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

Thesis (MAgricAdmin )--Stellenbosch University, 2011. / 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.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/17964
Date12 1900
CreatorsMentani, Phumlani Sphiwo
ContributorsVink, Nick, Stellenbosch University. Faculty of Agrisciences. Dept. of Agricultural Economics.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis
Format104 p.
RightsStellenbosch University

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