GOVERNANCE OF NINE ONTARIO FOOD CO-OPERATIVES

Abstract

Questions on the use of current theories of governance for co-operative businesses are prevalent within the literature. This paper seeks to determine if the theory of cyclical board behavior can provide insight into the evolution of co-operative boards within food co-operatives in Ontario, Canada. To answer these questions managers from food co-operatives participated in a one-hour long, semi-structured interview providing their understanding of the governance within their co-operatives. Managers identified board member engagement, the changing role of the board and succession planning as issues of concern. Engagement level of board members varied from a lack of participation to overbearing participation, which caused tensions within the co-operative. Current governance theories do not appear to adequately explain governance within a co-operative structure. A single, universal governance framework does not address the complexities of a member owned firm. The cyclical board behavior, however, does provide insight into co-operative board evolution.