Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study

Theo Benos,Ko De Ruyter,Joost M.E Pennings,Martin Wetzels,Nikos Kalogeras

doi:10.3390/su10124536

Abstract

The cooperative organizational form is by nature a sustainable one, which has proved to be resilient in the face of crises and a solid lever in addressing present-day societal challenges. Still, little is known about its socio-economic impact. Also, despite the plethora of studies on cooperative performance, research remains inconclusive about how to best measure it. In fact, scholarly work has largely favored the use of appraisal tools reflecting those of investor-owned firms (IOFs), having undermined the dual idiosyncratic nature of the cooperative organizational form, which is manifest in the business and social-membership objectives. The goal of this article is to fill these gaps by delivering a comprehensive dashboard for cooperative performance assessment that harmonizes business–social aspects and catalogs the basic components for future attempts. To reach this goal, we used an extensive review of empirical research in cooperative performance (phase 1) and a Delphi study with 14 experts (phase 2). In addition, we reviewed comparable research efforts for a business form (social enterprises) that combines business with social goals and faces similar challenges (phase 3). This inquiry was particularly insightful for the social perspective and the overlooked role of cooperatives as a socially-embedded organizational form that hardly documents its societal impact and outreach.

Highlights

On the “International Day of Cooperatives” in 2015, the former United Nations Secretary-General Ban Ki-Moon appealed for all people to “recommit to the cooperative business model, which could help make the vision of a sustainable future a reality for everyone” [1]
A third of the studies focused on the United States (USA), a bit more than a third (i.e., 37%) considered European countries, and the rest centered on countries from Asia (e.g., India, Japan, China), Africa (e.g., Ethiopia, Kenya), Latin America (e.g., Brazil, Costa Rica), and Australia or Canada
We present the sub-categories in which each study was classified next to the metrics employed

Summary

Introduction

On the “International Day of Cooperatives” in 2015, the former United Nations Secretary-General Ban Ki-Moon appealed for all people to “recommit to the cooperative business model, which could help make the vision of a sustainable future a reality for everyone” [1]. As member-owned, value-based, people-centered and principle-driven organizations, cooperative enterprises are by nature a sustainable and participatory business form, which have shown remarkable resilience in the face of economic and financial crises [2,3]. The cooperative organizational form has proved to be suited in addressing contemporary societal challenges too, such as protecting the environment (e.g., organic farming and consumption, financing of environmentally friendly projects), mainstreaming product-related novelties (e.g., fair trade, nutritional labelling), and providing a range of affordable financial services to or securing employment for marginalized groups (e.g., hiring or granting loans to socially disadvantaged people) [8,9]. The “World Co-operative Monitor” initiative is practically the only regular public reporting of economic and social data on the global cooperative movement [20]. The need for conceptual and empirical consolidation of research on the issue of cooperative performance measurement remains pertinent [11]

Methods

Results

Conclusion