| Abstract |
This research explores the factors that influence the commitment of
members to their cooperative organization. Previous empirical and theoretical
research is reviewed. The cooperative members’ decisions regarding patronage
are then described in terms of a random utility model. Logit analysis,
with data from member surveys of a large grain marketing cooperative, indicates
that the factors that influence member patronage are: the ability to share
in profits through dividends, the ability to purchase chemicals and fertilizers
at the grain elevator, and the percentage of the total farm income obtained
from grain operations. There is some evidence that farmers’ patronage is
positively associated with competitive grain pricing and negatively associated
with the firm being active in the community. Additional analysis reveals
that the age of the farmer significantly affects the importance the member
places on the ability to share in profits through dividends. |
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