based on a survey on farmers in Finland, this study examined the extent to which farmer co-operatives enjoy social capital within their memberships as they become internationalised. Findings from limited dependent variable regressions suggest that one group of farmers is loyal to the co-operative and opposes its foreign investments. Other groups have lower levels of social capital and switch membership status between multiple co- operatives or opt out of co-operatives. These farmers welcome international investment. Thus, internationalisation of co-operatives seems to affect members’ trust in the co-operative differently and increasing heterogeneity within memberships may give rise to governance problems.

Suggested Citation

  • Ollila, Petri & Nilsson, Jerker & Hess, Sebastian, 2014. "Farmers’ reactions to the internationalisation of Finnish cooperatives," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182936, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182936
    DOI: 10.22004/ag.econ.182936
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    References listed on IDEAS

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    3. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-19.
    4. 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.
    5. Jerker Nilsson & Gunnar L.H. Svendsen & Gert Tinggaard Svendsen, 2012. "Are Large and Complex Agricultural Cooperatives Losing Their Social Capital?," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 187-204, March.
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    7. Nilsson, Jerker & Kihlen, Anna & Norell, Lennart, 2009. "Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(4), pages 1-22, November.
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    Cited by:

    1. Elena Meliá‐Martí & Deolinda Meira & José Corberá Martínez & Rui Bertuzi, 2023. "Cross‐border cooperation: A response to the challenges facing agri‐food cooperatives in Southern European countries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 981-1006, September.

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