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Contemporary Agricultural Co-Operatives in China

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Contemporary Agricultural Co-Operatives in China Contemporary Agricultural Co-operatives in China: A Multi-case Comparison of Tea Co-operatives and Their Supply Chains Submitted by Hao Dong To University of Exeter For the degree of Doctor of Philosophy in Management Studies May 2019 This thesis is available for Library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement. I certify that all material in this thesis which is not my own work has been identified and that any material that has previously been submitted and approved for the award of a degree by this or any other University has been acknowledged. (Signature) .......................................................................................... 1 Abstract This research generates insights into the rapid multiplication of agricultural co- operatives in Mainland China before and after the introduction of China’s first law on agricultural co-operatives in 2007. More specifically, the research utilises a multiple-case research method to explore the specific context of small- scale tea co-operatives and their supply chains. The research has several objectives. First, to explore how the values of co-operatives conform to Chinese society and culture. Second, to develop a typology of Chinese co- operatives based upon data collected for the tea co-operative industry. Third, to analyse the relationships among the membership of different types of co- operatives to determine if they result in different operational performance. Fourth, to explore how internal factors affect the power dynamics between a co- operative and its stakeholders. The data informing this research was generated through semi-structured qualitative interviews. Triangulation is achieved through the analysis of documentary sources and the researcher’s observations (including participation in tea production). There are three principal findings resulting from the empirical research relating to: the recognition and comparison of Chinese co- operatives and Western co-operative values; building a construct model of Chinese agricultural co-operatives with propositions derived from embeddedness and institutional theories; and the creation of two typologies describing contemporary agricultural co-operatives in China. 2 Acknowledgement This Ph.D. project would not be possible without the care and support of my supervisors, Dr. Adrian Bailey and Prof. Jeff Jia. I am sincerely grateful for the trainings and support received from them, and the caring and guidance for life from Adrian during my journey. It has been a privilege to work at the University of Exeter Business School with such excellent research community. I want to thank the school for the provision of academic, administrative as well as financial supports. My thanks also go to all participants of this research, and to Chinese institutions that have been supportive, namely the China Academy for Rural Development (CARD) at Zhejiang University (ZJU) and Chinese Academy of Social Sciences (CASS), especially Prof. Guo from ZJU for his kind advice. I want to express my sincere gratitude to my family, friends, and everyone who cares or has supported me along this emotional journey. It is their love and concerns that lit up my way through the darkest hours and empowered me to triumph in not only the research project but also my fight against the black dog. My sincere hope is that this work can make a positive difference for co- operatives and rural communities in China, and contribute to the understanding of international co-operative development, especially in agricultural sector. I would like to dedicate my Ph.D. thesis to Lu Han. 3 Table of Contents Abstract ...................................................................................................................................... 2 Acknowledgement ................................................................................................................... 3 List of Figures ........................................................................................................................... 9 List of Tables .......................................................................................................................... 10 List of Abbreviations ............................................................................................................ 12 Chapter 1: Introduction and Research Context ........................................................... 13 1.1 Aims and Objectives of This Research .............................................................................13 1.2 Research Context: The Phenomenon of Contemporary Booming Development of Agricultural Co-operatives in China ...................................................................................14 1.3 Research Questions and Contributions ..........................................................................23 1.4 Structure of This Thesis .......................................................................................................24 Chapter 2: Background: The Historical Development of Co-operatives in China Since the 1900s...................................................................................................................... 26 2.1 Historical Development of Agricultural Co-operatives in China ............................27 2.1.1 Pre 1949 (before the establishment of the People’s Republic of China) .................................. 27 2.1.2 1949-1977: Supply and Marketing Co-operatives and communes ............................................. 28 2.1.3 1978-1990s: Deng Xiaoping’s reform and SFCs .................................................................................. 30 2.2 Evolution of The Rural Credit Co-operatives in China ...............................................34 2.2.1 Pre 1978 ................................................................................................................................................................ 35 2.2.2 1978-1990s: The reform of rural financial system ............................................................................ 36 2.2.3 From 2000 ............................................................................................................................................................ 39 Chapter 3: Literature Review ............................................................................................ 41 3.1 Introduction .............................................................................................................................41 3.2 Literature Review Method ...................................................................................................43 3.2.1 Systematic literature review ........................................................................................................................ 43 3.2.2 Review for literature published in Chinese language and the selection process ................. 48 4 3.3 Descriptive Findings ..............................................................................................................48 3.3.1 Findings from publications in English language ................................................................................. 48 3.3.2 Findings from publications in Chinese language ................................................................................ 53 3.4 Thematic Findings ..................................................................................................................55 3.4.1 Types of modern co-operatives in China ................................................................................................ 56 3.4.2 Functions and roles of co-operatives in China ..................................................................................... 65 3.4.3 Are the modern Chinese co-operatives aligning with the international definition of co- operatives? ...................................................................................................................................................................... 69 3.4.4 Antecedents/factors affecting the development of Chinese co-operatives ............................. 77 3.4.5 Consequences of establishing or joining a co-operative.................................................................. 91 3.5 Discussion .................................................................................................................................96 3.5.1 Co-operatives, agriculture and rural China ........................................................................................... 96 3.5.2 Comparison of English language and Chinese language publications on Chinese agricultural co-operatives ........................................................................................................................................ 99 3.5.3 Theoretical background .............................................................................................................................. 101 3.5.4 Research gaps in the extant literature .................................................................................................. 105 3.5.5 Summary of Literature on Co-operatives in China .......................................................................... 112 Chapter 4: Research Methodology................................................................................. 114 4.1 Researcher’s Philosophical Position ...........................................................................
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