Drivers of Pro-Active Member Participation in Agricultural Cooperatives: Evidence From Brazil

Abstract

Effective governance of cooperatives depends on the pro‐active participation of members in the governance. However, it is commonly argued that, especially in cooperatives with high heterogeneity of membership, additional decision‐making and influencing costs could emerge if members who participate in the governance do so to obtain direct or indirect economic benefits at the individual farm level. The objective of this paper is to assess whether or not farmers’ economic motivations for continued association are relevant drivers of pro‐active participation. Data originate from 148 farmers from a large agricultural cooperative in Brazil. The results suggest that economic motivations for continued association are drivers of participation in the General Assembly, but not of ‘pro‐active’ participation in boards and committees.

A Review of the Empirical Literature on Farmer Cooperatives: Performance, Ownership and Governance, Finance, and Member Attitude

“…Cechin et al. () did not observe a significant impact of farm size on member participation. Instead, preferences for better income and technical assistance each increased the probability of participation in the democratic governance of the cooperative.…”

“…To study member control, Cechin et al. () surveyed 148 members of the multi‐purpose cooperative Lar in Brazil and measured member participation as the four‐level outcome variable (from passive to pro‐active). Cechin et al.…”

Dimensions of Member Heterogeneity in Cooperatives and Their Impact on Organization – A Literature Review

“…It may cause large costs for collective decision making, influence as well as control and may negatively impact a cooperative's performance (Milgrom and Roberts , Hansmann , Cechin et al. , Pozzobon and Zylbersztajn ). Inefficient decisions could fail to maximize the collective welfare of the membership as well as social welfare as a whole (Cook and Iliopoulos , Bogetoft and Olesen ).…”

Competitividade e Isomorfismo: análise do perfil estrutural e financeiro-contábil de grandes cooperativas agropecuárias brasileiras

“…Especificamente em relação à ampliação das áreas de atuação e do número de associados, grande crítica é dada por Cechin et al (2013a) e Nilsson et al (2012) 10 . Tais pesquisadores ressaltam que a incorporação de grande número de associados, processos de diversificação da produção e a implementação de práticas de governança 10.…”