The quality of institutions indicates the level of economic development in the country. Institutions are a part of a system that is based on human interactions and that leads to the generation of incentives. These incentives can deal with uncertainties and foster economic, social, political growth, provided the human interactions are moderated well. This paper reflects on the strength of the interventionalist institutions like cooperatives in India and promotes institution building for a better future. The base of the paper focuses on the lessons learnt from dairy cooperatives in Gujarat state and discusses the current situation of the cooperatives and challenges faced by them. The cooperatives in India have been old institutions with a great history of success as also failures. Though there are various types of cooperatives in India, the dairy cooperatives have been able to gain more attention in the international market due to the Operation Floods I, II, and III. India has secured its position as one of the largest milk producers in the world. At present, India produces 20% of the total milk production in the world. This paper is a blend and analysis of theoretical perspectives and ground realities of the dairy cooperative sector in India. The paper follows theoretical perspectives from institutional theory to analyse the present scenario of dairy cooperatives in India. It addresses the gaps in the dairy cooperative development sector with an in‐depth analysis of ground realities and contributes to future policy formulation and interventions.

PurposeExtant literature indicates that people use existing social networks for various collective activities as there is a cost involved to create and maintain separate networks for different activities. The authors build on the relational sociology framework and test this assertion in by examining a dairy cooperative society, which is a community organization. We hypothesize that the cooperative members are likely to use existing social networks to operationalize their cooperative (dairy-related matters) and other social and personal relations. This study tests the hypothesis by studying information sharing relations among the dairy cooperative members in two different social networks: the dairy information network and social information network.Design/methodology/approachThis study uses social network analysis to analyze relational data.FindingsThe study finds that the members of the dairy cooperative maintain both information sharing networks separately and that each network has different control and efficiency mechanisms.Originality/valueThe findings contradict the assertions of existing literature and establish that people ensure their business relations remain separated from their social relations to avoid the possibility of social conflicts affecting their business activities.

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