2013
DOI: 10.5947/jeod.2013.001
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The potential of co-operatives during the current recession; theorizing comparative advantage

Abstract: JEL Classification: D23; L21; M21; P13 | DOI: http://dx.doi.org/10. 5947/jeod.2013.001 This paper asks how effective are co-operatives at surviving economic recession, and whether they can grow at the expense of investor-owned businesses and provide an alternative business model that is fairer, more stable and less risky. The paper begins by providing historical evidence concerning the resilience of co-operatives during economic crises. Then, taking a 'member-owned business' approach, it analyses the compar… Show more

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Cited by 75 publications
(105 citation statements)
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“…In this context arose the question of the manner in which social economy organizations were able to survive, with many authors considering these organizations to be a response to the social problems caused by the crisis (Stiglitz 2009;Birchall 2013). Pérotin (2006), for example, observed that the creation of cooperatives was largely anti-cyclical.…”
Section: Introductionmentioning
confidence: 99%
“…In this context arose the question of the manner in which social economy organizations were able to survive, with many authors considering these organizations to be a response to the social problems caused by the crisis (Stiglitz 2009;Birchall 2013). Pérotin (2006), for example, observed that the creation of cooperatives was largely anti-cyclical.…”
Section: Introductionmentioning
confidence: 99%
“…General discussion and implications Member-customer proximity enables co-ops to thrive, even when other business forms might fail, as in times of crisis (Birchall, 2013;Byrne et al, 2015). This inherent relational proximity, however, is challenged by the core threat of membership "distance", which acts as a relationship poison.…”
Section: 80mentioning
confidence: 99%
“…Table 2 demonstrates that co-operatives and business organizations do not stand simply in opposition in regard to organizational features and values; their division is not clean cut conceptually or practically. The survival of co-operatives likely depends on their ability to compete with other business types (Birchall 2013) with threats to their identity exacerbated in times of economic difficulty or transformation. Somerville (2007) has underlined the potential conflict to co-operative identity that can be generated when the principle of membership ownership and control is abandoned or when the exercise of internal democracy is weakened.…”
Section: Meta-level: Values and Legitimacymentioning
confidence: 99%