Study On The Effects Of Diversification Strategy Of Tobacco Farmers' Cooperatives On Their Performance In Fujian Province

Tobacco farmers' cooperatives,an important form of production in modern tobacco agriculture,are effective organisms for increasing the income of tobacco farmers and serving the development of fields planted tobacco.It thus plays an important role in the production of tobacco leaves.However,the performance enhances for tobacco farmers'cooperatives were currently subject to some critical factors in practice,such as the continuous decline of tobacco cultivation field,the simplification of service objects,the typical property of tobacco leaf production with the seasonal and stages.Recently,tobacco farmers'cooperatives have begun to explore the development ways of diverse operations guided by national policies.But the definitive conclusions about the effects of diversification strategy on performance of tobacco farmers' cooperatives have not drawn.By studying the effects of the diversification strategy of tobacco farmers' cooperatives on their performance,it not only can enrich and improve the existing achievements of the diversification and performance evaluation mechanism,but also has important practical significance for realizing the sustainable development of tobacco farmers' cooperatives in the special regions.In this research,a total of 86 representative tobacco farmers'cooperatives in tobacco-main producing areas of Fujian Province including Sanming,Nanping and Longyan were selected to find out the major factors affecting the diversification of cooperatives.Number of operators across industries and the Herfindahl index were used to evaluate the degree levels of diversification strategy for Fujian tobacco farmers' cooperatives.At same time,The Balanced Scorecard performance analysis was employed to analyze the financial dimension,customer dimension,internal operation dimension,learning and growth dimension.Furthermore,to evaluate comprehensively the operation performance level of Fujian tobacco farmers' cooperatives,the factor and cluster analysis method were used.Additionally,two regression models were built to analyze the effects of diversification of tobacco farmers'cooperatives on corresponding performance.Of which,the diversification level of tobacco farmers' cooperatives and the business performance was defined as independent variable and dependent variable respectively,other index including the cooperatives scale,the establishment period,the level of cooperative's demonstration agency and the chairman as an executive position or not were used as control variables.In conclusion,firstly,the diversification strategy for tobacco farmers' cooperatives of Fujian Province is relatively general,but the diversification level is not high.Secondly,the Fujian tobacco farmers'cooperatives own relatively large development space and have low comprehensive performance.Thirdly,the diversified strategy can significantly improve the performance of tobacco farmers' cooperatives.Finally,the demonstrate levels of tobacco farmers' cooperatives have an important effects on the performance of cooperatives.The innovations are:firstly,the topic of this research is innovative.Taking Fujian Province as an example,these empirical researches clarified the effects of diversification strategy of tobacco farmers'cooperatives on performance at the first time.Secondly,there are innovative methods used in this research.The method including factor analysis and cluster analysis method were used to comprehensively evaluate the performance of tobacco farmers' cooperatives of Fujian Province.At same time,two regression models were built to understand the effects of diverse operation of tobacco farmers' cooperatives on its performance.Thirdly,there are impressive the achievements.The implementation of diversification strategy of tobacco farmers'cooperatives significantly improved the performance as a result which provides theoretical support and empirical data for carrying out diversification tobacco farmers' cooperatives.This study is beneficial helpful for improving the performance of tobacco farmers' cooperatives,strengthening the cooperative's own"hematopoietic" function,and promoting the increase of tobacco farmers and economic development in local regions.Meanwhile,it provides ideas and references for modern tobacco agriculture from the development and utilization of cooperatives.