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Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust

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  • Nilsson, Jerker
  • Kihlen, Anna
  • Norell, Lennart

Abstract

Several researchers, who have observed that traditional cooperatives have difficulties in modern markets, mention a number of behavioral concepts characterizing the members. This study attempts to empirically test these concepts. It is based on a survey among members of a large traditional Swedish cooperative. The members perceive the cooperative to be so large and complex that they have difficulties understanding the operations. Hence, they become dissatisfied and uninvolved, and they mistrust the leadership. Moreover, they do not believe that the cooperative can be remodeled to strengthen member control. The findings support the behavioral explanations presented in prior studies.

Suggested Citation

  • 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, vol. 12(4), pages 1-22, November.
    • Handle: RePEc:ags:ifaamr:92574
    DOI: 10.22004/ag.econ.92574
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    References listed on IDEAS

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    1. Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
    2. 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.
    3. Nilsson, Jerker & Ohlsson, Camilla, 2007. "The New Zealand Dairy Cooperatives’ Adaptation to Changing Market Conditions," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 35(1), pages 1-28.
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