Research On The Impact Of Internal Trust On The Performance Of Farmer Cooperatives

Gaining benefits and raising incomes are the basic motives for farmer to join in the cooperatives,which are also the original intentions of the government to strongly advocate the development of cooperatives.From the current development practice of farmer cooperatives throughout the country,the development of cooperatives is very fast,but as to the quality of its overall development,it is not satisfactory.The role of cooperatives in rural agricultural economic development has not yet fully played out,thus making the level of performance relatively low,and the lack of trust within cooperatives is the main reason for the above results.As is known to all,there is an inevitable link between internal trust and the performance of cooperatives.Then how does internal trust affect the performance of cooperatives?To what extent will internal trust influence the performance of cooperatives?What is the mechanism of the influence?What are the key factors affecting the internal trust of cooperatives in our country?How to optimize the internal trust mechanism of cooperatives?These are the questions that the paper wants to answer.Therefore,based on the previous research results and the investigation of one year and three months,according to the research route of literature review-theoretical analysis-data collection-empirical research-summarizing and concluding,and on the basis of generalizing and analyzing relevant study achievements,the author studies the internal trust and performance of cooperatives,employing the theories of transaction cost,principal-agent,network rent and so on.The main research contents are as follows:Firstly,this paper clarifies the characteristics of farmer cooperatives and constructs the cooperative performance evaluation system on this basis.By adopting the model of pigs’ payoffs,it is obtained that the development of cooperatives in our country is made up of two stages,which are the spontaneous exploration period of small farmer cooperatives and the exploratory period of the innovators.And the paper describes the development situation(2015)of farmer specialized cooperatives in Yunnan province.At the same time,it explores the qualitative definition of farmer’professional cooperatives and discusses the times,local characteristics and core governance issues of cooperatives development.Based on this,it is concluded that obtaining economic benefits are the basic motivations for farmer to join in the cooperatives.On the basis of the previous research,the author constructs the double performance evaluation system for the farmer cooperatives.Secondly,the paper identifies the internal trust structure of cooperatives and makes a systematic analysis of the three characteristics and the internal causes of its formation.Based on this,it constructs the internal trust scale of farmer cooperatives,and makes a measure of trust in the cooperatives.In order to achieve a high degree of trust,the input of two sides is different.A further analysis is made in accordance with the internal trust structure of cooperatives.Thus the trust structure is divided into two types:relationship trust and institutional trust.Then the author designs the cooperative internal trust level scale to discuss and study its reliability and validity.Thirdly,it explores the relationship between internal trust and performance of cooperatives.This paper analyzes the influence of internal trust on the performance of cooperatives by using SEM model,and explores the effect proportion of internal trust(relationship trust,institutional trust)on the performance of cooperatives.It analyzes the impact of internal trust on the economic performance and noneconomic performance of cooperatives.On the basis of this,the CURVEFIT model is adopted to make a regression analysis of internal trust and performance of farmer cooperatives.In addition,the corresponding evaluation model is established for the relationship between performance and trust,and it is concluded that implicit contract has a certain effect on the trust and performance of cooperatives.It respectively dissects the influence of cooperation,different governance models and internal trust interaction on the performance of cooperatives,and then analyzes the effect of trust mechanism on the performance of cooperatives.Then,the influencing factors of internal trust in cooperatives are comprehensively analyzed.The construction of the structure model of the internal trust influencing factors is carried out and the Likert scale of influencing factors is designed.The reliability and validity analysis and research factor analysis of the scale are analyzed,and it distinguishes validity and correlation.On this basis,the author completes the verification of structural equation.Taking into account the continuity of the data,a variance analysis of the other factors(the degree of membership,age,supporting institution of cooperatives,the social positions of the president)is made.Finally,the author explores the optimization path of internal trust mechanism in farmer cooperatives.A questionnaire is employed to investigate the members and managers of some cooperatives in Jianshui,Lancang,Luquan and Changning counties and the data is analyzed by Spss22.0 and Amos22.0.The factor analysis approach is adopted to examine the structural validity of the scale.The internal consistency reliability of the scale is tested by Alpha coefficient.The relationship among variables is tested by one way T test,regression and path analysis.Finally,the author constructs the model of the relationship among the internal trust,performance and factors affecting the internal trust and the following conclusions are reached.(1)Trust has a positive significant effect on the performance of cooperatives.Among them:① the influence of relationship trust on the overall performance of cooperatives is obviously higher than the institutional trust.According to the statistical results,suppose are verified,that is,they have a positive correlation with performance.The impact ratio of institutional trust on the performance is 0.119,which is far less than the one of relationship trust on the performance of the proportion of 0.285.②The influence of relationship trust on the non-economic performance of cooperatives is greater than institutional trust.From the statistical results,they have a positive correlation with non-economic performance.The influence ratio of relationship trust on non-performance is 0.259 which is higher than the one of institutional trust on non-performance 0.182.③ The institutional trust has a greater influence on economic performance of cooperatives than relationship trust.According to the statistical results,it is assumed that H1a and H1b are verified,whether relationship trust or institutional trust has a positive correlation with the economic performance of cooperatives.But the impact ratio of institutional trust on economic performance is 0.194,which is higher than the one of relationship trust on economic performance 0.187(2)The factors of individual members,other members,the president and cooperative organizations can influence the internal trust of cooperatives.The order of impact on internal trust is:members of individual factors>factors of the president>the factors of other members>organizational factors of cooperatives.Then it analyzes and sorts the influence degree of measurable variables on the factors.Among them the order of measurable variables of member’s individual factors is:income>familiarity>trust tendency.The order of measurable variables of other members’ factors is reputation>the capacity of other members>whether other members are upright or not.The order of measurable variables of cooperative organizations is:market competitiveness>external support>sound organizational structure.The order of measurable variables of the presidents is:responsibility>caring for benefits of members>management and operation ability.(3)The order of factors influencing relationship trust is:other members’factors>member,s individual factors>cooperative organizational factors>factors of the president(the effect is not significant).The order of factors influencing institutional trust is:factors of the president>member’s individual factors>cooperative organizational factors>other members’factors(the effect is not significant).There are no significant differences in the influence of members’ educational background on trust.There are significant differences in the influence of members’ age on trust,and the level of trust increases with age.There are significant differences in the influence of supporting institution on the trust.The lowest level of trust is the one relying on leading enterprise and the ones of supply and marketing cooperatives and without relying on are the second.The social position of president has a significant difference on the trust.The one with social position has a higher trust level.(4)To make members believe that cooperative will take trust behavior,it is a must to motivate implicit contract.Under the circumstance of separation trust and opportunistic cost,the implicit contract depends on the probability of an afterward act of taking trust:if the expected cooperatives enforce the incentive of implicit behavior,the possibility of implicit covenant execution will increase,and the incentive bonus will also be greater.The optimal explicit contract rewards depend on the private information and the prior probability.The bigger the prior probability,the greater the explicit contract reward and vice versa.(5)There is a regression relationship between internal trust and the performance of farmer cooperatives.The relationship between trust and performance is fitted by CURVEFIT model.The logarithm function Y = 3.1458xX-0.049(1 ≤ X ≤ 5)is selected from 11 standard functions.(6)The performance of cooperatives is positively influenced by cooperation,and the effect of cooperation on performance is 0.241.Internal trust has a certain regulation effect on the behavior of cooperative members.However,only under the premise of effective cooperation can trust produce long-term and high level performance.(7)There are significant differences of the governance model on internal trust,and the lowest score of each dimension is the sample relying on the leading enterprises.At the same time,it is concluded that the levels of performance and trust of the enterprise-led and government-led governance model are higher than those of the capable people leading.The research results will help guide the managers of cooperatives to strengthen the trust management in the future cooperative operation,further improve the internal cooperation efficiency,mobilize the enthusiasm of the members,enhance the mutual trust and improve the performance of cooperatives and finally promote the healthy development of cooperatives.Meanwhile the results can help government departments formulate relevant countermeasures and provide basis for decision-making.