{"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":"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}
{"title":"Bridging co-operation’s communication gap: The Statement on the Co-operative Identity, the sociology of co-operative education’s shifting terrain, and the problem of public opinion","authors":"Mitch Diamantopoulos","doi":"10.1016/j.jcom.2021.100161","DOIUrl":"10.1016/j.jcom.2021.100161","url":null,"abstract":"<div><p>This article focuses on co-operatives’ faltering position in 21st century Canadian public opinion. I argue co-operative education’s introverted bias toward ‘boardrooms and classrooms’ neglects public opinion; and that shifting international norms and historical conditions have reinforced this retreat from mass media and the public sphere. A co-operative communication gap of international significance is the result. Cultural hegemony theory and qualitative methods are used to develop the argument. Historical analysis first demonstrates that educational conventionalism dangerously discounts the contemporary cultural environment’s threat to mutualism. It is argued that the International Co-operative Alliance’s (ICA) contradictory doctrine has deepened normative confusion about co-operative education’s scope, further delaying media activism and popular education. Textual analysis illustrates this contradiction in key documents. These include the <em>Report of the ICA Commission on Co-operative Principles</em> (1967), the <em>Statement on the Co-operative Identity</em> (1995), and the <em>Guidance Notes to the Co-operative Principles</em> (2016). Finally, conjunctural analysis shows that contradictory tendencies inside and outside international mutualism reshaped an inward-turning pedagogy from 1995 to 2016. Findings thus extend our understanding of the communication gap by accounting for barriers to popular educational innovation, both conceptual and strategic.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100161"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765309","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":"Ownership structures and risk taking in the German property-liability insurance market","authors":"Frederick Schuh , Lukas Michael Noth","doi":"10.1016/j.jcom.2022.100165","DOIUrl":"10.1016/j.jcom.2022.100165","url":null,"abstract":"<div><p>This paper investigates whether the organizational form of a property-liability insurer influences its risk-taking. We investigate the investment and underwriting behavior of 62 German property-liability insurers in the period from 2000 to 2019. We find that stock insurers take higher risks, both in underwriting and in investments than mutual insurers. Our findings are relevant to customers, investors, and regulators, as they provide insights into the fundamental differences between stock and mutual insurers in the German property-liability.insurance market.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"10 1","pages":"Article 100165"},"PeriodicalIF":2.1,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54765558","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 influence of employee membership on training intensity: The case of Polish co-operative banks","authors":"Przemysław Piasecki","doi":"10.1016/j.jcom.2021.100144","DOIUrl":"10.1016/j.jcom.2021.100144","url":null,"abstract":"<div><p>This study explores the role of employee membership in the training process in Polish co-operative banks. On the basis of human capital theory and social exchange theory two hypotheses were formulated regarding the direct impact of employee membership on the number of training events as well as training days. The research hypotheses were tested on the basis of employee responses from two nationwide research projects about human resources in Polish co-operative banks (N = 2,273 and N = 1,707). The analyses were conducted with several two-level ordered logit models in which the proportional odds assumption was tested. As was expected, employees who hold shares of their co-operative bank receive more training. However, in the first database this result occurs only for employees with a lower level of training intensity, while in the second database it holds for all employees.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"9 2","pages":"Article 100144"},"PeriodicalIF":2.1,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2021.100144","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47505203","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}