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Cooperative Enterprise and
Organization Theory: An
Appraisal
V. James Rhodes
What is a university? The literal minded person may think in concrete
terms: ivy-clad buildings, impressive laboratories, and a huge library. The
journalistic and legal types may think of the governing board and top
administration. Faculty members may stoutly insist that they are the
university. A management theorist may argue that it is a special type of
organization, invisible and abstract but embodying a nexus of contracts
among thousands of stakeholders. A conciliator may suggest all of the
above.
In last years classic reprint, Phillips treated the cooperative as an associ-
ation of farmers jointly controlling a plant. He pictured an agricultural
cooperative as an organization of firms rather than itself being a firm.
This years classic by HeImberger and Hoos asserts that the cooperative
should be viewed as a firm. Is this a disagreement comparable to ancient
disputes about whether the earth is flat or round? Why is not the correct
paper alone considered to be the classic? Or is this disagreement a differ-
ence in viewpoints similar to the divergent concepts of a university?
There were also disagreements among the first two classics published
in this Journal ofAgricultural Cooperation (now Journal of Cooperatives)
series. Nourse, a leading agricultural economist ofhis day, wanted agricul-
tural cooperatives to stimulate competition to the point that they would
no longer be needed. Sapiro, a leading California attorney for cooperatives,
campaigned for use of a type of commodity-wide cooperative that had
worked well for some specialty crops grown mainly in limited areas of
California. As Nourse perceived Sapiro endorsing a permanent cartel-like
organization, he wanted nothing to do with such an an
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