This paper was produced as part of an Australian Research Council (ARC) linkage grant project co-funded by Co-operatives WA in conjunction with Co-operative Bulk Handling (CBH) Group, Capricorn Society Ltd and Ravensdown.
Cooperative and mutual enterprises (CMEs) are organisations in which buyers or suppliers are also the owners, shareholders and members of a community of purpose. Member heterogeneity and commitment have been reported in the literature, but the drivers of member commitment remain poorly understood. This paper proposes that members identify with their CME as patrons, investors, owners, and community members; wearing "Four Hats" (4Hs). A case study analysis of three Australian producer cooperatives examined directors and managers perceptions of factors influencing members' commitment and delivery of a member value proposition. The 4Hs emerge as stable patterns and the cross-case analysis illustrates their strategic importance and link to member value proposition.
Purpose
The purpose of this paper is to present findings from a large-scale survey of members of co-operative and mutual enterprises (CMEs) that examines the factors influencing members’ intentions to remain loyal to the enterprise and to provide word of mouth (WOM).
Design/methodology/approach
A model was suggested and tested to examine the interrelationships between constructs measuring emotional, functional and financial value, affective and continuance commitment, intention to remain loyal to a CME and WOM communication. A large sample was drawn from a range of co-operative and mutual enterprises, and the suggested model was estimated using a partial least squares approach.
Findings
Significant relationships were found between all constructs. However, emotional value and affective commitment were found to have particularly strong relationships. Emotional value had a strong influence on both affective and continuance commitment, while affective commitment had a strong influence on loyalty and WOM.
Originality/value
This paper provides empirical support for suggestions about the factors that influence member loyalty within CMEs and the relative importance of non-financial motivations. It also provides a strong foundation upon which directors and executive managers of CMEs can build more effective member marketing and communications strategies.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.