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The evolution of the Dutch dairy industry and the rise of cooperatives: Combining transaction cost and evolutionary approaches

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  • Koen Frenken

    ()

  • Gerben van der Steege

Abstract

The thesis advanced in this paper holds that any transaction cost explanation of the diffusion of a particular organizational form requires an evolutionary analysis of differential performance of competing organizational forms over time. Using data on 1141 dairy factories in The Netherlands, we find evidence that cooperative factories performed significantly better than private factories, which can be explained by cooperatives’ lower transaction costs. However, superior performance is observed only in the Northern part, while cooperatives were more dominant in the Southern part. This suggests that entry conditions for cooperative factories in the South were more favourable than in the North.

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File URL: http://econ.geo.uu.nl/peeg/peeg0608.pdf
File Function: Version 14 August 2006
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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0608.

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Length: 19 pages
Date of creation: Jul 2006
Date of revision: Jul 2006
Handle: RePEc:egu:wpaper:0608

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Related research

Keywords: transaction cost economics; survival analysis; industry lifecycle; dairy industry; cooperatives;

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  1. 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.
  2. 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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