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Social influences in forest owners' choice between co-operative and investor-owned buyers

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  • Enander, John
  • Melin, Andreas
  • Nilsson, Jerker

Abstract

This study investigates the role of social networks when producers choose a buyer for their produce – either a co-operative or an investor-owned firm. The empirical basis is personal interviews with ten forest owners, five co-operative suppliers and five IOF suppliers. The findings indicate that forest owners influence each other as to choice of buyer, and that the social influences are stronger among co-operative suppliers than among suppliers to investor-owned buyers. It was expected that the social networks would be more important for forest owners who seek primarily monetary benefits from their forestry, and that forest owners, who are uncertain, are more influenced by social networks. These two expectations get, however, no support from the empirical data.

Suggested Citation

  • Enander, John & Melin, Andreas & Nilsson, Jerker, 2009. "Social influences in forest owners' choice between co-operative and investor-owned buyers," Department of Economics publications 4257, Swedish University of Agricultural Sciences, Department of Economics.
  • Handle: RePEc:sua:ekonwp:4257
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    1. Kurt K. Klein & Timothy J. Richards & Allan Walburger, 1997. "Determinants of Co-operative Patronage in Alberta," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 45(2), pages 93-110, July.
    2. Bravo-Ureta, Boris E. & Lee, Tsoung-Chao, 1988. "Socioeconomic and Technical Characteristics of New England Dairy Cooperative Members and Nonmembers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
    3. Berlin, Christina & Erikson, Ljusk Ola, 2007. "A Comparison Of Characteristics Of Forest and Farm Cooperative Members," Journal of Cooperatives, NCERA-210, vol. 20.
    4. Sanjib Bhuyan, 2007. "The "People" Factor in Cooperatives: An Analysis of Members' Attitudes and Behavior," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 275-298, September.
    5. Linda Robinson & Donald Lifton, 1993. "Convincing growers to fund cooperative marketing activities: Insights from the New York wine grape industry," Agribusiness, John Wiley & Sons, Ltd., vol. 9(1), pages 65-76.
    6. Burt, Lawrence A. & Wirth, Myron E., 1990. "Assessing the Effectiveness of Farm Supply Cooperatives: A Comparison of Farmer and Manager Viewpoints," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5.
    7. Fulton, Joan R. & Adamowicz, Wiktor L., 1993. "Factors That Influence the Commitment of Members to Their Cooperative Organization," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
    8. Zeuli, Kimberly A. & Bentancor, Andrea, 2005. "The Effects of Cooperative Competition on Member Loyalty," 2005 Annual Meeting, November 8-9 31823, NCERA-194 Research on Cooperatives.
    9. Jensen, Kimberly L., 1990. "Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5.
    10. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 5(01).
    11. Nilsson, Jerker & Kihlen, Anna & Norell, Lennart, 2009. "Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 12(4).
    12. Svein Ole Borgen, 2001. "Identification as a Trust-Generating Mechanism in Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(2), pages 209-228, June.
    13. Harvey S. James Jr. & Michael E. Sykuta, 2006. "Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 135-153.
    14. Wadsworth, James J., 1991. "An Analysis of Major Farm Characteristics and Farmers' Use of Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6.
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