IDEAS home Printed from
   My bibliography  Save this paper

Efficiency of Investor Owned Firms and Cooperatives Revisited


  • Soboh, Rafat
  • Oude Lansink, Alfons G.J.M.
  • van Dijk, Gert


Providing a performance measure of any firm is a crucial issue, not only for the stakeholders of the firm, but also for policy makers, labor unions, and economists. The relevant performance measures should consider the objectives of the firm’s owners. The ownership structure of cooperatives is different from that of investors owned firms, which in principle implies the need of different tools to measure their performance. Typically, however, the performance of cooperatives and investor owned firm is mostly compared using the same approach. In this study, we use Data Envelopment Analysis (DEA) to compare the performance of dairy cooperatives and investor owned firms in major European dairy producing countries using a traditional approach, which views both types of firms as cost minimizers, and an alternative approach, which considers the objectives of the cooperatives. In the alternatives approach, two hyperbolic models were evaluated, one of them consider the firms to expand both output production and use of material to address the objective of the owners of the cooperatives. The performance of the cooperatives changes across the two approaches form being out performed by IOFs using the traditional approach to outperforming IOFs when using an approach that is in line with the objective of the cooperative.

Suggested Citation

  • Soboh, Rafat & Oude Lansink, Alfons G.J.M. & van Dijk, Gert, 2009. "Efficiency of Investor Owned Firms and Cooperatives Revisited," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58132, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa113:58132

    Download full text from publisher

    File URL:
    Download Restriction: no


    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:ags:eaa113:58132. 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: (AgEcon Search). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.