IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v92y2021i4p649-668.html
   My bibliography  Save this article

Technical assistance: A determinant of cooperative member loyalty

Author

Listed:
  • Marcelo Ferreira
  • Clea Macagnan
  • Daniel Vancin
  • Ana Toaldo

Abstract

Cooperative organizations face problems with the opportunistic behavior of their members, such as the “free‐rider problem”. To mitigate this problem, cooperative governance systems develop strategies that aim to maximize the economic gains of cooperative members through investments in technical assistance programs. The purpose of our research is to verify if the participation in the technical assistance program increases the probability of loyalty of dairy cooperative members. To this end, we developed an econometric model with logistic regression, using secondary data extracted from the Programa Gerencial Leite. The program is developed by the cooperative system of the State of Rio Grande do Sul in Brazil and comprises 24 cooperatives. The collected data are longitudinal and include the commercial milk transactions carried out between cooperative members and cooperatives during the years 2014 to 2018, totaling 10,548 cooperative members and 28,765 observations collected and analyzed during this period. Our results indicate that participation in the technical assistance program offered by the cooperative governance increases the probability of loyalty of dairy farmers.

Suggested Citation

  • Marcelo Ferreira & Clea Macagnan & Daniel Vancin & Ana Toaldo, 2021. "Technical assistance: A determinant of cooperative member loyalty," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 649-668, December.
  • Handle: RePEc:bla:annpce:v:92:y:2021:i:4:p:649-668
    DOI: 10.1111/apce.12312
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apce.12312
    Download Restriction: no

    File URL: https://libkey.io/10.1111/apce.12312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Simon BERGE & Wayne CALDWELL & Phil MOUNT, 2016. "Governance Of Nine Ontario Food Co-Operatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(3), pages 457-474, December.
    2. Ignacio BRETOS & Carmen MARCUELLO, 2017. "Revisiting Globalization Challenges And Opportunities In The Development Of Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 88(1), pages 47-73, March.
    3. repec:bla:annpce:v:85:y:2014:i:4:p:683-684 is not listed on IDEAS
    4. Natalia P. MONTEIRO & Odd Rune STRAUME, 2018. "Are Cooperatives More Productive Than Investor-Owned Firms? Cross-Industry Evidence From Portugal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 377-414, June.
    5. Borgen, Svein Ole, 2011. "Product differentiation and cooperative governance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 327-333, May.
    6. Chrysoula MORFI & Jerker NILSSON & Hanna ÖSTERBERG, 2018. "Why Farmers Involve Themselves In Co‐Operative District Councils," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 581-598, December.
    7. Jason R. V. Franken & Michael L. Cook, 2015. "Informing Measurement of Cooperative Performance," Springer Books, in: Josef Windsperger & Gérard Cliquet & Thomas Ehrmann & Georg Hendrikse (ed.), Interfirm Networks, edition 127, pages 209-226, Springer.
    8. Gian Nicola FRANCESCONI & Fleur WOUTERSE, 2019. "Building The Managerial Capital Of Agricultural Cooperatives In Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 141-159, March.
    9. Maryline Filippi, 2014. "Using the Regional Advantage: French Agricultural Cooperatives' Economic and Governance Tool," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 597-615, December.
    10. Chris Cornforth, 2004. "The Governance of cooperatives and mutual associations: a paradox perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 11-32, March.
    11. Silvia SACCHETTI & Ermanno TORTIA, 2016. "The Extended Governance Of Cooperative Firms: Inter-Firm Coordination And Consistency Of Values," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 93-116, December.
    12. Oliver E. Williamson, 1993. "The Economic Analysis of Institutions and Organisations - in General and with Respect to Country Studies," OECD Economics Department Working Papers 133, OECD Publishing.
    13. Boniface, Bonaventure & Gyau, Amos & Stringer, Randy & Umberger, Wendy J., 2010. "Building producer loyalty in Malaysia's fresh milk supply chain," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-19.
    14. Zylbersztajn, Decio, 2005. "Papel dos Contratos na Coordenação Agro-Industrial: um olhar além dos mercados," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 43(3), pages 1-36, September.
    15. Wolter, Jeremy S. & Bock, Dora & Smith, Jeffery S. & Cronin, J. Joseph, 2017. "Creating Ultimate Customer Loyalty Through Loyalty Conviction and Customer-Company Identification," Journal of Retailing, Elsevier, vol. 93(4), pages 458-476.
    16. Constantine Iliopoulos & Irini Theodorakopoulou, 2014. "Mandatory Cooperative and the Free Rider Problem: the Case of Santo Wines in Santorini, Greece," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 663-681, December.
    17. 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.
    18. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    19. Andrei CECHIN & Jos BIJMAN & Stefano PASCUCCI & Decio ZYLBERSZTAJN & Onno OMTA, 2013. "Drivers Of Pro-Active Member Participation In Agricultural Cooperatives: Evidence From Brazil," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 84(4), pages 443-468, December.
    20. Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
    21. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    22. Higuchi, Angie & Moritaka, Masahiro & Fukuda, Susumu, 2011. "The Impact of Geographical Distance on the Performance Evaluation of a Peruvian Cocoa Cooperative: Acopagro Cooperative Case study," Journal of Cooperatives, NCERA-210, vol. 25, pages 1-18.
    23. Jos Bijman & Constantine Iliopoulos, 2014. "Farmers' Cooperatives in the Eu: Policies, Strategies, and Organization," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 497-508, December.
    24. Lovisa Nilsson & Helena Hansson & Carl Johan Lagerkvist, 2017. "Motivational Factors for Remaining in or Exiting a Cooperative," Agribusiness, John Wiley & Sons, Ltd., vol. 33(2), pages 209-225, April.
    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. Faridzah Jamaluddin & Norman Mohd Saleh & Azizah Abdullah & Mohamat Sabri Hassan & Noradiva Hamzah & Romlah Jaffar & Sarah Aziz Abdul Ghani Aziz & Zaini Embong, 2023. "Cooperative Governance and Cooperative Performance: A Systematic Literature Review," SAGE Open, , vol. 13(3), pages 21582440231, September.
    2. Theo Benos & Panagiota Sergaki & Nikos Kalogeras & Dimitrios Tzinalas, 2024. "Coping with side‐selling in cooperatives: A members’ perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 177-199, March.
    3. Jorge Luis Sánchez‐Navarro & Narciso Arcas‐Lario & Miguel Hernández‐Espallardo, 2024. "Identifying the antecedents of opportunism in agri‐food cooperatives: a comparative analysis between first‐ and second‐tier cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 201-223, March.

    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. Jos BIJMAN & Markus HANISCH, 2020. "Understanding the heterogeneity among agricultural cooperatives," CIRIEC Working Papers 2013, CIRIEC - Université de Liège.
    2. Gian Nicola Francesconi & Fleur Wouterse, 2022. "The potential of land shareholding cooperatives for inclusive agribusiness development in Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 161-176, March.
    3. 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.
    4. Damien Rousselière, 2019. "A Flexible Approach to Age Dependence in Organizational Mortality: Comparing the Life Duration for Cooperative and Non-Cooperative Enterprises Using a Bayesian Generalized Additive Discrete Time Survi," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 829-855, December.
    5. Bertrand Valiorgue & Xavier Hollandts, 2020. "La contribution des administrateurs à la fabrique de la gouvernance dans les coopératives agricoles, le cas Limagrain," Post-Print hal-03041029, HAL.
    6. 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.
    7. 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.
    8. Gian Nicola FRANCESCONI & Fleur WOUTERSE, 2019. "Building The Managerial Capital Of Agricultural Cooperatives In Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 141-159, March.
    9. Eeva ALHO, 2019. "Farmers’ Willingness To Invest In New Cooperative Instruments: A Choice Experiment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 161-186, March.
    10. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    11. Jos Bijman & Constantine Iliopoulos, 2014. "Farmers' Cooperatives in the Eu: Policies, Strategies, and Organization," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 497-508, December.
    12. Constantine Iliopoulos & Rando Värnik & Taavi Kiisk & George Varthalamis & Liis Sinnott, 2022. "Governance in Estonian Agricultural Cooperatives: Structures and Processes," Sustainability, MDPI, vol. 14(23), pages 1-24, November.
    13. Hans Groeneveld, 2020. "Reconciling different truths about isomorphic pressure and distinctive behavior at European cooperative banks: Back to the future with Raiffeisen's principles," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 359-386, September.
    14. Elliott, Matthew & James, Harvey Jr., 2013. "Nature Of The Farm: Revisited," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150726, Agricultural and Applied Economics Association.
    15. 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.
    16. Bijman, W.J.J. & Hendrikse, G.W.J. & van Oijen, A.A.C.J., 2012. "Accommodating Two Worlds in One Organization: Changing Board Models in Agricultural Cooperatives," ERIM Report Series Research in Management ERS-2012-015-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.
    17. 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.
    18. Jason R. V. Franken & Michael L. Cook, 2019. "Do Corporate Governance Recommendations Apply to U.S. Agricultural Cooperatives?," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    19. Achilleas Kontogeorgos & Panagiota Sergaki & Anastasia Kosma & Vassiliki Semou, 2018. "Organizational Models for Agricultural Cooperatives: Empirical Evidence for their Performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1123-1137, December.
    20. Karin Hakelius & Jerker Nilsson, 2020. "The Logic behind the Internal Governance of Sweden’s Largest Agricultural Cooperatives," Sustainability, MDPI, vol. 12(21), pages 1-19, October.

    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:bla:annpce:v:92:y:2021:i:4:p:649-668. 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://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    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.