An appraisal of the impact of membership characteristics on the pursuit of cooperative governance : a case study of wine cooperatives in the Western Cape

Date
2011-12
Authors
Mentani, Phumlani Sphiwo
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The South African wine industry has gone through a difficult period of having to undergo major changes, most markedly in respect of its economic structure and institutional framework over the last twelve years. The reintroduction of the wine industry to the world markets has brought wide-ranging opportunities, as reflected by the increase in the number of exports. However, such a reintroduction has also brought pressure to bear in terms of both local and international competitiveness. The increased pressure on the industry has resulted in serious effects on the wine producers concerned, both in terms of meeting the international standards and in terms of having to cope with sophisticated consumer needs. The current study assesses to what degree, if any, membership characteristics impact on wine cooperatives in South Africa. The central question to be addressed is whether the characteristics of members who are involved in the governance structures of wine cooperatives impact on the manner in which cooperative governance is pursued. To address the research question stated above, the study used a list of wine cooperatives obtained from Wines Cellars South Africa (WCSA), which captured the relevant data relating to all the existing wine cooperatives in 2006. From the list, 46 wine cooperatives were randomly selected. Representatives of some of the cooperatives were sent questionnaires by email, with the representatives of other cooperative being personally interviewed. A qualitative analysis, making use of the Likert Scale method, was performed. The analysis made use of 16 belief statements to determine the degree of belief held in such statements, in order to ascertain the general degree of understanding regarding those membership characteristics that could potentially influence wine cooperative governance. A quantitative analysis was performed, using Statistica Version 8 to ascertain the possible relations between certain factors (variables). Of the 16 variables which were selected for the analysis, only 8 variables showed positive and significant relations. The results obtained in the study showed a high degree of investment-related incentive problems (caused by conflicts of interest, due to the different returns acquired by the members and their diverse risk profiles), as well as a high degree of decision-related incentive problems (caused by the influence of education, occupation and experience on the decision-making process). The study also attempted to ascertain the general perception of collective action approach in the wine industry. The assessment revealed that sentiments relating to the collective action approach in the wine industry still exist. The results of the quantitative analysis showed the relations existing between eight different variables to be influential factors in relation to the decision-making process. Furthermore, the study used New Institutional Economics of property rights and agency theories to confirm the agency dilemmas existing within the wine cooperatives. Such theories, together with their possible effects on the pursuit of cooperative governance, are addressed towards the end of the study. Generally, the study shows that differences in membership characteristics can lead to different levels of member expectations, resulting in steering the organisation in different directions during the decision-making process.
AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse wynbedryf het ’n moeilike tydperk van grootskaalse veranderinge oor die afgelope twaalf jaar beleef, soos waarneembaar uit die veranderinge in sy ekonomiese struktuur sowel as institusionele raamwerke. Die hertoetrede van die bedryf tot die wêreldmark het uitstekende geleenthede in terme van uitvoere gebring, maar dit het ook druk op die bedryf geplaas om meer mededingend te wees plaaslik en internasionaal. Die toenemende druk op die bedryf het ernstige gevolge vir wynprodusente beide in terme van die voldoening aan internasionale standaarde en om aan gesofistikeerde verbruikersbehoeftes te voorsien. Hierdie studie ondersoek die impak van ledeeienskappe van wynkoöperasies. Die vraag is of die eienskappe van die lede van die koöperasies se bestuurstruktuur ’n invloed het op die wyse waarop die koöperasie bestuur word. Om hierdie navorsingsvraag aan te spreek, het die studie ’n lys van wynkoöperasies van Wynkelders Suid Afrika (WKSA) gebruik, wat al die bestaande wynkoöperasies in 2006 gelys het. Ses en veertig wynkoöperasies is ewekansig gekies. Vraelyste is per epos gestuur en persoonlike onderhoude is met ander gevoer. ’n Kwalitatiewe analise is gevolg deur die gebruik van ’n Likertskaal metode wat bestaan het uit sestien stellings om te bepaal hoe sterk sekere opinies gehuldig word. Sodoende kon ’n algemene indruk verkry word van die lideienskappe wat potensieel die bestuur van die koöperasie kon beïnvloed. ’n Kwantitatiewe analise is ook gedoen deur die gebruik van Statistica 8 om die moontlike verhoudings tussen sekere faktore of veranderlikes te bepaal. Sestien veranderlikes is gekies vir hierdie analise en slegs agt veranderlikes het positiewe en betekenisvolle verhoudings getoon. Resultate toon baie beleggingsverwante motiveringsprobleme (wat veroorsaak word deur konflikterende belange as gevolg van verskillende opbrengste verkry deur lede en hul diverse risikoprofiele) en besluitnemingsverwante motiveringsprobleme (veroorsaak deur die invloed van opleiding, betrekking en ervaring in die besluitnemingsproses). Die studie het ook probeer om die algemene persepsie van die koöperatiewe benadering in die wynbedryf te bepaal. Die assessering wys dat sentiment oor die koöperatiewe benadering die wynindustrie steeds bestaan. Die resultate van die kwantitatiewe analise het verhoudings getoon tussen agt veranderlikes as invloedryke veranderlikes tot die besluitnemingsproses Verder het die studie die ‘New Institutional Economics’ van eiendomsreg gebruik en agentskap teorieë om die dilemmas van agentskappe binne die wynkoöperasies te bevestig. Hierdie dilemmas word aan die einde van die studie aangespreek tesame met hul moontlike effek op die uitoefening van koöperatiewe bestuur. Oor die algemeen wys die studie dat verskille in lede eienskappe kan lei tot verskillende vlakke van lede verwagtings en daarom, die stuur van die organisasie in ’n ander rigting gedurende die besluitnemingsproses.
Description
Thesis (MAgricAdmin )--Stellenbosch University, 2011.
Keywords
Wine industry -- South Africa -- Western Cape, Cooperatives -- South Africa -- Western cape, Cooperative governance -- South Africa -- Western cape, Membership characteristics, Dissertations -- Agricultural economics, Theses -- Agricultural economics
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