What roles do SME members have in cooperatives?

Abstract

What makes the cooperative business model unique is the various roles members have. We interviewed executives and members of four large Australian cooperatives to determine what these roles were. Our results show differences in terminologies and a conflation of member roles relating to patronage, ownership, investment, and community membership. We introduced the “Four Hats” (4Hs) framework suggested by Mamouni Limnios et al. (2018), which describes the distinct roles of patron, investor, owner, and community member. All interviewees responded positively to these roles. By isolating these specific roles, potential strategies to activate these roles can be developed to improve participation. Executives rated in order of importance, the patron, owner, community member and investor roles. Members rated in order of importance, the owner, investor, patron and community member roles. • Executives and members utilised different terminologies to define member roles. • Many of the roles were conflated such as the investor/owner role. • After being prompted, members rated being an owner first, whilst executives rated patron. • The owner role was strong when the threat of de-mutualisation appeared. • Member roles could be activated to increase active member participation.