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Agency and Leadership in Cooperatives

In: Vertical Markets and Cooperative Hierarchies

Author

Listed:
  • Murray Fulton

    (University of Saskatchewan)

  • Konstantinos Giannakas

    (University of Nebraska-Lincoln)

Abstract

The poor financial performance of a number of previously successful agricultural cooperatives appears to be connected to member commitment, which in turn is linked to the decisions made by the cooperatives’ leaders. While cooperative members should have an incentive to hire leaders that promote strong organizational commitment, the evidence suggests this incentive is weaker than imagined. This paper shows that cooperatives that believe they have a well-defined and loyal membership are less likely to hire leaders that will enhance member commitment. Thus, historical success is no guarantee of future success and may in fact contain the seeds of failure.

Suggested Citation

  • Murray Fulton & Konstantinos Giannakas, 2007. "Agency and Leadership in Cooperatives," Springer Books, in: Vertical Markets and Cooperative Hierarchies, chapter 0, pages 93-113, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4020-5543-0_6
    DOI: 10.1007/1-4020-5543-0_6
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    Citations

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    Cited by:

    1. 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.
    2. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    3. Hakelius, Karin & Hansson, Helena, 2016. "Members’ attitudes towards cooperatives and their perception of agency problems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), October.
    4. Grashuis, Jasper & Cook, Michael, 2016. "Governance and Performance in the U.S. Agri-Food Industry: A Comparative Study of Firms and Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235676, Agricultural and Applied Economics Association.

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