An Empirical Analysis of German and Italian Cooperatives as the Drivers of Social and Economic Promotion – A Systemic and Managerial Perspective

Absztrakt (kivonat)

In general, cooperatives embody a combination of social mission and the need to be successful in the market. Democratic participation, community development, sustainable economic promotion, and resilience against crises are but a few of these characteristics. Some authors argue that cooperatives cannot stand a chance in a capitalist economy. Often referred to as degeneration, cooperatives would be corrupted by the necessity to outperform the competition and therefore adopt a governance style that is more hierarchical and authoritarian. Others advance the opposing view that cooperatives would imply a competitive advantage since the motivation of their members is increased through such a governance system. Social innovation is a term that is frequently used in this context. The expression underlines the necessity for democratic organizations to foster economic promotion and bolster interconnectedness among different cooperatives. The adherence to cooperative principles formulated by the ICA (1995) marks an indicator of the economic success of cooperatives. Cooperatives internalize market externalities, which poses another argument for this governance form. The vision goes beyond shareholder-driven decisions towards a stakeholder-oriented approach. Based on that, the following research questions will be included in the assessment: 1. What is the role of cooperatives in their respective environment and what kind of transfer takes place? 2. What strengths do cooperatives poses and is degeneration a threatening? 3. Which challenges cooperatives face in their founding phase and what lead to the decision towards a cooperative? 4. Are best practices that can be transferred to other companies or cooperatives, expanding the scope of nationality and sector?