Why does Organizational Performance Fluctuate in Agricultural Industrialization Consortia: A Study Based on Dual Paradox in Development and Institution

  • Yanrong Wang Anhui Agricultural University, Faculty of Economics and Management
  • Qizhi Wu Anhui Agricultural University in Anhui, Faculty of Economics and Management
  • Xiang Zhang Fujian Normal University in Fujian, School of Public Administration
  • Xiangbing Qiao Anhui Agricultural University in Anhui, Faculty of Economics and Management
Keywords: agricultural industrialization consortium, organizational performance, institutional construction, economic development, local government


Agricultural industrialization consortium is a key policy tool to promote agricultural development for local governments in China. However, a stylized fact is that various consortia showed promising organizational performance at start, but then the performance deteriorated at later stages. The driving force behind is the dual paradox inherent in development and institution. The consortium is overly development oriented; yet as an institution it cannot adapt to the strong development impulses. Case studies show that the dual paradox inevitably led to the decline in organizational performance.


Barzel, Y. (1982) Measurement Cost and the Organization of Markets, Journal of Law and Economical, 25(1), pp. 27-48, https://doi.org/10.1086/467005.

Bi-liang, L. (2005) Agricultural Industrial Organization: An explanatory model and its empirical analysis, Journal of Economic Research, 1, pp. 59-69.

Buchlin, L. P & Sengupta, S. (1993) Organizing successful co-marketing alliances, Journal of Marketing,157(2), pp. 32-46, https://doi.org/10.1177/002224299305700203.

Chen, F. (2002) The Success of "Company + Farmer" Industrialization Management -- Based on the Case Study of Guangdong Wenshi Group, Chinese Rural Economy, 2, pp. 41-45.

Chen, Q., Jiang, R. & Cao, G. (2010) Research on the Influence Mechanism of the Dual Orientation of "Market-Policy" on the Performance of Agricultural Enterprises—Taking Leading Agricultural Enterprises in the Pan-Yangtze River Delta as an Example, Nankai Economic Review, 13, pp. 123-130.

Chao, H., Xingzhi, X. & Shu, L. (2017) How do industrial policies affect corporate performance: Are there differences in impacts of different policies and action paths, Financial Research, 1(43), pp. 122-133.

Coase (2013) The Problem of Social Cost, The Journal of Law & Economics, 56, pp. 837-877, https://doi.org/10.1002/sres.3850090105.

Fremont, E., Kast, J. & Rosenzweig, E. (1970) Organization and Management: institutions Approach (New York: McGraw-Hill).

Daugher, P. J. & Pittman, P. H. (1995) Utilization of time-based strategies, International Journal of Operations and Production Management, 15(2), pp. 54-60, https://doi.org/10.1108/01443579510080418.

Das, T. K. & Teng, B. (2000) A resource-based theory of strategic alliance formation. Journal of Management, 26, pp. 31-61, https://doi.org/10.1016/S0149-2063(99)00037-9.

Doyle, M. (1989) Strategic purchasing can ma e-or-break a Firm, Electronic Business, 20, pp. 46-48.

Ellram, L. M. (1996) A structured method for applying purchasing cost management tools, International Journal of Purchasing and Materials Management, 32(1), pp. 11-19, https://doi.org/10.1111/j.1745-493X.1996.tb00215.x.

Jiang, F. & Li, X. (2015) The basic logic of contemporary China’s industrial policy transformation, Journal of Nanjing University, 3, pp. 17-24.

Jiang, F., Geng, Q., Lu, D. & Li, X. (2012) The formation mechanism of regional competition, institutional distortion and overcapacity, China Industrial Economy, 6, pp. 44-56.

Lin, J. Y. & Tan, G. (1999) Policy Burdens, Accountability, and the Soft Budget Constraint, American Economic Review: Papers and Proceedings, 2(89), pp. 426-431, https://doi.org/10.1257/aer.89.2.426.

Luo, R. (1995) A new theory of Modernization: the modernization process of the world and China (Peking: Peking University Press).

Marglin, S. (1974) What do bosses do?, Review of Radical Political Economy, 6, pp. 33-60, https://doi.org/10.1177/048661347400600206.

Mancur, O. (1997) The Logic of Collective Action (Cambridge: Harvard University).

Mohr, J. & Spekman, R. (1994) Characteristics of partnership success: partnership attributes, communication behavior and conflict resolution techniques, Strategic Management Journal, 15(3), pp. 135-152, http://doi.org/10.1002/smj.4250150205.

Monczka, R M. & Trent, R. J. & Callahan, T. J. (1993) Supply base strategies to maximize supplier performance, International Journal of Physical Distribution and Logistics Management, 23(4), pp. 42-54, http://doi.org/10.1108/09600039310041509.

North, D. C. (1990) Institutions, Institutional Change and Economic Performance (Cambridge: Cambridge University Press).

Robert, B. H. & Christian, B. (2002) The role of trust and relationship structure in improving supply chain responsiveness, Industrial Marketing Management, 31(4), pp. 367-382, http://doi.org/10.1016/S0019-8501(01)00169-9.

Steven, V. (2017) Market Governance: How the Government Makes the Market Operate (Peking: Peking University Press).

Stonebraker, P. W., Liao, J. (2004) Environmental Turbulence, Strategic Orientation: Modeling Supply Chain Integration, International Journal of Operations & Production Management, 24(10), pp. 1037-1054, https://doi.org/10.1108/01443570410558067.

Wong, C. Y., Boon-Itt, S. (2008) The Influence of Institutional Norms and Environmental Uncertainty on Supply Chain Integration in the Thai Automotive Industry, International Journal of Production Economics, 115(2), pp. 400-410, https://doi.org/10.1016/j.ijpe.2008.05.012.

Williamson, O. E. (1985) The economic Institutions of Capitalism (New York: Free Press).

Ye, X. (2017) The outline of the new agricultural support policy institution is gradually clear, China development observation, 4, pp.13-15.

Zheng, Y. (2019) State and development: exploring the mode of political economy in China, Culture review, 2, pp.30-37.

Zhou, T. (2017) Particularity of economic growth and dilemma of various policy regulation, China development observation, 18, pp. 37-40.

Zhou, F. (2006) Ten years of tax-sharing institution: institution and its impact, Chinese Social Sciences, 11, pp. 100-116.

Zheng, Y. & Yanjie, H. (2018) Market in State: The Political Economy of Domination in China (Cambridge and New York: Cambridge University Press).