Abstract <p>In rural regions where formal institutions are Limited, informal institutions play a significant role in shaping organizational dynamics. Using survey data collected in 2021 from 64 townships in Guangdong, China, we examined the impact of clan authority on the resilience of farmer cooperatives. Results show that cooperatives with clan authority demonstrate greater resilience, which is enhanced by member commitment and strong social networks. Furthermore, through moderation analysis, we find that clan authority mitigates the impact of climate deterioration expectations on the resilience of farmer cooperatives. These findings remain robust across various tests and offer new insights into how informal institutions can promote resilience and sustainability in farmer cooperatives.</p> Plain English Summary <p>Farmer cooperatives often struggle with resilience in times of crisis, such as natural disasters or economic downturns. This study explores how the informal institution of clan authority affects the resilience of farmer cooperatives in rural China. The results show that cooperatives led by clan authorities are more resilient, supported by higher member commitment and stronger social networks. Clan authority also helps mitigate negative impacts of climate deterioration expectations on cooperative resilience. This study suggests that integrating traditional cultural structures, like family ties, can play a crucial role in strengthening the resilience of businesses, particularly in the agriculture sector. Thus, the principal implication of this study is that, with the hierarchical social structure of rural China, farmer cooperatives and similar organizations can leverage family-based leadership to improve their resilience and adaptability in the face of challenges.</p>