Specific investment, relational governance and cooperation risk: from the perspective of farmers in China's "Company+Farmers" alliance

The 'Company+ Farmers' alliance is the main organization for China's agricultural industrialization management. Based on the survey data of farmers cooperating with companies in Guangdong and Jiangxi Provinces, this article explores the relationship among farmers' specific invest...

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Bibliographic Details
Published inApplied economics Vol. 51; no. 7; pp. 676 - 686
Main Authors Wan, Junyi, Zeng, Lijun, Ao, Jiazhuo
Format Journal Article
LanguageEnglish
Published London Routledge 07.02.2019
Taylor & Francis Ltd
Subjects
'Company+Farmers' alliance
Agriculture
Alliances
Cooperation
cooperation risk
Economic analysis
Economic theory
Farmers
Governance
Industrialization
Investments
Provinces
relational governance
specific investment
China
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Summary:The 'Company+ Farmers' alliance is the main organization for China's agricultural industrialization management. Based on the survey data of farmers cooperating with companies in Guangdong and Jiangxi Provinces, this article explores the relationship among farmers' specific investment, the relational governance of the alliance and farmers' cooperation risk. The results show that the relational governance of the alliance can be divided into cognitive relational governance and coordinated relational governance. Among these types, cognitive relational governance can significantly promote farmers' specific investment. However, with the increase in farmers' specific investment, farmers' cooperation risk is significantly improved, and the coordinated relational governance can significantly enhance the role of farmers' material-specific investment in promoting cooperation risk. Therefore, agricultural enterprises can use cognitive relational governance to encourage farmers' specific investment, and the specific investment of farmers must rely on a contract governance mechanism.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2018.1508868