IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i5p2194-d1352138.html

Analysis of Business Risk Measurement and Factors Influencing Plantation-Based Farming Cooperatives: Evidence from Guizhou Province, China

Author

Listed:
  • Genhong Liang

    (School of Economics and Management, Jilin Agricultural University, Changchun 130118, China)

  • Zhuo Zhang

    (Business School, Nankai University, Tianjin 300071, China)

  • Peirong Wu

    (School of Economics and Management, Jilin Agricultural University, Changchun 130118, China)

  • Zhijie Zhang

    (School of Economics and Management, Jilin Agricultural University, Changchun 130118, China)

  • Xiwu Shao

    (School of Economics and Management, Jilin Agricultural University, Changchun 130118, China)

Abstract

Plantation-based farming cooperatives are important carriers to promote agricultural and rural modernization and increase farmers’ income. Their risk management is related not only to their own sustainable development but also to the practical interests of farmers. Based on the survey data of 226 sample cooperatives in Guizhou Province, this study measures the business risk of plantation-based farming cooperatives via factor analysis and empirically tests its influencing factors using a structural equation model. This research shows that there are different types of operational risks in plantation-based farming cooperatives, and the order of these risks is as follows: market risk (0.334) > policy risk (0.162) > natural risk (0.140) > technical risk (0.104) > management risk (0.097). In terms of the factors influencing business risk, the impact effect value of the economic environment is 0.522, making it the most important external interference factor. The technology environment and policy environment have a greater impact on business risk (effect values of 0.323 and 0.219, respectively). The effect of the social service environment (an effect value of 0.114) is relatively weak. The internal factor, operator characteristics, is the core factor (an effect value of 0.533) that affects the business risk of plantation-based farming cooperatives, which determines the development prospects of the cooperatives. Resource endowment is an important internal factor affecting the business risk of cooperatives (an effect value of 0.331). According to the conclusions of our research, some policy implications on how to promote the high-quality development of plantation-based farming cooperatives are presented, i.e., to refine the policy support for plantation-based farming cooperatives, optimize the economic environment of the agricultural market, further improve agricultural infrastructure, deepen the reform of the agricultural land transfer system, and improve the internal management level of cooperatives.

Suggested Citation

  • Genhong Liang & Zhuo Zhang & Peirong Wu & Zhijie Zhang & Xiwu Shao, 2024. "Analysis of Business Risk Measurement and Factors Influencing Plantation-Based Farming Cooperatives: Evidence from Guizhou Province, China," Sustainability, MDPI, vol. 16(5), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:2194-:d:1352138
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/5/2194/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/5/2194/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wanglin Ma & Hongyun Zheng & Peng Yuan, 2022. "Impacts of cooperative membership on banana yield and risk exposure: Insights from China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 564-579, June.
    2. Yanan Huang & Xu Li & Guangsheng Zhang, 2021. "The Impact of Technology Perception and Government Support on E-Commerce Sales Behavior of Farmer Cooperatives: Evidence From Liaoning Province, China," SAGE Open, , vol. 11(2), pages 21582440211, June.
    3. Stiglitz, Joseph E, 1985. "Credit Markets and the Control of Capital," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(2), pages 133-152, May.
    4. Shen, Mingrui & Shen, Jianfa, 2018. "Evaluating the cooperative and family farm programs in China: A rural governance perspective," Land Use Policy, Elsevier, vol. 79(C), pages 240-250.
    5. Abid Hussain & Mingxing Li & Shahida Kanwel & Muhammad Asif & Arif Jameel & Jinsoo Hwang, 2023. "Impact of Tourism Satisfaction and Service Quality on Destination Loyalty: A Structural Equation Modeling Approach concerning China Resort Hotels," Sustainability, MDPI, vol. 15(9), pages 1-15, May.
    6. Ethan Ligon, 2009. "Risk Management in the Cooperative Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1211-1217.
    7. Sudip Adhikari & Aditya R. Khanal, 2021. "Economic Sustainability and Multiple Risk Management Strategies: Examining Interlinked Decisions of Small American Farms," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    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. Hao Xu & Peilin Wang & Kai Ding, 2024. "Transforming Agriculture: Empirical Insights into How the Digital Economy Elevates Agricultural Productivity in China," Sustainability, MDPI, vol. 16(23), pages 1-20, November.
    2. Shiyi Yuan & Miao Yang & Baohua Liu & Ganqiong Li, 2025. "Research on the Interlinked Mechanism of Agricultural System Risks from an Industry Perspective," Sustainability, MDPI, vol. 17(10), pages 1-17, May.

    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. Chen, Chen & Gan, Christopher & Li, Junpeng & Lu, Yao & Rahut, Dil, 2023. "Linking farmers to markets: Does cooperative membership facilitate e-commerce adoption and income growth in rural China?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1155-1170.
    2. Bilgehan TEKIN & Erol YENER, 2019. "The causality between economic growth and stock market in developing and developed countries: Toda-Yamamoto approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(619), S), pages 79-90, Summer.
    3. Pradeepta Sethi & Brajesh Kumar, 2014. "Financial structure gap and economic development in India," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(4), pages 776-794, September.
    4. Chen, Zhiyuan & Li, Yong & Zhang, Jie, 2016. "The bank–firm relationship: Helping or grabbing?," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 385-403.
    5. Da Rin, Marco & Hellmann, Thomas, 2002. "Banks as Catalysts for Industrialization," Journal of Financial Intermediation, Elsevier, vol. 11(4), pages 366-397, October.
    6. Carlos Arriaga & Luis Miranda, 2009. "Risk and Efficiency in Credit Concession: A Case Study in Portugal," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(3), pages 307-326.
    7. Jieying Yang & Li Yu & Jingxiang Zhang, 2024. "Impacts on Rural Community Development and Governance by Different Land Ownership: A Comparative Study Based on Two Villages in China," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(6), pages 1616-1635, December.
    8. Parmendra Sharma & Eduardo Roca, 2011. "Reâ Designing Financial Systems: A Review of the Role of Stock Markets in Developing Economies," Discussion Papers in Finance finance:201120, Griffith University, Department of Accounting, Finance and Economics.
    9. Robert E. Carpenter & Bruce C. Petersen, 2002. "Capital Market Imperfections, High-Tech Investment, and New Equity Financing," Economic Journal, Royal Economic Society, vol. 112(477), pages 54-72, February.
    10. Andrew Leyshon & Dawn Burton & David Knights & Catrina Alferoff & Paola Signoretta, 2004. "Towards an Ecology of Retail Financial Services: Understanding the Persistence of Door-to-Door Credit and Insurance Providers," Environment and Planning A, , vol. 36(4), pages 625-645, April.
    11. Maria-Teresa Marchica, "undated". "Debt Maturity and the Characteristics of Ownership Structure: An Empirical Investigation of UK Firms," Discussion Papers 05/29, Department of Economics, University of York.
    12. Gopinath, C., 1995. "Bank strategies toward firms in decline," Journal of Business Venturing, Elsevier, vol. 10(1), pages 75-92, January.
    13. repec:agr:journl:v:2(602):y:2015:i:2(602):p:103-112 is not listed on IDEAS
    14. Wang, Rui & Yang, Shijie, 2023. "Credit ratings and firm innovation: Evidence from sovereign downgrades," Journal of Banking & Finance, Elsevier, vol. 148(C).
    15. Jun Wan & Yuejia Wang & Yuan Wang, 2025. "Promoting or Hindering: The Impact of ESG Rating Differences on Energy Enterprises’ Green Transformation—A Causal Test from Double Machine-Learning Algorithms," Energies, MDPI, vol. 18(3), pages 1-21, January.
    16. Analena Bruce & Elise Neidecker & Luyue Zheng & Isaac Sohn Leslie & Alexa Wilhelm, 2025. "“A farm is viable if it can keep its head above water”: defining and measuring farm viability for small and mid-sized farms," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 42(2), pages 625-641, June.
    17. Rasyad A. Parinduri, 2014. "Family Hardship and the Growth of Micro and Small Firms in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(1), pages 53-73, April.
    18. Satyananda Sahoo, 2014. "Financial Intermediation and Growth: Bank-Based versus Market-Based Systems," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(2), pages 93-114, May.
    19. Mueller, Elisabeth & Zimmermann, Volker, 2006. "The Importance of Equity Finance for R&D Activity: Are There Differences Between Young and OldCompanies?," ZEW Discussion Papers 06-014, ZEW - Leibniz Centre for European Economic Research.
    20. Hanna Hottenrott & Bettina Peters, 2012. "Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation?," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1126-1142, November.
    21. Su-Yin Cheng & Han Hou, 2022. "Innovation, financial development, and growth: evidences from industrial and emerging countries," Economic Change and Restructuring, Springer, vol. 55(3), pages 1629-1653, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:gam:jsusta:v:16:y:2024:i:5:p:2194-:d:1352138. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.