Property Right and Organizational Characteristics of Producer-Owned Firms and Organizational Trust

36 Pages Posted: 3 Feb 2006

See all articles by Harvey S. James, Jr.

Harvey S. James, Jr.

University of Missouri at Columbia - Division of Applied Social Sciences

Michael E. Sykuta

University of Missouri at Columbia - Division of Applied Social Sciences

Abstract

We examine how organizational characteristics of producer-owned firms are correlated with the level of perceived trust among cooperative members, using survey data from a sample of U.S. agricultural cooperatives. Our results indicate trust is correlated with property right and organizational structures previously identified in the literature as significant for cooperative performance. We find that the norm of equality and the homogeneity of member interests are key correlates of organizational trust in producer-owned firms. We also find that some property right structures that improve organizational trust are counterproductive for member investment incentives.

Suggested Citation

James, Harvey S. and Sykuta, Michael E., Property Right and Organizational Characteristics of Producer-Owned Firms and Organizational Trust. Annals of Public & Cooperative Economics, Vol. 76, No. 4, pp. 545-580, December 2005, Available at SSRN: https://ssrn.com/abstract=868731 or http://dx.doi.org/10.1111/j.1370-4788.2005.00289.x

Harvey S. James (Contact Author)

University of Missouri at Columbia - Division of Applied Social Sciences ( email )

Columbia, MO
United States
573-884-9682 (Phone)

HOME PAGE: http://https://hsjames2.wordpress.com

Michael E. Sykuta

University of Missouri at Columbia - Division of Applied Social Sciences ( email )

143 Mumford Hall
Columbia, MO 65211
United States
573-882-1738 (Phone)
573-884-3958 (Fax)

HOME PAGE: http://michaelsykuta.com

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