How production cooperatives operating a sharing economy business model innovate in rural places

Abstract

In this study, we investigate how production Cooperatives with a Sharing Economy Business Model (CSE‐BMs) foster innovations in structurally weak rural places. Taking a place‐based social capital perspective, we argue that the strength of CSE‐BMs in developing process, service, product, and social innovation lies in their ability to reconfigure shared resources across communities and actors located on different levels of power and with different access to resources. Empirically, we reconstruct the mobilization and reconfiguration of shared resources across the network in an in‐depth case study of a CSE‐BM in rural Greece. We find that CSE‐BMs can mobilize resources across the network by offering value propositions that stakeholders regard as credible because decision‐makers show attachment to the place. To realize sufficient value for members to sustain their contributions to the CSE‐BM, product, service, and process innovations are complemented by social innovations. Mobilizing and reconfiguring shared resources across different interest groups unleashes the innovative potential of CSE‐BMs but causes tensions between different mindsets at the same time. Cooperatives offer an organizational structure to turn these tensions from a threat into an opportunity for innovation. Our findings contribute to the Sharing Economy Business Model (SE‐BM) literature on typology building and the construction of ideal types. We also advance the SE‐BM debate by shedding light on the potential of cooperative forms of organizing collaborative production in the sharing economy. Practically, we contribute to the discussion about the importance of physical vs. digital platforms as intermediaries in SE‐BMs.