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Supporting Industrial Cooperatives in Developing Countries: Some Tanzanian Experiences

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  • Peter Abell

    (University of Surrey)

Abstract

This paper draws upon both case-study and statistical materials, gathered in Tanzania, in an attempt to determine how industrial producer cooperatives might be promoted. A logistic pattern of cooperative growth is tested and found to dominate a view that the number of coops grows because of support organizations. Drawing upon an ecological model it is suggested that the factor which limits growth is the availability of management and, further, that the growth of the competing 'small-scale sector' is at the expense of the cooperative sector. Management nurtured in the cooperative sector moves into the small-scale sector. Case-study analysis using a Boolean analysis suggests that legitimate and capable management are essential to success of cooperatives particularly with technologies which generate production interdependencies. Finally, supporting evidence for the significance of management competence and interdependence in explaining performance is outlined using an augmented CobbDouglas production function framework.

Suggested Citation

  • Peter Abell, 1990. "Supporting Industrial Cooperatives in Developing Countries: Some Tanzanian Experiences," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 11(4), pages 483-504, November.
    • Handle: RePEc:sae:ecoind:v:11:y:1990:i:4:p:483-504
    DOI: 10.1177/0143831X9001100403
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    References listed on IDEAS

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    1. Jones, D.C. & Svejnar, J., 1984. "Participation, profit sharing, worker ownership and efficieny in Italian producer cooperatives," LIDAM Discussion Papers CORE 1984019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    1. Imanol Basterretxea & Eneka Albizu, 2011. "Management training as a source of perceived competitive advantage: The Mondragon Cooperative Group case," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(2), pages 199-222, May.

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