Title: Desert Places: Cooperatives as Infrastructure Providers in Marginalized Areas
Speaker: Jiao Luo, University of Minnesota
Host: Cuili Qian, The University of Texas at Dallas
When: 9:00- 10:15 am, Feb. 28, 2024 (China Time, UTC+8)
Language: English
Where: Zoom
Register link: https://www.xcdsystem.com/iacmr/forms/index.cfm?ID=CN11sTs

Abstract

In this study, we examine the comparative advantage of cooperatives relative to for-profit firms in infrastructure provision. We argue that infrastructure projects generate positive local externalities for the communities in which they are located, and that cooperatives, being able to internalize these benefits, may be willing to provide higher quality infrastructure than for-profits, especially in marginalized communities where the costs of provision are high relative to revenues. We test and find support for this argument in US internet broadband provision from 2014 to 2017, showing that cooperatives are more likely to provide internet in communities where for-profits offer poor quality service, with these effects being stronger in rural communities, communities with persistent poverty, and communities with high social cohesion. 

Bio

Jiao Luo (罗皛) is an Associate Professor of Strategic Management & Entrepreneurship and Andrew Van de Ven Faculty Fellow at the Carlson School of Management, University of Minnesota. Jiao’s research is at the intersection of organization theory and non-market strategy. Jiao’s work addresses the question of why firms engage in these non-market activities and under what conditions might nonmarket activities benefit the firm and the society. Her research contexts include corporate donation, collective governance arrangements, labor market intermediaries, and climate change. Jiao’s research has been published or forthcoming at top journals such as Administrative Science Quarterly, Organization Science, and Strategic Management Journal. Jiao serves as Associate Editor at the Strategic Management Journal. Jiao earned her Ph.D. in Management from Columbia Business School, and a master’s in Public Administration from the London School of Economics and Political Science.