AN OWNERSHIP RIGHTS TYPOLOGY OF COOPERATIVE MODELS

This paper examines agricultural cooperative organizational models from an ownership rights perspective. Building upon property rights and incomplete contracts theories of the firm, the paper adopts a definition of ownership rights comprising both residual claim and control rights. We argue that alternative cooperative organizational models differ in the way ownership rights are defined and assigned to the economic agents tied contractually to the firm - members, patrons, and investors. Based on multiple case study evidence, the paper proposes a typology of discrete organizational models, in which the traditional cooperative structure and the investor-oriented firm (IOF) are characterized as polar forms. Additionally, we identify five non-traditional models that cooperatives may adopt to ameliorate perceived financial constraints. The paper is intended to facilitate a better-informed strategic decision making process among cooperative leaders in choosing among alternative cooperative ownership structures.