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Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures

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  • Goldsmith, Peter D.
  • Gow, Hamish R.

Abstract

Structural change in US agriculture has disrupted the traditional organization of the supply chain. Not only does the scale increase of firms common during the industrial period (1970-1995) continue, but also with the rise of a knowledge-based economy, new organizational forms and supply chain linkages are proliferating. Examples are the radical transformation of the relationship between input suppliers and producers in the biotech arena, the dominance of the swine industry by the integrated model, the rise of marketing and production contracting, and the arrival of multi-member closed producer organizations such as the new generation cooperatives and limited liability companies. The focus of this research is these new integrated producer organizations. Much of the activity and subsequent analysis of new producer organizations has focused on value-added opportunities through integration (i.e., Merrett et al, 1999). There are numerous examples from pasta plants and egg breaking, to cattle feeding, hog slaughter, and alcohol production. These value-added opportunities we define as long jump ventures. That is, they lie outside the core competencies of the principles in the firm, the producers. Strategic management theory (Prahalad, 1986,1990,1993; Quinn, 1977,1990; Mintzberg, 1987,1994,1996,1998,2000) suggests that there may be other opportunities available to producer organizations that better leverage their core competencies, short jump ventures. Short jump ventures are value-creating opportunities that involve a minimum R&D, less capital, less risk, and less direct specialized knowledge. While the economy at large is producing vast quantifies of long jump innovations in the fields of biotechnology and information, there is another revolution occurring in business involving short jump innovation in the area of service. This new field, known as; one-to-one marketing (Pepper, 1993, 1999), relationship management (Hansen, 1983), relationship marketing (Curry, 2000), an
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Suggested Citation

  • Goldsmith, Peter D. & Gow, Hamish R., 2000. "Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures," 2000 Annual Meeting, December 12-13 31809, NCERA-194 Research on Cooperatives.
    • Handle: RePEc:ags:ncerze:31809
    DOI: 10.22004/ag.econ.31809
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    References listed on IDEAS

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    1. Richard P. Rumelt, 1982. "Diversification strategy and profitability," Strategic Management Journal, Wiley Blackwell, vol. 3(4), pages 359-369, October.
    2. Carlberg, Jared G. & Ward, Clement E. & Holcomb, Rodney B., 2006. "Success Factors for New Generation Cooperatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 9(1), pages 1-20.
    3. Goldsmith, Peter D. & Ramos, Gabriel & Steiger, Carlos, 2001. "Intellectual Property Protection And The International Marketing Of Agricultural Biotechnology: Firm And Host Country Impacts," 2001 Annual meeting, August 5-8, Chicago, IL 20672, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Bruynis, Chris L. & Goldsmith, Peter D. & Hahn, David E. & Taylor, William J., 2000. "Key Success Factors for Emerging Agricultural Marketing Cooperatives," Journal of Cooperatives, NCERA-210, vol. 16, pages 1-11.
    5. John W. Siebert & Robert Jones & Thomas L. Sporleder, 1997. "The VEST model: An alternative approach to value added," Agribusiness, John Wiley & Sons, Ltd., vol. 13(6), pages 561-567.
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    1. Micheels, Eric T. & Nolan, James F., 2016. "Examining the effects of absorptive capacity and social capital on the adoption of agricultural innovations: A Canadian Prairie case study," Agricultural Systems, Elsevier, vol. 145(C), pages 127-138.
    2. Jasper Grashuis, 2018. "An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    3. Brenes, Esteban R. & Montoya, Daniel & Ciravegna, Luciano, 2014. "Differentiation strategies in emerging markets: The case of Latin American agribusinesses," Journal of Business Research, Elsevier, vol. 67(5), pages 847-855.
    4. Magdalena Kozera-Kowalska, 2020. "Intellectual Capital: ISVA, the Alternative Way of Calculating Creating Value in Agricultural Entities—Case of Poland," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    5. Salavou, Helen E. & Sergaki, Panagiota, 2013. "Generic Business Strategies in Greece: Private Food Firms versus Agricultural Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(1), pages 1-17.
    6. Mirzaei, Omid & Micheels, Eric T. & Boecker, Andreas, 2016. "Product and Marketing Innovation in Farm-Based Businesses: The Role of Entrepreneurial Orientation and Market Orientation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-32, May.
    7. Goldsmith, Peter D. & Kane, Samuel, 2002. "The Farm Business Environment and New Generation Cooperatives as an Innovation Strategy," 2002 Annual Meeting, November 13 31826, NCERA-194 Research on Cooperatives.
    8. Goldsmith, Peter D. & Bender, Karen, 2003. "Ten Conversations about Identity Preservation: Implications for Cooperatives," 2003 Annual Meeting, October 29 31803, NCERA-194 Research on Cooperatives.
    9. Nikos Kalogeras & Joost M.E. Pennings & Ivo. A. van der Lans & Philip Garcia & Gert van Dijk, 2009. "Understanding heterogeneous preferences of cooperative members," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 90-111.
    10. Chao-Chien Chen & Hsiu-Ping Yueh & Chaoyun Liang, 2016. "Strategic Management of Agribusiness: Determinants and Trends," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 12(4), pages 69-97.
    11. Oyewumi, Olubukola Ayodeju & Jooste, Andre, 2006. "Measuring the determinants of pork consumption in Bloemfontein, Central South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(2), pages 1-13, June.
    12. Vera Sadovska & Lena Ekelund Axelson & Cecilia Mark-Herbert, 2020. "Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    13. Whitacre, Rick C. & Winter, J. Randy, 2004. "Agguild Of Illinois: A New Generation Cooperative Without The Bricks And Mortar," 2004 Annual meeting, August 1-4, Denver, CO 20321, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Industrial Organization; Agribusiness;

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