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When Services Matter: Rethinking Farmer Cooperation in an Export-Oriented Smallholder Setting Cover

When Services Matter: Rethinking Farmer Cooperation in an Export-Oriented Smallholder Setting

Open Access
|Sep 2026

Abstract

Why does agricultural cooperation remain fragile in post-socialist settings, despite its potential to reduce transaction costs and improve market access? Explanations usually stress institutional voids and the legacy of distrust. This paper advances a different view: farmers cooperate when the services offered are economically salient. Adapting Ostrom’s SES framework, we reinterpret “resource importance” for club goods, specifically cooperation services such as marketing, certification, and input procurement. Using survey data from Albanian farmers in a context-specific export-oriented smallholder setting, we develop validated measures of service salience and buyer power. Logistic regression indicate that perceived benefits, compliance costs, and buyer dominance all increase cooperation, while satisfaction with buyers reduces it. Socio-demographics have little effect. The study contributes by extending SES theory to club goods, providing robust constructs for empirical research, and identifying a mechanism through which cooperation emerges as a rational response to market imperfections in similar value-chain contexts.

 

JEL Codes: C38; D7; J54; P32; P2

DOI: https://doi.org/10.5334/ijc.1687 | Journal eISSN: 1875-0281
Language: English
Page range: 433 - 450
Submitted on: Nov 27, 2025
Accepted on: May 24, 2026
Published on: Sep 3, 2026
Published by: Ubiquity Press
In partnership with: Paradigm Publishing Services

© 2026 Engjell Skreli, Orjon Xhoxhi, Vladislav Valentinov, Drini Imami, Andi Stefanllari, published by Ubiquity Press
This work is licensed under the Creative Commons Attribution 4.0 License.