The internal and external governance of cooperatives: the effective membership and consistency of value
AbstractCooperatives 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 InfoIf 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.
Bibliographic InfoPaper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 111-2012.
Length: 36 pages
Date of creation: 03 Jul 2012
Date of revision:
cooperative firms; governance; incentives; motivations; production networks;
Find related papers by JEL classification:
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-23 (All new papers)
- NEP-HME-2012-07-23 (Heterodox Microeconomics)
- NEP-HRM-2012-07-23 (Human Capital & Human Resource Management)
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.:
- Fehr, Ernst & Schmidt, Klaus M., 1998.
"A Theory of Fairness, Competition and Cooperation,"
CEPR Discussion Papers
1812, C.E.P.R. Discussion Papers.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
- Mas, Alexandre & Moretti, Enrico, 2006.
"Peers at Work,"
CEPR Discussion Papers
5870, C.E.P.R. Discussion Papers.
- Kiridaran Kanagaretnam & Stuart Mestelman & Khalid Nainar & Mohamed Shehata, 2009.
"The Impact of Social Value Orientation and Risk Attitudes on Trust and Reciprocity,"
Department of Economics Working Papers
2008-06, McMaster University.
- 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.
- 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.
- 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.
- Mario Davide Parrilli & Silvia Sacchetti, 2008. "Linking learning with governance in networks and clusters: key issues for analysis and policy," Entrepreneurship & Regional Development, Taylor and Francis Journals, vol. 20(4), pages 387-408, July.
- 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.
- Ostrom, Elinor, 2009. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," Nobel Prize in Economics documents 2009-4, Nobel Prize Committee.
- 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.
- 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.
- Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September.
- 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.
- Giacomo Degli Antoni, 2009. "Intrinsic vs. Extrinsic Motivations to Volunteer and Social Capital Formation," Kyklos, Wiley Blackwell, vol. 62(3), pages 359-370, 08.
- 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.
- 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.
- Sabatini, Fabio & Modena, Francesca & Tortia, Ermanno, 2012.
"Do cooperative enterprises create social trust?,"
39814, University Library of Munich, Germany.
- 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.
- Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 91-114, Fall.
- 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.
- Pencavel, John & Pistaferri, Luigi & Schivardi, Fabiano, 2006.
"Wages, Employment, and Capital in Capitalist and Worker-Owned Firms,"
IZA Discussion Papers
2188, Institute for the Study of Labor (IZA).
- 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.
- 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.
- Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
- 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.
- Francesco Sacchetti & Silvia Sacchetti & Roger Sugden, 2009. "Creativity and socio-economic development: space for the interests of publics," International Review of Applied Economics, Taylor and Francis Journals, vol. 23(6), pages 653-672.
- 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.
- 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).
- Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
- Alwine Mohnen & Kathrin Pokorny & Dirk Sliwka, 2008. "Transparency, Inequity Aversion, and the Dynamics of Peer Pressure in Teams: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 693-720, October.
- Silvia Sacchetti & Roger Sugden, 2009. "The Organization of Production and its Publics: Mental Proximity, Market and Hierarchies," Review of Social Economy, Taylor and Francis Journals, vol. 67(3), pages 289-311.
- 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.
- "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.
- Silvia Sacchetti, 2012. "Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity," Econometica Working Papers wp36, Econometica.
- 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).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paolo Venturi).
If references are entirely missing, you can add them using this form.