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Cooperative strategy: Theory and practice

Author

Listed:
  • H. Christopher Peterson

    (Department of Agricultural Economics, Michigan State University, East Lansing, MI 48824-1039)

  • Bruce L. Anderson

    (Department of Agricultural Economics, Cornell University, Ithaca, NY)

Abstract

The theoretical literature suggests 12 strategies through which cooperatives could produce differential benefits for members. Six of these strategies would primarily generate additional returns, and six would primarily operate to reduce the risk inherent in returns. Through in-depth interviews with CEOs from 21 northeastern US cooperatives, it was determined that: the taxonomy of theoretical strategies matched will with actual strategies, cooperatives use a mix of returns and risk-management strategies, actual strategic motivations are sometimes at odds with those suggested by theory, and cooperative information systems appear inadequate to support strategic decision making. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • H. Christopher Peterson & Bruce L. Anderson, 1996. "Cooperative strategy: Theory and practice," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 371-383.
    • Handle: RePEc:wly:agribz:v:12:y:1996:i:4:p:371-383
    DOI: 10.1002/(SICI)1520-6297(199607/08)12:4<371::AID-AGR7>3.0.CO;2-W
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    References listed on IDEAS

    as
    1. Richard J. Sexton, 1986. "Cooperatives and the Forces Shaping Agricultural Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1167-1172.
    2. Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
    3. Peterson, H. Christopher, 1992. "The Economic Role and Limitations of Cooperatives: An Investment Cash Flow Derivation," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 7, pages 1-18.
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    Cited by:

    1. Russo, Carlo & Weatherspoon, Dave D. & Peterson, H. Christopher, 2000. "Members' Financial Evaluation And Cooperatives' Decision Processes," Staff Paper Series 11719, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. 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.
    3. George Hendrikse & Li Feng, 2013. "Interfirm cooperatives," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 26, Edward Elgar Publishing.
    4. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    5. Lyford, Conrad P. & Peterson, H. Christopher & Sterns, James A., 2002. "Industry Strategic Planning: Keeping Supply Chains Competitive," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(2), pages 1-13, July.
    6. Qiao Liang & Xinxin Wang, 2020. "Cooperatives as competitive yardstick in the hog industry?—Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 127-145, January.
    7. Achilleas Kontogeorgos & Panagiota Sergaki & Anastasia Kosma & Vassiliki Semou, 2018. "Organizational Models for Agricultural Cooperatives: Empirical Evidence for their Performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1123-1137, December.
    8. Antti Talonen & Iiro Jussila & Hannu Saarijärvi & Timo Rintamäki, 2016. "Consumer cooperatives: uncovering the value potential of customer ownership," AMS Review, Springer;Academy of Marketing Science, vol. 6(3), pages 142-156, December.
    9. Zieseniss, Roland & Kuehl, Rainer, 2013. "Relative Performance Payment in Cooperatives – A Model-Theoretical Analysis," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152162, Australian Agricultural and Resource Economics Society.
    10. Feng, L. & Hendrikse, G.W.J., 2011. "Chain Interdependencies, Measurement Problems, and Efficient Governance Structure: Cooperatives versus Publicly Listed Firms," ERIM Report Series Research in Management ERS-2011-001-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.
    11. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    12. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
    13. Wendong Deng & George Hendrikse, 2018. "Social interactions and product quality: the value of pooling in cooperative entrepreneurial networks," Small Business Economics, Springer, vol. 50(4), pages 749-761, April.
    14. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    15. Salavou, Helen E. & Sergaki, Panagiota, 2013. "Generic Business Strategies in Greece: Private Food Firms versus Agricultural Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(1), pages 1-17.
    16. Jeffrey P. Katz, 1997. "Managerial behavior and strategy choices in agribusiness cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 13(5), pages 483-495.
    17. Li, Feng & Hendrikse, George W.J., 2009. "CEO Compensation in Cooperatives versus Publicly Listed Firms," 2009 Conference, August 16-22, 2009, Beijing, China 51619, International Association of Agricultural Economists.
    18. Nicola Francesconi & Fleur Wouterse & Dorothy Birungi Namuyiga, 2021. "Agricultural Cooperatives and COVID-19 in Southeast Africa. The Role of Managerial Capital for Rural Resilience," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    19. Zahir Dossa, 2012. "Cooperatives: A Development Strategy? An Analysis of Argan Oil Cooperatives in Southwest Morocco," Euricse Working Papers 1229, Euricse (European Research Institute on Cooperative and Social Enterprises).
    20. Theo Benos & Nikos Kalogeras & Frans J.H.M. Verhees & Panagiota Sergaki & Joost M.E. Pennings, 2016. "Cooperatives’ Organizational Restructuring, Strategic Attributes, and Performance: The Case of Agribusiness Cooperatives in Greece," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 127-150, January.
    21. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    22. Nikos Kalogeras & Joost M.E. Pennings & Ivo. A. van der Lans & Philip Garcia & Gert van Dijk, 2009. "Understanding heterogeneous preferences of cooperative members," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 90-111.
    23. repec:vuw:vuwscr:18942 is not listed on IDEAS

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