IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v89y2018i4p581-598.html
   My bibliography  Save this article

Why Farmers Involve Themselves In Co‐Operative District Councils

Author

Listed:
  • Chrysoula MORFI
  • Jerker NILSSON
  • Hanna ÖSTERBERG

Abstract

This study finds that selective incentives induce district council members and chairpersons to work for the collective best of a co‐operative membership. Being the lowest echelon of a co‐operative's internal governance hierarchy, district councils constitute a link between the membership and the board of directors. Previous research indicates that district council members are often driven by a co‐operative conviction and social concerns. The present study challenges this view. On the basis of a survey of all 191 district council members and council chairpersons of a large Swedish agricultural co‐operative, it is found that the elected representatives rank low in terms of co‐operative conviction and social concerns. They involve themselves mainly in order to get personal benefits; they want to gain access to information, mature personally and obtain inputs to develop their farm enterprises. The financial compensation is of limited importance.

Suggested Citation

  • Chrysoula MORFI & Jerker NILSSON & Hanna ÖSTERBERG, 2018. "Why Farmers Involve Themselves In Co‐Operative District Councils," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 581-598, December.
  • Handle: RePEc:bla:annpce:v:89:y:2018:i:4:p:581-598
    DOI: 10.1111/apce.12206
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apce.12206
    Download Restriction: no

    File URL: https://libkey.io/10.1111/apce.12206?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jos Bijman & Markus Hanisch & Ger Sangen, 2014. "Shifting Control? The Change of Internal Governance in Agricultural Cooperatives in the EU," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 641-661, December.
    2. Jensen, Michael C & Meckling, William H, 1979. "Rights and Production Functions: An Application to Labor-managed Firms and Codetermination," The Journal of Business, University of Chicago Press, vol. 52(4), pages 469-506, October.
    3. Nilsson, Jerker & Svendsen, Gert Tinggaard, 2011. "Free Riding or Trust? Why Members (do not) Monitor their Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(2), pages 1-20.
    4. 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.
    5. 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.
    6. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    7. Nilsson, Jerker & Rydberg, Charlotta, 2015. "Factors behind the Fonterra Shareholders' Rejection of the Board's Capital Restructuring Plan of 2007," Journal of Cooperatives, NCERA-210, vol. 30, pages 1-27.
    8. Li Feng & Anna Friis & Jerker Nilsson, 2016. "Social Capital among Members in Grain Marketing Cooperatives of Different Sizes," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 113-126, January.
    9. George Hendrikse & Jos Bijman, 2002. "Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 104-119.
    10. Lampros Lamprinakis & Murray Fulton, 2011. "Does acquisition of a cooperative generate profits for the buyer? The Dairyworld case," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 89-100, November.
    11. Fabio Chaddad & Constantine Iliopoulos, 2013. "Control Rights, Governance, and the Costs of Ownership in Agricultural Cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 29(1), pages 3-22, January.
    12. Daniela Maria Pozzobon & Decio Zylbersztajn, 2013. "Democratic Costs in Member‐Controlled Organizations," Agribusiness, John Wiley & Sons, Ltd., vol. 29(1), pages 112-132, January.
    13. Fulton, Murray E. & Hueth, Brent, 2009. "Cooperative Conversions, Failures and Restructurings: An Overview," Journal of Cooperatives, NCERA-210, vol. 23, pages 1-12.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Gea D.M. Wijers, 2019. "A comparison of cooperative ecosystems: what institutions can bring transformation?," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 18(2), pages 146-159, December.
    3. Nilsson, Jerker, 2024. "Differentiated voting and membership composition – the case of a large Swedish dairy cooperative," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(02), June.
    4. Jos BIJMAN & Markus HANISCH, 2020. "Understanding the heterogeneity among agricultural cooperatives," CIRIEC Working Papers 2013, CIRIEC - Université de Liège.
    5. 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.
    6. Marcelo Ferreira & Clea Macagnan & Daniel Vancin & Ana Toaldo, 2021. "Technical assistance: A determinant of cooperative member loyalty," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 649-668, December.
    7. Wei Yang & Le Wang, 2023. "Impact of farmer group participation on the adoption of sustainable farming practices—spatial analysis of New Zealand dairy farmers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 701-717, September.

    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. Karin Hakelius & Jerker Nilsson, 2020. "The Logic behind the Internal Governance of Sweden’s Largest Agricultural Cooperatives," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    2. 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.
    3. 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).
    4. 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.
    5. Julia HÖHLER & Rainer KÜHL, 2018. "Dimensions Of Member Heterogeneity In Cooperatives And Their Impact On Organization – A Literature Review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 697-712, December.
    6. Hendrikse, G.W.J. & Nillson, J., 2022. "Board Structure Variety in Cooperatives," ERIM Report Series Research in Management ERS-2022-006-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Grashuis, Jasper & Cook, Michael, 2016. "Capital, Ownership, and Governance: Analyzing the Structure of U.S. Farmer Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235677, Agricultural and Applied Economics Association.
    8. Li Feng & Anna Friis & Jerker Nilsson, 2016. "Social Capital among Members in Grain Marketing Cooperatives of Different Sizes," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 113-126, January.
    9. 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.
    10. Liyan Yu & Jerker Nilsson & Feng Zhan & Song Cheng, 2023. "Social Capital in Cooperative Memberships and Farmers’ Access to Bank Credit–Evidence from Fujian, China," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    11. 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.
    12. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    13. Nilsson, Jerker, 2024. "Differentiated voting and membership composition – the case of a large Swedish dairy cooperative," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(02), June.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    19. Viergutz, Tim & Schulze-Ehlers, Birgit, 2018. "Member Commitment and Switching Decisions in Dairy Cooperatives – A Factorial Survey," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276864, International European Forum on System Dynamics and Innovation in Food Networks.
    20. Karin Hakelius & Helena Hansson, 2016. "Measuring Changes in Farmers’ Attitudes to Agricultural Cooperatives: Evidence from Swedish Agriculture 1993–2013," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 531-546, November.

    More about this item

    Statistics

    Access and download statistics

    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:bla:annpce:v:89:y:2018:i:4:p:581-598. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    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.