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1 – 10 of 420Getu Hailu, Scott R. Jeffrey and Ellen W. Goddard
The agribusiness co-operative sector in Canada has been affected by ongoing changes in economic, political, and social policies. Increased competition from local investor-owned…
Abstract
The agribusiness co-operative sector in Canada has been affected by ongoing changes in economic, political, and social policies. Increased competition from local investor-owned firms and multinational companies, deregulation and globalization of trade and increased concentration of suppliers and purchasers have put tremendous competitive pressure on agribusiness marketing co-operatives. The enhanced level of competitive rivalry may force co-operatives into lowering costs and prices. Improvement in cost or operating efficiency of agribusiness marketing co-operatives may be crucial as changes in regulation, technology, and other market developments bring into question the long-term viability of co-operative businesses. Therefore, information as to the efficiency with which agribusiness co-operative firms operate would be useful.
Fellipe Silva Martins, Wagner Cezar Lucato and Dirceu Da Silva
The purpose of this paper is to integrate Brazilian agro-industrial co-operatives’ horizontal, lateral and vertical integration diversification and expansion strategies, such as…
Abstract
Purpose
The purpose of this paper is to integrate Brazilian agro-industrial co-operatives’ horizontal, lateral and vertical integration diversification and expansion strategies, such as operation area and membership, with financial models. Several studies have tried to assess the importance of diversification on the financial outcomes in agricultural co-operatives with limited success.
Design/methodology/approach
The three main concepts were combined in a working model. A survey was developed to gather data on financial, diversification and expansion strategies from 67 co-operatives (44 per cent return rate). Data were processed using a partial least squares structural equation model.
Findings
The findings suggest that expansion is directly responsible for both the financial output and diversification strategy; however, no hard evidence supports the view that the diversification of production in some agro-industrial co-operatives leads to positive financial results.
Research limitations/implications
Only larger Brazilian co-operatives (>$50m in annual revenues) were considered. Co-operatives facing other scenarios or smaller co-operatives could have different outcomes.
Practical implications
Besides diversifying their co-operatives for financial reasons, managers should also consider risk aversion and adapting to new farmers’ portfolios as probable reasons.
Originality/value
Extant literature asserts that diversification leads to financial growth; as the co-operatives studied show no such causal relationship, it follows that they diversify their portfolios for other purposes.
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Finds that agricultural co‐operatives have not been as sophisticated in their utilization of capital budgeting as a planning and financial management tool as have traditional…
Abstract
Finds that agricultural co‐operatives have not been as sophisticated in their utilization of capital budgeting as a planning and financial management tool as have traditional corporations. Suggests that this may be due to the differences in the organizational objectives of the co‐operatives and the for‐profit corporations.
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Tim Mazzarol, Geoffrey Soutar and Elena Mamouni Limnios
The purpose of this paper is to present findings from a large-scale survey of members of co-operative and mutual enterprises (CMEs) that examines the factors influencing members’…
Abstract
Purpose
The purpose of this paper is to present findings from a large-scale survey of members of co-operative and mutual enterprises (CMEs) that examines the factors influencing members’ intentions to remain loyal to the enterprise and to provide word of mouth (WOM).
Design/methodology/approach
A model was suggested and tested to examine the interrelationships between constructs measuring emotional, functional and financial value, affective and continuance commitment, intention to remain loyal to a CME and WOM communication. A large sample was drawn from a range of co-operative and mutual enterprises, and the suggested model was estimated using a partial least squares approach.
Findings
Significant relationships were found between all constructs. However, emotional value and affective commitment were found to have particularly strong relationships. Emotional value had a strong influence on both affective and continuance commitment, while affective commitment had a strong influence on loyalty and WOM.
Originality/value
This paper provides empirical support for suggestions about the factors that influence member loyalty within CMEs and the relative importance of non-financial motivations. It also provides a strong foundation upon which directors and executive managers of CMEs can build more effective member marketing and communications strategies.
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Getu Hailu, Scott R. Jeffrey and Ellen W. Goddard
This paper examines the cost structure and cost efficiency for an unbalanced sample of 42 animal feed and 115 farm petroleum co‐operatives in Canada over the period 1984‐2001…
Abstract
This paper examines the cost structure and cost efficiency for an unbalanced sample of 42 animal feed and 115 farm petroleum co‐operatives in Canada over the period 1984‐2001 using heterogeneous technology stochastic frontier models. The parameter estimates of the cost frontier and the resulting cost efficiency scores indicate there are statistically and economically significant cost inefficiencies. Further analysis revealed that financial structure and firm size have likely contributed to variations in cost efficiency. Obtaining sufficient equity capital is expected to improve co‐operative efficiency
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Li Zhao and Caroline Gijselinckx
The purpose of this paper is to understand the emergence of new, multi‐stakeholder co‐operatives in China and identify their resource mix structure, as well as the influence of…
Abstract
Purpose
The purpose of this paper is to understand the emergence of new, multi‐stakeholder co‐operatives in China and identify their resource mix structure, as well as the influence of institutional environments. The empirical observations are related to a conceptual rationale of social enterprises as private businesses, and it is suggested that the new rural co‐operatives found in China are increasingly caught in a “co‐operative trilemma” and an emerging public–private “welfare partnership”.
Design/methodology/approach
The paper is developed from a conceptual rationale of social enterprises as private businesses that are not primarily driven by financial profit but by a combination of economic and social objectives, whereby stakeholders from various institutional spheres (market, state and civil society) are increasingly involved. Based upon this, the paper analyses and synthesizes the main findings from 20 cases investigated during fieldwork conducted in China. Data were gathered through a combination of semi‐structured interviews with key figures in the field and documentary analysis.
Findings
The main findings show that new co‐operatives in China indeed combine multiple resources, including members’ contributions and institutional capital, public financial support and market sales, as well as private non‐market resources such as volunteering and donations. This empirical observation provides further evidence of the transformation process of Chinese rural co‐operatives from classic mutual aids to a new model with a more outward community orientation and a multi‐stakeholder character. Moreover, it was found that institutional environments facilitate or discourage co‐operatives’ multiple resources formation. Based upon this empirical evidence it is seen how new Chinese rural co‐operatives are caught in a “co‐operative trilemma”, finding themselves “at the crossroads of market, public policy and civil society” and involved in an emerging public‐private “welfare partnership”.
Research limitations/implications
The research has implications for research on co‐operatives and social enterprises in China, as well as policy implications with regard to the development of more favourable institutional support for co‐operatives as rural third‐sector organizations.
Originality/value
By addressing three research questions the paper contributes to the literature on the emergence of multi‐stakeholder co‐operatives in China (and in developing countries more generally) and contributes to the literature on the capital structure of co‐operatives from practice and policy perspectives. Based upon evidence from China, the paper helps to explain how these newly emerging rural co‐operatives in China, which are struggling against capital constraints when facing a highly competitive environment and trying to catch up through a process of diversification, just like many contemporary co‐operatives in the West, are finding themselves caught in a new co‐operative trilemma.
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Fabrício Oliveira Leitão, Ely Laureano Paiva and Karim Marini Thomé
The literature has suggested that capabilities have been used to generate performance and competitive advantage, especially in industries with higher technological dynamism in…
Abstract
Purpose
The literature has suggested that capabilities have been used to generate performance and competitive advantage, especially in industries with higher technological dynamism in developed economies. However, knowledge of the topic still needs to be systematically analyzed in agribusiness. Thus, this article fills this gap because it systematically reviews the literature on agribusiness capabilities and performance, classifies and codifies its characteristics, and determines what is known and what gaps there are in the knowledge regarding these subjects.
Design/methodology/approach
A systematic literature review of agribusiness capabilities and performance was conducted based on Cronin et al. (2008) protocol. Thirty-six articles from the WoS and Scopus databases were identified and analyzed.
Findings
This article identified, classified and coded 12 capabilities agribusiness firms employ to improve performance. This article reveals several gaps regarding capabilities and performance in agribusiness, especially emphasizing commodity products, in addition to studies with fruits and vegetables, milk, eggs, meat, agricultural inputs and biofuels. It was also found that higher-order capabilities are more strongly related to performance than lower-order capabilities, that the performance benefits conferred by capabilities are more evident in developing economies, and that the relationship between capabilities and performance is more robust in agribusinesses with lower levels of technological dynamism.
Originality/value
This paper contributes to the debate about agribusiness capabilities and performance in three aspects. First, it systematically reviews the literature on these subjects; second, it classifies and codifies agribusiness capabilities and performance characteristics; third, it provides a research agenda on the theme.
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Maísa Gomide Teixeira, Silvia Morales de Queiroz Caleman and Jean Carlos da Silva Américo
This study aims to analyze how multirational management relates to cooperatives’ corporate governance.
Abstract
Purpose
This study aims to analyze how multirational management relates to cooperatives’ corporate governance.
Design/methodology/approach
A typology of agricultural cooperatives’ potential for multirational management in relation to corporate governance is proposed. Coordinates based on data from assembly participation and separation of ownership and control are used to map cooperatives among these typologies. Four case studies representing each typology were conducted, allowing analysis of propositions.
Findings
By mapping the cooperatives from Mato Grosso do Sul, a reduced potential for multirational management is noted. By analyzing the four case studies, coded as Coop 1, 3, 13 and 16, this study found convergence with P1, P2 and P3. “Coop 1” shows signs of adopting exploitation practice. In “Coop 3,” evidence points to avoidance practice and, analyses of “Coop 13” indicates adoption of tolerance practice. In Coop 16, however, P4 could not be confirmed. Instead of polarizing practices, there is evidence of avoidance practice. Therefore, a positive relation between corporate governance and multirational management can partially be observed.
Originality/value
There are no records of a paper that has explored the relation of governance and multirational management. Therefore, this research broadens the understanding of how corporate governance can function in the context of cooperative organizations. As well, insight is given on how different mechanisms of corporate governance can influence organizations to adopt explicit or implicit and monorational or multirational methods of dealing with multiple rationalities.
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Aries Susanty, Arfan Bakhtiar, Ferry Jie and Mustofa Muthi
The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and…
Abstract
Purpose
The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance.
Design/methodology/approach
Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis.
Findings
The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance.
Research limitations/implications
The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative.
Practical implications
It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product.
Social implications
The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer.
Originality/value
Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.
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