Article

Transaction costs in agricultural marketing cooperatives: Effects on market performance

Journal ar
Outlook on Agriculture
  • Volumen: 42
  • Número: 2
  • Fecha: 01 June 2013
  • Páginas: 117-124
  • ISSN: 00307270
  • Source Type: Journal
  • DOI: 10.5367/oa.2013.0123
  • Document Type: Article
Managing an agricultural marketing cooperative is largely a matter of managing relationships with its members. They are not just owners participating in decision making and the provision of funds; they are also suppliers of the product the cooperative is offering to the market. This study analyses how transaction costs in the relationship of the cooperative with its member-suppliers contribute to its success in the market. An analysis of data from 124 Spanish marketing cooperatives operating in the fresh fruit and vegetables sector confirms most of the study's research hypotheses. The authors find that a cooperative's market performance is improved when it invests in specific assets and has more safeguards, lower levels of behavioural and environmental uncertainty and higher levels of adaptation in the relationship with its member-suppliers.

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