Agri-food cooperatives: what factors determine their innovative performance?

Abstract

PurposeThe agribusiness in Extremadura (Spain) is one of the main economic activities in the region. Within this industry, cooperativism stands out as a strategic component that influences the fixation of the rural population and the development of the territory. Likewise, innovation is fundamental for the competitiveness of companies. The aim of this study is to analyse the existence of a relationship between several business variables: strategy, culture, work climate, management, organisation and market orientation in the innovative performance of agri-food cooperative companies. Differences with other types of agri-food organisations are also analysed.Design/methodology/approachThe authors proposed a conceptual research model, which aims to determine the influence of several business variables on innovative performance. A qualitative methodology was used through a multiple case study where five Extremaduran agri-food cooperatives were chosen to carry out the research.FindingsThe results show that the business variables are valued positively as factors that enhance innovative performance. Moreover, the peculiarities of cooperatives show several differences with respect to non-cooperative companies.Originality/valueThe results contribute to agri-food cooperatives' managers developing specific actions that improve the competitiveness and sustainability of agribusiness based on innovation.

Cooperative success

“…The research of Sama-Berrocal and Corchuelo Martínez-Azúa (2023) shows that each of these variables has a positive impact on innovation performance, demonstrating that they can improve the competitive advantage of agri-food cooperatives. Of the above, management, organizational structure, and innovative culture are identified as being positively different for cooperatives, due to the inherent structural differences in a cooperative compared to a more traditional corporation.…”

“…As such, it is clear that agri-food cooperatives are both regionally and nationally important, both as employers, and drivers of the economy. The work of Sama-Berrocal and Corchuelo Martínez-Azúa (2023) has identified that the following variables are key to the success of agri-food businesses, and which variables have an increased importance to agri-food cooperatives: Strategy – having a clear pathway and direction, empowered by the support of members, but with goals and objectives, is required to keep a cooperative pushing forward rather than failing to take advantage of opportunities. Innovative culture – often considered a hallmark of capitalist corporations, a culture of innovation is integral to cooperative success. Without the pressures of answering to, and enriching, shareholders, cooperatives can embrace innovation and take more risks, without risking the bottom line. Organizational climate – people need to feel empowered to act and make decisions and supported to take risks.…”

“…But a key learning point from these returning stressors to the agri-food industry is that agri-food cooperatives have been much more resilient and quicker to recover than those operating under more typical capitalist frameworks. The work of Sama-Berrocal and Corchuelo Martínez-Azúa (2023) has looked at the strategic and competitive advantage gained by agri-food cooperatives in Spain compared to their counterparts, and what elements of these agri-food cooperatives provide this improved level of competitiveness. They have focused on five agri-food cooperatives in Spain, which between them produce wine, products for animal feed, process and preserve fruits and vegetables, and trade live animals.…”