New Producer Strategies: The Emergence of Patron-Driven Entrepreneurship
Abstract—Existing research treats the cooperative structure as relatively homogeneous. The proposed paper argues that all cooperatives are not created equal – and consideration of organizational structure is critical when analyzing the economic impact of cooperation. In recent empirical work, we observe cooperatives forming as single- or multi-purpose; generating equity capital passively, quasi-passively, or proactively; vertically integrating in a centralized, federated, or a hybrid fashion; governing through fixed or proportional control rights; and instituting open, closed or class-varying membership criteria. The emergence of multiple-level rent-seeking cooperatives challenges our traditional rent dispersion models of collective action. We call these multi-level, patron, rent-seeking entities a form of collective entrepreneurship. This paper develops a set of criteria enabling us to distinguish between traditional forms of cooperation and collective entrepreneurship. We employ these characteristics to analyze and contrast these two extreme forms of collective action. We propose a continuum from single-level rent seeking, traditional, patron, user-driven cooperative forms; through forms of hybrids and macrohierarchies; to multiple-level rent seeking, patron, user-investor-driven collective entrepreneurship.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
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- Cook, Michael L. & Plunkett, Brad, 2006. "Collective Entrepreneurship: An Emerging Phenomenon in Producer-Owned Organizations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
- 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.
- Cook, Michael L. & Plunkett, Brad, 2006. "Collective Entrepreneurship: An Emerging Phenomenon in Producer-Owned Organizations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(02), pages 421-428, August.
- Dunn, John R., 1988. "Basic Cooperative Principles and Their Relationship to Selected Practices," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
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