History and development of cooperative business in New Zealand : A case study of Allied Farmers Limited

Abstract

Cooperatives have been a feature of New Zealand agriculture scene since late 19th Century. Using a case study methodology, this study analyses the history and development of cooperative business and explores the establishment and demise of Allied Farmers Limited in New Zealand. Using agency-theoretical perspective and hubris it is argued that Allied Finance Limited’s expansion was of concern from the start and was most likely to cause financial crisis. The evidence supports the view that the managerial overconfidence was the key factors leading to the demise of Allied Farmers Company Limited