Journal of Arid Regions Geographic Studies

Journal of Arid Regions Geographic Studies

Identifying the Main Drivers of Agricultural Cooperative Businesses in East Azerbaijan Province

Document Type : Original Article

Author
PhD in Geography and Rural Planning, Postdoctoral Researcher (INSF)
Abstract
Aim: To fill the research gap, the research seeks to identify the main drivers of agricultural cooperative businesses in East Azerbaijan Province for a 10-year horizon (2023).
Materials & Method: Based on the purpose, it is of an applied type, and in terms of its nature and method, it is of a descriptive-analytical type; from the time dimension, it is based on a prospective approach. The results of the citation review in the form of a mutual effects analysis matrix were provided to the respondents (31 people) for analysis using MICMAC software in the form of a questionnaire.
Finding: The 40 x 40 matrix has a 96% favorability based on statistical indicators with the number of data rotations four times, showing the answers' high validity. The degree of filling of the matrix is 91%, which shows that the system was in an unstable state.
Conclusion: The variable "conception of cooperative as a human institution to create products and services in conditions of uncertainty" was ranked first in direct and indirect influence. The variables "agricultural cooperative businesses as an effective intervention in rural development to reduce rural poverty and improve food security" and "focus on appropriate production inputs to increase agricultural products and reduce production costs and ensure appropriate demand in the final ranking of key factors affecting the system , were identified as the main drivers.
Innovation: Innovation, the presentation of key and effective factors has the ability to generalize in the sense that they can describe the cause and effect relationships of change processes that affect agricultural cooperative businesses in this region and are operational and not ideal; Therefore, the mission of this study is to help develop decision-making processes at the regional level.
Keywords

Subjects


Extended Abstract

1. Introduction

Rural companies are crucial components of the rural economy, and villages have the potential to serve as the foundation for the establishment of many innovative and enterprising enterprises, particularly in the agricultural sector. The economic stability of rural settlements will be achieved by addressing the fundamental issues that enhance the cognitive abilities of villagers to establish cooperatives at the rural settlement level. The primary focus of sustainable rural development is to expand the options available to individuals and enable them to create collective entities, such as cooperatives, to enhance their capabilities. Studies undertaken in nations with a well-organized framework indicate that agricultural cooperatives are the most successful kind of cooperative in terms of market share. The study of cooperatives is crucial in fostering people's involvement in developing villages, the foundation for regional progress.

The primary concern is that several challenges and difficulties the agriculture industry faces stem from planners disregarding future research. The agricultural sector may enhance and secure its long-term sustainability by prioritizing future research. This study aims to examine agricultural cooperative enterprises in East Azerbaijan Province over a 10-year period (2031) by identifying crucial factors that influence their success. Prior to identifying the primary driving factors, it is important to carry out structural analysis. The research aims to identify crucial and impactful factors that can be generalized to describe the cause-and-effect relationships of change processes affecting agricultural cooperative businesses in this region. These factors should be practical and applicable, rather than theoretical. Therefore, the objective of this study is to assist in developing decision-making processes at the regional level.

2. Materials and Methods

The study focuses on the geographic region of East Azerbaijan Province. A total of 625 agricultural cooperatives have been officially registered, which has resulted in the creation of 6,062 new job opportunities. The present study is classified as applied, descriptive-analytical, and temporal, depending on its objective, nature, and methodology. The findings of the citation review, which aimed to identify the crucial factors impacting the future of agricultural cooperative businesses in East Azerbaijan province, were presented to the participants for analysis. The analysis was conducted using the MICMAC software and a questionnaire designed by the researcher. The analysis matrix used a scale of zero to three to measure the influence rate of each factor. Thirty-one experts have been identified. The participants include respected university professors, well-informed individuals from the governorate, cooperative members, agricultural advocates, officials from the governorate and district administration, as well as researchers specializing in rural and regional planning, agricultural development, and promotion. Overall, 40 variables were selected as key determinants in the current research. The cross matrix demonstrates each element's cumulative impact by summing each item's row numbers, the magnitude of its effect, and the column total of each factor.

3. Results and Discussion

Using structural analysis to determine the interdependencies between variables, a 40.40 matrix was generated. According to statistical indicators, the responses are quite genuine, as shown by the 96% favorability of the matrix with four rounds of data rotation. The matrix was 91% filled, indicating that the chosen components had a broad and dispersed impact on each other and that the system was  unstable. Zero connections indicate that the elements did not impact or were not influenced by each other out of a total of 1456 relationships that may be examined in this matrix. 592 number-one partnerships, 627 number-two connections, and 237 number-three relationships have been formed. The analysis of direct and indirect effects yields highly detailed results. The rankings of direct and indirect effects show minimal differences, and variables with a significant impact are consistently repeated with slight variations. Consequently, the first ten indicators of both groups have almost identical values.

4. Conclusions

The variable "conception of cooperative as a human institution to create products and services in conditions of uncertainty" was considered the most influential factor directly and indirectly and had the most significant impact on their failure. Factors of "agricultural cooperative businesses as an effective intervention in rural development to reduce rural poverty and improve food security; focusing on appropriate production inputs to increase agricultural products and reduce production costs and ensure appropriate demand; clarifying the goals and missions of the rural cooperative sector in local rural programs; involvement of agricultural cooperatives in production planning, distribution of inputs and consumer goods to villagers; accelerating the adoption of agricultural technologies by smallholder farmers; strengthening the technical and legal infrastructure of agricultural startups; the scenario of the horticultural production hub and related transformation industries; innovation in agricultural cooperative businesses as one of the most important sustainable sources of competitive advantage; integrated management and fight against pests and plant diseases" in the final ranking of the key factors affecting the system were identified as the final drivers. Economic, social, managerial, and environmental indicators are among the most important and effective ones that may be stated in this study as they pertain to the future of agricultural cooperative enterprises. In this way, implementing each aspect may address the most pressing concerns and difficulties plaguing agricultural cooperative enterprises.

  1. Acknowledgment & Funding
  • Authors are thankful to all interview participants for supporting this research.
  • This work was done under the support of the General Department of Cooperation, Labor and Social Welfare of East Azerbaijan province, taken from the project number "29433".
  1. Conflict of Interest
  • The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
  • The authors declare no conflict of interest.

 

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  • Receive Date 28 November 2023
  • Revise Date 15 December 2023
  • Accept Date 10 January 2024
  • Publish Date 01 November 2024