Property Right and Organizational Characteristics of Producer‐owned Firms and Organizational Trust

Harvey James and Michael Sykuta

Annals of Public and Cooperative Economics, 2005, vol. 76, issue 4, 545-580

Abstract: Abstract**: We examine how organizational characteristics of producer‐owned firms are correlated with the level of perceived trust among cooperative members, using survey data from a sample of U.S. agricultural cooperatives. Our results indicate trust is correlated with property right and organizational structures previously identified in the literature as significant for cooperative performance. We find that the norm of equality and the homogeneity of member interests are key correlates of organizational trust in producer‐owned firms. We also find that some property right structures that improve organizational trust are counterproductive for member investment incentives.

Date: 2005
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