In contemporary capitalist markets, cooperatives face increasing isomorphic pressures that can narrow their original purpose and, in doing so, risk compromising cooperative identity. Despite extensive research on institutional pressures, little is known about how cooperative leaders themselves legitimize the relevance of the cooperative model under these conditions. We examine how the relevance of cooperatives— defined here as the legitimacy, necessity, and value of the cooperative form for members and society —is justified by managers in this environment. We conducted 41 in-depth interviews with CEOs and governing body chairpersons from Finnish cooperatives and analyzed them using qualitative content analysis. Our findings reveal two main legitimation perspectives: a dominant functional perspective centred on economic benefits and business continuity, and a less frequent ideological perspective emphasizing the provision of domestic services, reduction of inequality, correction of market failures, regional vitality, and participatory opportunities. Results highlight that when functional legitimation narrows cooperative relevance to the pursuit of economic benefits alone, the risk of identity erosion increases. The study contributes to the corporate purpose literature by demonstrating how isomorphic pressures shape cooperative managers’ interpretations of relevance, often privileging short-term economic imperatives over the cooperative movement’s broader societal mission.
Co-operatives differ from other forms of business due to their strong values-based nature, but it is nevertheless recognized that there is a significant gap between international co-operative values and the practical management of co-operatives. According to the values base, management naturally requires that co-operatives as organizations have a common sensemaking of co-operative values. With this present research, we create a deep understanding of how the managers of large co-operatives make sense of the values related to the co-operative ideology. As a result of our qualitative empirical research, we present how Finnish managers of large cooperatives understand the values-based nature of co-operatives in two ways - enacted and idealistic - and construct an ideology of co-operatives around four values: equality, financial responsibility, democracy, and regional responsibility. At the co-operative level, the understanding of values is constructed as a shared, incongruous, partially shared, and contradictory sensemakings. The findings reveal that the values-based nature of co-operatives is recognized but that it is tense and fragmented, and we suggest strengthening management training and information to members to strengthen the unique identity of co-operatives.
Autonomy or control? A case study in an organization striving to increase self-management In many organizations increasing self-management is a new way of working. The case organization of this study is a Finnish financial services organization with about 100 employees. We use qualitative interview data to explore the commonalities and contradictions in the interpretations of employees and management in an organization that is in a process of adopting a more self-managed way of working. We also examine the implementation of the basic assumptions of Self-Determination Theory in today's organizational environment. We approach the issue from both theoretical and empirical perspectives. Our analysis shows that self-management in the target organization is initiated and controlled by management, which sets strict limits but allows only a certain amount of freedom. Our case study provides both theoretical and practical insights into the discussion of the process of increasing self-management.
The purpose of this article is to discuss the features and challenges of participatory, people-centered, and democratic cooperative governance through examining both members councils' and supervisory boards' understandings of the roles, tasks, and responsibilities of various governing bodies via a qualitative case study of a large Finnish consumer cooperative. The data show that the overall structure and duties of the governing bodies are not clearly understood. Also, the data present a view of the cooperative as a very hierarchical organization in which real power is exercised by very few. Members councils are perceived as being quite passive and their decision-making power is mainly seen as a rhetoric mantra, which does not support the view of the cooperative as a truly democratic organization. The supervisory board in turn doesn't seem to understand their supervisory duty, which concentrates power in the board of directors and management and weakens the possibility of the emergence of different perspectives in governance. Democracy was collectively highlighted as the central value related to cooperatives. However, democracy was interpreted merely through its electoral conception whereas the quality of democracy is ignored. Thus, the governance system neither actualizes its full potential nor meets the original ideas forming the co-op ideal.
Multiple roles and objectives are naturally inherent in the co-op idea, captured by the Statement on the Cooperative Identity (ICA, 1995) and thus in co-operative enterprises' practices. This complex nature derived from the co-operative mission has been conceptualized as the dual nature, which is in the DNA of all cooperatives. However, the concept is somewhat ambiguous and a comprehensive theoretical framework is missing. Prior research has approached duality at different, and not clearly delineated levels, either as individual member motivations, organizational characteristics, or community impact, discussed in this paper. Further, we examine duality and paradox framings in co-operative enterprise research to underscore complementary features that define co-operative enterprise, and contribute an elaboration on the associative practices at the heart of these debates. Associationalism is described in this paper as the common action and responsibilities of membership regarding collective contributions, ownership, benefit, decisionmaking and control. Further, we extend the argument that co-operatives have the strongest impact when they acknowledge and take advantage of their unique organizational values and characteristics, informed by their associative foundations.
This quantitative study (n=3637) focuses on the co-operative form of business where customer ownership and co-operative principles and values may create additional trust and social capital which is likely to develop stronger commitment toward co-operative membership. The aim is to understand the relationship between trust, satisfaction and affective, continuance and normative member commitment and whether familiarity with the co-operative business model and membership in other loyalty programmes moderate this relationship. Our data is from a Finnish consumer co-operative (belonging to S Group) and we provide unique and interesting theoretical and practical insights into multiple phenomena and questions concerning customer commitment in retailing.
The article contributes to the co-op theory by exploring a current understanding of the dual nature at the core of co-op ideology that summarises its original purpose. The literature review examines this dual nature, highlighting its importance in the context of democratic governance. The empirical study focuses on exploring the significance that members of the governing bodies attach to the dual nature, and the effect the two roles have on putting the duality of a co-op into practice today. Based on the research, we argue that co-ops' business role determines their operation along with the financial benefits to their members. In particular, the social objectives associated with the member association role are subordinate to the co-op's business role, and this creates conflicting expectations and practices in co-ops' management. The article highlights how business plays a dominant role and undermines co-ops' democracy and social goals. We suggest that finding a balance between the member association and the business roles reflects a new co-op ideology, in which business dominates. We also argue that the governing body members' deep understanding of the dual nature reinforces the fulfilment of the co-ops' member association role, and thus its ultimate and original purpose.
In 2015, consumer retailer S-ryhmä (S Group), the biggest co-operative group in Finland, launched a nationwide operation to cut the prices of hundreds of consumer products. The operation became national news with lengthy discussions on various forums. This article analyses those discussions via the lens of two significant Finnish newspapers. Using a discourse analytical approach, we argue that news discourses reflect dominant norms of private ownership; maximising profits as the primary purpose for businesses; and a presumptively competitive ethos for commercial life. In the S Group campaign, newspaper coverage largely reflected lack of knowledge or interest in co-operatives’ unique features. Consequently, we suggest newsroom reforms and journalism education that acknowledge the characteristics and purposes of different business forms would yield more meaningful representations of economic and social reality. School of journalism and in-service instruction in economic pluralism, including co-operative education, would thus advance journalism’s professional commitment to truth-seeking and robustly democratic self-governance. However, we note the active complicity of the co-operative federation in setting the news agenda, encouraging the framing of their actions as a simple price war. The extent to which co-operative communications strategies may de-emphasise their unique character and importance therefore needs to also be considered.
Tämä tutkimus on avaus työyhteisötaitojen ja ammatillisen vuorovaikutusosaamisen yhteyden kartoittamiselle, ja sen tarkoituksena on lisätä ymmärrystä työyhteisön vuorovaikutuksesta ja työyhteisötaitojen ilmenemisestä asiantuntijatyössä. Tutkimuksessa kysymme, millainen vuorovaikutusosaaminen korostuu asiantuntijatyössä ja millaiset asiantuntijatyön vuorovaikutuksen piirteet koetaan toimiviksi ja työyhteisötaitojen käyttöä edistäviksi. Aineisto koostuu tieto- ja viestintätekniikan alan (ICT-alan) asiantuntijaorganisaatioille tehdyistä kyselyistä, joiden vastaukset koodattiin ja analysoitiin temaattisella sisällönanalyysilla. Tuloksia suhteutettiin sekä relationaalisen viestinnän että työyhteisötaitojen viitekehyksiin. Tutkimus osoittaa, että monipuolinen ammatillinen vuorovaikutusosaaminen on avain työyhteisötaitojen ilmentämiseen, sillä asiantuntijoiden vuorovaikutusosaaminen keskittyy yhteistyöhalukkuuteen ja palautteeseen. Toimivien työyhteisövuorovaikutuspiirteiden analyysi nostaa esiin kolme vuorovaikutuksen tasoa, joiden toimivuus edistää asiantuntijoiden halukkuutta käyttää työyhteisötaitojaan. Vakiintuneista malleista poiketen vuorovaikutuksen merkitys ja rakentava kriittisyys, analyyttisyys ja kyseenalaistamisen taidot nousevat keskeisiksi osiksi työyhteisön hyvää viestintäkäyttäytymistä. Ne ovat vuorovaikutuksellisia työyhteisötaitoja, joiden tutkimuksessamme katsottiin olevan koko yrityksen kehittymisen lähtökohta ja ilmentävän ymmärrystä sekä organisaation jäsenten taidosta ottaa vastuuta omasta työstään ja koko organisaation toiminnasta, että siitä, kuinka jokainen organisaation jäsen osallistuu organisaation aineettomaan arvonluontiin.
This chapter focuses on interpreting the motivations for choosing a cooperative as a business form for self-employment by reflecting how a cooperative of independent workers meets the needs of the self-employed. It presents the specificities of the Finnish model of cooperative of independent workers. In Finland, cooperatives are typically classified into four categories: producer cooperatives, consumer cooperatives, service cooperatives and small cooperatives. Cooperatives' operational principles and ownership structure are distinctively different compared with those of investor-owned companies. The cooperatives of independent workers are a new kind of economic self-help organization, where not only the economic goals but also the social aims and goals are important. Cooperatives are said to form a coherent social group where the interaction is characterized by trust and membership is based on both rational and emotional motives. The motivation to choose a cooperative is its features of safety, diversity, communality and freedom.
Member commitment is relevant for all businesses, but it is particularly crucial in co-operative context due to coops' unique characteristics. In a co-op, an owner's most important contribution is an active use of its services, not capital investment. So far, scholars have aimed at understanding the forms, cause and consequences of commitment. Namely, affective, calculative and normative commitment have been investigated. However, many studies addressing the topic in a co-op context have been theoretical. Additionally, the relationship of members' organizational commitment to other variables remains unclear. The purpose of this quantitative study is to examine the relationships between commitment's three forms (affective, continuance, normative) with trust, satisfaction and loyalty. The study was carried out in one of the regional co-operatives of S Group in Finland. The data consist of 3637 responses. A structural equation modeling was used as an analysis method. Results indicate that trust and satisfaction affect to commitment's three forms otherwise positively, but the relationship between satisfaction and normative commitment was negative. Affective and continuance commitment affected positively and normative commitment negatively to loyalty. The data indicates that trust, rather than satisfaction is a powerful positive driver to all three forms of commitment. Affective commitment affected loyalty as expected, but normative commitment affected negatively to loyalty. This research offers new insights to vastly discussed phenomenon of commitment by including more variables into examination. This is particularly relevant when researching commitment not only within organizations but among customers as well. Moreover, we also contribute to the discussion of organizational commitment in the context of consumer co-ops. We argue that co-op's unique features help explaining the research findings indicating that commitment has a particular meaning and interconnections in a model that is participative by nature, is characterized by dual nature and unique ownership structure based on patronage.
This article contributes to the discussion of differences in corporate missions in different business forms. The research target is a price-reducing act carried out by a Finnish consumer co-operative S Group. Once launched, this national operation was a nationwide news resulting in long-lasting discussions and debate in various forums by various parties.The research data consist of 27 newspaper articles published during a one- year period. A discourse analytic approach was used to identify the discourses drawn upon to construct versions of the campaign, its motivations and consequences. Four voices (S Group, Investor Owned Firm (IOF) K Group, reporters/the media and societal actors and/or experts) were identified from the data and their analysis reveals that the newspaper constructs a fragmented picture of the purpose, motivations, execution and future vision of the campaign.The discourse by S Group presents the price-reducing act as a long-lasting, mission-based strategic choice that is in accordance with a co-operative mission. The discourse of IOF constructs the campaign as a self-serving marketing trick and frames S Group as a copyist while K Group is presented as a socially responsible actor concerned for those who potentially carry the burden from the operation. The discourse constructed and upheld by media equalizes the actors by ignoring the differences in their corporate purpose. The discourses are characterized with doubt of alternative motives. They create and maintain juxtapositions between the actors. The societal actors call for extending the discussion in the more societal direction away from the price and towards discussing food as a multidimensional cultural phenomenon.In conclusion, the discourses reflect the widely adopted ideas of private ownership, profit maximization as the primary purpose of businesses and competition as a given setting in business life. Discourses widely reflect a lack of acknowledgement, awareness or knowledge regarding the unique features of a co-operative business model.
This paper studies doctors in Norway and Finland to compare how identities among professionals in managerial positions were expressed after changes in management in the aftermath of ‘New Public Management’ (NPM) reforms. Studying shifting identities provides a basis for investigating how institutions have changed and illuminates how agents within an organisation have implemented NPM-inspired reforms. Data from both countries revealed three groups: the majority of doctors/managers, who had a strong managerial identity; a smaller group who mainly identified as doctors; and a few doctors who displayed hybrid identities. Work experiences have a strong effect on how identity is perceived. Doctors who hold on to their professional identities seemed uneasy with their skills and ability to perform the tasks related to their new position. Many of the doctors were found to have altered their identities due to organisational amendments and the expanded focus on management-related issues. Hence, this paper concludes that a strong intervention in the sector from central government, as seen in Norway, has resulted in implementing general management to a larger degree than in Finland, but in a more hybrid manner. This is expressed through a focus on management, the institutional logics at stake and doctors’ identity formation.
This paper studies doctors in Norway and Finland to compare how identities among professionals in managerial positions were expressed after changes in management in the aftermath of ‘New Public Management’ (NPM) reforms. Studying shifting identities provides a basis for investigating how institutions have changed and illuminates how agents within an organisation have implemented NPM-inspired reforms. Data from both countries revealed three groups: the majority of doctors/managers, who had a strong managerial identity; a smaller group who mainly identified as doctors; and a few doctors who displayed hybrid identities. Work experiences have a strong effect on how identity is perceived. Doctors who hold on to their professional identities seemed uneasy with their skills and ability to perform the tasks related to their new position. Many of the doctors were found to have altered their identities due to organisational amendments and the expanded focus on management-related issues. Hence, this paper concludes that a strong intervention in the sector from central government, as seen in Norway, has resulted in implementing general management to a larger degree than in Finland, but in a more hybrid manner. This is expressed through a focus on management, the institutional logics at stake and doctors’ identity formation.
Purpose This paper aims to examine the dynamics of a community of practice (CoP) through a case study of eCars – Now! They offer open-source blueprints of the electric conversion kits globally. The authors analysed the CoP by considering its entire life cycle, starting from the motives for its establishment, through its active performance, up to the current stage, where the members need to decide whether the community will remain viable. Particular attention was paid to the group dynamics and issues that seemed relevant to the change in dynamics which determine whether a CoP maintains its vitality or dissipates. Design/methodology/approach The qualitative case study was chosen as the research strategy (Yin, 1984) to answer the research question and understand the target phenomenon of the CoP by analysing textual data. This particular case was chosen because of its unusual revelatory value for the case CoP which aims at creating a tangible innovation by using a platform that normally aims at intangible problem-solving (Eisenhardt and Graebner, 2007). In the data collection, the authors used method and researcher triangulation (Patton, 1990). Findings Life cycle analysis revealed four themes that explained the change in the group dynamics and the dispersal of the community: differentiation and dispersal of interests, growth that resulted in role differentiation, virtuality in community development and inclusion of investors. The themes were all related to the fact that the case community operated with not only knowledge, but also with a tangible product. Therefore, the tangibility of a problem to be solved seems to play a pivotal role in a CoP’s operations and dynamics and, in part, also explains the changing role of information and communications technology (ICT) in the process. Research limitations/implications However, this paper identified also different ways to characterize community participation, which was also relevant from group dynamics point of view. Thus, the topic should be studied further. Group dynamics in general, as it relates to the success of CoPs, should be also investigated further. Additional studies should implement the inclusion of external resources in the community. Further research is also needed to investigate tangible and intangible outcomes achieved through CoPs. Much of the available research was conducted over short periods; prolonged interactions in a CoP context could show different results. Practical implications In conclusion, at the beginning of the life cycle of the eCars community, ICT played a significant role. It helped increase awareness of the community in the first place and enabled people to join in, which thus enabled the community to evolve. When the operations evolved and the life cycle progressed, both the physical meeting place as well as personal interaction and communication became emphasized and much more important. In the maturing stage, the role of ICT, and especially social media, is the essential part of the community. Social implications This analysis suggests that at the early stage of a community, the plans can be somewhat random, even utopian, but when the community evolves, this uncertainty can become a problem. First, it affects achieving the actual, and in this case, concrete results. Second, uncertainty and unclarity dampen enthusiasm and motivation, which are of utmost importance due to the voluntary participation. This paper also concludes that when the operations evolved and the life cycle progressed, both the physical meeting place as well as personal interaction and communication became increasingly important. Originality/value This paper argues that the ideological basis for this kind of community should be openness. All information should be available for everyone who registers to the community platform on the internet. This community was working in the mindset of open innovation. Technical documentation and all other material were available for everyone in the community’s wiki pages, which attracted a lot of people who were delighted by eCars. Many advisors delivered technical information and good advice to the practitioners of the community through the platform. The hang arounds were also very well-informed in this stage regarding how the core group was working.
The motivation of this study is the ongoing attitudinal change towards more sustainable values and the notion of young people's frustration towards the "cold and hard values" gaining more foothold in our society. We used a mixed methods approach. At first we introduce findings of a quantitative survey collected from 3680 Finnish students identifying their personal values and attitudes towards different business forms. Benevolence, security and self-direction were the most appreciated values among the sample. In general it was perceived that hard values direct business life as a whole whereas attitudes towards co-operatives appeared positive. Next by using qualitative textual data gathered from 36 students we aimed at increasing understanding of why co-ops are perceived positively and how the established idea of co-operatives was interpreted. We identified four levels of discourses from the data, each describing co-operative ideas from different viewpoints: ideological, national, organizational and personal. Based on the findings, we conclude that co-operative ideology is regarded as appealing due to its emphasis on social responsibility. At the national level the data permits the conclusion that the attraction to co-operative values may partly be a culture-bound matter. At the organizational level responsibility and security were emphasized. Co-ops were perceived to stabilize the economy, contribute to local areas and provide individuals with secure employment. At the personal level these aspects were associated with security and continuity in the fast changing societies. We conclude that the co-op values seem to correspond well with the personal values of the youth and that the appeal of co-ops is based especially on the security that arises from co-op values and principles.
As people, values and times change, co-operatives also restructure themselves making the reappraisal of co-operative theory topical. This article contributes to the co-operative theory by exploring the very core of co-operative ideology, the dual nature. The literature review contributes to the theoretical basis regarding the most distinctive characteristic of a co-operative form of business by reasserting the concept of dual role. Secondly, the empirical case study explores the interpreted meanings and manifestation of dual role in a worker co-operative context. Based on the research, we suggest that considering the duality of co-operatives' goals, social and financial goals are not the ones defining and guiding the operations. Instead, individuality and communality are two rival forces that form an inherent contradiction in worker co-operative operations. The article highlights how individuality gains dominance in a co-operative due to its extreme democracy and flexible structure, and how this deteriorates communality, the bearing force of the community. Thus, we suggest that finding a balance between the conflicting needs and expectations of an individual member and the co-operative reflects the new dual nature' of co-operatives. We also argue that when properly balanced, both shared and individual goals will provide an ideal work community for modern entrepreneurs.(1) (C) 2016 Elsevier Ltd. All rights reserved.
A co-operative organization is an organized form of collaboration based on widely accepted international cooperative values and principles forming the core of co-operative identity. Pellervo is an interest group and a service organization for over 300 Finnish cooperatives. This study is based on data collected from Pellervo delegation members with an aim to examine, how co-operative ideology is interpreted among a group that consists of key people in co-operative organizations. Data is interesting because Finland is the most co-operative country in the world and Pellervo delegation represents Finnish co-operative organizations broadly. By using qualitative text analysis method we studied how the 27 members of the delegation construct the meaning of co-operative movement and co-operative organizations. The aim was to understand how co-operative identity was interpreted and if the interpretations were collective of fragmented. Based on the analysis we conclude that the interpretations regarding co-operative identity, its central, distinctive and enduring features, were interpreted very collectively. Since the study is based on the premises of interpretative research paradigm, we believe identity at a collective level is an evolving phenomenon constructed by individual interpretations. The findings suggest that co-operative ideology should be promoted actively and with high quality in all areas of life in order to create and maintain the identity of co-operative ideology in the society.