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

  • 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)

Registered author(s):

    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.

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    File URL: http://hdl.handle.net/10.1002/agr.20200
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 25 (2009)
    Issue (Month): 2 ()
    Pages: 181-197

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    Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:181-197
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    1. 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, 09.
    2. Dunn, John R., 1988. "Basic Cooperative Principles and Their Relationship to Selected Practices," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
    3. 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.
    4. 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.
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    13. 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.
    14. 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.
    15. 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.
    16. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development Business and Cooperative Programs.
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