Why do Cooperatives Emerge in a World Dominated by Corporations? The Diffusion of Cooperatives in the U.S. Bio-ethanol Industry, 1978-2013

Christophe Boone, Serden Özcan

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Why do cooperatives continue to emerge given the strong economic disincentives that exist? And why is it that in some communities they are collocated with their commercial counterparts and in others territorial partitioning occurs? In this paper, we develop a community ecology approach that integrates economic and sociological accounts of cooperatives, in an attempt to reconcile these contradictory observations. Using a detailed panel data set for the county-level founding process of cooperatives in the U.S. ethanol industry from 1978 to June 2013, consistent with economic arguments, we find that the founding rate of cooperatives decreases in the presence of high local corporate ethanol production capacity. However, this negative competitive interdependence is attenuated in local communities where: 1) corporations represent a potential threat to the autonomy of local farmers, 2) there is a generally anti-corporate climate, and 3) there is a well-established organizational infrastructure supporting a cooperative ideology. Consistent with sociological theories that emphasize the mobilizing force of ideology, these local conditions spur collective action among farmers to establish cooperatives in response to the local diffusion of corporations. We show further that the diffusion of plants owned by big business (oil and agribusiness) in communities characterized by a general anti-corporate climate, especially promotes greater ideological contestation, and mobilization of resources to form cooperatives.
    Original languageEnglish
    JournalAcademy of Management Journal
    Volume57
    Issue number4
    Pages (from-to)990-1012
    Number of pages23
    ISSN0001-4273
    DOIs
    Publication statusPublished - 2014

    Cite this

    @article{ac6fc373c1f2424d8f01389140cfbb1c,
    title = "Why do Cooperatives Emerge in a World Dominated by Corporations?: The Diffusion of Cooperatives in the U.S. Bio-ethanol Industry, 1978-2013",
    abstract = "Why do cooperatives continue to emerge given the strong economic disincentives that exist? And why is it that in some communities they are collocated with their commercial counterparts and in others territorial partitioning occurs? In this paper, we develop a community ecology approach that integrates economic and sociological accounts of cooperatives, in an attempt to reconcile these contradictory observations. Using a detailed panel data set for the county-level founding process of cooperatives in the U.S. ethanol industry from 1978 to June 2013, consistent with economic arguments, we find that the founding rate of cooperatives decreases in the presence of high local corporate ethanol production capacity. However, this negative competitive interdependence is attenuated in local communities where: 1) corporations represent a potential threat to the autonomy of local farmers, 2) there is a generally anti-corporate climate, and 3) there is a well-established organizational infrastructure supporting a cooperative ideology. Consistent with sociological theories that emphasize the mobilizing force of ideology, these local conditions spur collective action among farmers to establish cooperatives in response to the local diffusion of corporations. We show further that the diffusion of plants owned by big business (oil and agribusiness) in communities characterized by a general anti-corporate climate, especially promotes greater ideological contestation, and mobilization of resources to form cooperatives.",
    keywords = "Anti-corporate ideology, Bio-ethanol, Community ecology, Cooperatives, Founding rate, Social movement",
    author = "Christophe Boone and Serden {\"O}zcan",
    year = "2014",
    doi = "10.5465/amj.2012.0194",
    language = "English",
    volume = "57",
    pages = "990--1012",
    journal = "Academy of Management Journal",
    issn = "0001-4273",
    publisher = "Academy of Management",
    number = "4",

    }

    Why do Cooperatives Emerge in a World Dominated by Corporations? The Diffusion of Cooperatives in the U.S. Bio-ethanol Industry, 1978-2013. / Boone, Christophe ; Özcan, Serden.

    In: Academy of Management Journal, Vol. 57, No. 4, 2014, p. 990-1012.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Why do Cooperatives Emerge in a World Dominated by Corporations?

    T2 - The Diffusion of Cooperatives in the U.S. Bio-ethanol Industry, 1978-2013

    AU - Boone, Christophe

    AU - Özcan, Serden

    PY - 2014

    Y1 - 2014

    N2 - Why do cooperatives continue to emerge given the strong economic disincentives that exist? And why is it that in some communities they are collocated with their commercial counterparts and in others territorial partitioning occurs? In this paper, we develop a community ecology approach that integrates economic and sociological accounts of cooperatives, in an attempt to reconcile these contradictory observations. Using a detailed panel data set for the county-level founding process of cooperatives in the U.S. ethanol industry from 1978 to June 2013, consistent with economic arguments, we find that the founding rate of cooperatives decreases in the presence of high local corporate ethanol production capacity. However, this negative competitive interdependence is attenuated in local communities where: 1) corporations represent a potential threat to the autonomy of local farmers, 2) there is a generally anti-corporate climate, and 3) there is a well-established organizational infrastructure supporting a cooperative ideology. Consistent with sociological theories that emphasize the mobilizing force of ideology, these local conditions spur collective action among farmers to establish cooperatives in response to the local diffusion of corporations. We show further that the diffusion of plants owned by big business (oil and agribusiness) in communities characterized by a general anti-corporate climate, especially promotes greater ideological contestation, and mobilization of resources to form cooperatives.

    AB - Why do cooperatives continue to emerge given the strong economic disincentives that exist? And why is it that in some communities they are collocated with their commercial counterparts and in others territorial partitioning occurs? In this paper, we develop a community ecology approach that integrates economic and sociological accounts of cooperatives, in an attempt to reconcile these contradictory observations. Using a detailed panel data set for the county-level founding process of cooperatives in the U.S. ethanol industry from 1978 to June 2013, consistent with economic arguments, we find that the founding rate of cooperatives decreases in the presence of high local corporate ethanol production capacity. However, this negative competitive interdependence is attenuated in local communities where: 1) corporations represent a potential threat to the autonomy of local farmers, 2) there is a generally anti-corporate climate, and 3) there is a well-established organizational infrastructure supporting a cooperative ideology. Consistent with sociological theories that emphasize the mobilizing force of ideology, these local conditions spur collective action among farmers to establish cooperatives in response to the local diffusion of corporations. We show further that the diffusion of plants owned by big business (oil and agribusiness) in communities characterized by a general anti-corporate climate, especially promotes greater ideological contestation, and mobilization of resources to form cooperatives.

    KW - Anti-corporate ideology

    KW - Bio-ethanol

    KW - Community ecology

    KW - Cooperatives

    KW - Founding rate

    KW - Social movement

    U2 - 10.5465/amj.2012.0194

    DO - 10.5465/amj.2012.0194

    M3 - Journal article

    VL - 57

    SP - 990

    EP - 1012

    JO - Academy of Management Journal

    JF - Academy of Management Journal

    SN - 0001-4273

    IS - 4

    ER -