The Dynamics of Federations of Consumer Co-operatives: Challenges to Co-operative Governance

TOPIC 19 – STAGE 5 - MICRO This paper, co-authored by an academic and a retired co-op federation president, combines theory and examples to investigate how governance challenges play out in federations of co-operatives and... [ view full abstract ]

TOPIC 19 – STAGE 5 - MICRO

This paper, co-authored by an academic and a retired co-op federation president, combines theory and examples to investigate how governance challenges play out in federations of co-operatives and to highlight the critical roles of boards of directors in federations. The paper has four parts, beginning with an introduction that sets out a practitioner’s observations about leadership problems in federations of consumer co-operatives. The second part brings in relevant organizational theory, conceptualizing federated organizations as ones involving two autonomous levels. The nature of federations create special problems of cohesion, leadership, and interlevel co-ordination. The third part of the paper refers to high-profile examples of governance challenges in consumer co-operatives, focusing on one of these: the demise of Co-op Atlantic in 2015. The concluding section of the paper suggests topics for consideration by researchers and by co-operative leaders. Chief among these are issues of identity and cognition, especially the need for leaders and managers to understand the co-operative business model and the distinctive complexities of federations. Co-operative federations may need special and heightened requirements for director competency if they are to thrive.


References

Brett Fairbairn, Murray Fulton, and Dionne Pohler 2015. “Governance of co-operative federations: Principles and a framework for research.” ICA Research International Conference, Paris.