Abstract

ABSTRACT*: This article emphasizes that the cooperative form of organization has an important role to play in developing the institutional variety in the market economy. Cooperatives are important tools for counteracting monopolies and monopsonies. Cooperatives may be analysed in terms of network organizations that enable weaker actors in the market to develop businesses that are beneficial both for themselves as users as well as for the larger national society. The development of new cooperatives is highly dependent on existing social networks in the local environment. Actors trying to promote the establishment of new cooperatives therefore have better chances of success if existing social networks are used as bases for the development of member‐owned businesses.

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