Analysis of Networking Drivers among Livestock Cooperatives in Isfahan Province: Scenario Building Based on the Importance-Performance Matrix

Document Type : Original Article

Authors

1 Agricultural Planning, Economic, and Rural Development Research Institute (APERDRI), Tehran, Iran

2 Isfahan Agricultural and Natural Resources Research and Education Center, Isfahan, Iran

Abstract

Objective: The weakness of institutional collaboration among agricultural cooperatives has led to limitations in the use of new technologies, financial exchanges, information sharing, and facing numerous risks, including the risk of cash purchase and sale of products, price fluctuations, and changes in primary and final suppliers. Despite the importance of institutional networks in developing competitiveness, most previous studies have examined a few drivers of institutional networking, which have been mainly considered causally with some institutional parameters (such as performance). In fact, previous studies have failed to provide a comprehensive list of drivers of networking, especially in the context of developing countries. Moreover, most previous studies have focused on investigating the drivers of networking among small, medium, and large-scale enterprises that have purely economic motivations. However, these studies have provided limited insight into providing practical solutions among cooperative enterprises that have economic and social origins. Finally, previous studies have attempted to provide solutions for developing collaborative networks that have limited generalizability without considering institutional incentives, possibilities, and constraints (such as resource constraints, incentives to enhance strengths or reduce weaknesses, etc.).

Methods: In this study, 17 drivers identified from the literature were analyzed using the Importance-Performance analysis (IPA) and in the form of five different scenarios. For this purpose, over 21 livestock cooperatives in Isfahan province were examined. Additionally, the mean scores of the current and desired states of these drivers were compared using a paired t-test. Out of the 27 active livestock cooperatives in the province, 25 were selected using simple random sampling. After excluding incomplete questionnaires, a total of 21 valid cases were included in the final analysis.

Results: The results showed that in the normal (basis) situation, focusing on components such as new markets, cost reduction, common need, company influence/reputation, new opportunity, competence, geographical distance, transparency and to some extent information security and reducing uncertainty are considered as a necessity for the development of the livestock cooperatives' collaboration network. If focusing on the resource limitation scenario, cooperatives should always pay attention to the components of geographical distance, new markets, cost reduction, common need, company influence/reputation, competence, and commitment. In general, the availability of resources is one of the most important components for the success of cooperatives in networking and developing cooperation; however, the current situation of cooperatives as institutions based on member participation is characterized by weak financial foundations and resource constraints. Thus, the drivers obtained under the resource surplus scenario cannot be considered as a priority. In this regard, if cooperatives are to pay attention to the drivers obtained from resource constraint scenarios and strengthen strengths, it is necessary to focus on the main drivers obtained in the basis and weakness reduction scenarios. This means that most of the networking drivers obtained in these four scenarios overlap and have minor differences. Therefore, cooperatives should try to identify the most important drivers necessary for networking in order to not only help increase strengths in resource constraints but also reduce weaknesses. Thus, focusing on components such as new markets, cost reduction, common need, company influence/reputation, new markets, competence, and geographical distance are among the most important drivers in this regard. It is important to note that determining the type of networking based on geographical proximity is a fundamental principle in developing collaboration relationships among cooperatives that should always be considered.

Conclusions: In general, this study, by determining the set of drivers that are excessively in the focus of cooperatives' attention and are saturated in terms of performance, while advancing the literature on the subject, drew a new path for the development of institutional networking among these organizations.

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