Kokkola University Consortium Chydenius

Maaseudun palvelujen uudelleenorganisoituminen ja kolmannen sektorin potentiaali (Reorganization of rural services and the potential of the third sector)

by Olli Rosenqvist last modified Feb 07, 2014 02:08 PM

The aim of the project was to develop a framework for understanding rural services. This research looked for the structure, conduct and performance of rural service markets. Research also considered the special features of services and nonprofit organizations.

Traditionally, economic theory has by and large been a theory of market even if markets do not function properly unless suitable contracts can be formulated and enforced. Also considerable economic activity takes place outside of markets – within households, firms, associations, agencies, and other organizations. Hence, we need theories to explain why these entities exist and how they work in rural areas.

When the stakeholders’ interests are taken into account, value is created through reciprocal commitments. Coproduction can be feasible and successful organizational form in rural areas. Cultural rural supports self-sufficiency. Also resource-based theories, which take into account transaction costs and unique resources, favour local solutions to resource allocation problems.


Kaipainen, Jouni (2011). Järjestöjen kilpailukyky maaseudun palvelutuotannossa. (Nonprofit organizations’s competive position in rural service production.) University of Jyväskylä. Kokkola University Consortium Chydenius. (In Finnish.) Available: http://urn.fi/URN:ISBN:978-951-39-4363-9

Further information: Jouni Kaipainen

Funding: Ministry of Agriculture and Forestry, Rural Policy Committee; Kokkola University Consortium Chydenius (2010–2011) 

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