The internationalization strategy of agricultural co-operatives in New Zealand : a thesis presented in partial fulfilment of the requirements for the degree of Master of AgriCommerce at Massey University, Manawatu, New Zealand

Thumbnail Image
Open Access Location
Journal Title
Journal ISSN
Volume Title
Massey University
The Author
The global market is transforming rapidly as globalization is influenced by advanced information, communication, and technological development. Companies in the food and agricultural sector, including agri-food cooperatives in New Zealand, have embraced these global trends. Many agricultural co-operatives in New Zealand (NZ) have been successful in growing their business globally by implementing different internationalization strategies. This study analyses how co-operatives internationalize and the factors that influence them in the decision making of internationalization. The key objectives of the study were to outline the internationalization process of the agricultural co-operatives in NZ, to identify the internationalization strategies chosen by the agricultural co-operatives studied, and to analyze the factors that influence the internationalization decision. The present research was conducted using a multiple-case study from two chosen agricultural co-operatives in New Zealand. The Tatua Co-operative and Alliance Group Co-operative were selected as the participants because of their successful history of internationalization in the dairy and red-meat industry. The participants were selected by using a purposive sampling method in order to ensure that insights from the important and relevant actors were included. A qualitative approach, using semi-structured interviews for primary data and annual reports for secondary data, was implemented to obtain the information. The cross-case analyses were performed to compare the results of both co-operatives. The two co-operatives studied could be considered as born-global because they went into the global market soon after their establishment. Even though they are born-globals, they internationalized in a gradual way. The external factors of internationalization were analyzed using the Porter’s Five Forces Analysis. Based on the competitive position, both co-operatives are still using the export-based strategy as their main strategy of internationalization, and each implement a focus strategy and differentiation of products to be successful in the global market. The internal factors that have influenced the choice of each internationalization strategy were identified in this study. The most influencing factors for both co-operatives are network and experience. The other influencing factors are human resources. Both cooperatives agree that financial resources are more considered in foreign direct investment than exporting because they expose bigger risk. This study also reinforces that technology does not have the largest role in accelerating the internationalization process of the cooperatives. Lastly, the challenges vary for each strategy and are perceived differently by each co-operative.
Figures 5 (=Buckley & Casson, 1998 Fig 1) and 6 (=Shen et al., 2017 Fig 11) were removed for copyright reasons. Possibly copyrighted Tables remain for clarity's sake.
agriculture, co-operative, internationalization, strategy