Producer cooperatives influence on competitive dynamics - the Azorean case

The aim of this paper is twofold: first, it aims at investigating how cooperatives organizational dimensions affect its strategic positioning; and second, how producer cooperatives influence the competitive dynamics of the markets where they compete. In order to answer these questions, I will focus on the Sao Miguel’s dairy market (Portuguese island) where producer cooperatives and private firms compete side-by-side. This paper follows a single case study qualitative analysis. The main data sources are the local newspapers articles (322 articles that covers 2010- 2012), and interviews with the market players (31 interviews). The results reveal that producer cooperatives tend to adopt cost leadership strategies, which naturally aligns with their historical roots and organisational purposes. Additionally, the paper stands that producer cooperatives are able to drive factor market competition activity in markets where there are severe asymmetries of power.

Producer cooperatives influence on competitive dynamics: the Azorean case

Joana Rodrigues Pereira

The aim of this paper is twofold: first, I aim at understanding how producer cooperatives compete in the factor markets; and second, I analyse how producer cooperatives influence the competitive dynamics of the markets where they compete. With this paper we aim at bringing a strategic perspective of this phenomenon. This paper follows a single case study qualitative analysis. The empirical context is the dairy market of the Azorean island Sao Miguel (in Portugal), more specifically, the milk factor market. This empirical context is adequate for the following reasons: first, because it is possible to isolate the market and its players in a quasi-experimental fashion (because it is a island); second, it presents a stable cooperative tradition; and third, cooperatives compete side-by-side with private firms (the cooperative Union represent 50% of the factor dairy market and the 3 other private firms represent the remaining 50%). The main data sources were local newspaper articles (322 in total) and interviews (31 in total with all market players). The data was coded in different categories, such as players’ characteristics, strategic positioning, strategic moves, and context/external shocks. The results reveal that on the factor market side, as buyer, the cooperative presents a “proudly first” positioning. This buyer positioning reflects the effort of the cooperative to always set the higher price and the best conditions on the factor market. This positioning contrasts with other private players that have adopted “Please stay” and “I don’t care” positioning. The results have also point out that the increase of the cooperative market share in the factor market, is leading to increased market competition. There is evidence that the cooperative is driving up the total number of strategic moves in the market that were predominantly oriented to price increases. On the theoretical part, some interesting inputs emerged on the concept of buyers strategic positioning. The results also challenge competitive dynamics studies, which defend that when the concentration in the market increases, the competitive activity decreases. Surprisingly, I have observed the opposite effect and I argue that is due to the cooperative influence. Additionally, the paper defends that producer cooperatives are able to drive factor market competition in markets where there are severe asymmetries of power. Such studies can increase our knowledge about the local impact of cooperatives and the circumstances under which cooperatives are an efficient alternative to the public and private sectors.

2016

Three Essays on Collective Forms of Organizing for Production and Innovation

Joana Rodrigues Pereira

This dissertation focuses on collective forms or organizing that through crowds or communities undertake production or innovation activities. Such organizations deviate from the traditional notions of hierarchy, authority, and control; however, they are still able to engage in production and innovation activities, directly competing with bureaucratic organizations. Specifically, this dissertation focuses on communities for production and crowds for innovation, adopting different theoretical angles. The first chapter of this thesis introduces the concept of collective organizations for innovation and production. I present a framework that comprises both traditional and modern collective organizations, such as producer cooperatives, user communities, crowdsourcing, and the most recent distributed ledgers, the base of cryptocurrencies. Chapter two and three concentrates on communities for production, more specifically, on the producer cooperativesâ cooperative-commercial hybrid nature. While chapter two focuses on the influence of organizational hybridity on market strategies and competitive behavior; chapter three analyzes the conditions under which hybrid organizations affect market competitive dynamics and institutions. These chapters speak not only to the literature on communities for production but also to other hybrid organizations, which instantiate different and potentially conflicting logics under the same organizational roof. Chapter four (with Gianluigi Viscusi and Christopher Tucci) focuses on crowds for innovation, investigating the differences between crowds and communities, and the various types of crowds governance modes, such as crowd-driven, crowd-based, and crowded. This chapter not only defines what is a crowd organization but also provides guidelines about how firms can govern crowds for knowledge generativity¿spontaneous innovation.

EPFL2017

Producer cooperatives influence on competitive dynamics: the Azorean case

Joana Rodrigues Pereira

2016

Three Essays on Collective Forms of Organizing for Production and Innovation

Joana Rodrigues Pereira

EPFL2017