Retail cooperatives: group size, group identification, communication frequency and relationship effectiveness

Abstract

Observes that the group size of some US retail hardware cooperatives increased during the 1990s, as cooperative managements strove to increase the quantity and quality of group members. For example, a 1997 merger doubled the membership of one group. Large size was deemed necessary to achieve the economies of scope and scale needed to compete in an intense retail marketplace. Group research generally shows that large size has a negative impact on group dynamics. The current study examines size of retail hardware cooperative groups in relation to group identification, communication frequency, and relationship effectiveness. Findings show that size does not influence the relationships between the variables in the study. Also, a member’s level of group identification is a primary driver of perceptions of relationship effectiveness. The higher the identification with the group, the more effective the relationship is perceived to be by the member.