Examining commitment, heterogeneity and social capital within the membership base of agricultural co-operatives—A conceptual framework

Abstract

Although purely economic (conventional) reasons play a significant role in the development and performance of (agricultural) cooperatives; so do other (non-conventional) factors. A comprehensive assessment of co-operatives therefore requires an examination of non-conventional factors, in addition to the conventional factors. Three such non-conventional factors identified in the literature are 1) commitment, 2) heterogeneity and 3) social capital. Commitment is important for agricultural co-operatives because one pre-requisite for successful agricultural co-operatives is that farmer-members are willing to supply the co-operative with raw products, capital and managerial inputs. In this research affective, continuance, normative and other aspects of member commitment are examined. Heterogeneity is an important source of concern for co-operatives due to its impact on cohesiveness and collective decision making. This study used characteristics associated with the farmer-member and the farm-business to examine heterogeneity. It has been suggested that the social capital paradigm is the common denominator for all explanations and theories on co-operative formation and development. A modified version of the six dimensions’ framework used by the World Bank to assess social capital was used in this study. Based on this theoretical underpinning, a Three Dimensional Conceptual Framework, that encapsulates commitment, heterogeneity and social capital is developed and described.