Member funds and cooperative performance
Date
2003-10-21Author
Agrawal, Rajesh
Raju, K. V.
Reddy, Prathap K.
Srinivasan, R.
Sriram, M. S.
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This research examines the role of member-funds in multi-purpose cooperatives in the state of
Andhra Pradesh, India. The central thesis is that member-funds, both in terms of quantity and
quality, can enhance the control members exert on the cooperative. The involvement of
members through their capital stake could be at various levels – by the provision of permanent
capital, long-term capital and short-term capital. We expect that each of these will have differing
effects on control and on the culture and systems of the cooperative. Such an effect on control is
expected to directly drive cooperative performance, and indirectly enhance cooperative
performance through greater usage of the cooperative by the members. Enhanced cooperative
performance in turn would satisfy members, and the loop will hopefully be completed; satisfied
members would place more funds with the cooperative
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