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Influence Costs in Agribusiness Cooperatives

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  • Constantine Iliopoulos
  • George Hendrikse

Abstract

This paper addresses the influence costs problem in the governance structure "agribusiness cooperative." Influence costs are higher in cooperatives than in investor-oriented firms due to the unique governance structure of the former. Hypotheses are formulated and tested regarding the relationship between influence costs and seven variables: membership size, member heterogeneity, average member age, singleness of purpose, managerial power over members, level of managerial compensation, and professional versus inside management. The main results are that heterogeneous member preferences, older average member age, and investment in multiple product lines all contribute to higher influence costs. At the same time, cooperatives with well-paid, powerful, and professional managers incur lower influence costs. The impact of membership size on the level of influence costs is undetermined.

Suggested Citation

  • Constantine Iliopoulos & George Hendrikse, 2009. "Influence Costs in Agribusiness Cooperatives," International Studies of Management & Organization, Taylor & Francis Journals, vol. 39(4), pages 60-80, January.
    • Handle: RePEc:taf:mimoxx:v:39:y:2009:i:4:p:60-80
    DOI: 10.2753/IMO0020-8825390404
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    Cited by:

    1. Andrei-Mirel Florea & Florentin Bercu & Riana Iren Radu & Silvius Stanciu, 2019. "A Fuzzy Set Qualitative Comparative Analysis (fsQCA) of the Agricultural Cooperatives from South East Region of Romania," Sustainability, MDPI, vol. 11(21), pages 1-18, October.
    2. Vladislav Valentinov & Lioudmila Chatalova, 2014. "Transaction Costs, Social Costs and Open Systems: Some Common Threads," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(2), pages 316-326, March.
    3. Isaac Zúniga Aguilar, 2021. "Neuroeconomic Decisions in Cocoa Producers: Impact of Cooperative Innovation Methodology on Prospecting for Fair Trade Organic Niche as an Incentive for Agricultural Sustainability," Sustainability, MDPI, vol. 13(15), pages 1-25, July.
    4. Valentinov, Vladislav & Iliopoulos, Constantine, 2012. "Property Rights Problems in Agricultural Cooperatives: A Heterodox Institutionalist Perspective," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(3).
    5. Martin Javornicky & Áine Macken-Walsh & Anita Naughton, 2021. "Emerging Beef Producer Organisations (POs) in the Irish Beef Sector: An Analysis of Media Coverage in the Context of Nationwide Beef Producer Protests," Sustainability, MDPI, vol. 13(3), pages 1-21, February.
    6. Tortia, Ermanno & Valentinov, Vladislav & Iliopoulos, Constantine, 2013. "Agricultural cooperatives," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 2(1), pages 23-36.
    7. Isaac Zúñiga Aguilar, 2022. "Neuroeconomics in Cooperatives: Hierarchy of Emotional Patterns in the Collective Decision-Making Process for Sustainable Development," Sustainability, MDPI, vol. 14(12), pages 1-31, June.
    8. Constantine Iliopoulos & Vladislav Valentinov, 2018. "Member Heterogeneity in Agricultural Cooperatives: A Systems-Theoretic Perspective," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    9. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    10. Julia HÖHLER & Rainer KÜHL, 2018. "Dimensions Of Member Heterogeneity In Cooperatives And Their Impact On Organization – A Literature Review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 697-712, December.
    11. Iliopoulos, Constantine & Valentinov, Vladislav, 2018. "Member heterogeneity in agricultural cooperatives: A systems-theoretic perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 10(4), pages 1-22.
    12. Valentinov, Vladislav & Iliopoulos, Constantine, 2012. "Property Rights Problems in Agricultural Cooperatives: A Heterodox Institutionalist Perspective," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(03), pages 1-9, August.

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