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How do cooperative rebates and asset specificity impact operating performance of farmer cooperatives? evidence from China

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  • Lijun Zeng
  • Junyi Wan

Abstract

Improving farmer cooperatives’ operating performance is essential for their economic sustainability and for promoting sustainable agricultural development. Despite the prominent role of benefit distribution and asset specificity in cooperation organizations, their impact on performance remains controversial, and the relationship between the three is unclear. This study focuses on cooperative benefit distribution in terms of their rebates (first and second rebates) and investigates the relationship between asset specificity, cooperative rebate and operating performance. The results show that both the first and second rebates have a positive impact on operating performance and play substitutive roles in increasing operating performance. Physical asset specificity (PAS) impacts first rebates positively, whereas human asset specificity (HAS) impacts first rebates negatively. PAS has a positive effect on operating performance whereas HAS has no significant influence on operating performance. Furthermore, the first rebate mediates the relationship between PAS and operating performance and suppresses the relationship between HAS and operating performance. These findings provide support for developing relevant policies to improve cooperative performance and sustainability.

Suggested Citation

  • Lijun Zeng & Junyi Wan, 2024. "How do cooperative rebates and asset specificity impact operating performance of farmer cooperatives? evidence from China," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-20, November.
    • Handle: RePEc:plo:pone00:0313483
    DOI: 10.1371/journal.pone.0313483
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    References listed on IDEAS

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    1. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    2. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
    3. Lei Deng & Lei Chen & Jingjie Zhao & Ruimei Wang, 2021. "Comparative analysis on environmental and economic performance of agricultural cooperatives and smallholder farmers: The case of grape production in Hebei, China," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-19, January.
    4. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
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