Relational capital: a double-edged sword for agricultural cooperatives

Document Type

Article

Source of Publication

British Food Journal

Publication Date

4-28-2025

Abstract

Purpose: This study aims to examine agricultural cooperatives as a key enabler of sustainable short food supply chains (SFSCs) by aggregating smallholder farmers and facilitating market access. Specifically, we analyze how relational capital among cooperative members influences cooperative success, thereby shaping the strength of SFSCs. Design/methodology/approach: First, a survey was used to collect data from farmers who are members of agricultural cooperatives. Second, structural equation modeling was used to test a model where relational capital moderates the relationship between cooperative operations activities and outcomes. Findings: The results support the premise that engaging in collaborative operational activities positively influences the cooperatives' outcomes. Surprisingly, the moderating role of relational capital was found to be simultaneously non-significant, significant positive and significant negative depending on which operational activity it interacts with. The non-significant interaction with information and significant negative interaction with dedicated investments were counterintuitive. This could be explained by the “coopetitive” relationship between farmers and the emergence of defects such as free riding and hold-up. Practical implications: This research offers significant practical implications to cooperatives and policymakers to reduce cooperation defects resulting from excessive relational capital. On the one hand, cooperatives must establish precise contribution requirements, introduce monitoring systems and utilize social norms. On the other hand, policymakers need to provide a safe legal framework for cooperatives to function. Originality/value: To the best of our knowledge, this is the first study that reveals the simultaneous existence of positive and negative effects of relational capital in a cooperative setting. Acting like a prism, our study reveals the multiple facets of relational capital in agricultural cooperatives.

ISSN

0007-070X

Publisher

Emerald

Volume

127

Issue

5

First Page

1575

Last Page

1594

Disciplines

Business

Keywords

Agricultural cooperatives, Food systems, Relational capital, Short food supply chains

Scopus ID

05003425958

Indexed in Scopus

yes

Open Access

no

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