The Meaning and manifestation of the dual nature in co-operatives
Keywords:
Co-operative, dual nature, business role, member community role, patronage, ownership, complexityAbstract
Based on their history and the ideology that motivated the creation of co-operatives in the 19th century (ICA 1995), co-operatives have unique characteristics which separate them from other business forms. Co-operatives are known to be complex organizations with a variety of goals, some of which may be in conflict with one another (Draheim 1952; Skurnik 2002; Mooney & Gray 2002; Puusa et al. 2013).
Typically, the “cooperative difference” is captured in their dual nature, which creates the basis for the unique co-operative identity. A co-operative is a business enterprise and a social group of members and as such has both a business and member community roles. This specific character, duality has been identified and conceptualized in co-operative literature in the 1950’s (Draheim 1952). However, a comprehensive and well-established theoretical framework on the subject is still missing.
In this paper we argue that co-operative duality is a multifaceted concept, which requires more in-depth examination. Although a basic division into business and member community roles is identified in prior research, the in-depth content and meaning of the roles, and in particular their manifestation in practice, are still largely unclear and little researched topic area.
In this paper we provide a more nuanced interpretation of dual features of co-operative enterprises, encompassed in the dichotomy between: patronage and ownership (Nilsson 2001; Mazzarol et al. 2011); social and financial aims (Novkovic 2012); collective and individualistic interests (Puusa 2013); collective and private ownership (Crowell & Novkovic 2019); and their diverse purpose. The paper contributes to a deeper understanding of co-operative complexity, and their strategic advantage.
References
https://www.fiftybyfifty.org/2019/12/erbin-crowell-and-sonja-novkovic-esops-or-co-ops-depends-on-the-long-term-goal/
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