{"title":"Does creating perceived co-operative member value pay off? An empirical study in the German co-operative banking context","authors":"Svenja Damberg","doi":"10.1016/j.jcom.2022.100170","DOIUrl":"10.1016/j.jcom.2022.100170","url":null,"abstract":"<div><p>The relevance of co-operative values and principles has long been discussed in co-operative literature. Building on a structured literature review and expert interviews, I develop a measure of perceived co-operative member value. Using a multivariate data analysis method, I establish a structural path model that incorporates this new measure. In a sample of 390 members of German co-operative banks, perceived co-operative member value is found to be an important predictor of sustainable satisfaction, next to corporate reputation. The study’s main contributions are twofold: First, I develop an understanding of perceived co-operative member value building upon relevant literature and expert interviews. Second, I enhance the existing knowledge on co-operative principle and value’s importance by situating it in the broader context of co-operative members’ sustainable satisfaction, thereby combining it with marketing literature. In conclusion, I indicate how these contributions have implications for both co-operative theory and practice.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100170"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48603372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Examining the investment operations as a derived core function of mutual insurance companies: Research agenda and guide","authors":"Antti Talonen , Jukka Mähönen , W. Jean Kwon","doi":"10.1016/j.jcom.2022.100168","DOIUrl":"10.1016/j.jcom.2022.100168","url":null,"abstract":"<div><p>In addition to their core of risk financing services for individuals and organizations, insurers act as significant institutional investors. Notwithstanding, research on mutuals has thus far focused more on the insuring side of operations and investigations of the investment operations have remained limited. This article aims to outline a future research agenda for studying mutuals as institutional investors. This is achieved by conceptually discussing two themes – (1) mutual insurers’ investment behaviours (i.e., how mutuals invest) and (2) the mechanisms that shape the behaviors (i.e., why mutuals invest the way they do). The two main themes are further divided into five sub-themes that, on the one hand, include factual investment allocations and targets as well as investment strategies and disclosures. Mechanism-related sub-themes, on the other hand, contain managerial influence, customer-owner influence, and societal factors.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100168"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49107373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Mutual peer-to-peer insurance: The allocation of risk","authors":"Susanna Levantesi , Gabriella Piscopo","doi":"10.1016/j.jcom.2021.100154","DOIUrl":"10.1016/j.jcom.2021.100154","url":null,"abstract":"<div><p>This work focuses on a modern typology through which mutual solidarity in the insurance sector finds application: peer-to-peer insurance. This cooperative insurance model arises from the translation of the sharing economy concept into insurance risk management, and it is realized thanks to the use of digital technology connecting policyholders and sharing risks. The participants to a peer-to-peer insurance scheme share the first layer of their cumulative losses, while it is possible to transfer to a third part the higher layer. To enter the mutual group, each participant has to pay an initial contribution based on a risk-sharing rule that has to be intuitive and transparent. According to the most considered conditional mean risk-sharing rule, the participant has to contribute with an amount equal to the expected value of the risk he brings to the pool given the total loss distribution. We propose to modify the conditional mean risk-sharing rule with an ex-ante contribution that takes into account a safety loading to hedge the possible fluctuations of total losses.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100154"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765282","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Co-operative identity and the dual nature: From paradox to complementarities","authors":"Sonja Novkovic , Anu Puusa , Karen Miner","doi":"10.1016/j.jcom.2021.100162","DOIUrl":"https://doi.org/10.1016/j.jcom.2021.100162","url":null,"abstract":"<div><p>Multiple roles and objectives are naturally inherent in the co-op idea, captured by the Statement on the Co-operative Identity (ICA, 1995) and thus in co-operative enterprises’ practices. This complex nature derived from the co-operative mission has been conceptualized as the dual nature, which is in the DNA of all co-operatives. However, the concept is somewhat ambiguous and a comprehensive theoretical framework is missing. Prior research has approached duality at different, and not clearly delineated levels, either as individual member motivations, organizational characteristics, or community impact, discussed in this paper. Further, we examine duality and paradox framings in co-operative enterprise research to underscore complementary features that define co-operative enterprise, and contribute an elaboration on the associative practices at the heart of these debates. Associationalism is described in this paper as the common action and responsibilities of membership regarding collective contributions, ownership, benefit, decisionmaking and control. Further, we extend the argument that co-operatives have the strongest impact when they acknowledge and take advantage of their unique organizational values and characteristics, informed by their associative foundations.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100162"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2213297X21000343/pdfft?md5=d198b7a5cd06fbd6f114bb147c7639f6&pid=1-s2.0-S2213297X21000343-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136847445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competitiveness capability in the last large remaining Australian dairy cooperative","authors":"Gustavo Leonardo Simão , Malcolm K. Wegener , Luiz Marcelo Antonialli","doi":"10.1016/j.jcom.2021.100163","DOIUrl":"10.1016/j.jcom.2021.100163","url":null,"abstract":"<div><p>This article explores the management conditions that seem responsible for the survival of the last large Australian dairy products manufacturing cooperative. A theoretical framework is presented as a mechanism to understand cooperative sustainability in a competitive sense considering the relationship of two organizational paradigms. The qualitative methods applied in this paper focus on the perceptions of the cooperative’s board of directors about dynamic capability and institutional legitimacy and the decisions they made as a consequence. The data were based on interviews and document analysis. First, the results suggest that it is possible to reduce opposing institutional pressures through efficient management processes. Second, product differentiation as a marketing policy, business diversification, and a commercially oriented strategy have been the backbone of establishing legitimacy at the organizational level, generating conditions for survival of the cooperative.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100163"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tim Mazzarol , Geoffrey N. Soutar , Sophie Reboud , Delwyn Clark
{"title":"Customer versus member engagement: Does mutuality matter?","authors":"Tim Mazzarol , Geoffrey N. Soutar , Sophie Reboud , Delwyn Clark","doi":"10.1016/j.jcom.2022.100166","DOIUrl":"10.1016/j.jcom.2022.100166","url":null,"abstract":"<div><p>The purpose of this study was to examine the relative importance of customer engagement (CE) on customer loyalty (CL) and word of mouth (WOM) within co-operative and mutual enterprises (CMEs), and to see how these relationships compared to those found in more mainstream investor-owned businesses (IOFs). A large sample (n = 856) of CME members and IOF customers was drawn from an online consumer panel, with broadly equal numbers in each, who completed a questionnaire examining their CE, CL, and propensity for WOM. A path model, estimated by PLS, was used to examine the relationships between four dimensions of CE (engagement attention, co-development, enthusiasm, and interaction). Although the study did not find significant differences between CME members and IOF customers in terms of the influence CE had on CL and WOM, it did find CME members had higher CE scores across all dimensions. With engagement enthusiasm (EE) as the most influential factor, followed by engagement attention (EA). The study provides empirical evidence of the influence CE has on both CL and WOM, as well as the propensity of CME members to have higher levels of CE. This offers robust support to the importance of mutuality within CME businesses. The study provides further evidence of the importance of CE in fostering CL and WOM, as well as the relative importance of EE enthusiasm and EA in this. For managers of CMEs the study shows the strength of mutuality in fostering member CE. For IOF managers, it suggests that CE does matter, and it should be monitored.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100166"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46667998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The cooperative identity at U.S. credit unions","authors":"Jordan van Rijn","doi":"10.1016/j.jcom.2021.100152","DOIUrl":"10.1016/j.jcom.2021.100152","url":null,"abstract":"<div><p>With over 5,000 credit unions and 127 million members, U.S. credit unions are the largest network of financial cooperatives in the world. To what extent do U.S. credit unions follow cooperative principles, reflect the cooperative identity, and distinguish themselves from other financial institutions? As credit unions grow and diversify their membership, many argue that credit unions will lose their cooperative identity and become more akin to their counterparts in the for-profit banking sector. This paper presents evidence that U.S. credit unions continue to differentiate themselves from other forms of banks. In their governance structure, credit unions rely on volunteer directors and CEOs are significantly less incentivized by performance-based compensation relative to commercial bank CEOs. Moreover, 51 % of credit union CEOs are female versus only 3% of CEOs at similarly sized community banks. Credit unions also offer better interest rates, provide higher quality loans, avoid overly risky lending practices (e.g., subprime mortgages), and are more likely to open and retain branches in low-income and diverse areas.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100152"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Damion Jonathan Bunders , Martijn Arets , Koen Frenken , Tine De Moor
{"title":"The feasibility of platform cooperatives in the gig economy","authors":"Damion Jonathan Bunders , Martijn Arets , Koen Frenken , Tine De Moor","doi":"10.1016/j.jcom.2022.100167","DOIUrl":"10.1016/j.jcom.2022.100167","url":null,"abstract":"<div><p>In view of the precarity and economic dependency of gig workers, platform cooperatives come into the picture as alternatives to investor-owned platforms. We develop a taxonomy of platform cooperatives along the dimensions of ownership of the platform and employment by the cooperative. Platform cooperatives are then examined as worker-run matchmaking platforms for gigs, by analysing their challenges, highlighting the difficulties to raise capital, take collective decisions, and gain institutional support. On the basis of a feasibility analysis, we conclude that the identified challenges can most likely be successfully overcome by platform co-ops that organise taxi rides and professional jobs, while it may prove much more difficult in food delivery, homecare and micro-tasking.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100167"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2213297X22000039/pdfft?md5=7cf30b2a8315bb5c0e60d01b7ccc781a&pid=1-s2.0-S2213297X22000039-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41960607","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"One governance theory to rule them all? The case for a paradoxical approach to co-operative governance","authors":"Myriam Michaud, Luc K. Audebrand","doi":"10.1016/j.jcom.2021.100151","DOIUrl":"10.1016/j.jcom.2021.100151","url":null,"abstract":"<div><p>Despite their importance in the global economy, co-operatives are still understudied by governance experts and misunderstood by the general public. However, their purpose, ownership and decision-making and profit-sharing structures make co-operatives very different from their corporate, investor-owned counterparts. This article draws on existing literature to describe the specificities of co-operatives and argues in favour of governance theories and practices appropriate to this organizational model. Based on a member-centred conceptualization of co-operatives – as member-owned, member-controlled and member-benefiting – we highlight seven paradoxes specific to co-operative governance and show the limits of traditional theories and practices in coping with these paradoxes. We argue in favour of implementing governance models that both reinforce the co-operative identity and increase the economic and social benefits of co-operatives.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100151"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Gerald Mashange, Allen M. Featherstone, Brian C. Briggeman
{"title":"Evaluating changes in credit rating quality of U.S. farmer cooperatives","authors":"Gerald Mashange, Allen M. Featherstone, Brian C. Briggeman","doi":"10.1016/j.jcom.2021.100153","DOIUrl":"10.1016/j.jcom.2021.100153","url":null,"abstract":"<div><p>The default of a cooperative has significant implications on cooperative members and the agricultural supply chain. Therefore, monitoring and even predicting future changes in creditworthiness is of value to cooperative managers and their lenders. However, we know little about farmer cooperatives' credit profiles and behavior because their financial statements are seldom shared. Using a Moody’s credit rating model and a unique data set, this article estimates Markov chains to evaluate changes in farmer cooperatives’ credit quality. The unconditional (one-size-fits-all) probability matrix, as is typically estimated, is shown to not be appropriate in describing credit rating transitions. Results also show cooperatives do not exhibit rating change momentum since a downgrade is not likely to be followed by another downgrade in the next period. Credit ratings of farmer cooperatives with less than $20 million in net sales follow a first-order Markov chain with stationary probabilities and the cooperatives with net sales of more than $250 million follow a zero-order Markov chain. This article adds to the limited research available on the credit rating behavior of farmer cooperatives. Cooperative managers, directors, and lenders can utilize these findings to make more informed decisions to impact future credit ratings.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100153"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765170","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}