Co-ordination and performance of Spanish second-level agricultural co-operatives: the impact of relationship characteristics

Abstract

Summary A large number of Spanish agricultural marketing co-operatives (i.e. first-level marketing co-operatives, 1LMCs) have formed long-term partnerships with a second-level marketing co-operative (2LMC). Good co-ordination is essential for making the partnership competitive. This study analyses how the 2LMC’s coordination efforts affect its partners’ performance. Specifically, this influence is hypothesised to be contingent on two relational characteristics: trust and dependence. A theoretical framework is established and an empirical study undertaken with information obtained from a survey of 164 Spanish 1LMCs. The results show that co-ordination has a higher impact on performance when the first-level marketing co-operative’s trust in the 2LMC is higher and its dependence on the 2LMC is lower.