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This chapter sets the stage for differentiation between governance systems in cooperatives, taking context into consideration through select key defining variables. Governance systems include structures, processes, and their dynamic interplay in response to internal and external forces (Eckart, Cooperative governance: A third way towards competitive advantage, Südwestdeutscher Verlag für Hochschulschriften, 2009). Governance structures in cooperatives will be impacted by the organization’s purpose and the nature of the members’ relationship with the cooperative; processes are democratic, but situation dependent and not uniform; and the dynamics of organizational change involve the co-op’s adaptation and evolution in response to external and internal forces influencing members’ evolving needs and goals (including impact on future generations).
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