Advanced Search
MyIDEAS: Login to save this paper or follow this series

The internal and external governance of cooperatives: the effective membership and consistency of value

Contents:

Author Info

  • Sacchetti, Silvia

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Tortia, Ermanno

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

Cooperatives are characterised by mutual-benefit coordination mechanisms aimed at the fulfilment of members’ participation rights and welfare, consistently with the normative principles of democratic involvement, independence and care for the community. This ideal situation may find, in practice, obstacles within the internal characteristics of the cooperative as well as in the nature of relationship with other actors in the socio-economic environment. Building on evidence from the literature, the paper systematises and highlights some of the potential problems in the governance of cooperative firms concerning the accomplishment of cooperative mutualistic aims by way of means that do not hamper other stakeholders in the socio-economic environment. In exploring the internal conditions that may affect cooperative performance, we focus in particular on the role of rules and incentives towards such aims. In synergy, when analysing the external conditions that may affect cooperative performance, the paper addresses possible sources of external control, such as those related to the nature of the business relationships between the cooperative and its production network. In taking into account both internal and external conditions, we consider an extended notion of governance, whereby those who impact on strategic decision-making are not to be searched only within the internal governance bodies, typically the board of directors or managers, but also outside the cooperative, as in the extended network of production relationships in which the organisation is embedded.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.aiccon.it/file/convdoc/wp111.pdf
File Function: Full text
Download Restriction: no

Bibliographic Info

Paper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 111-2012.

as in new window
Length: 36 pages
Date of creation: 03 Jul 2012
Date of revision:
Handle: RePEc:ris:aiccon:2012_111

Contact details of provider:
Postal: P.le della Vittoria, 15 - 47100 Forlì, Italy
Phone: +39 0543 62327
Fax: +39 0543 374676
Email:
Web page: http://www.aiccon.it/
More information through EDIRC

Related research

Keywords: cooperative firms; governance; incentives; motivations; production networks;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Pencavel, John & Craig, Ben, 1994. "The Empirical Performance of Orthodox Models of the Firm: Conventional Firms and Worker Cooperatives," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 718-44, August.
  2. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-72, June.
  3. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, Khalid & Shehata, Mohamed, 2009. "The impact of social value orientation and risk attitudes on trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 368-380, June.
  4. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September.
  5. Silvia Sacchetti, 2012. "Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity," Econometica Working Papers wp36, Econometica.
  6. Fabio Sabatini & Francesca Modena & Ermanno Tortia, 2014. "Do cooperative enterprises create social trust?," Small Business Economics, Springer, vol. 42(3), pages 621-641, March.
  7. Giacomo Degli Antoni, 2009. "Intrinsic vs. Extrinsic Motivations to Volunteer and Social Capital Formation," Kyklos, Wiley Blackwell, vol. 62(3), pages 359-370, 08.
  8. Avner BEN-NER & Theresa VAN HOOMISSEN, 1991. "Nonprofit Organizations In The Mixed Economy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 62(4), pages 519-550, October.
  9. Avner BEN-NER, 1993. "ORGANIZATIONAL REFORM IN CENTRAL AND EASTERN EUROPE A Comparative Perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 64(3), pages 329-366, 07.
  10. Jones, Derek C & Svejnar, Jan, 1985. "Participation, Profit Sharing, Worker Ownership and Efficiency in Italian Producer Cooperative," Economica, London School of Economics and Political Science, vol. 52(208), pages 449-65, November.
  11. Roger Spear, 2004. "Governance in Democratic Member-Based Organisations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 33-60, 03.
  12. Leete, Laura, 2000. "Wage equity and employee motivation in nonprofit and for-profit organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 43(4), pages 423-446, December.
  13. John Pencavel & Luigi Pistaferri & Fabiano Schivardi, 2006. "Wages, employment, and capital in capitalist and worker-owned firms," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(1), pages 23-44, October.
  14. Burdín, Gabriel & Dean, Andrés, 2009. "New evidence on wages and employment in worker cooperatives compared with capitalist firms," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 517-533, December.
  15. "Hayashi, Yukinari" & "Yoshihara, Naoki" & "Okushima, Shinichiro" & "Yamada, Akira", 2011. "Moral Motivation in Public Economic Activities," Economic Review, Hitotsubashi University, vol. 62(1), pages 1-19, January.
  16. Mohnen, Alwine & Pokorny, Kathrin & Sliwka, Dirk, 2008. "Transparency, Inequity Aversion, and the Dynamics of Peer Pressure in Teams: Theory and Evidence," IZA Discussion Papers 3281, Institute for the Study of Labor (IZA).
  17. Nicholls, Alex, 2010. "Institutionalizing social entrepreneurship in regulatory space: Reporting and disclosure by community interest companies," Accounting, Organizations and Society, Elsevier, vol. 35(4), pages 394-415, May.
  18. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  19. Mario Davide Parrilli & Silvia Sacchetti, 2008. "Linking learning with governance in networks and clusters: key issues for analysis and policy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(4), pages 387-408, July.
  20. Mas, Alexandre & Moretti, Enrico, 2006. "Peers at Work," IZA Discussion Papers 2292, Institute for the Study of Labor (IZA).
  21. Francesco Sacchetti & Silvia Sacchetti & Roger Sugden, 2009. "Creativity and socio-economic development: space for the interests of publics," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(6), pages 653-672.
  22. Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," NBER Working Papers 13653, National Bureau of Economic Research, Inc.
  23. Becchetti, Leonardo & Castriota, Stefano & Tortia, Ermanno, 2009. "Productivity, wages and intrinsic motivation in social enterprises," AICCON Working Papers 66-2009, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
  24. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
  25. Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
  26. Roger Spear & Chris Cornforth & Mike Aiken, 2009. "The Governance Challenges Of Social Enterprises: Evidence From A Uk Empirical Study," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(2), pages 247-273, 06.
  27. Ermanno C. Tortia, 2011. "The firm as a common. The case of accumulation and use of common resources in mutual benefit organizations," Department of Economics Working Papers 1112, Department of Economics, University of Trento, Italia.
  28. Vladislav VALENTINOV, 2008. "The Economics Of The Non-Distribution Constraint: A Critical Reappraisal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 35-52, 03.
  29. Silvia Sacchetti & Ermanno Tortia, 2013. "Satisfaction with Creativity: A Study of Organizational Characteristics and Individual Motivation," Journal of Happiness Studies, Springer, vol. 14(6), pages 1789-1811, December.
  30. Sara Depedri & Ermanno Tortia & Maurizio Carpita, 2010. "Incentives, job satisfaction and performance: empirical evidence in italian social enterprises," Euricse Working Papers 1012, Euricse (European Research Institute on Cooperative and Social Enterprises).
  31. Will Bartlett & Saul Estrin & John Cable & Stephen Smith, 1992. "Labor-managed cooperatives and private firms in north central Italy: An empirical comparison," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 103-118, October.
  32. Silvia Sacchetti & Roger Sugden, 2009. "The Organization of Production and its Publics: Mental Proximity, Market and Hierarchies," Review of Social Economy, Taylor & Francis Journals, vol. 67(3), pages 289-311.
  33. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
  34. Vladislav Valentinov, 2007. "The Property Rights Approach to Nonprofit Organization: The Role of Intrinsic Motivation," Public Organization Review, Springer, vol. 7(1), pages 41-55, March.
  35. Chris Cornforth, 2004. "The Governance of cooperatives and mutual associations: a paradox perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 11-32, 03.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ris:aiccon:2012_111. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paolo Venturi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.