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The role of cooperative and social enterprises: A multifaceted approach for an economic pluralism

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  • Carlo Borzaga
  • Sara Depedri
  • Ermanno Tortia

Abstract

he role of cooperative and social enterprises in contemporary market economies has been downplayed and marginalised to date by the dominant economic approaches. This insufficient attention (Kalmi, 2008 su Cambridge Journal of Economics) derives from the limited applicability of the main assumptions of microeconomic to the case of cooperative and social enterprises. We mainly refer to models. the assumption of self-seeking individuals and of profit maximisation as the only possible firm objective. The mismatch between theoretical assumptions and empirical evidence has led to the underestimation of the growth potential, weight and role of cooperative and social enterprises. We maintain that the improvement of the scientific understanding of cooperative and social enterprises requires to enlarge and deepen the assumption of the relevant theoretical models. Individuals cannot be characterised any more as purely self-interested. Instead, the importance of motivational complexity, and the diverse nature of preferences needs to be introduced in the model as suggested by the behavioural approach. Furthermore, firms cannot be interpreted any more in an exclusive way as profit maximizers. They are instead coordination mechanisms of the economic activity, as suggested by the evolutionary approach. To this end they develop specific organisational routines, and their objectives can be diverse, ranging from purely private appropriation, to mutual benefit based on reciprocity, to public benefit aim supported by other-regarding preferences. (Le teorie economiche dominanti, ed in particolare l approccio ortodosso e quello neo-istituzionalista, hanno sottostimato e marginalizzato il ruolo delle cooperative e delle imprese sociali nei mercati economici contemporanei. L insufficiente attenzione a queste organizzazioni deriva principalmente dall impossibilit di applicare ad esse le assunzioni principali della teoria microeconomica ortodossa, ossia la presenza di individui auto-interessati e di organizzazioni che puntino solo alla massimizzazione del profitto. Anche la teoria neo-istituzionalista non riesce a spiegare la presenza e la crescita del ruolo ricoperto da cooperative e imprese sociali. Per questa ragione, il presente paper volto a dimostrare come, per spiegare il ruolo di cooperative ed imprese sociali da un punto di vista scientifico, i principali modelli teorici economici debbano essere estesi. Innanzitutto, tanto gli individui quanto le istituzioni non possono essere pi assunti come soggetti meramente egoistici, ma ne vanno studiate la complessit motivazionale e le strutture di preferenze, cos come proposto dalla teoria comportamentale (behavioural economics). Inoltre, le imprese devono essere concepite come meccanismi di coordinamento delle attivit economiche, come suggerito dall approccio evoluzionista, e devono quindi esserne analizzate le specifiche routine organizzative sviluppate al loro interno e gli obiettivi organizzativi, i quali possono variare tra gli interessi di appropriazione privata dei profitti ed obiettivi pro-sociali sostenuti da preferenze altruistiche.

Suggested Citation

  • Carlo Borzaga & Sara Depedri & Ermanno Tortia, 2009. "The role of cooperative and social enterprises: A multifaceted approach for an economic pluralism," Euricse Working Papers 0900, Euricse (European Research Institute on Cooperative and Social Enterprises).
  • Handle: RePEc:trn:utwpeu:0900
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    References listed on IDEAS

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    1. Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
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    2. Molla, Rafiqul Islam & Alam, Md. Mahmudul & Bashar, M. A. & Alam, A. S .A. Ferdous, 2019. "Islamic and Social Entrepreneurships for Social Justice: A Policy and Structural Framework for Social Enterprise Economics," SocArXiv r286g, Center for Open Science.
    3. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    4. Stefan Mann & Andrei Stoinescu, 2021. "Exploring Draheim's three dimensions of success in cooperative organizations—the case of collective Alpine summer farms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 587-602, December.
    5. Sandro Busso, 2018. "Away from Politics? Trajectories of Italian Third Sector after the 2008 Crisis," Social Sciences, MDPI, vol. 7(11), pages 1-20, November.
    6. Vera Negri Zamagni, 2012. "Interpreting the Roles and Economic Importance of Cooperative Enterprises in a Historical Perspective," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 21-36, December.
    7. Carías Vega, Dora E. & Keenan, Rodney J., 2016. "Situating community forestry enterprises within New Institutional Economic theory: What are the implications for their organization?," Journal of Forest Economics, Elsevier, vol. 25(C), pages 1-13.
    8. Gianluca Salvatori, 2013. "Economia cooperativa: un approccio innovativo alla sostenibilit," Euricse Working Papers 1349, Euricse (European Research Institute on Cooperative and Social Enterprises).
    9. Vera Negri Zamagni, 2011. "The Co-operative Enterprise: A Remaining of the Past or a Proposal for a Better Society?," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, June.
    10. Gianluca Salvatori, 2013. "Econom a cooperativa: un enfoque innovador para la sostenibilidad," Euricse Working Papers 1349, Euricse (European Research Institute on Cooperative and Social Enterprises).
    11. Raluca-Ana-Maria DUMITRU, 2013. "Social Economy - A Solution To The Labor Market Inclusion," THE YEARBOOK OF THE "GH. ZANE" INSTITUTE OF ECONOMIC RESEARCHES, Gheorghe Zane Institute for Economic and Social Research ( from THE ROMANIAN ACADEMY, JASSY BRANCH), vol. 22(1), pages 53-60.
    12. Alam, Md. Mahmudul & Molla, Rafiqul Islam, 2019. "Mainstreaming Third-Sector Economics by Adopting Islamic Principles of Entrepreneurship," OSF Preprints x4r6k, Center for Open Science.
    13. Carlo Borzaga & Riccardo Bodini, 2012. "What to make of social innovation? Towards a framework for policy development," Euricse Working Papers 1236, Euricse (European Research Institute on Cooperative and Social Enterprises).
    14. Silvia Sacchetti & Ermanno C. Tortia, 2010. "A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives," Econometica Working Papers wp21, Econometica.

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    More about this item

    Keywords

    Cooperatives; social enterprises; organizational pluralism; economic theories;
    All these keywords.

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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