FULTON Cooperatives and Member Commitment
نویسنده
چکیده
Agricultural cooperatives around the world are facing major structural challenges as they respond to a more industrialized agriculture, globalization, and freer trade. Co-ops are responding to these changes by merging, by finding new ways of raising capital, and by developing new organizational forms such as New Generation Co-ops. One of the critically important issues co-ops face as they undergo this transformation is member commitment. Member commitment is critical because it is a measure of how well a co-op is able to differentiate itself from an investor-owned firm (IOF). The greater is the coop’s ability to differentiate itself from an IOF, the easier it is for the co-op to retain its market share as borders breakdown and as multinationals move into markets they have traditionally ignored. In short, member commitment is a sort of glue that allows membership and business volume to be maintained even as trade becomes more fluid and barriers to reorganization are broken down. Member commitment has a parallel outside the co-op. In product markets, for instance, a company’s success is linked to its ability to develop a differentiated product that provides value to a specific group of customers. Companies that are able to develop niche products are able to raise price without losing substantial market share, while those that sell generic products are forced into a strategy of being the low-cost supplier. Similarly, co-ops with high member
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