Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice

Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice

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Article ID: iaor201524584
Volume: 31
Issue: 3
Start Page Number: 446
End Page Number: 469
Publication Date: Sep 2009
Journal: Review of Agricultural Economics
Authors: , , ,
Keywords: marketing, economics
Abstract:

The performance of agricultural cooperatives depends on their business objectives, which are defined in different ways in the literature. We review the theoretical literature on the performance of agricultural marketing cooperatives. Studies can be divided into two classes, those that assume a single objective and those that assume multiple objectives. This classification integrates three views of the cooperatives: (a) vertical integration of firms, (b) independent enterprise, and (c) coalition of firms. Empirical studies on the financial performance of cooperatives are classified into two categories, studies based on the economic theory of the firm and studies that emphasize accounting techniques. Empirical studies have failed to address the cooperatives’ objectives as represented by the theoretical literature on cooperative performance.

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