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The Role and Proximity in Value Preferences: a Study of Consumer Co-operatives

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  • Noreen BYRNE
  • Kristina HEINONEN
  • Iiro JUSSILA

Abstract

Proximity is seen as an essential part of the relationship between a co-operative and its members, one that is a source of member value and competitive advantage. As the restructuring trend in co-operatives has tended towards scale and centralization, proximity to the member decreases. Thus, proximity between the members and the co-operative is a major challenge. Still, proximity has received limited attention in both the co-operative and consumer (member) value literature. The purpose of this paper is to begin filling this gap by investigating the relationship between proximity (both spatial and non-spatial) and members' value preferences in a co-operative. Our findings based on a credit union member survey indicate that in terms of member value preferences, spatial proximity has an indirect impact and non-spatial proximities impact directly on member value preferences. Implications of the study are discussed.

Suggested Citation

  • Noreen BYRNE & Kristina HEINONEN & Iiro JUSSILA, 2015. "The Role and Proximity in Value Preferences: a Study of Consumer Co-operatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(2), pages 339-361, June.
    • Handle: RePEc:bla:annpce:v:86:y:2015:i:2:p:339-361
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