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The evolution of the Dutch dairy industry and the rise of cooperatives.A research note

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  • Koen Frenken

    ()

Abstract

Economic historians tend to explain the rise of the cooperative form in agriculture from the advantage of cooperative over private factories in reducing transaction costs with suppliers. This study provides a first test of this thesis using data on 1130 dairy factories in The Netherlands. Indeed, we find that cooperative factories performed significantly better than private factories. The persistence of private factories in certain regions can be explained by first-mover advantages.

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File URL: http://cms.tm.tue.nl/Ecis/Files/papers/wp2013/wp1307.pdf
File Function: Version August 2013
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Bibliographic Info

Paper provided by Eindhoven Center for Innovation Studies (ECIS) in its series Eindhoven Center for Innovation Studies (ECIS) working paper series with number 13-07.

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Date of creation: Aug 2013
Date of revision: Aug 2013
Handle: RePEc:dgr:tuecis:wpaper:1307

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Web page: http://ecis.ieis.tue.nl/

Related research

Keywords: cooperatives; first mover advantage; transaction costs; survival analysis; industry lifecycle; dairy industry;

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  1. Henriksen, Ingrid, 1999. "Avoiding lock-in: Cooperative creameries in Denmark, 1882 1903," European Review of Economic History, Cambridge University Press, vol. 3(01), pages 57-78, April.
  2. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
  3. Jan Luiten van Zanden & Arthur van Riel, 2004. "Introduction to The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century
    [The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century]
    ," Introductory Chapters, Princeton University Press.
  4. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
  5. van der Vleuten, Erik & Raven, Rob, 2006. "Lock-in and change: Distributed generation in Denmark in a long-term perspective," Energy Policy, Elsevier, vol. 34(18), pages 3739-3748, December.
  6. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 645-666, August.
  7. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
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