Competitive Advantages of Consumer Co-operatives

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Competitive Advantages of Consumer Co-operatives

• Dr. Lou Hammond Ketilson
• Director, Centre for the Study of Co-operatives
• September 2009
• www.usaskstudies.coop

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Overview of Presentation

• What do we know about Consumer Co-operatives?
• What are some of the central debates among
  researchers?
• What do we need to know about Consumer
  Co-operatives?
• How do we find answers to these questions?

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What do we know about Consumer Co-operatives

• Long and successful history
• Top 15 of Global 300 list only one is not a
  consumer co-operative
• Model has spread around the world typically
  takes a form consistent with local context but
  there are many similarities across countries

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What do we know about Consumer Co-operatives

• There is great diversity in application
• Retail/wholesale co-ops
• Financial and Insurance Services
• Service co-operatives
• Funeral
• Housing
• Child care
• Preschool
• Eldercare

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Great diversity in application

• Health care
• Water supply, natural gas, rural electric
• Recreational
• Transportation, communication
• Community development

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What do we know about Consumer Co-operatives

• Many pressures come to bear
• Governance
• Management
• Financing
• Competition from private sector
• Lack of understanding in government

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What do we know about Consumer Co-operatives

• The model is resilient in times of economic
  crisis
• Resilience of the Cooperative Business Model
  in Times of Crisis
• -International Labour Organization, 2009

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Central Debates in the Literature

• Centralized vs decentralized structures
• Strengths or weaknesses of federated structures
• Impact of amalgamations on member
  identity/loyalty
• Role and composition of boards of directors

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Central Debates in the Literature

• Financing models
• Role of/impact of outside investors
• Efficiency
• comparative studies with IOF
• Role of government
• Developing economies
• Member Engagement
• particularly youth, also women, minorities,
  Indigenous groups

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What do we need to know about Consumer
Co-operatives

• Answers to all of the above!
• How do we do this? By integrating theory and
  practice what does this mean?

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Approaches to Research

• University-based conceptual and theoretical
• Sector-based applied research and training
• Integrated - collaboration between sector and
  university

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Examples

• United States
• University of Wisconsin Center for Cooperatives
  Madison
• United Kingdom
• Centre for Co-operative Studies University
  College Cork Ireland
• The Co-operative College Manchester England

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Examples

• Europe
• European Research Institute on Co-operative and
  Social Enterprises (EURICSE), Trento Italy
• Ruralia Institute, University of Helsinki
• Asia Pacific
• Consumer Cooperative Institute, Japan

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Co-operatives in Canada

• At least 4 in 10 Canadians are members
• 17.2 million memberships
• 9 million in Canadian Co-operative Association
  affiliates
• Over 280 billion in assets
• 9,000 co-ops
• With 170,000 employees
• 70,000 volunteer directors

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Co-operatives in Canada, 2005

• Map

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Canada

• British Columbia Institute for Co-operative
  Studies
• l'Institut de recherche et d'éducation pour les
  coopératives et les mutuelles Université de
  Sherbrooke

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Centre for the Study of Co-operatives
Saskatchewan Canada

• interdisciplinary teaching and research institute
• established in 1984
• supported by the university, the co-op sector,
  the Governmentof Saskatchewan
• part of an international network ofsimilar
  centres
• largest in Anglophone Canada
• most research oriented in NA
• one of most interdisciplinaryin the world
• long-term community-university partnership

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What We Do

• develop courses that provide an understanding
  ofco-op theory, principles, development,
  structures,and legislation
• undertake original research into co-operatives
• publish co-operative research, by both
  centrestaff and other researchers
• maintain a resource centre of materials that
  supports our teaching and research functions
• share our knowledge and experience through
  outreach activities

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Research

• political, social, economic, and historical
  issues relating to co-operatives
• conceptual and applied research each informed
  by the other
• research is grounded, community-based,
  interdisciplinary
• research model is collaborative creating
  linkages, building networks
• audience includes academics, policy makers, and
  practitioners

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Visiting Research Fellows

• program promotes research focusedon
  co-operatives
• supports both academics and co-op practitioners
• fellows are in residence at the centre
• develop a research paper, present seminars, and
  provide guest lectures

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The Centres Websites

• www.usaskstudies.coop
• www.socialcohesion.coop
• www.usaskstudies.coop/socialeconomy

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ICA Committee on Co-operative
Research

• 1957 Research Officers Group,
• 1970's ICA Research, Planning and Development
  Group
• Today functions as a network open to all those
  interested in sharing research on the
  co-operative model of enterprise

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ICA Committee on Co-operative
Research

• International conferences
• Oxford 2-3 September 2009
• Regional conferences
• Research Symposium Geneva 17 November 2009
• Successful Models for Achieving a Collaborative
  Research Agenda

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Thank You!