z-logo
open-access-imgOpen Access
A Tool to be Used Deliberately: Investigating the Role of Profit in Consumer Co-operatives
Author(s) -
Terhi Tuominen,
Pasi Tuominen,
Iiro Jussila
Publication year - 2013
Publication title -
international business research
Language(s) - English
Resource type - Journals
eISSN - 1913-9012
pISSN - 1913-9004
DOI - 10.5539/ibr.v6n11p122
Subject(s) - optimal distinctiveness theory , profit (economics) , corporate governance , business , marketing , shareholder , economics , microeconomics , psychology , finance , social psychology

Profit is a controversial concept in co-operative literature. It is primarily associated with shareholder corporations and, thereby, sometimes seen as concealing the distinctiveness of the co-operative model. Following our observations from Finnish consumer co-operatives, which highlight the importance of profit, we decided to investigate its role in more detail by thematically analyzing twenty qualitative interviews with S Group executives and key representatives of governance, asking: why do consumer co-operatives make profit? The findings provide co-operative researchers and practitioners with a more comprehensive understanding on the chain of reasons underlying profit-making in consumer co-operatives. Importantly, the findings also suggest that profit is approached in consumer co-operatives differently than in shareholder corporations and that the difference can be traced back to the set of ideas that make the co-operative a unique model of economic organization.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.
Having issues? You can contact us here