This paper introduces the concept of netchain analysis. A netchain is a set of networks comprised of horizontal ties between firms within a particular industry or group, which are sequentially arranged based on vertical ties between firms in different layers. Netchain analysis interprets supply chain and network perspectives on inter-organisational collaboration with particular emphasis on the value creating and coordination mechanism sources. We posit that sources of value and coordination mechanisms correspond to particular and distinct types of interdependencies: pooled, sequential, and reciprocal. It is further argued that the recognition and accounting of these simultaneous interdependencies is crucial for a more advanced understanding of complex inter-organisational relations. The paper concludes with an analysis of a set of netchain configuration examples, including buyer-supplier relationships, information technology induced interorganization collaborations, and the introduction of the "macrohierarchy" organization structure.

This article examines new agricultural cooperative organizational models from an ownership rights perspective. The article adopts a definition of ownership rights comprising both residual claim and control rights. We argue that new cooperative organizational models differ in how ownership rights are assigned to the economic agents (members, patrons, and investors) tied contractually to the firm. The article proposes a typology of discrete organizational models, in which the traditional cooperative structure and the investor-oriented firm are characterized as polar forms. The typology also includes five nontraditional models that cooperatives may adopt to ameliorate perceived financial constraints.

Agricultural cooperatives have changed considerably in recent decades. In witnessing these structural changes, scholars have proffered analyses of nontraditional ownership models focusing on residual claim rights. However, crucial information on the allocation of control rights in cooperatives is missing. This study sheds light on alternative ownership-control models adopted by agricultural cooperatives in different regions across the world. In each of these models, we describe the allocation of formal control rights with a focus on decision management and decision control rights. We thus provide empirical evidence on the "separation of ownership and control" in agricultural cooperatives. We also analyze each of the governance models in terms of the associated ownership costs, including risk-bearing costs, the costs of controlling managers, and collective decision-making costs. In doing so, we are able to better understand the forces influencing the organizational efficiency of each cooperative model.

Researchers in economics and strategy have long been interested in understanding the determinants of firm performance. We apply the relatively novel approach of hierarchical linear modelling (HLM) to a large panel of food economy firms to shed new light on the long‐standing debate about the relative importance of industry, corporate parent and business unit effects on firm profits. Our results suggest that business unit and corporate effects are more relevant than industry effects in explaining firm performance differences in the food economy. In addition, we also explore the effect of specific strategic factors on performance within each level of analysis. In particular, we find that business‐segment size, industry barriers to entry, corporate diversification, R&D intensity, capital intensity and resource availability are significant predictor variables that explain firm performance differences. Given the relatively important role of corporate effects and the positive influence of corporate strategic variables on business unit performance, our findings suggest that the environment provided by corporate parents significantly affects business unit profitability. In other words, corporate strategy does matter and thus should continue to draw attention from scholars interested in explaining profitability in the food economy.

This study examines the presence of financial constraints in US agricultural cooperatives. We test the cooperative capital constraint hypothesis with a panel data econometric analysis of agricultural cooperatives' investment behaviour. Regression results suggest that agricultural cooperatives' capital expenditures are significantly affected by the availability of internal funds. Results also indicate that the sensitivity of investment to cash flow is correlated with cooperative structural characteristics.

What is a cooperative? Is it a form of vertical integration, an independent organization or an intermediate form of governance between the market and the hierarchy? This paper contributes to the economic theory of the cooperative organization by examining it from a comparative economic perspective. Departing from Williamson's one‐dimensional continuum of governance structures, the paper adopts the view that governance structures exhibit multiple dimensions and true hybrids are market‐like on some of these dimensions while hierarchy‐like on others. I show that the cooperative blends market‐like attributes with hierarchy‐like mechanisms and thus should be viewed as a true hybrid rather than as an intermediate form. The paper concludes with a discussion about the usefulness of this approach and potential avenues for future research.

This paper examines the agroindustrialization process from two supposedly disparate views: development economics and agribusiness research. The evolution of conceptual and methodological approaches emanating from these fields is explored and general observations are made concerning farm economic interdependence, institutional and organizational change, differing scopes of interest, the causes of agroindustrialization, orientation, and the choice of microanalytic tools, terminology, and unit of analysis. Despite an impressive list of hurdles, disincentives, and disconnects, complementarities between the two fields are identified. The paper concludes by exploring the potential of bridging development economics and agribusiness research to inform the future agroindustrialization research agenda.

The objective of this study is to contribute to the current debate on demutualization from a US perspective. We document waves of demutualization and review the empirical literature examining the economics of organizational structure changes that have occurred in the US savings and loan and insurance industries since the 1980s. Based on the review of the literature on the economics of conversions, we generate a set of general observations that might inform private and public policy perspectives on the future role of user owned and controlled organizations in market economies. In doing so, the paper may serve as a platform for further discussion among scholars, policymakers, practitioners, and cooperative leaders in their quest to understand and affect the ongoing process of demutualization.