Some Cooperatives Produce Great Wines, but the Majority Does Not: Complementary Institutional Mechanisms to Improve the Performance of an Indispensable Organizational Form*. (11th January 2018)

• Record Type: Journal Article
• Authors: Frick, Bernd
• Is Part Of: Journal of wine economics. Volume 12:Number 4(2017)
• Page Start: 386
• Page End: 394
• Publication Date: 2018-01-11
• Subjects: adverse selection, -- firm performance, -- moral hazard, -- organizational design, -- organizational form; Wine and wine making -- Economic aspects -- Periodicals; Wine and wine making -- Periodicals; Wineries -- Economic aspects -- Periodicals; 338.476632
• DOI: 10.1017/jwe.2017.33
• Languages: English
• ISSNs: 1931-4361

Abstract

Abstract: Although they have often been found to be technically inefficient, cooperatives not only have survived in the wine industry but continue to play major roles in most European countries. Because the specific advantages of their "organizational architecture" (resource pooling and decentralization) seem to outweigh the disadvantages (vaguely defined property rights and high monitoring costs), this paper discusses organizational measures to improve the performance of cooperatives by addressing three different aspects of "organizational design" (managing entry and exit, motivating members, and investing in corporate culture). (JEL Classifications: D22, D23, L14, L21, L31)