Shared-Services Cooperatives: Strengthening Local Economies through Collaboration

Shared services cooperatives are member associations formed to meet a variety of institutional needs for economies and efficiencies of scale through collaboration in areas such as purchasing, marketing, processing and distribution (Crooks, Spatz & Warman, 1997). Our study examines cases in business, finance, health, and public sectors of the US economy. This research develops a theoretical understanding of how this form compares to related types of cooperatives and other forms of collaboration. It also empirically documents how shared services are used. The research looks at the experience of these shared-services cooperatives: what are the benefits to members; how they are structured and their impact on the local economy. Key stakeholder interviews were conducted with senior staff of cooperatives in financial services, watershed authorities and watershed management, as well as in the health sector, the business sector, and public libraries. The study develops a comparative case analysis utilizing a social ecology analytic framework. The benefits of this form of shared services cooperative are: access to influence networks; enterprise integration and interoperability; sharing of training resources; greater financial resources and professionalism (risk and financial safety); growth opportunities; and increased retention. Key to success is the development of trust and services that are well and affordably administered.