Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-24T00:15:44.106Z Has data issue: false hasContentIssue false
  • English
  • Français

Cooperatives versus Corporations: Survival in the French Wine Industry

Published online by Cambridge University Press:  15 May 2018

Justine Valette ,
Paul Amadieu  and
Patrick Sentis
Justine Valette
Affiliation:
Labex Entreprendre, Montpellier Research in Management, University of Montpellier, rue vendémiaire, 34960 Montpellier; e-mail: [email protected].
Paul Amadieu
Affiliation:
Labex Entreprendre, Montpellier Research in Management, University of Montpellier, rue vendémiaire, 34960 Montpellier; e-mail: [email protected].
Patrick Sentis
Affiliation:
Labex Entreprendre, Montpellier Research in Management, University of Montpellier and Montpellier Business School, rue vendémiaire, 34960 Montpellier; e-mail: patrick.sentis@umontpellier.
Get access Rights & Permissions [Opens in a new window]

Abstract

This article examines the survival rates of cooperatives in the French wine industry. Traditional theory claims that cooperatives are inefficient and consequently are prone to failure, but recent literature suggests a higher resilience. Can cooperatives cope better? We find that French wine cooperatives survive longer than corporations. This result is robust in semi-parametric and parametric models, even when we control for mergers and acquisitions. The higher survival rate of wine cooperatives seems to be associated with their ability to pass changes in their business environments on to their members. (JEL Classifications: C41, G30, Q13)

Keywords

cooperativesFrench wine industrysurvival analysis
Type
Articles
Information
Journal of Wine Economics , Volume 13 , Issue 3 , August 2018 , pp. 328 - 354
Copyright
Copyright © American Association of Wine Economists 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors gratefully acknowledge the financial support of LabEx Entreprendre, research program A2P3 “Governance, Market Strategies, and Sustainable Performance.” They also thank an anonymous referee and the editor for their very helpful comments.

References

Agarwal, A., Barniv, R., and Leach, R. (2002). Predicting bankruptcy resolution. Journal of Business Finance and Accounting, 29(3–4), 497–520.Google Scholar
Alonso, A. D., and, Liu, Y. (2012). Coping with changes in a sector in crisis: The case of small Spanish wineries. Journal of Wine Research, 23(1), 81–95.Google Scholar
Amadieu, P., Maurel, C. and Viviani, J.-L. (2013). Intangibles, export intensity, and company performance in the French wine industry. Journal of Wine Economics, 8(2), 198–224.Google Scholar
Amadieu, P., and Viviani, J.-L. (2011). Intangible expenses: A solution to increase the French wine industry performance? European Review of Agricultural Economics, 38(2), 237–258.Google Scholar
Barron, D. N., West, E., and Hannan, M. T. (1994). A time to grow and a time to die: Growth and mortality of credit unions in New York City, 1914–1990. American Journal of Sociology, 100(2), 381–421.Google Scholar
Bélis-Bergouignan, M.-C., and Corade, N. (2008). Fusions des coopératives vinicoles et ancrage territorial. Revue d’Économie Régionale and Urbaine, 1, 43–68.Google Scholar
Benos, T., Kalogeras, N., Verhees, F. J. H. M., Sergaki, P., and Pennings, J. M. E. (2016). Cooperatives’ organizational restructuring, strategic attributes, and performance: The case of agribusiness cooperatives in Greece. Agribusiness, 32(1), 127–150.Google Scholar
Birchall, J. (2013). Resilience in a Downturn: The Power of Financial Cooperatives. Geneva: ILO. International Labour Organization Report. Available from http://www.ilo.org/empent/Publications/WCMS_207768/lang--en/index.htm.Google Scholar
Birchall, J., and Ketilson, L. H. (2009). Resilience of the Cooperative Business Model in Times of Crisis. Geneva: ILO. http://www.ilo.org/empent/Publications/WCMS_108416/lang--en/index.htm.Google Scholar
Burdín, G. (2014). Are worker-managed firms more likely to fail than conventional enterprises? Evidence from Uruguay. Industrial and Labor Relations Review, 67(1), 202–238.Google Scholar
Cadot, J. 2015. Agency costs of vertical integration—the case of family firms, investor-owned firms and cooperatives in the French wine industry. Agricultural Economics, 46, 187–194.Google Scholar
Cano-Ubrina, J. (2012). Stock sampling with interval-censored elapsed duration: A Monte Carlo analysis. Florida State University, Working Paper, August. Available from http://myweb.fsu.edu/jcanourbina/Simulation.pdf.Google Scholar
Cechin, A., Bijman, J., Pascucci, S., and Omta, O. (2013). Decomposing the member relationship in agricultural cooperatives: Implications for commitment. Agribusiness, 29(1), 39–61.Google Scholar
Chaddad, F., and Iliopoulos, C. (2013). Control rights, governance, and the costs of ownership in agricultural cooperatives. Agribusiness, 29(1), 3–22.Google Scholar
Cook, M. (1995). The future of U.S. agricultural cooperatives: A neo-institutional approach. American Journal of Agricultural Economics, 77(5), 1153–1159.Google Scholar
Cook, M., and Iliopoulos, C. (2000). Ill-defined property rights in collective action: The case of US agricultural cooperatives. In Ménard, C. (ed.), Institutions, Contracts, and Organizations: Perspectives from New Institutional Economics, 335–348. London: Edward Elgar.Google Scholar
Declerck, F., and Viviani, J.-L. (2012). Solvency and performance of French wineries in times of declining sales: Co-operatives and corporations. International Journal on Food System Dynamics, 3, 106–122.Google Scholar
Duquesnois, F., Gurãu, C., and Le Roy, F. (2010). Wine producers’ strategic response to a crisis situation. International Journal of Wine Business Research, 22(3), 251–268.Google Scholar
Duval, L. (2015). Performance Export: Influence Des Stratégies et Des Politiques À L'exportation: Le Cas de La Filière Vin En France, Ph.D Thesis, Université Rennes 1.Google Scholar
Fares, M., and Orozco, L. (2014). Tournament mechanism in wine-grape contracts: Evidence from a French wine cooperative. Journal of Wine Economics, 9(3), 320–345.Google Scholar
Fichman, M., and Levinthal, D. A. (1991). Honeymoons and the liability of adolescence: A new perspective on duration dependence in social and organizational relationships. Academy of Management Review 16(2), 442–468.Google Scholar
Frick, B. (2017). Some cooperatives produce great wines, but the majority does not, complementary institutional mechanisms to improve the performance of an indispensable organizational form. Journal of Wine Economics, 12(4), 386–394.Google Scholar
Hanf, J., and Schweickert, E. (2014). Cooperatives in the balance between retail and member interests: The challenges of the German cooperative sector. Journal of Wine Research, 25, 32–44.Google Scholar
Hansmann, H. (1996). The Ownership of Enterprise. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
Hind, A. M. (1999). Co-operative life cycle and goals. Journal of Agricultural Economics 50(3), 536–548.Google Scholar
Iliopoulos, C., and Hendrikse, G. (2009). Influence costs in agribusiness cooperatives: Evidence from case studies. International Studies of Management and Organization, 39(4), 60–80.Google Scholar
Iwasaki, I. (2014). Global financial crisis, corporate governance, and firm survival: The Russian experience. Journal of Comparative Economics, 42(1), 178–211.Google Scholar
Klein, J. P., and Moeschberger, M. L. (2003). Survival Analysis: Techniques for Censored and Truncated Data. 2nd ed. Statistics for biology and health. New York: Springer.Google Scholar
Kyriakopoulos, K., Meulenberg, M., and Nilsson, J. (2004). The impact of cooperative structure and firm culture on market orientation and performance. Agribusiness, 20, 379–396.Google Scholar
Lewis, G., and Zalan, T. (2014). Strategic implications of the relationship between price and willingness to pay: Evidence from a wine-tasting experiment. Journal of Wine Economics, 9(2), 115–134.Google Scholar
Manjon-Antolin, M., and Arauzo-Carod, J.-M. (2008). Firm survival: Methods and evidence. Empirica, 35(1), 1–24.Google Scholar
Maurel, C. (2009). Determinants of export performance in French wine SMEs. International Journal of Wine Business Research, 21(2), 118–142.Google Scholar
Mills, M. (2011). Introducing Survival and Event History Analysis. Los Angeles: SAGE.Google Scholar
Monteiro, N. P., and Stewart, G. (2015). Scale, scope and survival: A comparison of cooperative and capitalist modes of production. Review of Industrial Organization, 47(1), 91–118.Google Scholar
Nilsson, J. (2001). Organisational principles for co-operative firms. Scandinavian Journal of Management, 17(3), 329–356.Google Scholar
Núñez-Nickel, M., and Moyano-Fuentes, J. (2004). Ownership structure of cooperatives as an environmental buffer. Journal of Management Studies, 41(7), 1131–1152.Google Scholar
Roelants, B., Dovgan, D., Hyungsik, E., and Elisa, T. (2012.) The resilience of the cooperative model. CECOP | CICOPA Europe Report. Available from http://www.cecop.coop/IMG/pdf/report_cecop_2012_en_web.pdf.Google Scholar
Saïsset, L.-A., and Cheriet, F. (2012). Grandir, oui, mais comment? Revue Internationale de l'Economie Sociale, 326, 45–63.Google Scholar
Simon-Elorz, K., Castillo-Valero, J., and Garcia-Cortijo, M. (2015). Economic performance and the crisis: Strategies adopted by the wineries of Castilla-La Mancha (Spain). Agribusiness, 31(1), 107–131.Google Scholar
Soboh, R., Lansink, A. O., Giesen, G., and van Dijk, G. (2009). Performance measurement of the agricultural marketing cooperatives: The gap between theory and practice. Applied Economic Perspectives and Policy, 31(3), 446–469.Google Scholar
Staatz, J. M. (1987). Recent developments in the theory of agricultural cooperation. Journal of Agricultural Cooperation, 2, 74–95.Google Scholar
Staatz, J. M. (1989). Farmer Cooperative Theory: Recent Developments. Research Reports, United States Department of Agriculture, Rural Development Business and Cooperative Programs. Available from http://ageconsearch.umn.edu/record/52017.Google Scholar
Stinchcombe, A. L. (1965). Organizations and social structure. In March, J. G. (ed.), Handbook of Organizations, 142–193. Chicago: Rand-McNally.Google Scholar
Stoeberl, P. A., Parker, G. E., and Joo, S.-J. (1998). Relationship between organizational change and failure in the wine industry: An event history analysis. Journal of Management Studies, 35(4), 537–555.Google Scholar
Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data. 2nd ed. Cambridge: MIT Press.Google Scholar