Cooperatives' performance relative to investor-owned firms: a non-distorted approach for the wine sector

Purpose: This study aims to investigate whether significant performance differences between cooperatives and investor-owned firms (IOFs) may exist. Design/methodology/approach: Based on data from a sample of Italian wine firms for the period from 2009 to 2018, an adjusted measure of performance called earnings before interests, taxes, depreciations and amortizations gross the raw materials cost was adopted to consider the different objectives of cooperatives relative to those of IOFs. Findings: Empirical evidence shows that in the context under analysis, cooperatives have performed better than IOFs. Originality/value: Despite the theoretical literature suggesting that the cooperative form of organizations suffers from many weaknesses, these results highlight that cooperatives operating in the wine sector are at least as economically efficient as other organizations, and more specifically, they perform better than for-profit firms. Consequent implications for theory and practice are discussed.