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Social capital in cooperatives: A typology and influence on performance

Abstract

One of the distinctive characteristics of cooperatives is their social capital. This article contributes to the literature by proposing a classification of cooperatives according to their social capital: internal social networks (relationships between their members, and between their members and their managers) and/or external social networks (relationships with customers, other cooperatives, institutions etc.). The sample comprised managers from 50 agrifood cooperatives located in the Canary Islands (Spain) who answered a questionnaire designed on the basis of the existing literature. Descriptive statistics such as means and non-parametric test (Pearson's Chi-square test) were used to process the information. The largest group of cooperatives developed strong internal and external social networks (i.e., a broad social network). The second group was the opposite: social networks were weak internally as well as externally (the so-called narrow social network). The results also showed that when cooperatives developed only one type of network, they focused on a strong internal network (asymmetric internal social network). The only difference in the performance of cooperatives depending on their social network was observed in cooperatives with an asymmetric external social network. Such cooperatives had a better public image than their competitors.

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Social capital in cooperatives: A typology and influence on performance

Author: Román Cervantes, Cándido,García Pérez, Ana María,González Dávila, Enrique,Yanes Estévez, Vanessa
Publisher: Universidad de La Laguna
Year: 2023
DOI: 10.14254/2071789X.2023/16-4/7
Source: https://riull.ull.es/xmlui/bitstream/915/40231/1/Social_capital_in_cooperatives__A_typology_and_influence_on_performance.pdf
Ga cía-Pé ez, A.M., e al.
ISSN 2071-789X
RECENT ISSUES IN SOCIOLOGICAL RESEARCH
Economics & Sociology, Vol.16, No. 4, 2023
155
SOCIAL CAPITAL IN
COOPERATIVES: A TYPOLOGY AND
INFLUENCE ON PERFORMANCE
Ana M. Ga cía-Pé ez
Dp o. Di ección de Emp esas e
His o ia Económica-IUDE,
Uni e sidad de La Laguna, Spain
E-mail: [email protected]
ORCID 0000-0003-4252-8340
Cándido Román-Ce an es
Dp o. Di ección de Emp esas e
His o ia Económica-IUDE,
Uni e sidad de La Laguna, Spain
E-mail: c [email protected]
ORCID 0000-0002-1697-3988
En ique González-Dá ila
Dp o. de Ma emá icas, Es adís ica
e In es igación Ope a i a,
Uni e sidad de La Laguna, Spain
E-mail: egonza[email p o ec ed]
ORCID 0000-0002-0781-9161
Vanessa Yanes-Es é ez*
Dp o. Di ección de Emp esas e
His o ia Económica-IUDE,
Uni e sidad de La Laguna, Spain
E-mail: [email protected]
ORCID 0000-0002-4834-7199
* Co esponding au ho
Recei ed: No embe , 2022
1s Re ision: Oc obe , 2023
Accep ed: Decembe , 2023
DOI: 10.14254/2071-
789X.2023/16-4/7
ABSTRACT. One o he dis inc i e cha ac e is ics o
coope a i es is hei social capi al. This a icle con ibu es
o he li e a u e by p oposing a classi ica ion o
coope a i es acco ding o hei social capi al: in e nal
social ne wo ks ( ela ionships be ween hei membe s,
and be ween hei membe s and hei manage s) and/o
ex e nal social ne wo ks ( ela ionships wi h cus ome s,
o he coope a i es, ins i u ions e c.).
The sample comp ised manage s om 50 ag i ood
coope a i es loca ed in he Cana y Islands (Spain) who
answe ed a ques ionnai e designed on he basis o he
exis ing li e a u e. Desc ip i e s a is ics such as means and
non-pa ame ic es (Pea son's Chi-squa e es ) we e used
o p ocess he in o ma ion.
The la ges g oup o coope a i es de eloped s ong
in e nal and ex e nal social ne wo ks (i.e., a b oad social
ne wo k). The second g oup was he opposi e: social
ne wo ks we e weak in e nally as well as ex e nally ( he
so-called na ow social ne wo k). The esul s also showed
ha when coope a i es de eloped only one ype o
ne wo k, hey ocused on a s ong in e nal ne wo k
(asymme ic in e nal social ne wo k).
The only di e ence in he pe o mance o coope a i es
depending on hei social ne wo k was obse ed in
coope a i es wi h an asymme ic ex e nal social ne wo k.
Such coope a i es had a be e public image han hei
compe i o s.
JEL Classi ica ion
: P13,
M10, Q12
Keywo ds
: social capi al, social ne wo ks, social en e p ise,
coope a i es, pe o mance
Ga cía-Pe ez, A.M., Román-Ce an es, C., González-Dá ila, E., & Yanes-
Es é ez, V. (2023). Social capi al in coope a i es: A ypology and hei in luence
on pe o mance. Economics and Sociology, 16(4), 155-177. doi:10.14254/2071-
789X.2023/16-4/7
Ga cía-Pé ez, A.M., e al.
ISSN 2071-789X
RECENT ISSUES IN SOCIOLOGICAL RESEARCH
Economics & Sociology, Vol.16, No. 4, 2023
156
In oduc ion
This pape ocuses on one o he de ining cha ac e is ics o coope a i es as social
en e p ises – hei social ne wo ks (Puusa e al., 2013; Ruben & He as, 2012). Coope a i es
canno be s udied wi hou conside ing hei social con ex (Deng & Hend ikse, 2018) and he
analysis o social ne wo ks as hei dis inc i e ea u e and esou ce base (Nilsson e al., 2012)
p o ides insigh s in o hei s a egic beha iou as social en e p ises and, ul ima ely, in o how o
imp o e hei pe o mance. Ou p ima y objec i e he e o e is o s udy he social ne wo ks o
ag i ood coope a i es, p o ide a classi ica ion o hem and link he de i ed ypes o
coope a i es’ pe o mance.
This pape ollows he social capi al app oach o make an explo a o y s udy o
coope a i es’ social ne wo k. This app oach –widely applied in gene al business
adminis a ion– has no o en been used o explain his impo an dimension o coope a i es
(Nilsson e al., 2012; Ruben & He as, 2012; S oop e al., 2021). In his heo e ical con ex ,
social capi al has been de ined as he bene i ha ac o s (indi iduals and o ganisa ions) ob ain
om hei social ela ions (Nahapie & Ghoshal, 1998; Oh e al., 2006). The main bene i is he
in o ma ion p o ided by hese ela ions (Adle & Kwon, 2002; Coleman, 1990). Au ho s like
Spea (2000) ha e s a ed ha social capi al ep esen s he main compa a i e ad an age o
coope a i es is-à- is o he o ms o owne ship and o ganisa ion. Coope a i es de elop social
capi al in he o m o in e o ganisa ional and in e pe sonal social ne wo ks –bo h in e nal and
ex e nal– which se e as a way o ansmi a g ea olume and di e si y o in o ma ion.
Ex e nal social ne wo ks a e hose es ablished by coope a i es wi h o he agen s a ound
hem, such as hei cus ome s, supplie s, ins i u ions, egula o s o any o he ex e nal socie al
g oups. Fo example, wi h cus ome s, he objec i e is o sha e ideas, u u e plans o decisions
ha allow –among o he hings– coope a i es o adop a g ea e app oach o he e e -inc easing
demands and needs o end cus ome s. Some o he in o ma ion o be exchanged will, o
example, in ol e changes in end consume habi s, new laws, c ises o ood ale s. Gi en he
need o coope a i es o be ma ke -o ien ed and aking in o accoun he in o ma ion ha lows
h ough hese ex e nal ne wo ks, such ne wo ks p o e i al in he p esen compe i i e con ex .
Fo hei pa , in e nal social ne wo ks a e he ies de eloped be ween he membe s in a
coope a i e (ho izon al links), o be ween membe s o he coope a i es and hei manage s
( e ical links). Likewise, hese in e ela ions seek o sha e expe iences abou ma ke
condi ions, new de elopmen s in p ocesses and p oduc s, as well as any o he in o ma ion ha
allows cohesi e, in eg a ed, and s a egically well-o ien ed o ganisa ions o be c ea ed.
Nahapie and Ghoshal (1998) a gue ha o ganisa ional social capi al has h ee ela ed
dimensions: he s uc u al dimension (links be ween ac o s), he ela ional dimension ( us
be ween ac o s) and he cogni i e dimension (goals and alues sha ed among ac o s). These
dimensions will shape ideas and in o ma ion low and also impac coope a i es’ pe o mance.
Coope a i es a e encou aged o g ow as his seems o gene a e bene i s o hem, such
as economies o scale and scope, he possibili y o hi ing p o essional manage s o he chance
o y and ma ch he ba gaining powe o la ge e ail dis ibu o s on a mo e e en playing ield.
Howe e , some s udies ail o demons a e he ela ionship be ween coope a i e size and hei
pe o mance (Campos-Climen & Sanchis-Palacio, 2015). G ow h and expansions can also
inc ease he di e si y o hei social base and al e hei democ a ic na u e (Nilsson e al., 2012).
As a esul , he g ea e he numbe o membe s and o ganisa ions in ol ed in he coope a i es,
he mo e complex and cos ly hei managemen will be. No all coope a i es ha e he capaci y
o de elop and manage hei in e nal and ex e nal social ne wo ks co ec ly, wi h he impac
ha his can ha e in e ms o hei pe o mance. In sum, he social capi al o ag i ood
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coope a i es no only o e s bene i s bu also pi alls (Xu e al., 2018); hence he impo ance o
s udying said capi al.
Wi hin he gene al aim o analysing he social ne wo ks o coope a i es in an
explo a o y manne , he main con ibu ion o his wo k is o p opose a classi ica ion o ag i ood
coope a i es acco ding o hei in e nal and/o ex e nal social ne wo ks –an issue which has
hus a no been add essed by he s a egic li e a u e on coope a i es. This is he added alue
o e ed by his pape . Mo eo e , bea ing in mind ha social ne wo ks a e a key ea u e o
coope a i es as well as a po en ial sou ce o compe i i e ad an age, we also examine he
di e ences in pe o mance ha such coope a i es ob ain depending on he social ne wo k hey
mos de elop. This wo k he e o e ills a signi ican gap in ou cu en knowledge o he
managemen and posi ioning o coope a i es. Empi ical s udies ha employ manage ial heo y
o explain coope a i es’ esul s a e sca ce (A cas-La io & He nández-Espalla do, 2003). Mo e
speci ically, he s a egic managemen pe spec i e has o da e no been used o s udy
coope a i es ei he (Mazza ol, 2009). Inclusion o he social ne wo ks app oach hus ills a gap
in he li e a u e add essing s a egic managemen o ag i ood coope a i es (Talamini &
Fe ei a, 2010).
This a icle is s uc u ed in i e pa s. Following his in oduc ion, he heo e ical
amewo k on in e nal and ex e nal social ne wo ks o ag i ood coope a i es is p o ided,
oge he wi h he main esea ch ca ied ou in o how hei de elopmen has impac ed
coope a i es' pe o mance. We hen explain he me hodology used. Finally, he esul s a e
p esen ed, wi h he las sec ion o e ing some conclusions and implica ions.
1. Li e a u e e iew
1.1. Social capi al and social ne wo ks in coope a i es
Social capi al has been s udied in di e se a eas o knowledge wi h di e en s eams
such as he sociological and he economic (Coleman, 1988). These pe spec i es ha e
con ibu ed by adding a p elimina y heo e ical amewo k o explo e social capi al in
o ganisa ions ha has ecei ed special a en ion om esea che s. In he business ield, social
capi al has acqui ed ce ain ele ance because i has been ecognized as key o imp o ing
compe i i eness and pe o mance by es ablishing a ne wo k o s a egic ela ionships (Wang &
Chen, 2016). Social capi al is hus es ablished as he sum o “ he ac ual and po en ial esou ces
embedded wi hin, a ailable h ough and de i ed om he ne wo k o ela ionships possessed
by an indi idual o social uni ” (Nahapie & Ghoshal, 1998, p. 243). Social capi al is commonly
iewed as a aluable asse based on in e pe sonal ela ions and whose main bene i is he
in o ma ion i p o ides (Adle & Kwon, 2002; Coleman, 1990). This social ne wo k c ea es a
pla o m o in o ma ion sha ing and exchange (Spa owe e al., 2001; Walke e al., 1997).
In his sense, coope a i es a e an associa ion o pa icipan s wi h a social ne wo k (Deng
& Hend ikse, 2018), and a e ega ded as a e e ence in social capi al (Valen ino , 2004).
Compa ed o o he o ms o en e p ise, hey ha e a g ea e abili y o os e social capi al
(Saba ini, 2014). Social capi al he e o e p o ides he basis o di e en ia ing coope a i es
om capi alis ic o ganisa ions (Valen ino , 2004). Howe e , his di e ence could disappea i
social capi al is no managed co ec ly.
Many app oaches ha e ocused on he mul idimensional na u e o social capi al (Deng,
2015). Acco ding o Nahapie and Ghoshal (1998), social capi al is composed o h ee
dimensions: s uc u al, cogni i e, and ela ional. In line wi h ha p oposal –and applying i o
coope a i es– he social ies be ween he membe s o a coope a i e can be ega ded as he
s uc u al dimension o social capi al (Deng & Hend ikse, 2018). The cogni i e dimension
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e lec s he iew, pu pose, codes and goals sha ed by he coope a i e's membe s, while he
ela ional dimension's main componen is us (Nahapie & Ghoshal, 1998), which o ms he
co ne s one o hei decision o coope a e. These dimensions a e closely in e connec ed, making
i di icul o gauge wha e ec s each one has sepa a ely on he coope a i es and on hei
pe o mance. Howe e , when such analyses ha e been ca ied ou , i has been con i med ha
he impac on he o ganisa ions' pe o mance di e s (Lee & Tam ake , 2018).
In his a icle, he h ee dimensions o he social capi al iden i ied by Nahapie and
Ghoshal (1998) a e adap ed o he coope a i e con ex . The s uc u al and ela ional dimensions
a e hus explici ly aken in o accoun in he analysis. The s uc u al dimension is included as
he exis ence and equency o social ela ionships (Nilsson e al., 2012) –bo h ho izon al and
e ical (Peng e al., 2016). T us is also inco po a ed in o his wo k as he main ep esen a ion
o he ela ional dimension (Lee & Tam ake , 2018; Nahapie & Ghoshal, 1998). The cogni i e
dimension is also p esen in his esea ch, albei implici ly because o he pa icula dis inc i e
cha ac e is ics o coope a i es. I he membe s ha e decided o join a coope a i e i is p ecisely
because hey sha e simila isions, goals and, o cou se, coope a i e p inciples; ha is, he
cogni i e dimension o social capi al. Mo eo e , he geog aphical and indus ial p oximi y o
he ag i ood coope a i es analysed (Hend ikse & Feng, 2013) ein o ces he exis ence and
impo ance o he hi d dimension o social capi al.
F om a s a egic poin o iew, wha also seems in e es ing is o iden i y he o igin o
social capi al. In his sense, some exis ing classi ica ions allow social capi al o be ca ego ised
as in e nal and ex e nal (Adle & Kwon, 2002; Deng, 2015; Leana & Pil, 2006) [
1
]. In e nal
social capi al desc ibes he social ela ionships be ween he o ganisa ions' membe s and hei
alue (Coleman, 1990; Pu nam, 1993). Fo i s pa , ex e nal social capi al e lec s he ela ions
be ween he o ganisa ion and o he ex e nal ac o s (Bu , 2009; Uzzi, 1996). In he case o
coope a i es, Lame s (2012) also ega ds hem as a ne wo k o in e nal and ex e nal
ela ionships.
This pape he e o e conside s and in eg a es he classi ica ion o bo h in e nal and
ex e nal social capi al ( o example, Adle & Kwon, 2002; Deng, 2015; Leana & Pil, 2006) as
well as he s uc u al, ela ional and cogni i e dimensions iden i ied by Nahapie and Ghoshal
(1998). This in eg a ion gi es ise o ex e nal social ne wo ks and in e nal social ne wo ks, each
wi h he elemen s ha de ine hem in he coope a i e con ex , as shown in Table 1.
1
The e is ano he classi ica ion o social capi al –some imes applied o coope a i es– which iden i ies bonding
social capi al and b idging social capi al. The o me es ablishes ies be ween indi iduals who sha e simila
objec i es and ha esul in close in e nal ela ions, whe eas he second ype c ea es ies wi h agen s ex e nal o
he o ganisa ion (Ruben & He as, 2012).
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Table 1. Social capi al ypes and social capi al dimensions
SOCIAL CAPITAL DIMENSIONS
(Nahapie & Ghoshal, 1998)
STRUCTURAL
DIMENSION
RELATIONAL
DIMENSION
SOCIAL CAPITAL
TYPES
(Adle & Kwon, 2002;
Deng, 2015; Leana &
Pil , 2006)
EXTERNAL
SOCIAL
CAPITAL
Ex e nal ies
(among he coope a i e and
ex e nal agen s such as
cus ome s, o he ag i ood
coope a i es, o he ag i ood
o ganisa ions, public
ins i u ions….)
T us (ex e nal)
(be ween he coope a i e and
i s main cus ome s:
dis ibu o s, la ge
dis ibu ion…)
INTERNAL
SOCIAL
CAPITAL
In e nal ies
(be ween he membe s o he
coope a i e and be ween
hem and manage s)
T us (in e nal)
(be ween he membe s o he
coope a i e and be ween
hem and manage s)
COGNITIVE DIMENSION (sha ed alues and goals
be ween he membe s o he coope a i e)
Sou ce: adap ed om Adle and Kwon (2002), Deng (2015), Leana and Pil (2006), Nahapie
and Ghoshal (1998), and Ruben and He as (2012).
1.2. Classi ica ion o coope a i es acco ding o hei social ne wo ks
Following his app oach (Table 1), in e nal social ne wo ks and ex e nal social ne wo ks
ha e been conside ed in his wo k o p oposing a classi ica ion o coope a i es acco ding o
he g ea e o lesse ex en o which hese ypes o social ne wo ks a e de eloped. Coope a i es
can hus be classi ied in o he ollowing ypes o social ne wo ks (Table 2):
- Coope a i es wi h a na ow social ne wo k: coope a i es wi h ew kinship/ iendship
ies among hei membe s; whose membe s in e ac e y li le and whe e he e is a low
le el o mu ual us , bo h inside and ou side he coope a i e.
- Coope a i es wi h an asymme ic ex e nal social ne wo k: coope a i es whose membe s
in e ac a lo and whe e he e is a high le el o us wi h ex e nal agen s. I is no he
same among he coope a i e's membe s.
- Coope a i es wi h an asymme ic in e nal social ne wo k: coope a i es whose membe s
ha e kinship/ iendship ies, in e ac a lo wi h each o he and display a high le el o
us . I is no he same ou side.
- Coope a i es wi h a b oad social ne wo k: coope a i es wi h many kinship/ iendship
ies among hei membe s, whose membe s in e ac a lo and who display a high le el
o us , bo h among hemsel es and ex e nally.
Table 2. Classi ica ion o coope a i es acco ding o hei social ne wo ks
EXTERNAL
SOCIAL
NETWORK
S ong
COOPERATIVES WITH AN
ASYMMETRIC EXTERNAL
SOCIAL NETWORK
COOPERATIVES WITH A
BROAD SOCIAL NETWORK
Weak
COOPERATIVES WITH A
NARROW SOCIAL NETWORK
COOPERATIVES WITH AN
ASYMMETRIC INTERNAL
SOCIAL NETWORK
Weak
S ong
INTERNAL SOCIAL NETWORK

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1.3. In e nal social ne wo ks, ex e nal social ne wo ks and pe o mance in coope a i es
The exis ing gene al li e a u e suppo s he ela ionship be ween social ne wo ks and
di e en o ganisa ional ou pu s, such as business pe o mance ( o example, And ews, 2010;
Hsu & Hung, 2013; Wang & Chen, 2016). Rowley e al. (2000) analysed he s uc u al and
ela ional dimensions o social capi al in s a egic alliances in s eel and semiconduc o
indus ies, and concluded ha bo h s ong and weak ies a e posi i ely ela ed o pe o mance.
Pi olo and P esu i (2010) also ound a posi i e impac o bo h s ong and weak ies on
pe o mance o e he en i e li e-cycle o he company, wi h he au ho s examining he s uc u al
dimension o social capi al in he ela ionships be ween high echnology i ms and hei main
cus ome s.
The e is also subs an ial consensus in he li e a u e conce ning he ele ance o social
capi al o coope a i es ( o example, Deng & Hend ikse, 2018; Feng e al., 2016). Howe e ,
only ecen ly has he s udy he eo and i s link o o he coope a i e a ibu es begun o s and
ou . Social ies hus ha e a po en ial impac on coope a i es’ pe o mance (Deng, 2015; Deng
& Hend ikse, 2018; Liang e al., 2018; Nilsson e al., 2012; Ruben & He as, 2012), among o he
aspec s owing o how hey in luence he low and quali y o in o ma ion (G ano e e , 2005).
A he same ime, his also de e mines he inno a ions o be de eloped and can shape decision-
making.
Among a coope a i e's membe s (in e nal social ne wo k) social ies no only acili a e
he exchange o in o ma ion bu could also se e as a sou ce o social mo i a ion o he
membe s’ p oduc ion ac i i ies (Deng & Hend ikse, 2018). The la e au ho s p esen a game
heo y model o e lec he social in e ac ions o a coope a i e's membe s and he decisions
ela ed o he quali y o i s p oduc s unde di e en pooling policies. The au ho s ind ha social
ies ha e a posi i e e ec on membe s' p oduc ion ac i i ies, on o e all use ulness and on
economic paymen s.
The g ow h o coope a i es is also linked o hei social capi al. In a s udy o ag i ood
coope a i es in Sweden, Feng e al. (2016) ind ha membe s in smalle coope a i es a e mo e
in ol ed in he go e nance he eo , display g ea e us in he leade ship, a e mo e sa is ied,
and exhibi s onge loyal y. The au ho s conclude ha he smalle he coope a i e, he la ge
i s social capi al. A simila inding was epo ed by Valen ino (2004), o whom main aining
social capi al as a coope a i e's main esou ce p o es di icul due o he ise in he numbe o
membe s and he subsequen g ow h in he e ogenei y and he inc eased complexi y o
objec i es and ac i i ies. When he membe s o a coope a i e a e unknown o each o he , i is
ha de o hem o in e ac (Deng & Hend ikse, 2018). In ac , he pa adigm o social capi al
helps o explain why some o he la ges and adi ionally mo e complex ag i ood coope a i es
ha e ailed (Nilsson e al., 2012). On occasions –as o example when coope a i es g ow– he
in luence o social ies on hei pe o mance may ul ima ely e en become nega i e.
In any case, wi hou ac i e membe pa icipa ion (in e nal social ne wo k), he
coope a i e would no su i e in he long e m (Bhuyan, 2007). Encou aging and main aining
ela ions be ween membe s hus p o es c ucial i coope a i es a e o emain ocused on hei
membe s (Hooks e al., 2017) and so achie e he goals se ou by hem. Managing such ies o
in e nal ne wo ks in he coope a i e's s a egy is he e o e a key issue.
The impo ance o coope a i es' ex e nal social ne wo ks also me i s highligh ing, since
he need eme ges o coope a i es o adop ma ke -o ien ed s a egies in esponse o e e -
inc easing compe i i e p essu e (Deng & Hend ikse, 2018) –especially oday. In his sense,
al hough all ex e nal ies a e impo an , e ical coo dina ion wi h he o he agen s in ol ed in
hei supply chain (ups eam and downs eam) will be c ucial in o de o ensu e ha end
consume s' needs a e sa is ied. This e ical coo dina ion en ails g ea e alignmen be ween he
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ac i i ies and in es men s o he di e en membe s in he chain (p oduce s, wholesale s o
e aile s). This coo dina ion in ol es he exchange o complex in o ma ion, no only wi h
ega d o supply and demand bu also in e ms o quali y equi emen s om cus ome s and inal
consume s (Bijman e al., 2011). Ma ke ends hus demand ha ag i ood coope a i es de elop
ex e nal social ne wo ks wi h hei supplie s and cus ome s so ha hese ne wo ks can hen
acili a e op imal coo dina ion h oughou he supply chain and so become a key ac o in
sa is ying hei clien s' needs.
In a case s udy o dai y coope a i es in China, Zhong e al. (2018) ind ha coope a i es’
deg ee o e ical coo dina ion along hei supply chain –in o he wo ds, how de eloped hei
ex e nal social ne wo k is– a ec s he coope a i e's global pe o mance and he bene i s
dis ibu ed o i s membe s. In he i s case, a linea ela ion is obse ed: he g ea e he e ical
coo dina ion and he ex e nal social ne wo k, he g ea e he bene i s he coope a i e ob ains.
Howe e , he in luence o e ical coo dina ion on he bene i s dis ibu ed o membe s has a
di e en ype o ela ion: membe s o coope a i es who e idence a medium e ical
coo dina ion ob ain he highes bene i s, ollowed by membe s o coope a i es wi h a high
e ical coo dina ion and, las ly, membe s o coope a i es wi h a lowe de elopmen o hei
ex e nal social ne wo k. Wha e e he case, co ec ly managing his ype o ex e nal social
ne wo k should also be included in he coope a i e's s a egic plan.
The s udy by Ruben and He as (2012) in o he co ee sec o in E hiopia is one o he
ew o link coope a i es' social capi al (in e nal and ex e nal) o hei pe o mance. The au ho s
conclude ha coope a i es' p oduc i i y and economic pe o mance imp o e conside ably
when de eloping in e nal social capi al, and ha hese wo indica o s a e also a ec ed by
ex e nal social ne wo ks. In addi ion, when compa ing he g ea e o lowe p esence o bo h
ypes o capi al, hey ind ha when in e nal social capi al is s onge han ex e nal social
capi al, collec i e ac ions a e mo e easible and iable. On he o he hand, when ex e nal social
capi al p e ails, people place g ea e us in indi idual solu ions based on hei ex e nal
ne wo ks.
In conclusion, social capi al could p o ide bene i s bu also cos s and/o isks.
The e o e, each ype o social ne wo k (in e nal and ex e nal) could ha e di e en implica ions
o he coope a i e's pe o mance. We hus p opose he ollowing hypo hesis:
Hypo hesis 1: coope a i es wi h di e en in e nal and ex e nal social capi al ne wo ks
pe o m di e en ly
The g ea e o lesse de elopmen o one o ano he social ne wo k mus he e o e be
guided by an unde s anding o hei di e en con ibu ions o he o ganisa ion’s objec i es
(Adle & Kwon, 2002) and mus p ima ily be amed wi hin he coope a i e's s a egic plan.
2. Me hodological app oach
2.1. The in o ma ion
This explo a o y analysis s ems om a esea ch line de eloped wi hin he amewo k o
he esea ch “Size, s a egy and esul s o ag i ood coope a i es in he Cana y Islands (Spain)”.
I s aim is o iden i y ac o s (such as size, s a egy o en i onmen al unce ain y) ha ha e made
i possible o ce ain ag i ood coope a i es o pe o m be e han o he s. In his s udy, he
coope a i es' in e nal and ex e nal social ne wo ks a e analysed. This p ojec was ca ied ou in
he Cana y Islands (Spain) which –acco ding o he Spanish Minis y o Employmen and Social
Se ices – is one o he egions wi h he lowes numbe o ag i ood coope a i es in Spain. O
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he 202 coope a i es in he Cana y Islands in 2016, 64 we e ag i ood coope a i es (31.68%).
These coope a i es employ a o al o 1,664 employees, and ep esen 1.96% o all ag i ood
coope a i es in Spain.
Wi hin he amewo k o he abo e p ojec , an ad hoc da abase was designed wi h he
in o ma ion on coope a i es ha was equi ed o he p ojec ’s aims, gi en ha he in o ma ion
needed was no ound in he da abases a ailable in he ma ke . A specialised i m conduc ed
he su eys by e-mail and elephone calls in Sep embe 2017. The inal alid sample comp ised
50 ag i ood coope a i es o he 64 ha exis ed in he Cana y Islands in ea ly 2017. O he 50
coope a i es su eyed, 17 we e ishe men’s associa ions, and he es we e ag i ood
coope a i es, o which wo we e second- ie coope a i es and he es i s - ie coope a i es.
Acco dingly, he sample used in his s udy comp ised 78% o ag i ood coope a i es in he
Cana y Islands (Spain).
2.2. The ques ionnai e
The heo e ical e iew o he li e a u e and he e lec ion ha made he design o he
ques ionnai e possible we e conduc ed unde he s a egic managemen app oach and
pe spec i e, which has sca cely been applied in he ield o coope a i es (Mazza ol e al., 2011).
F om he ques ionnai e ha was designed, he ollowing sec ions a e used in his wo k:
− Coope a i es' cha ac e is ics: hei age (yea s om hei c ea ion up o 2017), hei size
(in e ms o he numbe o employees [
2
], as a p oxy indica o , and he numbe o
membe s), he p oduc s hey sell and he ma ke s in which hese a e o e ed.
- Membe s’ cha ac e is ics: one o he majo challenges acing coope a i es is o cope
wi h he dispe se na u e o hei membe s (Höle and Kühl, 2018). As coope a i es g ow
in sea ch o g ea e e iciency, hei manage s mus cope wi h a g ea e di e si y o
membe s (G ashuis, 2018). Following his easoning, his s udy conside s he g ea e o
lesse he e ogenei y o coope a i e membe s –adap ed om Ma cos-Ma ás e al. (2014)
and Ös e be g and Nilsson (2009)– in e ms o hei age, educa ion, in e es ,
con ibu ions o he coope a i e (e.g. kilos o li es o p oduc s) and pa icipa ion in he
coope a i e's go e ning bodies. The scale used anged om e y di e en /di e en o
simila / e y simila .
- Coope a i es' social ne wo ks (Table 3): he ques ion add essing in e nal social
ne wo ks is a mul i-i em ques ion ( ou i ems) based on he wo ks o Peng e al. (2016),
Os gaa d and Bi ley (1996), and Ös e be g and Nilsson (2009). Manage s s a e how
o en hey es ablished he di e en ypes o con ac s men ioned o hem: ela ions
be ween membe s (ho izon al) (Peng e al., 2016), ela ions be ween membe s and
managemen eam ( e ical) (Peng e al., 2016), he deg ee o kinship o iendship, and
he deg ee o us among membe s. The i s h ee i ems allow us o app oach Nahapie
and Ghoshal’s (1998) s uc u al dimension o social capi al. The ou h is linked o he
ela ional dimension h ough us . Finally, he cogni i e dimension is conside ed
implici ly in all he i ems because he membe s o he coope a i es a e assumed o sha e
common alues, in e es s and goals, as well as a common language (Deng e al., 2020).
The scale used anged om no link/con ac a all o e y low us ( alue 1) o e y
equen links/con ac s o e y high us ( alue 5).
2
Following he Eu opean Union Recommenda ion o 6 May 2005 (OJEU 20.05.2003), en e p ises a e classi ied
acco ding o size in o mic o-en e p ises (0-9 employees), small en e p ises (10-49 employees), and medium
en e p ises (50-250 employees).
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As o ex e nal social ne wo ks, ou i ems a e adap ed, mainly om he con ibu ions
o Valle -Bellmun (2010) and Spo lede and Pe e son (2003) (Table 3). Responden s
s a e how o en hey made con ac wi h hei main cus ome s and o he ex e nal agen s
linked o he coope a i e (such as o he coope a i es o any o he ag i ood o ganisa ion,
p o essional and ade associa ions, local go e nmen s, public adminis a ions…) in
o de o exchange ideas, in o ma ion (changes in ea ing habi s, new ood laws, ood
ale s, e c.), objec i es, plans o decisions. Finally, he ou h i em assesses he deg ee
o us be ween he coope a i e and i s main cus ome s. The i s h ee i ems allow us
o app oach Nahapie and Ghoshal’s (1998) s uc u al dimension o social capi al. The
ou h is linked o he ela ional dimension h ough us .
The scale used anges om ne e making con ac wi h he main cus ome s, o ha ing
low us in hem ( alue 1) o making con ac equen ly wi h he main cus ome s, o
ha ing e y high us in hem ( alue 5).
Table 3. Scale o he coope a i e's social ne wo ks
SOCIAL CAPITAL TYPES
(Adle & Kwon, 2002; Deng, 2015; Leana & Pil, 2006)
COOPERATIVE'S INTERNAL SOCIAL
NETWORK
(among membe s/managemen eams)
(adap ed om Peng e al., 2016; Os gaa d &
Bi ley, 1996; Ös e be g & Nilsson, 2009)
COOPERATIVE'S EXTERNAL SOCIAL
NETWORK
(wi h agen s ex e nal o he co-ope a i e)
(adap ed om Spo lede & Pe e son, 2003;
Valle -Bellmun , 2010).
SOCIAL CAPITAL DIMENSIONS (Nahapie & Ghoshal, 1998)
COGNITIVE DIMENSION
(sha ed goals and alues)
STRUCTURAL
DIMENSION
1. A e he e kinship
o iendship ies,
among he membe s
o you coope a i e?
STRUCTURAL
DIMENSION
1. You coope a i e sha es
ideas and in o ma ion wi h
i s main cus ome s (whe he
dis ibu o s, la ge
dis ibu ion…)
2. F equency o
con ac s among he
membe s o you
coope a i e is….
(ho izon al)
2. You coope a i e se s
objec i es, es ablishes plans
and makes decisions
oge he wi h i s main
cus ome s (whe he
dis ibu o s, la ge
dis ibu ion…)
3. F equency o
con ac s among he
membe s and he
managemen eam o
you coope a i e
is…. ( e ical)
3. You coope a i e
in e ac s wi h o he
su ounding agen s such as
o he coope a i es
unconnec ed o you s o any
o he ag i ood o ganisa ion,
p o essional and ade
associa ions, local
go e nmen s, public
adminis a ions…
RELATIONAL
DIMENSION
4. T us among he
membe s o he
coope a i e is
usually…
RELATIONAL
DIMENSION
4. T us be ween he
coope a i e and i s main
cus ome s (whe he
dis ibu o s, la ge
dis ibu ion…) is usually….
- Coope a i es' pe o mance: manage ial pe cep ions – including hose conce ning
pe o mance– a e “pi o al” o unde s anding s a egic aspec s o o ganisa ions (Ishak
e al., 2020). In his pape , he coope a i e's pe o mance is hus add essed om a
subjec i e pe spec i e ( o example, Benos e al., 2016), and in ela i e e ms wi h
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Table 8. Analysis o signi ican di e ences in pe o mance acco ding o social ne wo ks:
economic and inancial s eng h
Typology o social ne wo ks
To al
Na ow
social
ne wo k
Asymme ic
in e nal social
ne wo k
Asymme ic
ex e nal social
ne wo k
B oad
social
ne wo k
Much wo se/wo se
han compe i o s
0
1 (10%)
0
5 (29.4%)
6 (13.6%)
Same as compe i o s
7 (63.6%)
5 (50%)
2 (33.3%)
6 (35.3%)
20 (45.4%)
Be e /much be e
han compe i o s
4 (36.4%)
4 (40%)
4 (66.7%)
6 (35.3%)
18 (40.1%)
TOTAL
11 (100%)
10 (100%)
6 (100%)
17 (100%)
44 (100%)
Pea son's Chi-squa e 8.105 d 6 p- alue= 0.231 > 0.05 Asymp o ic signi icance ( wo-sided) No signi ican
Sou ce: own da a
- Membe sa is ac ion (Table 9):
Membe sa is ac ion in hal o he coope a i es analysed is be e o much be e han
ha o hei compe i o s. This is also e lec ed in all ypes o coope a i es, excep o
coope a i es wi h a na ow social ne wo k, whe e mos membe s eel as equally sa is ied as
hei compe i o s. Signi ican di e ences a e no obse ed in his indica o ei he (p-
alue=0.490 > 0.05).
Table 9. Analysis o signi ican di e ences in pe o mance acco ding o social ne wo ks:
membe sa is ac ion
Typology o social ne wo ks
To al
Na ow social
ne wo k
Asymme ic
in e nal social
ne wo k
Asymme ic
ex e nal
social
ne wo k
B oad
social
ne wo k
Much
wo se/wo se han
compe i o s
1 (9.1%)
1 (10%)
0
3 (17.6%)
5 (11.4%)
Same as
compe i o s
7 (63.6%)
3 (30%)
2 (33.3%)
5 (29.4%)
17 (38.6%)
Be e /much be e
han compe i o s
3 (27.3%)
6 (60%)
4 (66.7%)
9 (52.9%)
22 (50%)
TOTAL
11 (100%)
10 (100%)
6 (100%)
17 (100%)
44 (100%)
Pea son's Chi-squa e 5.428 d 6 p- alue=0.490 > 0.05 Asymp o ic signi icance ( wo-sided) No signi ican
Sou ce: own da a
- Sales g ow h (Table 10):
Coope a i es' g ow h endency is e lec ed in he ou ypes. While hose wi h a b oad
social ne wo k ha e mos ly g own he same as hei compe i o s, he o he h ee ypes a e
composed o coope a i es ha ha e mos ly expe ienced be e o much be e sales g ow h han
hei compe i o s. Howe e , his di e ence is no conside ed o be signi ican om a s a is ical
poin o iew (p- alue=0.857 > 0.05).

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Table 10. Analysis o signi ican di e ences in pe o mance acco ding o social ne wo ks:
sales g ow h
Typology o social ne wo ks
To al
Na ow
social
ne wo k
Asymme ic
in e nal
social
ne wo k
Asymme ic
ex e nal
social
ne wo k
B oad
social
ne wo k
Much wo se/wo se
han compe i o s
1 (9.1%)
2 (20%)
0
2 (11.8%)
5 (11.4%)
Same as compe i o s
4 (36.4%)
3 (30%)
2 (33.3%)
8 (47%)
17 (38.6%)
Be e /much be e
han compe i o s
6 (54.5%)
5 (50%)
4 (66.7%)
7 (41.1%)
22 (50%)
TOTAL
11 (100%)
10 (100%)
6 (100%)
17 (100%)
44 (100%)
Pea son's Chi-squa e 2.598 d 6 p- alue=0.857 > 0.05 Asymp o ic signi icance ( wo-sided) No signi ican
Sou ce: own da a
- The coope a i e's ex e nal image (Table 11):
Ex e nal image is he only pe o mance indica o in which he exis ing di e ences
among he ou ypes o coope a i es acco ding o hei social ne wo ks a e signi ican and
no ewo hy (p- alue=0.048 < 0.05). Al hough among he coope a i es wi h a b oad social
ne wo k he e a e some ha pe cei e hei ex e nal image o be wo se o much wo se han hei
compe i o s, o e wo hi ds (76.5%) o he coope a i es wi h his kind o ne wo k pe cei e
hei ex e nal image o be be e o e en much be e han hei compe i o s’. In addi ion,
coope a i es wi h an asymme ic ex e nal ne wo k a e spli in he same p opo ion be ween
hose who conside hei ex e nal image o be he same (50%) as hei compe i o s, and hose
who conside i o be be e o much be e (50%). Fo hei pa , a smalle pe cen age –48%–
o coope a i es ha do no e idence a highly de eloped ex e nal social ne wo k (coope a i es
wi h a na ow social ne wo k plus coope a i es wi h an asymme ic in e nal ne wo k)
conside ed hei image o be be e o much be e han hei compe i o s.
Table 11. Analysis o signi ican di e ences in pe o mance acco ding o social ne wo ks: he
coope a i e's ex e nal image
Typology o social ne wo ks
To al
Na ow
social
ne wo k
Asymme ic
in e nal
social
ne wo k
Asymme ic
ex e nal social
ne wo k
B oad
social
ne wo k
Much wo se/wo se
han compe i o s
0
0
0
3 (17.6%)
3 (6.8%)
Same as compe i o s
6 (54.5%)
5 (50%)
3 (50%)
1 (5.9%)
15 (34.1%)
Be e /much be e
han compe i o s
5 (45.5%)
5 (50%)
3 (50%)
13 (76.5%)
26 (59.1%)
TOTAL
11 (100%)
10 (100%)
6 (100%)
17 (100%)
44 (100%)
Pea son's Chi-squa e 12.710 d 6 p- alue=0.048 < 0.05 Asymp o ic signi icance ( wo-sided) Signi ican
Sou ce: own da a
The e o e, he only signi ican di e ence ound is in he ex e nal image o coope a i es
wi h di e en social ne wo ks. Coope a i es wi h a b oad social ne wo k a e clea ly seen o
ha e a be e ex e nal image han hei compe i o s and –in a smalle pe cen age– coope a i es
wi h an asymme ic social ne wo k ab oad, he eby con i ming o a ce ain deg ee he
hypo hesis posi ed.
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Conclusions and implica ions
Conclusions
Gi en he impo ance o social capi al and social ne wo ks in coope a i es, his wo k
con ibu es o he li e a u e –in a p elimina y and explo a o y way– by sugges ing a
classi ica ion o ag i ood coope a i es acco ding o hei in e nal and ex e nal social ne wo ks.
A pola isa ion be ween he wo ypes o coope a i es loca ed a he ex emes o he
classi ica ion can hus be seen, as ag i ood coope a i es wi h a b oad social ne wo k (34%) and
wi h a na ow social ne wo k (22%) p edomina e. When de eloping only one ype o social
ne wo k (in e nal o ex e nal), coope a i es place he emphasis on hei in e nal ne wo k,
encou aging ela ions and us be ween membe s (ho izon al) and be ween he la e and
managemen eams ( e ical). Coope a i es ha ha e a highly de eloped ex e nal social
ne wo k ( ega dless o hei in e nal social ne wo k) make up 48% o he sample, whe eas
coope a i es ha ha e a high in e nal social ne wo k ( ega dless o hei ex e nal social
ne wo k) accoun o 54% o o ganisa ions. This highligh s he lack o ex e nal o ien a ion o
hese ag i ood coope a i es. I is also e lec ed by he ac ha he smalle g oup is composed
o coope a i es wi h an asymme ic ex e nal ne wo k. G ashuis and Magnie (2018) also no e
ha mos ag i ood coope a i es lack a b and image ha helps hei di e en ia ion. Howe e ,
Benos e al. (2016) obse ed ha ag ibusiness coope a i es abandon hei adi ional “passi e
ma ke ole”, c ea ing he condi ions o de elop a ma ke o ien a ion, despi e he di icul ies
in ol ed. In ou s udy, coope a i es ha de elop an ex e nal asymme ic social ne wo k a e
mos ly o e 45 yea s old, which is a dis inc i e cha ac e is ic compa ed o o he ypes o
coope a i es acco ding o hei social ne wo ks and which a e mos ly younge . Da a analysis
shows ha he p oduc s and ma ke s o coope a i es wi h an asymme ic ex e nal social
ne wo k also make hem di e en . Speci ically, coope a i es wi h a na ow, b oad o
asymme ic in e nal social ne wo k clea ly show a ocus on bananas as hei p oduc s, while
coope a i es wi h an asymme ic ex e nal social ne wo k e idence a wide ange o p oduc s.
The same happens wi h he a ge ma ke s o hei p oduc s. Coope a i es wi h an asymme ic
ex e nal social ne wo k sell hei p oduc s o local, na ional o e en in e na ional ma ke s in
simila pe cen ages, whe eas he o he coope a i es a e especially ocused on local –and a
mos – egional ma ke s. Being olde , and being in ol ed in a g ea e a ie y o p oduc s and
ma ke s is wha cha ac e izes coope a i es ha ha e an asymme ic ex e nal social ne wo k.
These cha ac e is ics make hem ocus pa icula ly on de eloping an ex e nal social ne wo k
linked o g ea e ma ke o ien a ion o coope a i es.
These esul s poin o a second s ep in his esea ch aimed a explo ing he in luence o
social ne wo ks on coope a i es' pe o mance. The only s a is ically signi ican di e ence
among coope a i es acco ding o hei social ne wo k is obse ed in he ex e nal image
p ojec ed by hese o ganisa ions. Among he coope a i es wi h a b oad social ne wo k –o a
leas wi h an asymme ic ex e nal social ne wo k– o ganisa ions wi h a be e o much be e
ex e nal image and p es ige han hei compe i o s p edomina e. Wi h he signi ican impac i
has on he ex e nal image o he coope a i es, he impo ance o hei ma ke o ien a ion is hus
con i med, gi en he new compe i i e en i onmen and, especially, he e e -inc easing
p essu es in he ag i ood chain.
The lack o any u he di e ences in he pe o mance o he a ious ypes o
coope a i es acco ding o hei social ne wo ks also leads us o conclude ha he small size o
he as majo i y o coope a i es coupled wi h hei geog aphical and indus ial p oximi y as
well as hei pa ne s’ simila in e es s (Table 5) may ha e a g ea e impac on hei pe o mance
han he social ne wo ks hemsel es. This explo a o y s udy has he e o e only pa ially
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con i med he hypo hesis pu o wa d by poin ing o di e ences in pe o mance measu ed as
he ex e nal image o he coope a i es acco ding o he ype o social ne wo ks hey de elop.
Implica ions
Se e al implica ions eme ge om he esul s ob ained, bo h o he sec o and o
ins i u ions. On he one hand, manage s mus be able o plan and de elop a social clima e o
in e pe sonal coope a ion be ween membe s and be ween membe s and manage s (ho izon al
and e ical) in line wi h he coope a i e’s alues, objec i es and s a egies. In his sense,
coope a i e manage s should analyse, measu e and moni o each social capi al dimension and
each ype o social capi al (Appa ao e al., 2019). They mus also ac he eon in a manne ha
is consis en wi h hei s a egy. They should he e o e design an app op ia e and e ec i e
communica ion policy o coope a i es’ sha ed goals and alues and also o ganise e en s such
as wo kshops, aining semina s and so on (Deng e al., 2020) ha show he na u e and bene i s
o coope a i es o membe s so as o ein o ce he coope a i e ideology (By ne & McCa hy,
2005). Manage s migh hus simul aneously imp o e he cogni i e and s uc u al dimension o
capi al as membe s in e ac wi h each o he and come o know a li le mo e abou he ac i i ies
o he s a e engaged in.
Manage s also need o unde s and ha he ex e nal social ne wo k is especially ele an ,
since i gene a es impo an e ec s on he ex e nal image and p es ige o coope a i es. To
achie e his, i may p o e necessa y o hi e quali ied p o essionals o managemen posi ions.
Those p o essional manage s mus unde s and he s a egic na u e o social ne wo ks o
coope a i es. They could he e o e become ma ke -o ien ed and inno a i e o ganisa ions ha
a e eady o compe e in oday's complex ma ke s in he same condi ions as non-social economy
en e p ises.
Finally, manage s –and indeed coope a i e membe s as a whole– could bene i mo e
om hei social capi al as i can simpli y and help hem wi h he in e pe sonal, decisional and
in o ma ional oles (Min zbe g, 1973); ha is, wi h manage ial oles. Social capi al has been
de ined as a supplemen o go e nance in coope a i es (Liang e al., 2015) because social
capi al and o mal go e nances a e complemen a y (Liang e al., 2018).
Fu he mo e, ins i u ions and public adminis a ions mus a ou mee ing spaces o
dialogue and in o ma ion exchange be ween all he membe s o he ag i ood supply chain as
well as he o he agen s in ol ed, in addi ion o discussion o ums o sec o ial ai s. Public
ins i u ions should also de elop policies on human esou ces and social capi al aining o
sec o membe s and in pa icula o manage s o ag i ood coope a i es. All o hese ac i i ies
a e aimed a changing he men ali y o hese manage s, and a aking hem ou o hei “com o
zone” so ha hey can p omo e la ge , inno a i e and mo e ma ke -o ien ed coope a i es.
Acknowledgemen
The au ho s a e hank ul o he Fundación Cana ia Cajama “Tamaño, es a egia y
esul ados de las coope a i as ag oalimen a ias en Cana ias” (A16120338/ Coope a i as
Ag oalimen a ias) o inancial suppo o ca y ou his esea ch.
Ga cía-Pé ez, A.M., e al.
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