Organizational costs incurred by agricultural cooperatives

What is it about?

The current chapter identifies and analyses organizational costs incurred by agricultural cooperatives and discusses solutions to these costs by cooperatives in Europe and the United States.

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Why is it important?

The significance of this paper lies in two key contributions: Firstly, it discerns a crucial disparity between founding organizational costs (FOCs) and maintaining organizational costs (MOCs). Secondly, it injects a dynamic temporal dimension by positing that cooperative founders are cognizant solely of FOCs, neglecting the impact of MOCs. Yet, attending to the latter throughout the cooperative's lifecycle is paramount for its endurance and progression across subsequent life cycles.