The purpose of consumer co-operation: implications for the management and governance of co-operatives

Extant research on consumer co-operation has acknowledged that the corporate purpose of consumer co-operatives deviates significantly from the purpose of investor-owned firms (IOFs – the dominant form in market economies and in theory development in the field of business economics) and also suggested that the management of consumer co-operatives differs from the management of IOFs. Despite this, there is a scarcity of research focusing on the management of consumer co-operatives in general and the ways this different purpose manifests in their management in particular. In other words, research on consumer cooperatives has only started to discover the importance of identifying the premises of these organizations and generating management and organization theories that take them into account. The overall objective of this study is to map out some of the implications that the purpose of consumer co-operation has for the management and governance of consumer co-operatives. To put it more precisely, by combining interview data gathered from Finnish consumer cooperatives (S Group, OP Bank Group and POP Bank) and extant literature, this study aims to generate or elaborate on definitions and outlines of the features that co-operative purpose poses for the strategic management, governance and managerial competence needed for consumer co-operatives. The study consists of two parts. The first part introduces the research topic, methods and publications, as well as discusses the overall outcomes. The second part consists of four publications that address the research questions from different viewpoints. The analyses of this study indicate that due to the purpose of consumer co-operation, the roles of locality and regionality become emphasized in their management. While locality and regionality are potential sources of competitive advantage for consumer co-operatives, geographic boundness sets significant boundary conditions for the strategic management of these organizations. Further, the purpose of consumer co-operation may pose several challenges to governance and set specific competence demands for the managers of these organizations. Associating the observations from various streams of research on management and governance with the purpose of consumer co-operation and examining these issues further, the thesis contributes to elaboration of theory in the field. While the thesis is by no means comprehensive (but instead reflects a co-operative research project in its early stages), it does shed light on some key ideas of management and governance and offers leads to theory and, thereby, will prove useful to elaborators, disseminators and appliers of knowledge on co-operation.

The accumulation of financial and social capital as a means to achieve a sustained competitive advantage for consumer co-operatives

By so far, scholars have discussed how the characteristics of consumer co-operatives (cooperative principles, values and the dual role of members as the users and owners) can potentially give them a competitive advantage over investor-owned firms (IOFs). In addition, concern for the community (as partly derived from locality and regionality) has been seen as a potential source of success for consumer co-operatives. On the other hand, the geographicbound purpose of consumer co-operation causes that consumer co-operative can be regarded as a challenging company form to manage. This is because, according to the purpose of consumer co-operation, co-operatives are obligated to 1) provide the owners with services and goods that are needed and do so at more affordable prices than their competitors do and/or 2) to operate in areas in which competitors do not want to operate (for example, because of the low profitability in certain area of business or region). Thus, consumer co-operatives have to operate very efficiently in order to execute this geographic-bound corporate purpose (e.g. they cannot withdraw from the competition during the declining stages of business). However, this efficiency cannot be achieved by any means; as the acceptance from the important regional stakeholders is the basic operational precondition and lifeline in the long run. Thereby, the central question for the survival and success of consumer co-operatives is; how should the consumer co-operatives execute its corporate purpose so it can be the best alternative to its members in the long run? This question has remained unanswered and lack empirical evidence in the previous studies on the strategic management of consumer cooperation. In more detail, scholars have not yet empirically investigated the question: How can consumer co-operatives use financial and social capital to achieve a sustained competitive advantage? It is this research gap that this doctoral dissertation aims to fulfil. This doctoral dissertation aims to answer the above questions by combining and utilizing interview data from S Group co-operatives and the central organizations in S Group´s network (overall, 33 interviews were gathered), archival material and 56 published media articles/reports. The study is based on a qualitative case study approach that is aimed at theory development, not theory verification (as the theory is considered as nascent in this field of study). Firstly, the findings of this study indicate that consumer co-operatives accumulate financial capital; 1) by making profit (to invest and grow) and 2) by utilizing a network-based organizational structure (local supply chain economies). As a result of financial capital accumulation, consumer co-operatives are able to achieve efficiency gains but also remain local. In addition, a strong financial capital base increases consumer co-operatives´ independence, competitiveness and their ability to participate in regional development (which is in accordance with their geographically bound corporate purpose). Secondly, consumer cooperatives accumulate social capital through informal networking (with important regional stakeholders), corporate social responsibility (CSR) behaviour and CSR reporting, pursuing common good, and interacting and identity sharing. As a result of social capital accumulation, consumer co-operatives are able to obtain the resources for managing; 1) institutional dependencies and 2) customer relations. By accumulating both social and financial capital through the above presented actions, consumer co-operatives are able to achieve sustained competitive advantage. Finally, this thesis provides useful ideas and new knowledge for cooperative managers concerning why and how consumer co-operatives should accumulate financial and social capital (to achieve sustained competitive advantage), while aligning with their corporate purpose.

A third generation regimen VACOP-B with or without adjuvant radiotherapy for aggressive localized non-Hodgkin's lymphoma: report from the Italian Non-Hodgkin's Lymphoma Co-operative Study Group

The objective of this multicenter prospective study was to determine the clinical efficacy and toxicity of a polychemotherapeutic third generation regimen, VACOP-B, with or without radiotherapy as front-line therapy in aggressive localized non-Hodgkin's lymphoma. Ninety-three adult patients (47 males and 46 females, median age 45 years) with aggressive localized non-Hodgkin's lymphoma, 43 in stage I and 50 in stage II (non-bulky), were included in the study. Stage I patients received VACOP-B for 6 weeks plus involved field radiotherapy and stage II patients received 12 weeks VACOP-B plus involved field radiotherapy on residual masses. Eighty-six (92.5%) achieved complete remission and 4 (4.3%) partial remission. Three patients (3.2%) were primarily resistant. Ten-year probability of survival, progression-free survival and disease-free survival were 87.3, 79.9 and 83.9%, respectively. Eighty-four patients are surviving at a median observation time of 57 months (range: 6-126). Statistical analysis showed no difference between stages I and II in terms of response, ten-year probability of survival, progression-free survival or disease-free survival. Side effects and toxicity were negligible and were similar in the two patient groups. The results of this prospective study suggest that 6 weeks of VACOP-B treatment plus radiotherapy may be the therapy of choice in stage I aggressive non-Hodgkin's lymphoma. Twelve weeks of VACOP-B treatment with or without radiotherapy was shown to be effective and feasible for stage II. These observations need to be confirmed by a phase III study comparing first and third generation protocols in stage I-II aggressive non-Hodgkin's lymphoma.

Co-operative acquisitions – the contextual factors and challenges for co-operatives when acquiring an investorowned firm

Mergers and acquisitions (M&As) have been seen as an important strategy in helping organizations to grow, gain access to new markets and resources, increase efficiency, and enable competitiveness in order to fulfil the purpose of the organization. These aspects have made M&As of central interest to academic literature. In co-operative studies mergers especially have been widely studied. The common focus of these studies is that M&As have taken place between organizations of the same form. It is noteworthy that there is a scarcity of literature concerning acquisitions between different organizational types. Moreover, M&As have not been evaluated concerning the organization’s ownership and purpose, which may be significant integration factors. The overall objective of this study is to describe and understand why co-operative organizations use acquisition as a strategic alternative. In more detail – and in order to develop understanding of the background ideals affecting the acquisition decision and the differences of organization ideals in the integration process – this study is based on a qualitative case study approach. By combining interview data gathered from the OPPohjola Group and associating the observations from various streams of research on acquisitions and management with the purpose of co-operation, and examining these issues further, the thesis contributes to the elaboration of theory in the field of the strategic management of co-operatives. The dissertation consists of two parts. The first part introduces the research topic, methods and publications, as well as discussing the overall outcomes. The second part consists of four publications that address the research questions from different viewpoints. The analyses of this dissertation indicate that, from the strategic point of view, the acquisition of an investor-owned firm by a co-operative organization may create competitive advantage for the co-operative. On the other hand, there are differences in and following from the purpose of acquirer and the acquiree that may, in such case, pose several challenges to the integration process.

Co-operative education and the development of self-esteem, an internal locus of control and work habits

This study compared approximately 50 grade 12 students studying In th~ co-operative education mode with approximately 50 grade 12 students studying in a traditional English course. Measures of self-esteem, locus of control and work habits were compared before and at the conclusion of one semester's involvement in the different programs. Using Coopersmith's Self-Esteem Inventory, the students who had chosen to study in the co-operative education mode scored significantly higher than the students in the traditional course. At the end of the semester, the co-operative education students' scores remained significantly higher than the English students'. Although the test showed no sjgnifi~ant changes in self-esteem. anecdotal reports indicated that co-operative education students had increased self-esteem over the semester. No significant differences in locus of control were observed between the two groups at any time. Significant differences in work habits were observed. While both groups had the same number of absences and the same marks before taking these courses, students who were involved in co-operative education had significantly fewer absences and significantly higher marks than the students studying in the traditional course. Anecdotal reports also indicated an improv~ment in work habits for students who had been involved in co-operative education. Recommendations of the study are for further research to determine more exactly how self-esteem and work habits develop in co-operative education students. Also. students. parents, teachers. and administrators need to be made aware of the success of this program.

Project Business: a quasi-experimental study of co- operative interaction between schools and industry

This project is a quasi-experimental study involving eight classrooms in two senior elementary schools in St. Catharines, Ontario which received a Project Business Program and were pre- and post-tested to determine the growth of knowledge acquisition in the area of business concepts. Four classrooms received a Project Business treatment while four classrooms acted as a control. The Project Business Program is sponsored by Junior Achievement of Canada; it occurred during a twelveweek period, February to May 1981, and is run by business consultants who, through Action, Dialogue and Career Exploration, teach children about economics and business related topics. The consultants were matched with teacher co-ordinators in whose classrooms they taught and with whom they discussed field trips, students, lesson planning, etc. The statistical analysis of pre- and post-test means revealed a significant statistical growth in the area of knowledge acquisition on the part of those students who received the Project Business Program. This confirms that Project Business makes a difference. A search of the literature appears to advocate economic programs like Project Business, whfch are broadly based, relevant and processoriented. This program recommends itself as a model for other areas of co-operative curricular interactions and as a bridge to future trends and as a result several fruitful areas of research are suggested.

The Social Enterprise as an Alternative Work Option for Persons with Developmental Disabilities: A Case Study of Staff Perspectives at Common Ground Co-operative

Traditional employment options for persons with developmental disabilities are lacking. Employment options available for persons with developmental disabilities are reflective of the medical and social model perspectives of disability; with segregated and supported employment reinforcing the idea that persons with developmental disabilities are incapable and competitive employment missing the necessary accommodations for persons to be successful. This study examined social enterprises as an alternative employment option that can balance both medical and social model perspectives by accommodating for weaknesses or limitations and recognizing the strengths and capabilities of persons with developmental disabilities in the workplace. Moreover, this study is part of a broader case study which is examining the nature and impacts of a social enterprise, known as Common Ground Co-operative (CGC), which supports five social purpose businesses that are owned and operated by persons with developmental disabilities. This study is part of the Social Business and Marginalized Social Groups Community-University Research Alliance. To date, a case study has been written describing the nature and impacts of CGC and its related businesses from the perspectives of the Partners, board members, funders and staff (Owen, Readhead, Bishop, Hope & Campbell, in press & Readhead, 2012). The current study used a descriptive case study approach to provide a detailed account of the perceptions and opinions of CGC staff members who support each of the Partners in the five related businesses. Staff members were chosen for the focus of this study because of the integral role that they play in the successful outcomes of the persons they support. This study was conducted in two phases. In the first phase five staff members were interviewed. During this stage of interviews, several themes were presented which needed to be examined in further detail, specifically staff stress and burnout and duty of care for business Partners versus the promotion of their autonomy. A second phase of interviews was then conducted with one individual participant and a focus group of seven. During both interview phases, Staff participants described an employment model that creates a non-judgemental environment for the business Partners that promotes their strengths, accommodates for their limitations, provides educational opportunities and places the responsibility for the businesses on the persons with developmental disabilities cultivating equality and promoting independence. Staff described the nature of their role including risk factors for stress, the protective factors that buffer stress, and the challenges associated with balancing many role demands. Issues related to the replication of this social enterprise model are described.

Maxims of Action in a Financial Co-operative: Epistemological and Theoretical Issues

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Working of Women’s Industrial Co-operative Societies in Kerala

This study deals with the working of Women’s Industrial Co-operative Societies (WICS) in Kerala. The formation of women’s co-operatives was identified as a lucrative enterprise and a feasible proposition for empowerment of women through encouraging and ensuring their active participation in the process of social and economic development. The problem of unemployment of Women and poverty in India can be tackled effectively only through suitable and appropriate self-employment schemes. WICS help to supplement the income of families and thus raise the standard of living. WICS in Kerala have a significant role in the elimination of industrial backwardness and mounting employment. This study focuses its attention on the performance aspects of WICS. It also gives an introduction to the co-operative movement and review of literature on industrial co-operatives in general and women’s industrial co-operatives in particular.

A Study of Coir Vyvasaya Co-Operative Societies in Kerala – Performance, Problems and Prospects

The present study was undertaken to evaluate the performance of Coir Vyavasaya Co-operative societies (CVCs) in Kerala. It was also intended to examine the extent of fulfillment of the objectives of Co-operativisation Scheme and the socio-economic betterment of worker members, Further the study was directed to find out the level of participation of members in the affairs of CVCs and to identify the major problems confronting the CVCs and the future prospects of the industry. The objectives of this study are to evaluate the performance of CVCs in Kerala with reference to the objectives of co-operativisation, socio-economic background of the worker members of the CVCs in the state, extent of members participation, major problems etc. Major findings of the study shows that 84% of CVCs surveyed were incurring losses, the long-term solvency position of the CVCS shows very pathetic situation, ration analysis shows and unhealthy state of affaires with respect to short-term solvency position and operating efficiency of all categories of CVS were found to be extremely poor. If CVCs are enabled to increase their quantity of production and there by the volume of business, their amount of loss can be reduced. If this is so, the societies can provide more days of employment to their work members, which will help them to earn more wages and thereby improve their economic and social conditions