The Influence of Governance Mechanisms of Agricultural Industrialized Consortia on Their Organizational Stability

Agricultural industrialized consortia is the key to the integrated development of China’ s agricultural industry and the improvement of rural industrial level. How to govern efficiently in order to improve the organizational stability of the consortium is crucial to the sustainable and healthy development of the consortium. This paper conducts a study from the perspective of family farms, and uses channel behavior theory, network embedding theory and structural equation modeling to analyze the specific effects of channel governance, structural embedding strength under network embedded relationship governance on the organizational stability of consortia. The findings show that contractual governance and normative governance positively affect the consortium organizational stability by influencing the quality of relationships between family farms and members within the consortium and internal institutional enforcement, the strength of structural embedding of family farms in the consortium network positively affects organizational stability by influencing institutional enforcement, and the economic performance of the consortium positively regulates the relationship between institutional enforcement and organizational stability.