Constantine Iliopoulos, PhD

The economic nature of agricultural cooperatives is explained by means of a logical continuation of the organizational economics rationale for family farms. The traditional explanations of the importance of family farms is discussed, and embedded in a broader framework which considers their transaction cost-economizing effect and their limitations in terms of limited ability to scale up production and to reach adequate market power. We maintain that these disadvantages represent the major motives for the creation of agricultural cooperatives, whose role lies in enabling the
realization of advantages of large scale organization in agriculture while avoiding its transaction costs.

Purpose – The purpose of this paper is to shed new light on the issue of preference heterogeneity in cooperatives.
Design/methodology/approach – Drawing on the ideas of Habermas and Luhmann, this paper interprets preference heterogeneity of cooperative members in terms of the precarious relationship between the categories of “system” and “lifeworld.” The argument is buttressed with a case study of an agricultural cooperative recently founded in Central Greece.
Findings – The sensitivity of cooperatives to the lifeworld contexts of their members exacts the price in the form of the member preference heterogeneity problem. If this sensitivity is taken to be the constitutive
characteristic of cooperatives, then the proposed argument hammers home their fundamental ambivalence, as they are necessarily fraught with the potential for internal conflict.
Research limitations/implications – The paper urges for a radical rethinking of Georg Draheim’s thesis of the “double nature” of cooperatives. “Double nature” is shown to aggravate the member preference heterogeneity problem.
Practical implications – The results of this study inform the cooperative leaders’ quest to strike a balance between the interests of their members and the demands of the external socio-economic environment.
Originality/value – This research contributes significantly to the literature on collective decision-making costs incurred by cooperatives. The failure of cooperatives to balance the sensitivity to members’ interests and to the external environment is exposed as the root cause of the divergence and heterogeneity of member preferences. This heterogeneity is shown to boost collective decision-making costs.

All over the globe, cooperatives are plagued by pervasive member heterogeneity problems that are induced by the radical and dynamic changes in the business environment. Most current solutions to these problems emphasize strengthening member loyalty and commitment. Yet, many of these solutions are symptomatic rather than fundamental. Searching for fundamental solutions, this paper draws on the Luhmannian system-environment paradigm. Bringing this paradigm to bear on the cooperative scholarship, the paper views cooperatives as operationally closed systems maintaining a precarious relationship to their outer environment, which includes cooperative members. In view of their operational closure, cooperatives tend to overstrain the carrying capacity of their environment by being active in the areas marked by a limited extent of the true commonness of member interests. This overstraining results in a host of problems associated with member heterogeneity. The fundamental solutions following from the system-environment paradigm require the adjustment of cooperative boundaries and goals in light of the evolving range of the true common interests of members. In terms of methodology, we review the extant literature, synthesize the main elements of the system-environment approach and conduct a meta-analysis of case studies and other empirical research to highlight our theoretical arguments.

This paper addresses the issue of whether nontraditional agricultural cooperatives should be eligible for receiving public policy support. We adopt an organizational economics approach that appears to better inform policy design and suggest critical questions that both policy makers and regulators need to address before introducing measures and sanctions. After discussing the introduction of innovative cooperative models characterized by a whole new set of ownership and control rights, we recast vaguely defined property rights problems as attempts to maximize efficiency and avoid organizational decline rather than to take advantage of excessive market power in highly concentrated oligopsonistic/oligopolistic markets. Apoyo de las políticas p ´ ublicas a las cooperativas agrícolas: una aproximací on a la economía de las organizaciones El artículo centra la atención en la cuestión relativa al derecho de las cooperativas agrícolas no tradicionales a una política p ´ ublica de apoyo. El autor adopta el enfoque de la economía de las organizaciones adaptado para aprehender la elaboración de una política determinada, proponiendo cuestiones críticas que los responsables políticos y los reguladores deben plantearse antes de introducir medidas y sanciones. Tras haber examinado en la introducción los modelos cooperativos innovadores, caracterizados por un completo conjunto de derechos de propiedad y de control, el autor reformula algunas cuestiones de los derechos de propiedad vagamente definidos, con el objetivo de maximizar la eficiencia y evitar el declive de la organización antes que obtener ventajas de un poder excesivo en mercados oligopsonísticos/oligopolísticos altamente concentrados. *

Despite popular misconceptions, cooperatives present a very successful organizational form worldwide. A recent study found that in the U.S., for example, 134 agricultural cooperatives celebrated their 100th anniversary in 2014. This observation on cooperative longevity is not matched by a corresponding research effort on what makes cooperatives so successful. Most of the extant research seems to focus on intra-cooperative problems that posit significant challenges to cooperatives. This special issue of Sustainability bridges the considerable gap between scholarly work and reality. By focusing on what makes cooperatives so successful for such a long period of time, this issue sheds light on key aspects of cooperative longevity. Bridging social capital, fundamental solutions to excessive heterogeneity-induced high ownership costs, tinkering, cooperative genius, and superior capacity to adapt to shocks and changes are among the factors identified to explain extended cooperative longevity. The insights thereby gained are useful to students of cooperatives, practitioners, and policy makers.

Purpose – The purpose of this paper is twofold: first, it identifies distinct organizational models in a sample
of small and medium enterprises operating in the Sicilian wine industry; and second, it identifies the key
factors enabling a superior export success.
Design/methodology/approach – Internal resources were analyzed theoretically in order to achieve the
aims of the study. Subsequently the empirical investigation was carried out administering a questionnaire
to a sample of 102 wineries in Sicily, Italy. A cluster analysis was performed in order to group these firms into
homogeneous categories.
Findings – The findings show that success in the international market is more common among wineries
characterized by a larger physical and economic size, a longer experience in the international market,
managed by entrepreneurs-owners who are highly educated and proficient in foreign language, and
implement voluntary certifications.
Research limitations/implications – The results need to be interpreted within the context of the study’s
research design; more specifically, the reader should take into account that the study focuses exclusively on
one industry and on one region (wine in Sicily).
Practical implications – The findings offer a valid support for managers who could use this results to
better focus their effort and choose the most appropriate strategy in order to improve their performance in
foreign markets.
Originality/value – Very few empirical studies have been carried out on the impact that internal and in
particular organizational resources have on the firms’ organizational models operating in the wine industry.

The European milk crisis accentuated the importance of sustainability in the dairy sector. In achieving sustainable rural development, strategies focused on value chain creation, transparency and traceability are crucial. Sustainable relationships are needed to promote these aspects through collective action. This paper uses empirical evidence from Greece to contribute to the exploration of the sustainability concept within the agricultural sector and specifically the dairy sector. Based on empirical data, we analyse the overall sustainability of the dairy sector based on the innovation capacity of the sector and the sustainability of the relationship of the key actors, such as dairy farmers and processors. Additionally, a theoretical approach addressing 'relationship sustainability' and the factors affecting this construct is proposed. The preliminary findings underline a deficit in innovation capability and an inadequate sustainability level of the relationships within the dairy sector. Policy implications are offered.

Laws and regulations are essential parts of the institutional environment. Consequently, they significantly influence-among other things-firm performance. In this paper it is argued that in order to study this dynamic interrelation over time, a combination of concepts from new institutional and evolutionary economics is required. The variation mechanisms and the relevant selection environment are linked to the Williamsonian levels of

During recent years, dramatic changes in the world food system have led to unprecedented competition between agribusiness firms. To compete in this environment, agricultural cooperatives should invest substantially in long-term activities such as R&D and advertisement. Co-operatives have a difficult problem in acquiring equity capital because the residual claimant (benefactor) is the patron of the firm, not the investor. This

During recent years, dramatic changes in the world food system have led to unprecedented competition between agribusiness firms. To compete in this environment, agricultural cooperatives should invest substantially in long-term activities such as R&D and advertisement. Co-operatives have a difficult problem in acquiring equity capital because the residual claimant (benefactor) is the patron of the firm, not the investor. This

ABSTRACT The importance of cooperatives for European farmers has often been claimed but empirical studies to support this claim are scarce. This special issue presents a number of articles on the recent development and status of agricultural cooperatives in the European Union, based on original data collected in the EU-wide study ‘Support for Farmers’ Cooperatives’. The articles focus on trends in the internal organization, the institutional environment, and the strategies that cooperatives have developed in supply chains and markets. This introductory article presents data on the market shares that cooperatives hold in different sectors and countries, and introduces the three key determinants of performance of cooperatives: policies, strategies and internal organization. Finally, the article develops a future research agenda.Agrargenossenschaften in der EU: Grundsätze, Strategien und OrganisationDie Bedeutung von Genossenschaften für europäische Bauern ist oft proklamiert worden, fand aber selten Unterstützung durch empirische Belege. Diese Sonderausgabe präsentiert eine Reihe von Beiträgen über die jüngste Entwicklung und den Status von Agrargenossenschaften in der Europäischen Union, basierend auf Originaldaten, die in der EU-weiten Studie „Support for Farmers‘ Cooperatives“ zusammengetragen wurden. Die Beiträge fokussieren auf Trends bei der internen Organisation, dem institutionellen Umfeld und den Strategien, die Genossenschaften in Lieferketten und Märkten entwickelt haben. Dieser Einführungsbeitrag präsentiert Daten über die Marktanteile der Genossenschaften in verschiedenen Sektoren und Ländern und stellt die drei Determinanten der Performance von Genossenschaften vor: Grundsätze (policies), Strategien und interne Organisation. Am Ende des Beitrags wird eine Agenda für künftige Forschung entwickelt.Cooperativas agrícolas en la UE: Políticas, estrategias y organizaciónLa importancia de las cooperativas para los agricultores europeos ha sido reivindicada frecuentemente, pero raramente ha sido contrastada empíricamente. Este número especial presenta algunos artículos relativos a recientes desarrollos sobre el estatuto de las cooperativas agrícolas en la Unión Europea, basados en datos originales obtenidos en el marco del estudio europeo “Support for Farmers’ Cooperatives”. Estos artículos tratan principalmente de las tendencias en la organización interna, el entorno institucional y las estrategias desarrolladas por las cooperativas en las cadenas de aprovisionamiento y en los mercados. Este artículo introductorio presenta datos sobre las cuotas de mercado que las cooperativas detentan en diferentes sectores y países e introduce los tres principales factores determinantes de los resultados de las cooperativas: políticas, estrategias y organización interna. Para concluir, el artículo propone un conjunto de futuras investigaciones.Coopératives agricoles dans l’UE: Politiques, stratégies et organisationL’ importance des coopératives pour les agriculteurs européens a souvent été prétendue mais rarement étayée par des données empiriques. Ce numéro spécial présente quelques articles traitant des développements récents et du statut des coopératives agricoles dans l’Union européenne, basés sur des données originales collectées dans le cadre de l’étude européenne “Support for Farmers’ Cooperatives ”. Ces articles traitent principalement des tendances dans l'organisation interne, l'environnement institutionnel, et les stratégies développées par les coopératives dans les chaines d'approvisionnement et les marchés. Cet article introductif présente des données sur les parts de marché que les coopératives détiennent dans différents secteurs et pays et introduit les trois facteurs déterminants principaux de la performance des coopératives : politiques, stratégies et organisation interne. Pour conclure l'article propose un cahier de recherches futures.

The European olive oil industry has been through dramatic changes during the last five years. Particularly in Greece, a trend toward high quality olive oil has recently emerged. This paper empirically verifies this trend, identifies five clusters of olive oil consumers and ...

During recent years, dramatic changes in the world food system have led to unprecedented competition between agribusiness firms. To compete in this environment, agricultural co-operatives should invest substantially in long-term activities such as R&D and advertisement. Co-operatives ...