Exploring Draheim's three dimensions of success in cooperative organizations—the case of collective Alpine summer farms

Abstract

AbstractThe important distinction among an organization's profits, the economic benefits generated for its members and the generation of social capital, as the three functions of a cooperative, goes back to the German economist Georg Draheim. We explore these dimensions in a survey of 793 Alpine summer farming collectives in Switzerland and in subsequent in‐depth interviews. Exclusive institutional choices, such as restricted membership, decrease economic performance. Prioritizing economic success increases both the profits and economic benefits for members, whereas the prioritization of social values, such as self‐determination and traditions, positively affects social success. However, all three objectives are positively correlated, and the qualitative interview shows how interwoven social and economic benefits often are.