Ties That Bind and Thrive: The Effect of Inter‐Organizational Networks on Farmer Cooperatives' Economic Performance

ABSTRACT This paper examines the influence of inter‐organizational networks on farmer cooperatives' economic performance. Using nationwide registration and annual‐report data from 2014 to 2020 in China, we construct annual inter‐cooperative networks based on shared registered members and exploit a shell cooperative governance reform for identification. We provide evidence consistent with a positive role of inter‐organizational networks in cooperative performance: one additional cooperative connected through shared registered member is associated with a 5,703 RMB increase in sales revenue per member. This relationship is stronger for cooperatives with higher farmer inclusiveness, without brand certification, located in less developed regions, and operating in plantation sectors, suggesting that inter‐organizational networks may serve as critical information intermediaries, particularly under conditions of high information asymmetry. The results offer valuable insights for policymakers seeking to design effective incentives to support the sustainable development of farmer cooperatives.