IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v12y1996i4p371-383.html
   My bibliography  Save this article

Cooperative strategy: Theory and practice

Author

Listed:
  • H. Christopher Peterson

    (Department of Agricultural Economics, Michigan State University, East Lansing, MI 48824-1039)

  • Bruce L. Anderson

    (Department of Agricultural Economics, Cornell University, Ithaca, NY)

Abstract

The theoretical literature suggests 12 strategies through which cooperatives could produce differential benefits for members. Six of these strategies would primarily generate additional returns, and six would primarily operate to reduce the risk inherent in returns. Through in-depth interviews with CEOs from 21 northeastern US cooperatives, it was determined that: the taxonomy of theoretical strategies matched will with actual strategies, cooperatives use a mix of returns and risk-management strategies, actual strategic motivations are sometimes at odds with those suggested by theory, and cooperative information systems appear inadequate to support strategic decision making. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • H. Christopher Peterson & Bruce L. Anderson, 1996. "Cooperative strategy: Theory and practice," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 371-383.
    • Handle: RePEc:wly:agribz:v:12:y:1996:i:4:p:371-383
    DOI: 10.1002/(SICI)1520-6297(199607/08)12:4<371::AID-AGR7>3.0.CO;2-W
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
    2. Richard J. Sexton, 1986. "Cooperatives and the Forces Shaping Agricultural Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1167-1172.
    3. Peterson, H. Christopher, 1992. "The Economic Role and Limitations of Cooperatives: An Investment Cash Flow Derivation," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 7, pages 1-18.
    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. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Lyford, Conrad P. & Peterson, H. Christopher & Sterns, James A., 2002. "Industry Strategic Planning: Keeping Supply Chains Competitive," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(2), pages 1-13, July.
    3. Qiao Liang & Xinxin Wang, 2020. "Cooperatives as competitive yardstick in the hog industry?—Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 127-145, January.
    4. Wendong Deng & George Hendrikse, 2018. "Social interactions and product quality: the value of pooling in cooperative entrepreneurial networks," Small Business Economics, Springer, vol. 50(4), pages 749-761, April.
    5. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    6. Wendong Deng & George Hendrikse & Qiao Liang, 2021. "Internal social capital and the life cycle of agricultural cooperatives," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 301-323, January.
    7. Antti Talonen & Iiro Jussila & Hannu Saarijärvi & Timo Rintamäki, 2016. "Consumer cooperatives: uncovering the value potential of customer ownership," AMS Review, Springer;Academy of Marketing Science, vol. 6(3), pages 142-156, December.
    8. Feng, L. & Hendrikse, G.W.J., 2011. "Chain Interdependencies, Measurement Problems, and Efficient Governance Structure: Cooperatives versus Publicly Listed Firms," ERIM Report Series Research in Management ERS-2011-001-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.
    9. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
    10. Li, Feng & Hendrikse, George W.J., 2009. "CEO Compensation in Cooperatives versus Publicly Listed Firms," 2009 Conference, August 16-22, 2009, Beijing, China 51619, International Association of Agricultural Economists.
    11. Nicola Francesconi & Fleur Wouterse & Dorothy Birungi Namuyiga, 2021. "Agricultural Cooperatives and COVID-19 in Southeast Africa. The Role of Managerial Capital for Rural Resilience," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    12. 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.
    13. repec:vuw:vuwscr:18942 is not listed on IDEAS
    14. Russo, Carlo & Weatherspoon, Dave D. & Peterson, H. Christopher, 2000. "Members' Financial Evaluation And Cooperatives' Decision Processes," Staff Paper Series 11719, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    16. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    17. Salavou, Helen E. & Sergaki, Panagiota, 2013. "Generic Business Strategies in Greece: Private Food Firms versus Agricultural Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(1), pages 1-17.
    18. Jeffrey P. Katz, 1997. "Managerial behavior and strategy choices in agribusiness cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 13(5), pages 483-495.
    19. Zahir Dossa, 2012. "Cooperatives: A Development Strategy? An Analysis of Argan Oil Cooperatives in Southwest Morocco," Euricse Working Papers 1229, Euricse (European Research Institute on Cooperative and Social Enterprises).
    20. Nikos Kalogeras & Joost M.E. Pennings & Ivo. A. van der Lans & Philip Garcia & Gert van Dijk, 2009. "Understanding heterogeneous preferences of cooperative members," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 90-111.
    21. George Hendrikse & Li Feng, 2013. "Interfirm cooperatives," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 26, Edward Elgar Publishing.
    22. 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.
    23. Zieseniss, Roland & Kuehl, Rainer, 2013. "Relative Performance Payment in Cooperatives – A Model-Theoretical Analysis," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152162, Australian Agricultural and Resource Economics Society.

    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. Mateus De Carvalho Reis Neves & Mateus De Carvalho Reis Neves & Felipe De Figueiredo Silva & Carlos Otávio Freitas & Marcelo José Braga, 2018. "The Shadow Price Of Cooperative Membership On Agriculture In The Brazilian South And Southeast Regions," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 191, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Neves, Mateus C R & Silva, Felipe & Freitas, Carlos Otávio & Braga, Marcelo J., 2017. "The impact of Cooperative Membership on farm income," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259196, Agricultural and Applied Economics Association.
    3. De Carvalho Reis Neves, Mateus & Freitas, Carlos Otavio & De Figueiredo Silva, Felipe & Braga, Marcelo J. & Costa, Davi M., 2021. "The effect of marketing through cooperatives on income distribution in Brazil," 2021 Annual Meeting, August 1-3, Austin, Texas 314007, Agricultural and Applied Economics Association.
    4. Salifu, Adam & Francesconi, Gian Nicola & Kolavalli, Shashidhara, 2010. "A review of collective action in rural Ghana," IFPRI discussion papers 998, International Food Policy Research Institute (IFPRI).
    5. Cook, Michael L. & Burress, Molly J. & Iliopoulos, Constantine, 2008. "New Producer Strategies: The Emergence of Patron-Driven Entrepreneurship," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44397, European Association of Agricultural Economists.
    6. James Wangu & Ellen Mangnus & A. C. M. (Guus) van Westen, 2021. "Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya," Land, MDPI, vol. 10(6), pages 1-16, May.
    7. Thembi Xaba & Nyankomo Marwa & Babita Mathur-Helm, 2018. "Efficiency and Profitability Analysis of Agricultural Cooperatives in Mpumalanga, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 1-10.
    8. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    9. 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.
    10. Yildiz, Özgür & Rommel, Jens & Debor, Sarah & Holstenkamp, Lars & Mey, Franziska & Müller, Jakob R. & Radtke, Jörg & Rognli, Judith, 2014. "Research Perspectives on Renewable Energy Cooperatives in Germany: Empirical Insights and Theoretical Lenses," MPRA Paper 55931, University Library of Munich, Germany.
    11. Chaddad, Fabio Ribas, 2006. "Investment Constraints in Agricultural Cooperatives: Theory, Evidence and Solutions," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 143259, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    12. 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.
    13. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    14. Tina L. Saitone & Richard J. Sexton & Benoît Malan, 2018. "Price premiums, payment delays, and default risk: understanding developing country farmers’ decisions to market through a cooperative or a private trader," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 363-380, May.
    15. Tina L. Saitone & Richard J. Sexton, 2017. "Agri-food supply chain: evolution and performance with conflicting consumer and societal demands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 634-657.
    16. Nazik Beishenaly & Frédéric Dufays, 2023. "Entrepreneurial ecosystem for cooperatives: The case of Kyrgyz agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1173-1198, December.
    17. Artz, Georgeanne M. & Colson, Gregory & Ginder, Roger G., 2010. "A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-15, November.
    18. Olson, Frayne E. & Cook, Michael L., 2008. "Towards a Measurement of Free Riding within Private Collective Action Organizations," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6025, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Xin Deng & Lingzhi Zhang & Rong Xu & Miao Zeng & Qiang He & Dingde Xu & Yanbin Qi, 2022. "Do Cooperatives Affect Groundwater Protection? Evidence from Rural China," Agriculture, MDPI, vol. 12(7), pages 1-14, July.
    20. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct selling," Working Papers halshs-00906894, HAL.

    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:wly:agribz:v:12:y:1996:i:4:p:371-383. 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://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.