Organizational capital, product market competition and technical efficiency in Italian cooperatives

Ornella W. Maietta, Vania Sena

Research output: Chapter in Book/Published conference outputChapter

Abstract

This paper tries to identify under which conditions increasing market competition may help cooperatives to improve technical efficiency to guarantee positive profits. This hypothesis is first formalized in a partial equilibrium framework and then is tested on a sample of Italian conventional and cooperative firms, using frontier analysis. Technical efficiency indexes are computed by using the one-stage approach as suggested by Battese and Coelli (1995), where proxies for competition are introduced as determinants of efficiency, along with other exogenous factors accounting for the firms’ heterogeneity. However, the overall impact of increasing competition on efficiency is negative.
Original languageEnglish
Title of host publicationAdvances in the Cooperative firms in global markets: incidence, viability and economic performance
Place of PublicationOxford (UK)
PublisherJAI Press
Pages29-45
Number of pages17
ISBN (Print)9780762313891
DOIs
Publication statusPublished - 2007

Publication series

NameAdvances in the Economic Analysis of Participatory & Labor-managed Firms
PublisherJAI Press
Volume10

Keywords

  • market competition
  • technical efficiency
  • positive profits
  • Italian
  • conventional firms
  • cooperative firms
  • technical efficiency indexes
  • competition
  • efficiency

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