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An Ownership Rights Typology Of Cooperative Models

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  • Chaddad, Fabio Ribas
  • Cook, Michael L.

Abstract

This paper examines agricultural cooperative organizational models from an ownership rights perspective. Building upon property rights and incomplete contracts theories of the firm, the paper adopts a definition of ownership rights comprising both residual claim and control rights. We argue that alternative cooperative organizational models differ in the way ownership rights are defined and assigned to the economic agents tied contractually to the firm - members, patrons, and investors. Based on multiple case study evidence, the paper proposes a typology of discrete organizational models, in which the traditional cooperative structure and the investor-oriented firm (IOF) are characterized as polar forms. Additionally, we identify five non-traditional models that cooperatives may adopt to ameliorate perceived financial constraints. The paper is intended to facilitate a better-informed strategic decision making process among cooperative leaders in choosing among alternative cooperative ownership structures.

Suggested Citation

  • Chaddad, Fabio Ribas & Cook, Michael L., 2002. "An Ownership Rights Typology Of Cooperative Models," Working Papers 26032, University of Missouri Columbia, Department of Agricultural Economics.
    • Handle: RePEc:ags:umcowp:26032
    DOI: 10.22004/ag.econ.26032
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    References listed on IDEAS

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    Cited by:

    1. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Liang, Qiao & Hendrikse, George W. J. & Huang, Zuhui, 2010. "Value added and governance structure: Evidence from the pear industry in China's Zhejiang province," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52708, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    3. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. George APOSTOLAKIS & Gert VAN DIJK, 2018. "Cooperative organizations and members’ role: A new perspective," CIRIEC Working Papers 1804, CIRIEC - Université de Liège.
    5. Brewin, Derek G. & Bielik, Michelle & Oleson, Brian, 2008. "The Evolution of Grain Trading Organizations in Australia: Applying the Cooperative Life Cycle," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 9, pages 1-9, March.
    6. repec:vuw:vuwscr:18942 is not listed on IDEAS

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