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What Motivates Members to Participate in Co‐operative and Mutual Businesses?

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  • Johnston Birchall
  • Richard Simmons

Abstract

***: This article reports the findings of a project entitled ‘The participation of members in mutual businesses’. A previous project developed a theoretical model of what makes people participate, focusing on the participation of public service users in council housing and social care services. The current project builds on this work, applying the ‘mutual incentives model’ to a population sample of area committee members and a random sample of non‐participant members of a very large UK consumer co‐operative, the Co‐operative Group. Two arguments are presented as to why such research is needed. First, member participation in co‐operative and mutual businesses is becoming an important issue both for this sector and more generally for public policy. Second, a comparison between a public services setting and a co‐operative setting enables us to extend and further test the theoretical model. Two main features of the model are outlined: a ‘mutual incentives theory’ that goes beyond other models to combine individualistic and collectivistic motivations, and the ‘participation chain’, a synthesis of existing knowledge that joins motivations to three ‘links’ that we call ‘resources’, ‘mobilization’ and ‘dynamics’. The article then summarizes the project methodology, and reports the main findings. As in the public services project, on the ‘demand’ side, collectivistic incentives prove to be dominant over individualistic, but with some individual ‘internal’ benefits also being important. On the ‘supply’ side, skills derived from previous experience were important, as were a positive evaluation of opportunities to participate, and recruitment through existing networks. We then compare the findings to those from the public service users and from a regional co‐operative society; Oxford, Swindon and Gloucester Co‐op. Collective motivations are dominant in all three datasets, but are shown to vary in interesting ways that have important implications for member participation strategies.

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  • Johnston Birchall & Richard Simmons, 2004. "What Motivates Members to Participate in Co‐operative and Mutual Businesses?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(3), pages 465-495, September.
  • Handle: RePEc:bla:annpce:v:75:y:2004:i:3:p:465-495
    DOI: 10.1111/j.1467-8292.2004.00259.x
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    1. Lawrence B. Morse, 2000. "A case for water utilities as cooperatives and the UK experience," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 71(3), pages 467-495, September.
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    Cited by:

    1. Valérie Barraud-Didier & Marie-Christine Henninger & Asâad El Akremi, 2012. "The Relationship Between Members' Trust and Participation in Governance of Cooperatives : The Role of Organizational Commitment," Post-Print halshs-00695926, HAL.
    2. Iiro Jussila & Sanjay Goel & Heidi Tuominen, 2012. "Member Commitment in Co-operatives: The Utilitarian Approach," Business and Management Research, Business and Management Research, Sciedu Press, vol. 1(3), pages 9-16, September.
    3. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(1), pages 1-24, February.
    4. Wendong Deng & George Hendrikse & Qiao Liang, 2021. "Internal social capital and the life cycle of agricultural cooperatives," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 301-323, January.
    5. Valérie Barraud-Didier & Marie-Christine Henninger & Guilhem Anzalone, 2012. "The Weakening of the Member-cooperative Relationship in France [La distanciation du lien adhérent/coopérative en France]," Post-Print hal-01395461, HAL.
    6. Christiane MARTINEZ & Vilmar MOREIRA & Reginaldo BARREIROS & Alex WEYMER, 2020. "Determining Factors of Loyalty in Brazilian Agricultural Cooperatives," CIRIEC Working Papers 2016, CIRIEC - Université de Liège.
    7. Carmen Marcuello & Pablo Nachar-Calder�n, 2012. "Sociedad cooperativa y socio cooperativo: propuesta de sus funciones objetivo," Documentos de Trabajo dt2012-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    8. Rosas Saila & Jussila Iiro & Tuominen Pasi, 2012. "Leading Together for Mutual Benefit: Shared Leadership in the Context of Co-operative Banking," Business and Management Research, Business and Management Research, Sciedu Press, vol. 1(4), pages 99-108, December.
    9. Andreas Klein & Parimal Bhagat, 2010. "We-Commerce: Evidence On A New Virtual Commerce Platform," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(4), pages 107-124.
    10. AMANKWAH, ERNEST & Gockel, Fritz Augustine & Osei-Assibey, Eric, 2019. "Pareto Superior dimension of Rotating Savings and Credit Associations (ROSCAs) in Ghana: Evidence from Asunafo North Municipality of Ghana," MPRA Paper 96308, University Library of Munich, Germany.
    11. Yesim Kustepeli & Yaprak Gulcan & Muırat Yercan & Batuhan Yıldırım, 2023. "The role of agricultural development cooperatives in establishing social capital," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(3), pages 681-704, June.
    12. Antti Talonen & Iiro Jussila & Hannu Saarijärvi & Timo Rintamäki, 2016. "Consumer cooperatives: uncovering the value potential of customer ownership," AMS Review, Springer;Academy of Marketing Science, vol. 6(3), pages 142-156, December.
    13. Johnston Birchall & Richard Simmons, 2010. "The Co‐Operative Reform Process In Tanzania And Sri Lanka," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(3), pages 467-500, September.
    14. Ameeta JAIN & Monica KENELEY & Dianne THOMSON, 2015. "Customer-Owned Banking In Australia: From Credit Union To Mutual Bank," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 465-478, September.
    15. Ndung’u Charles Wanjau & David Kiragu & Kamau Riro, 2019. "Members’ Characteristics and Financial Performance among Primary Marketing Co-Operatives in Nyeri County Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(1), pages 42-53, January.
    16. Chrysoula Morfi & Jerker Nilsson & Karin Hakelius & Kostas Karantininis, 2021. "Social networks and member participation in cooperative governance," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 264-285, April.
    17. Eunju CHOI & Woosuk CHOI & Seungkwon JANG & Sangsun PARK, 2014. "Does The Effectiveness Of Board Of Directors Affect Firm Performance Of Consumer Co-Operatives? The Case Of Icoop Korea," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(3), pages 371-386, September.
    18. Victoria Wells & Nick Ellis & Richard Slack & Mona Moufahim, 2019. "“It’s Us, You Know, There’s a Feeling of Community”: Exploring Notions of Community in a Consumer Co-operative," Journal of Business Ethics, Springer, vol. 158(3), pages 617-635, September.
    19. Sevarlic, Miladin M. & Nikolic, Marija M. & Simmons, Richard, 2010. "Agricultural Cooperatives And Their Membership In Cooperative Unions In Serbia," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 4(3-4), pages 1-8.
    20. Eleni Papaoikonomou & Mireia Valverde & Gerard Ryan, 2012. "Articulating the Meanings of Collective Experiences of Ethical Consumption," Journal of Business Ethics, Springer, vol. 110(1), pages 15-32, September.

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