Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust

Abstract

Several researchers, who have observed that traditional cooperatives have difficulties in modern markets, mention a number of behavioral concepts characterizing the members. This study attempts to empirically test these concepts. It is based on a survey among members of a large traditional Swedish cooperative. The members perceive the cooperative to be so large and complex that they have difficulties understanding the operations. Hence, they become dissatisfied and uninvolved, and they mistrust the leadership. Moreover, they do not believe that the cooperative can be remodeled to strengthen member control. The findings support the behavioral explanations presented in prior studies.

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