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The Involvement of Members in the Governance of Large-Scale Co-operative and Mutual Businesses: A Formative Evaluation of the Co-operative Group

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  • Johnston Birchall
  • Richard Simmons

Abstract

This article focuses on the key question for co-operatives and mutuals of whether they can continue to be genuine member-owned and controlled businesses once they become very large. After providing a commentary on current attempts to revitalise member democracy in the UK consumer co-operative sector, it outlines the "mutual incentives model" developed by the authors to explain what motivates people to participate. The main part of the article then provides a formative evaluation of one very large co-operative society, the Co-operative Group. Drawing on a recent project carried out with funding from the Economic and Social Research Council, and in partnership with the UK Co-operative College, it discusses findings from datasets of 450 area committee members and a random sample of non-active members. The findings are structured according to the mutual incentives framework, including individualistic and collectivistic incentives, resources and mobilization factors. The conclusion is that the Group is having some success with its member participation strategy despite problems of scale. Steady, incremental improvements are identified that should enable the strategy to succeed, showing that there is no simple correlation between size and democracy.

Suggested Citation

  • Johnston Birchall & Richard Simmons, 2004. "The Involvement of Members in the Governance of Large-Scale Co-operative and Mutual Businesses: A Formative Evaluation of the Co-operative Group," Review of Social Economy, Taylor & Francis Journals, vol. 62(4), pages 487-515.
    • Handle: RePEc:taf:rsocec:v:62:y:2004:i:4:p:487-515
    DOI: 10.1080/0034676042000296236
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    Cited by:

    1. Haugh, Helen M., 2021. "The governance of entrepreneurial community ventures: How do conflicting community interests influence opportunity exploitation?," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    2. Amber Theeuwen & Valérie Duplat & Christopher Wickert & Brian Tjemkes, 2021. "How Do Women Overcome Gender Inequality by Forming Small-Scale Cooperatives? The Case of the Agricultural Sector in Uganda," Sustainability, MDPI, vol. 13(4), pages 1-25, February.
    3. Ivana Catturani & Sandro Trento, 2011. "Profit versus Non Profit: A Third Way? The Case of the Italian Mutual Cooperative Banks," Rivista di Politica Economica, SIPI Spa, issue 3, pages 83-112, JULY-SEPT.
    4. Julia HÖHLER & Rainer KÜHL, 2018. "Dimensions Of Member Heterogeneity In Cooperatives And Their Impact On Organization – A Literature Review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 697-712, December.
    5. Pozzabon, Daniela M. & Zylbersztajn, Decio & Bijman, Jos, 2012. "How Can Cooperatives Reduce Democratic Costs without Incurring Excessive Agency Costs?," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-27.
    6. Johnston Birchall, 2013. "The potential of co-operatives during the current recession; theorizing comparative advantage," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 1-22, May.

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