IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v25y2009i2p181-197.html
   My bibliography  Save this article

Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives

Author

Listed:
  • Peter Österberg

    (Department of Economics, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden)

  • Jerker Nilsson

    (Department of Economics, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden)

Abstract

This study explores the extent to which members' assessment of their cooperatives' degree of success is related to various member attributes, notably the members' perception of their participation in the governance of the cooperatives. Three categories of member attributes are identified: satisfaction with the profitability of farm operations, age of the member, and experience from board work. The cooperatives' degree of success is measured as members' commitment towards cooperatives, and members' trust in the board of directors. The data originate from a mail survey among 2,250 Swedish farmers. The results indicate differences in members' commitment and their trust towards directors to be due to farm profitability, the members' age and experience as directors. After adding members' perception of their participation in the governance as a covariate, most of the other differences are explained by this variable. Age is still partly associated with trust towards directors; older farmers have less trust. [EconLit Classifications: Q13, D23, D72]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:181-197
    DOI: 10.1002/agr.20200
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20200
    File Function: Link to full text; subscription required
    Download Restriction: no

    References listed on IDEAS

    as
    1. Harvey S. James & Michael E. Sykuta, 2005. "Property Right and Organizational Characteristics of Producer-owned Firms and Organizational Trust," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(4), pages 545-580, December.
    2. Kurt K. Klein & Timothy J. Richards & Allan Walburger, 1997. "Determinants of Co-operative Patronage in Alberta," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 45(2), pages 93-110, July.
    3. Richards, Timothy J. & Klein, Kurt K. & Walburger, Allan M., 1998. "Principal-Agent Relationships in Agricultural Cooperatives: An Empirical Analysis from Rural Alberta," Journal of Cooperatives, NCERA-210, vol. 13.
    4. Sanjib Bhuyan, 2007. "The "People" Factor in Cooperatives: An Analysis of Members' Attitudes and Behavior," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 275-298, September.
    5. Hakelius, Karin, 1999. "Farmer Cooperatives in the 21st Century: Young and Old Farmers in Sweden," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 27(1).
    6. Sukant K. Misra & Dale H. Carley & Stanley M. Fletcher, 1993. "Dairy farmers' evaluation of dairy cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 9(4), pages 351-361.
    7. Linda Robinson & Donald Lifton, 1993. "Convincing growers to fund cooperative marketing activities: Insights from the New York wine grape industry," Agribusiness, John Wiley & Sons, Ltd., vol. 9(1), pages 65-76.
    8. Burt, Lawrence A. & Wirth, Myron E., 1990. "Assessing the Effectiveness of Farm Supply Cooperatives: A Comparison of Farmer and Manager Viewpoints," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5.
    9. Fulton, Joan R. & Adamowicz, Wiktor L., 1993. "Factors That Influence the Commitment of Members to Their Cooperative Organization," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
    10. Dunn, John R., 1988. "Basic Cooperative Principles and Their Relationship to Selected Practices," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
    11. Zeuli, Kimberly A. & Bentancor, Andrea, 2005. "The Effects of Cooperative Competition on Member Loyalty," 2005 Annual Meeting, November 8-9 31823, NCERA-194 Research on Cooperatives.
    12. Jensen, Kimberly L., 1990. "Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5.
    13. Kostas Karantininis & Angelo Zago, 2001. "Endogenous Membership in Mixed Duopsonies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1266-1272.
    14. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development Business and Cooperative Programs.
    15. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    16. Harvey S. James Jr. & Michael E. Sykuta, 2006. "Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 135-153.
    17. Wadsworth, James J., 1991. "An Analysis of Major Farm Characteristics and Farmers' Use of Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6.
    18. Cain, Jarvis L. & Toensmeyer, Ulrich C. & Ramsey, Stewart, 1989. "Cooperative and Proprietary Firm Performance as Viewed by Their Customers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 4.
    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. Valérie Barraud-Didier & Marie-Christine Henninger & Guilhem Anzalone, 2012. "The Weakening of the Member-cooperative Relationship in France
      [La distanciation du lien adhérent/coopérative en France]
      ," Post-Print hal-01395461, HAL.
    2. repec:gam:jsusta:v:10:y:2018:i:4:p:1271-:d:142233 is not listed on IDEAS
    3. Ollila, Petri & Nilsson, Jerker & Hess, Sebastian, 2014. "Farmers’ reactions to the internationalisation of Finnish cooperatives," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182936, European Association of Agricultural Economists.
    4. Silvio Goglio & Yiorgos Alexopoulos, 2009. "Financial Deregulation and Economic Distress: Is There a Future for Financial Co-operatives?," Euricse Working Papers 09001, Euricse (European Research Institute on Cooperative and Social Enterprises).
    5. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 15(1).
    6. repec:kap:sbusec:v:50:y:2018:i:4:d:10.1007_s11187-017-9893-3 is not listed on IDEAS
    7. Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    8. Wang, Lijia & Huo, Xuexi, 2013. "Member Willingness to Invest in Agricultural Cooperatives in Shaanxi Province, China," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(2).
    9. Benmehaia, Mohamed Amine & Brabez, Fatima, 4. "The Propensity To Cooperate Among Peasant Farmers In Algeria: An Analysis From Bivariate Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4).
    10. repec:eee:proeco:v:197:y:2018:i:c:p:1-12 is not listed on IDEAS
    11. Newman, Claire & Briggeman, Brian C., 2016. "Farmers’ Perceptions of Building Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(3).
    12. Morfi, Chrysa & Ollila, Petri & Nilsson, Jerker & Surry, Yves & Feng, Li & Karantininis, Konstantinos, 2014. "The switching behaviour of Finnish co-operative members in relation to their commitment and loyalty," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182774, European Association of Agricultural Economists.
    13. Alexopoulos, Yiorgos & Goglio, Silvio, 2011. "Financial Cooperatives: Problems and Challenges in the Post-Crisis Era," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(1).
    14. repec:zbw:espost:177850 is not listed on IDEAS
    15. Deimel, Mark & Theuvsen, Ludwig, 2011. "Networking in Meat Production Systems: The Influence of Cooperative Structures on Farmers’ Participation," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(1).
    16. 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.
    17. Valérie Barraud-Didier & Marie-Christine Henninger & Pierre Triboulet, 2014. "La Participation des Adhérents Dans Leurs Coopératives Agricoles: Une Étude Exploratoire du Secteur Céréalier Français," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 125-148, March.
    18. Arcas-Lario, Narciso & Martín-Ugedo, Juan Francisco & Mínguez-Vera, Antonio, 2014. "Farmers’ Satisfaction with Fresh Fruit and Vegetable Marketing Spanish Cooperatives: An Explanation from Agency Theory," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(1).
    19. Svetlana Golovina & Jerker Nilsson, 2011. "The Russian top-down organised co-operatives - reasons behind the failure," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 55-67.

    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:25:y:2009:i:2:p:181-197. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.