Introduction

. This book, Strategic Management of Cooperatives: An Organizational Economics Approach, examines how cooperatives can achieve long-term sustainability while preserving their distinctive identity in a capitalist economy. In response to rising inequality, weakened communities, and social and environmental crises, cooperatives have expanded across sectors such as care services, employment for vulnerable groups, and citizen-led energy transitions. Many countries, including Korea, have updated cooperative laws to support new forms like social, solidarity, and collective-interest cooperatives. The book analyzes the unique characteristics of cooperatives—member ownership, democratic governance, and social purpose—and how these affect business strategy, organizational structure, governance, finance, leadership, and performance. Drawing on organizational economics and strategic management theory, it asks how cooperative principles such as mutuality, participation, and solidarity can be translated into competitive and sustainable business practices. Rather than offering a practical manual, the book adopts a strategic perspective, organizing existing theoretical and empirical research around 13 core questions faced by cooperative leaders and policymakers. Each chapter synthesizes research, presents case studies, identifies unresolved challenges, and distills key principles for effective cooperative management. Intended as a textbook and reference for students, practitioners, and policymakers, the book aims to deepen understanding of how cooperatives can balance economic viability with social values, ensuring they remain a meaningful alternative to profit-driven enterprises.