Using the Regional Advantage: French Agricultural Cooperatives’ Economic and Governance Tool

Abstract

Ever‐increasing globalization has forced cooperatives to strike a balance between developing economic performance and sticking to their social values. This article examines in what respect the localization of French agricultural cooperatives could be used as an economic and governance tool. We distinguish between three strategies: (1) enhancing the value of local resources; (2) creating links between members in order to reinforce member loyalty; and (3) building interdependencies with consumers in supply chains. We show that the French cooperatives’ strategies transform their localization constraint into territorial advantages, suggesting a tool that might usefully be adapted by cooperatives of other countries. Further research including international comparisons is needed in order to improve understanding of the mechanisms at work behind commitment with owner‐members at the cooperative level.

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