Effect of Size on Performance of Spanish Agricultural Cooperatives

Abstract

As with other types of company, size in agricultural cooperatives has generally been signalled as a facilitator of competitive advantage, bringing both cost reduction associated with economies of scale and differentiation through innovation. However, size is also associated with certain disadvantages deriving from structural complexity and reduced flexibility. In this context, the objective of this paper is to verify the relationship empirically between the size of agricultural cooperatives and their performance. The study uses data on 108 fresh fruit and vegetable cooperatives in Spain. The positive results obtained concerning the relationship will be of use to those responsible for the administration of such enterprises in making decisions on growth strategies.