Masters Theses

Date of Award

12-1993

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Frank Leuthold

Committee Members

John Brooker, Robert Jenkins, Robert Orr

Abstract

This study compared and contrasted the perceptions of members of a vegetable marketing cooperative with those of other "knowledgeable" individuals on the factors they believed contributed to the cooperative's failure.

A case study approach was used to detail the history of the cooperative's development and to determine individual perceptions of the problems contributing to the failure. Participants were personally contacted by the author, and were interviewed using a semi-structured interview technique. Only open-ended questions were asked to determine these perceptions. When necessary, the author followed with questions to prompt participants to clarify or elaborate on responses. The interviews were recorded on audio-cassette tape for ease and accuracy of transcribing participants' responses. The participants' comments and responses were grouped and categorized for the purpose of content analysis.

The researcher attempted to survey the entire thirty-eight member population of the cooperative. In all, the perceptions and observations of thirty-six members are represented in this study. Ten other individuals were selected to participate in this investigation based on their level of knowledge pertaining to the cooperative's development, establishment and operation. These individuals, former managers, professional advisors and government officials, were classified as "knowledgeables."

Members and knowledgeables perceived that a variety of problems played a part in the cooperative's failure. These problems were associated with a lack of member loyalty, deficiencies with the board of directors and deficiencies with hired managers. Members and knowledgeables differed in their perceptions of why members failed to support their cooperative. Members generally blamed their lack of support on the low returns they received on produce processed through the cooperative, while knowledgeables related the lack of support to certain member characteristics and marketing preferences which were inconsistent with the cooperative's goals. Both groups, however, were in agreement that a lack of member loyalty, combined with debt created by the cooperative's board of directors, was primarily to blame for the failure. The combined effects of low volume of produce and high overhead created by these conditions were overwhelmingly to blame for the cooperative's downfall.

The specific problems discussed by the individuals who participated in this study were consistent with those generally associated with cooperative failures cited in the literature review. This work concludes by offering general recommendations to assist in efforts to revitalize the cooperative based on the responsibilities held by members, boards of directors and hired managers in the management of successful cooperative organizations.

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