IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v5y2021i7p186-214.html
   My bibliography  Save this article

Farmers’ Cooperative Members’ Perception on Agency Problems and Its Impact on their Satisfaction in Ethiopia: The Moderating Role of members’ Participation on Cooperative Governance

Author

Listed:
  • Woldeyohanes Tena Gizaw

    (Business School, University of International Business and Economics (UIBE), Beijing, China)

  • Professor Niu xiongying

    (Business School, University of International Business and Economics (UIBE), Beijing, China)

Abstract

If smallholder farmers market their produce individually, they may incur significant losses from their buyers, agricultural inputs suppliers, and general service providers. However, farmers’ cooperatives can solve this problem by bringing institutional change, and they are leading solutions compared to other businesses. However, the existing cooperatives still did not fill members’ satisfaction according to members’ expectation and Ethiopian cooperatives are not exceptional. The prior research identified different evidence for the dissatisfaction of cooperative members. Among the reasons, member perception on agency problems is one of them; even though the researchers identified such issues, the cooperatives did not treated according to their unique nature rather similarly with investor owned firms (IOFs). Therefore the purpose of this study is to reconcile these gaps; hence it explored members’ perception on agency problem and its impact on cooperative members’ satisfaction in Ethiopian agricultural cooperatives. The results confirm that members’ satisfaction on cooperative governance has significant relationship with members’ perception on agency problems in Ethiopia. This study also provides evidence that members’ participation on cooperative governance moderate the relationship between perceived agency problems and cooperative members’ satisfaction on their cooperative governance in Ethiopia. Agency theory was underpin to understand the concepts; this study used the explanatory approach of research and used a cross sectional design for data collection and analysis. For the purpose of this study, the sample cooperative unions and primary cooperatives were chosen purposively however the sample 201 individual members chosen randomly and it consisted of 4 cooperative unions and 67 primary cooperatives found in Ethiopia. Hierarchal multiple regressions used to analyze the quantitative data to confirm or reject the hypothesis.

Suggested Citation

  • Woldeyohanes Tena Gizaw & Professor Niu xiongying, 2021. "Farmers’ Cooperative Members’ Perception on Agency Problems and Its Impact on their Satisfaction in Ethiopia: The Moderating Role of members’ Participation on Cooperative Governance," International Journal of Science and Business, IJSAB International, vol. 5(7), pages 186-214.
    • Handle: RePEc:aif:journl:v:5:y:2021:i:7:p:186-214
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/772.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-5-issue-7/4022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Valérie Barraud-Didier & Marie-Christine Henninger & Asâad El Akremi, 2012. "The Relationship Between Members' Trust and Participation in Governance of Cooperatives : The Role of Organizational Commitment," Post-Print halshs-00695926, HAL.
    2. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(1), pages 1-24, February.
    3. Berthon, Pierre & Pitt, Leyland F. & Ewing, Michael T. & Bakkeland, Gunnar, 2003. "Norms and power in marketing relationships: Alternative theories and empirical evidence," Journal of Business Research, Elsevier, vol. 56(9), pages 699-709, September.
    4. Amiya K. Basu & Rajiv Lal & V. Srinivasan & Richard Staelin, 1985. "Salesforce Compensation Plans: An Agency Theoretic Perspective," Marketing Science, INFORMS, vol. 4(4), pages 267-291.
    5. Bernard, Tanguy & Spielman, David J. & Seyoum Taffesse, Alemayehu & Gabre-Madhin, Eleni Z., 2010. "Cooperatives for staple crop marketing: Evidence from Ethiopia," Research reports 164, International Food Policy Research Institute (IFPRI).
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hao, J., 2018. "Cooperative member commitment, trust and social pressure -- the role of members’ participation in the decision-making," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275881, International Association of Agricultural Economists.
    2. Hakelius, Karin & Hansson, Helena, 2016. "Members’ attitudes towards cooperatives and their perception of agency problems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), October.
    3. Valérie Barraud-Didier & Marie-Christine Henninger & Pierre Triboulet, 2014. "La Participation des Adhérents Dans Leurs Coopératives Agricoles: Une Étude Exploratoire du Secteur Céréalier Français," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 125-148, March.
    4. François Bareille & Florence Bonnet-Beaugrand & Sabine Duvaleix-Tréguer, 2017. "Objectives’alignment between membersand agricultural cooperatives," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 98(1-2), pages 75-91.
    5. Valérie Barraud-Didier & Marie-Christine Henninger & Guilhem Anzalone, 2012. "The Weakening of the Member-cooperative Relationship in France [La distanciation du lien adhérent/coopérative en France]," Post-Print hal-01395461, HAL.
    6. Marie-Christine Henninger & Valérie Barraud-Didier, 2013. "Complexity of the link between members and cooperatives : a market relation based on social interactions [La complexité du lien adhérent-coopérative. La complexité du lien adhérent-coopérative : un," Post-Print halshs-01377049, HAL.
    7. Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    8. Smaïl Amghrous & Damien Rousselière, 2019. "L’implication des agriculteurs dans les coopératives dans un pays en transition vers une économie de marché : Une application aux coopératives agricoles de services algériennes," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 724-749, September.
    9. Nilsson, Jerker & Helgesson, Matilda & Rommel, Jens & Svensson, Ellinor, 2020. "Forest-owner support for their cooperative's provision of public goods," Forest Policy and Economics, Elsevier, vol. 115(C).
    10. Christiane MARTINEZ & Vilmar MOREIRA & Reginaldo BARREIROS & Alex WEYMER, 2020. "Determining Factors of Loyalty in Brazilian Agricultural Cooperatives," CIRIEC Working Papers 2016, CIRIEC - Université de Liège.
    11. Iveta Boskova & Samuel Ahado & Tomas Ratinger, 2020. "The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(8), pages 345-354.
    12. Aristotelis Batzios & Achilleas Kontogeorgos & Fotios Chatzitheodoridis & Panagiota Sergaki, 2021. "What Makes Producers Participate in Marketing Cooperatives? The Northern Greece Case," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    13. Chrysoula Morfi & Jerker Nilsson & Karin Hakelius & Kostas Karantininis, 2021. "Social networks and member participation in cooperative governance," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 264-285, April.
    14. Wendong Deng & George Hendrikse & Qiao Liang, 2021. "Internal social capital and the life cycle of agricultural cooperatives," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 301-323, January.
    15. Lingling Wang & Tsunemi Watanabe, 2017. "Influence of Trust on Biomass Supply Decision-Making in China," Energies, MDPI, vol. 10(11), pages 1-19, October.
    16. Zhou, Jiehong & Liu, Qing & Liang, Qiao, 2018. "Cooperative membership, social capital, and chemical input use: Evidence from China," Land Use Policy, Elsevier, vol. 70(C), pages 394-401.
    17. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    18. Mercy Mwambi & Jos Bijman & Patience Mshenga, 2020. "Which type of producer organization is (more) inclusive? Dynamics of farmers’ membership and participation in the decision‐making process," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 213-236, June.
    19. Marcos-Matas, Gustavo & Ruggeri, Arianna & Ghelfi, Rino, 2018. "The Role of Members' Commitment on Agri-Food Co-Operatives' Capitalization, Innovation and Performance," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), March.
    20. Eunju CHOI & Woosuk CHOI & Seungkwon JANG & Sangsun PARK, 2014. "Does The Effectiveness Of Board Of Directors Affect Firm Performance Of Consumer Co-Operatives? The Case Of Icoop Korea," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(3), pages 371-386, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:5:y:2021:i:7:p:186-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.