Cooperative | EPFL Graph Search

A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise". Cooperatives are democratically controlled by their members, with each member having one vote in electing the board of directors. Cooperatives may include:

businesses owned and managed by the people who consume their goods and/or services (a consumer cooperative)
businesses where producers pool their output for their common benefit (a producer cooperative)
businesses owned and managed by the people who work there (a worker cooperative)
businesses where members pool their purchasing power (a purchasing cooperative)
multi-stakeholder or hybrid cooperatives that share ownership between different stakeholder groups. For example, care cooperatives where ownership is shared between both care-givers and receivers. Stakeholder

Producer cooperatives influence on competitive dynamics: the Azorean case

Joana Rodrigues Pereira

The aim of this paper is twofold: first, I aim at understanding how producer cooperatives compete in the factor markets; and second, I analyse how producer cooperatives influence the competitive dynamics of the markets where they compete. With this paper we aim at bringing a strategic perspective of this phenomenon. This paper follows a single case study qualitative analysis. The empirical context is the dairy market of the Azorean island Sao Miguel (in Portugal), more specifically, the milk factor market. This empirical context is adequate for the following reasons: first, because it is possible to isolate the market and its players in a quasi-experimental fashion (because it is a island); second, it presents a stable cooperative tradition; and third, cooperatives compete side-by-side with private firms (the cooperative Union represent 50% of the factor dairy market and the 3 other private firms represent the remaining 50%). The main data sources were local newspaper articles (322 in total) and interviews (31 in total with all market players). The data was coded in different categories, such as players’ characteristics, strategic positioning, strategic moves, and context/external shocks. The results reveal that on the factor market side, as buyer, the cooperative presents a “proudly first” positioning. This buyer positioning reflects the effort of the cooperative to always set the higher price and the best conditions on the factor market. This positioning contrasts with other private players that have adopted “Please stay” and “I don’t care” positioning. The results have also point out that the increase of the cooperative market share in the factor market, is leading to increased market competition. There is evidence that the cooperative is driving up the total number of strategic moves in the market that were predominantly oriented to price increases. On the theoretical part, some interesting inputs emerged on the concept of buyers strategic positioning. The results also challenge competitive dynamics studies, which defend that when the concentration in the market increases, the competitive activity decreases. Surprisingly, I have observed the opposite effect and I argue that is due to the cooperative influence. Additionally, the paper defends that producer cooperatives are able to drive factor market competition in markets where there are severe asymmetries of power. Such studies can increase our knowledge about the local impact of cooperatives and the circumstances under which cooperatives are an efficient alternative to the public and private sectors.

2016

The Cooperative model in the globalized market: the case of Azorean Agriculture Cooperatives

Joana Rodrigues Pereira

This paper aims at answering the questions when and how do cooperatives compete in the globalised world? With the goal to answer these questions, a qualitative study was conducted based on a sample of 9 consumer and producer farmer cooperatives operating in Sao Miguel. Sao Miguel is an Azorean island, which main economic activity relies on the agriculture market, where cooperatives compete in the national and international markets. The results point that Azores presents specific characteristics in terms of geography, market size, market characteristics and members characteristics that helps to understand why the cooperative model is a viable organisational form in this market. The second part of the results clarifies how these cooperatives are able to compete in the international arena. Their strategies encompass offering the best service or the best product; competing through cooperative networks. They also present professional management and operate under small margins, aiming at maximising benefit instead of profits. This paper sheds light to the role of cooperatives in local and global economies, and also questions whether cooperatives are inefficient/efficient organisations and under which conditions.

2015

What drives the development of community energy in Europe? The case of wind power cooperatives

Thomas Jean F Bauwens

The dominant model of energy infrastructure has historically been conceived in a very centralized fashion, i.e., with hardly any citizen involvement in energy generation. Yet, increasing attention is being paid to the transition process towards a more decentralized configuration. This article examines the factors likely to foster citizen and community participation as regards wind power cooperatives in Denmark, Germany, Belgium and the UK. Using Elinor Ostrom’s Social-Ecological System Framework, the analysis highlights a double-edged phenomenon: prevailing and growing hostility toward cooperatives, on the one hand, and, on the other, strategic reactions to this evolution. What comes out indeed is that, throughout most of these countries, the emergence of some coordinated inter-organizational actions among cooperatives enables them to survive in their critical environment.

2016

Producer cooperatives influence on competitive dynamics: the Azorean case

Joana Rodrigues Pereira

2016