Publication
Title
Strategic choices at entry and relative survival advantage of cooperatives versus corporations in the US bio-ethanol industry, 1978-2015
Author
Abstract
The sustainability of cooperatives versus corporations is hotly contested. We propose that strategic choices at entry can help to explain the endurance of these two governance modes. We hypothesize that cooperatives have a survival advantage if their major drawback high coordination costs is curbed by high levels of member engagement at founding. Our analysis of survival rates in the US bio-ethanol industry shows that cooperatives outlive corporations (1) if investment size at founding is large (strong financial engagement), (2) if they enter de novo instead of de alio (strong product-market engagement) and (3) if the cooperative venture has been carefully planned from the start (greenfield entry) instead of built upon the acquisition of an existing plant (strong venture-building engagement). These findings caution against the view that a particular mode of governance is superior or inferior to another in all circumstances.
Language
English
Source (journal)
The journal of management studies / University of Lancaster. School of Mangement. - Oxford
Publication
Oxford : 2016
ISSN
0022-2380
Volume/pages
53:7(2016), p. 1113-1140
ISI
000387351700002
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 21.10.2017
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 03.02.2016
Last edited 04.09.2017
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