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    Success of FPC - CID - 25 Sept 2022 (2159)

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    arpit Kalra
    Problems faced by producers companies include difficulty with collective action, free riders, balancing individual and collective interests, and democratic versus expert choice dilemmas. Ensuring success requires optimal size and scope, an internal locus of control, a core purpose central to members, patronage-linked voting and governance, and processes for forming effective teams. Success also depends on performance-linked rewards, accountability of leadership to members, social capital formation, capacity building, a shared vision, sustainable production practices, wealth creation through value addition, adequate capitalization, and knowledge and infrastructure development.

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    Success of FPC - CID - 25 Sept 2022 (2159)

    Uploaded by

    arpit Kalra
    20 views2 pages
    Problems faced by producers companies include difficulty with collective action, free riders, balancing individual and collective interests, and democratic versus expert choice dilemmas. Ensuring success requires optimal size and scope, an internal locus of control, a core purpose central to members, patronage-linked voting and governance, and processes for forming effective teams. Success also depends on performance-linked rewards, accountability of leadership to members, social capital formation, capacity building, a shared vision, sustainable production practices, wealth creation through value addition, adequate capitalization, and knowledge and infrastructure development.

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    Success of FPC_CID_25 Sept 2022[2159]

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    Problems faced by producers companies include difficulty with collective action, free riders, balancing individual and collective interests, and democratic versus expert choice dilemmas. Ensuring success requires optimal size and scope, an internal locus of control, a core purpose central to members, patronage-linked voting and governance, and processes for forming effective teams. Success also depends on performance-linked rewards, accountability of leadership to members, social capital formation, capacity building, a shared vision, sustainable production practices, wealth creation through value addition, adequate capitalization, and knowledge and infrastructure development.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views2 pages

    Success of FPC - CID - 25 Sept 2022 (2159)

    Uploaded by

    arpit Kalra
    Problems faced by producers companies include difficulty with collective action, free riders, balancing individual and collective interests, and democratic versus expert choice dilemmas. Ensuring success requires optimal size and scope, an internal locus of control, a core purpose central to members, patronage-linked voting and governance, and processes for forming effective teams. Success also depends on performance-linked rewards, accountability of leadership to members, social capital formation, capacity building, a shared vision, sustainable production practices, wealth creation through value addition, adequate capitalization, and knowledge and infrastructure development.

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    Ensuring Success of Producers Companies

    Design Conditions
    Problems faced by Producers Companies Member system
    11. Optimum size, scope, technology
    1. Difficulty of collective action
    12. Internal locus of control
    2. Free rider or agency problem 13. Core purpose central to members
    3. Non-balancing individual good and the 14. Patronage-linked voting
    collective good 15. Right Transaction rule
    4. Dilemma of democratic choice versus Governance system

    Success factors
    expert choice 16. Patronage cohesive governance
    5. Shortage of appropriate human resources 17. Right to recall
    18. Process of forming-storming-norming-performing
    6. Small farmer (inefficiency) vs large
    Operating System
    farmers (inequity) issue
    19. Performance-linked rewards
    7. Elite capture 20. CEO accountable to the board
    8. Social exclusion Social capital
    9. Capitalisation problem 21. Social capital formation
    10. Governance and management deficit 22. Nurturing community leadership
    23. Capacity building
    24. Shared Vision
    Economic and market condition
    25. Wealth creation through value addition
    26. Sustainable production (Climate-smart agriculture)
    27. Net economic gains from collectivization
    28. Market landscape
    Financing and financial management
    29. Adequate capitalisation
    30. Financial capital formation (financial performance)
    Knowledge and infrastructure
    31. Basic physical infrastructure
    32. Knowledge and resource convergence
    Ensuring Success of Producers Companies
    C4: Dilemma of C8: Social exclusion
    C11: Optimum size, C17: Right to recall
    democratic choice
    scope, technology Positive relationship
    versus expert choice
    Negative relationship
    C7: Elite capture

    C2: Free rider or C12: Internal


    agency problem locus of control C10: Governance and
    management deficit C20: CEO
    C19: Performance-
    accountable to the
    linked rewards
    C1: Difficulty of board
    C13: Core purpose C14: Patronage-
    collective action
    central to members linked voting C16: Patronage
    cohesive governance
    C26: Sustainable
    C3: Non-balancing
    production (Climate-
    individual good and the
    C18: Process of smart agriculture)
    collective good C24: Shared Vision
    forming-storming-
    CC: Success of norming-performing Legend
    C21: Social
    capital formation C15: Right Producers Companies
    Problems faced by
    Transaction rule C28: Market landscape Producers Companies

    C25: Wealth creation Design Conditions


    C22: Nurturing
    C30: Financial capital through value addition
    community leadership
    formation (financial C27: Net economic Social capital
    performance) gains from C29: C31: Basic
    C23: Capacity building collectivisation Adequate Economic and
    physical
    capitalisation infrastructure market condition
    C6: Small farmer C9:
    C32: Knowledge and Financing and
    C5: Shortage of appropriate (inefficiency) vs large Capitalisation
    resource convergence financial management
    human resources farmers (inequity) issue problem
    Knowledge and
    Infrastructure

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