Farmer Cooperatives In China Research Articles

Substitution or Complement: How Do Contractual and Relational Governance Shape Members’ Organizational Commitment to Farmer Cooperatives?

Organizational commitment is key to sustainable development and the success of farmer cooperatives. The relationship and effectiveness of contractual and relational governance as important means of managing partnerships remain debatable, and their impact on organizational commitment is unclear, particularly in the context of farmer cooperatives. Based on transaction cost theory and social exchange theory, we investigate how contractual and relational governance affect members’ organizational commitment (MOC) under different market uncertainties. Using survey data of 239 farmer cooperatives in China, we examined the conceptual model utilizing hierarchical regression and bootstrapping techniques. The results showed that both contractual and relational governance have significant positive impacts on members’ continuance and affective commitment, but relational governance exerts more positive effects. Contractual governance can significantly promote relational governance; the two have complementary rather than substitute relationships. Moreover, relational governance mediates the link between contractual governance and members’ continuance/affective commitment, and this mediating role strengthens as market uncertainty increases. This study expands the literature on MOC from the perspective of alliance governance, and has important implications for cooperative governance mechanisms and partnership management.

The impact of continuous use intention of cooperative members on new agricultural technologies.

The widespread application of new agricultural technologies promotes an increase in agricultural production and income and in the optimization and adjustment of the industrial structure. However, there are problems such as low promotion efficiency, an insufficient transformation of achievements, and a mismatch of supply and demand in the process of promotion. Based on the research context of farmer cooperatives in China, this study explores the factors influencing the continuous use intention of cooperative members toward new agricultural technologies and builds a research structure based on the unified theory of acceptance and use of technology (UTAUT) model, which includes performance expectations, effort expectations, cooperative social impact, and policy support. A total of 401 valid questionnaires were collected, and the data were analyzed in three stages using descriptive statistics, a measurement validation model, and a structural equation model, using a survey questionnaire and by inviting members of farmer cooperatives within China to participate in an online survey through a web-based electronic questionnaire. The results of the study found that policy support plays a dominant role in the intention of cooperative members of farmers to use new agricultural technologies consistently, and cooperative social impact plays a facilitating role, while factors such as performance expectation and effort expectation also have a significantly positive effect on the intention to use consistently.

Big and strong or small and beautiful: Effects of organization size on the performance of farmer cooperatives in China

AbstractThe relationship between organization size and performance is widely discussed in relation to companies, yet related discussion of farmer cooperatives is limited. This study maps the membership size distribution of farmer cooperatives in China and explores the effects of membership size on the economic performance of cooperatives. A panel dataset of the census of farmer cooperatives in China from 2014 to 2019 is used for the empirical analyses. First, the Pareto indices of farmer cooperatives' size distribution are calculated, and the results feature the dominance of small cooperatives and the underdevelopment of large cooperatives. Second, membership size has a positive effect on the total profit of cooperatives. Third, the impact of membership size on the profit per member displays an inverted “U” pattern, and the optimal membership size is 19 members. These effects are heterogeneous across product categories and cooperative ages. The robustness of the results is confirmed by alternative key explanatory indicators and estimation methods. [EconLit Citations: Q13, L25].

Risk sharing, benefit distribution and cooperation longevity: sustainable development of dairy farmer cooperatives in China

ABSTRACT The sustainable development of cooperatives is essential to agricultural sustainability and is determined mainly by cooperation longevity. The risk sharing and benefit distribution mechanisms are important governance arrangements that affect cooperation longevity in member-heterogeneous cooperatives. However, the relationship between cooperatives’ risk sharing and benefit distribution arrangements and cooperation longevity is not well understood. To address this research gap, we provide a conceptual framework to illustrate the relationship between risk sharing, benefit distribution, contract form and cooperation longevity. By conducting 23 interviews with three dairy cooperatives in China using a multiple-case-study method, we find that cooperation longevity is influenced by the alignment of the combination of risk sharing and benefit distribution for cooperatives and their members. Following the principles of risk-benefit equivalence and strategy-risk preference matching, we discuss four scenarios of match or mismatch of combinations of risk sharing and benefit distribution. We suggest that the government needs to strengthen risk mitigation capabilities for cooperatives and members, and to help them to build an effective risk sharing and benefit distribution arrangement to achieve sustainable development.

Non-economic societal impact or economic revenue? A performance and efficiency analysis of farmer cooperatives in China

The objective of this paper is to present an economic framework and empirical analysis of how non-economic output and social value-relevant variables affect the efficiency of farmer cooperatives. A multi-output translog production function considering non-economic societal output, represented by the number of beneficiary farmers, was estimated using survey data from 164 farmer cooperatives in Fujian province in China. The average technical efficiency of farmer cooperatives was estimated to be 0.747, implying that technical efficiency could be increased by 25.30% on average without additional resources given the current production status. The cooperatives’ efficiency and their ranking differed significantly with and without taking societal output into account, which indicates that non-economic societal output should not be ignored when evaluating their performance. The societal value-relevant variables for technical inefficiency factors represented by the extent of the provision of member services were found to have a negative impact on technical efficiency. These findings indicate that the non-economic social contribution made by farmer cooperatives should be included when evaluating their performance. • The first research incorporating societal output in performance measurement using cooperative production function. • Incorporating the societal value relevant variables does affect the technical efficiency. • The average technical efficiency of farmer cooperatives was estimated to be 0.747 • The extent of the provision of member services were found to have a negative impact on technical efficiency.

What's So Special about Farmer Cooperatives in China?

This paper trying to answer the fundamental issue—why and how is Chinese farmer cooperatives so special? Based on Leavitt’s Diamond Model, the study found that originated from spatial and temporal changes in the environment, as an import, the cooperatives obviously tilt towards the classic form of cooperative in China, and their organizing elements including goals, participants (members), technology (culture) and social structure all show distinct Chinese native characteristics. And the vast majority of Chinese cooperatives seem not to be “normative” because they mix the agricultural organization functions of cooperative organization, industrialization and socialization.

Efficiency of Decisions under Membership Heterogeneity and Government Regulations: Insights from Farmer Cooperatives in China

The Cooperative Law, passed in 2007, aims to support and regulate farmer cooperatives in China. The adoption of its regulations is uneven, with most regulations followed except the one-person, one-vote rule. We model investment decisions of Chinese cooperatives and measure the efficiency of capital allocation under heterogeneous membership and alternative governance policies. We show that relative membership heterogeneity in equity and patronage holdings and a cooperative’s dividend policy are crucial in determining the optimal level of governance centralization. Centralizing the governance to major equity holders and following other regulations reflect a trade-off faced by cooperatives between obtaining financial support from the government and achieving efficient decision-making.

A hybrid form of agricultural organization: the case of the Beizhijiang vegetable cooperative in China

Farmer cooperatives in China have been developing a hybrid form of governance with features that are seldom observed in other countries. The Beizhijiang vegetable cooperative (hereafter BZJ cooperative), which was founded in 2009, is a case in point. The chairperson of the BZJ cooperative has dominant control over the decision-making and income rights of the cooperative and is also president of the Pangu corporation, a downstream buyer of BZJ products. The purpose of this case study is to allow students to understand the special form of the cooperative in a Chinese context and to compare it to the International Cooperative Association principles regarding cooperatives. This article is aimed at senior undergraduate and graduate students in agribusiness management and agricultural economics and has practical value for agricultural enterprises and related governmental departments.

Research on Synergetic Symbiosis Relationship between Cooperatives and Joint-Stock Companies —A Theoretical Interpretation of the Practice of New Farmer Cooperatives

Cooperatives and joint-stock companies in China and Western countries can form synergetic relations in theory and practice. The new farmer cooperatives in China also introduce the factors of shares, which need to make a theoretical interpretation. This paper reviews the theoretical research on cooperative system and shareholding system in academia, discusses the specific reasons for the integration of share factors into new farmer cooperatives, explains the symbiotic relationship between cooperatives and joint-stock companies, and demonstrates the history of mutual penetration of share factors and cooperation factors in Chinese and Western cooperatives, then analyzes the necessary and sufficient conditions for the symbiosis of cooperatives and joint-stock companies. Finally, it summarizes the symbiosis model of cooperatives and joint-stock companies at present, and provides the optimal design of its symbiosis mechanism.

Between social capital and formal governance in farmer cooperatives: Evidence from China

Although social capital has been regarded as valuable for organizations, some scholars have noticed that the effect of social capital on economic performance is nonlinear and depends on formal governance. This article examines the role of social capital and the interaction of social capital and formal governance in influencing the economic performance of farmer cooperatives. An empirical exploratory study is conducted based on a data set of 147 farmer cooperatives in China, and an ordinary least squares regression model is used to estimate the results. The results show that the stock of social capital can enhance the economic performance of farmer cooperatives and that social capital has a larger impact when there is stronger formal governance with regard to income distribution. Social capital and formal governance are therefore complementary. An improvement in some aspects of formal governance is favorable to the outcome of social capital. Cooperative practitioners need to consider the creation of both social capital and formal governance.

Farmer cooperatives and the changing agri-food system in China

Consumer concerns are leading to changes in China’s food markets and demands for higher quality food. In this article, we explore the role of farmer cooperatives in China in linking farmers with high-quality food markets. We consider food quality a social construct and farmer cooperatives key players in the ‘quality battlefield’. Using a case study approach, we investigate the everyday practices of three farmer cooperatives. We show that farmer cooperatives are capable of establishing or joining quality food networks, but the benefits are often limited because of their weak position or instability of the network. Building strong alliances with other network actors is difficult because of cooperatives’ limited communication capacity and lack of economic and social capital. Our findings suggest that policies that support farmer cooperative capacity building at the micro level could improve the performance of smallholder farmers and their cooperatives in the expanding domestic quality food market.

Situation features and governance structure of farmer cooperatives in China: Does initial situation matter?

The paper explores the effects of situation features on the governance structure types (GSTs) of farmer cooperatives in China. The “Situation–Structure” analytical framework is used to understand the relationship between situation features and governance structures in the field of industry economics. Four categories of GSTs of cooperatives are identified, i.e., common farmer-led, rural elite-led, enterprise-led, and related organization-led. The sample comprises 266 farmer cooperatives collected via a field survey in three provinces in China. A logit probability model is applied to address the effects of various situation features on GSTs. The results reveal that both technical and institutional environments have significant effects on the governance structure of cooperatives.

Governance Structure of Chinese Farmer Cooperatives: Evidence From Zhejiang Province

ABSTRACTThe governance of farmer cooperatives in China is addressed regarding democratic decision‐making procedures, participation in decision making, member exit, and profit allocation. Empirical results from a survey of fruit and vegetable cooperatives in the Zhejiang province (China) indicate that the distribution of ownership rights, decision rights, and income rights in a farmer cooperative is quite skewed towards a small proportion of members. Several governance practices by cooperatives are not in line with the requirements specified by the Law. [EconLit classification; D210; Q130].

Identifying risks inherent in farmer cooperatives in China

Purpose – The purpose of this paper is to investigate risks faced by farmer cooperatives in China, using farmer cooperatives in Zhejiang province as a case. Specifically, the authors identify risks inherent in two primary types of farmer cooperatives in China (traditional and modern ones) when the external environment changes, the cooperative size expands and heterogeneity in membership widens. Design/methodology/approach – The authors assume that the “uncertainty of the external environment” and the “deviation of organisational adaptation” constitute the two dynamic factors that generated risks for farmer cooperatives. A survey of 158 farmer cooperatives is obtained in Zhejiang province in 2010, and factor analysis is employed to identify the risks and their critical degrees of traditional and modern cooperatives. Findings – The results indicate that two types of cooperatives in China face drastically different sets of risks. Traditional cooperatives face larger competitive and human resources risks, whereas modern cooperatives face larger decision-making and behavioural risks. Product market risk, macroeconomic policy risk and financial risk are common critical risks faced by both types of cooperatives. Originality/value – In this paper, risks in China's farmer cooperatives were empirically studied and systematically discussed. The paper offers a typology to identify risks inherent in two primary types of farmer cooperatives in China (traditional and modern ones) according to property rights arrangements and governance structure.

Farmer cooperatives in China: diverse pathways to sustainable rural development

In the midst of China's agricultural reform, new forms of farmer organization have emerged, some initiated by farmers themselves, but most through government intervention. Based on national survey data complemented by two in-depth case studies of rural cooperatives, an analysis is made of the roles and significance of these new farmer organizations. Chinese rural cooperatives predominantly facilitate economic cooperation and market integration. This is supported by agricultural policies and the Cooperative Law of 2007 oriented towards the commoditization of smallholder farming. There are some cooperatives not primarily motivated by commodity imperatives, but by the fulfilment of agro-ecological and socio-cultural functions. To date, the roles and significance of this non-mainstream type of rural cooperative has not received much attention. If China is to become a ‘green society’ as proclaimed by the government, more attention and support to this type of cooperatives seems warranted.

Core and Common Members in the Genesis of Farmer Cooperatives in China

This paper addresses the genesis of farmer cooperatives in China in terms of the actors. Empirical results from a multiple case study indicate that the genesis of cooperatives in China is due to entrepreneurial farmers and the government, rather than a bottom‐up, collective action process of many small farmers. Copyright © 2013 John Wiley & Sons, Ltd.

中国の農民専業合作社の組織デザイン

Farmer cooperatives have developed rapidly in China since the enactment of the Law on Professional Farmers Cooperatives in 2007. The farmer cooperative is organized in a manner that emphasizes the vertical relationship of buyers and suppliers of agricultural products, unlike the horizontal relationship among farmer cooperatives in Japan. This article tries to explain the organizational design of farmer cooperatives in China within the framework of economics of organization using the game theory. This design is characterized as follows. (1) Buyer procures agricultural products not only from the cooperative's members but also directly from the managed farms. (2) The benefit of procuring produce from cooperative members indicates not only a horizontal relationship among farmers, but also a vertical relationship between farmers and buyers. (3) Farmers never behave opportunistically, even though such behavior can earn them rewards. Characteristic (1) implies that the directly managed farm can be understood as the transfer of farmers' capabilities to the cooperative. If the farmer uses his own capability more effectively than when in a cooperative, then the cooperative can decide to procure produce from its other members, and vice versa if the opposite is true. Characteristic (2) indicates that farmers in cooperatives are disincentivized against using inputs lower as they can bargain over the transaction conditions with the buyer. However, if the buyer does not always deal with the best farmer partner, he will shift his attention to the second-best deal, and the farmer will thus have the incentive to input lower. According to characteristic (3), however, farmers curb the opportunity to reduce inputs, because buyers cooperatively resort to the trigger strategy of the game theory. Thus, China's farmer cooperatives must organize vertical relationships amongst themselves in order to reap the advantages of the abovementioned merits of vertical organizational design.

The Enlightenment for China by the Development of New Generation Cooperatives in North America

The development of farmer cooperatives in China which was an important form that led farmers to get rich and improve the competitiveness of China's agriculture has been lag behind, in 2007, Law of Chinese Farmer Cooperatives promoted the development of cooperatives in certain extent,, but compared to a new generation of cooperatives developed in North America 1970s, whether performance or the ability of service for members were far behind. Through report the successful experience of the development of new generation cooperatives in North America and sum up the useful enlightenment which could improve the development of farmer cooperatives in China, we should promote the development of farmer cooperatives in China better and faster by specific measures implementation.

TYPES OF CHINESE FRUIT GROWER COOPERATIVES AND THEIR SUPPLY CHAIN RELATIONSHIPS

Developing cooperatives among fruit farmers in China have been increasing regarded as essential for the Chinese fruit industry to become more competitive in both domestic and international markets. Over the past decade, various cooperative groups in rural areas have been formed with the political and financial support of local governments. This paper examines three current models of fruit supply chains involving farmer cooperatives in China. A comparison of these chains on the basis of impacts on both farmers and product quality is made. The advantages and disadvantages of local government involvement are discussed.

Economic Efficiency in Cooperatives

HE cooperative form of business organization has deep historical roots in the economy. The cooperative dairy association movement began in New York in the mid-1800s as a response to the monopsony power of privately held milk-processing plants.1 It was perceived that a producer cooperative had the ability to produce processed cheese from its members' raw milk at a lower per-unit cost than would have been possible by contracting with a geographically isolated, private, for-profit firm. Modern refrigerated transportation has diminished monopsony power. In modern times, the cooperative form of business has been consciously nurtured as a matter of public policy. The tax laws of the United States exempt cooperatives that meet certain requirements from payment of income taxes.2 Certain other pecuniary advantages are available to agricultural cooperatives. Loans are available to cooperatives at a belowmarket rate of interest. The collective knowledge of the Department of