Developing a conceptual framework for the co-operative and mutual enterprise business model

Abstract

The co-operative and mutual enterprise business model represents a unique type of organisation that has a dual purpose focused on both economic and social goals. For nearly two centuries it has played an important role in economic development, job creation and addressing market failures. However, despite its potential importance to economic development it has been largely ignored within the mainstream economics and management literature. This paper provides an overview of the nature of the co-operative and mutual enterprise business model and also proposes a business model framework or ‘canvas’ that can be used for research, teaching and strategic analysis.

Business model innovation at the bottom of the pyramid – A case of mobile money agents

“… Business Model Conceptualization Definition Literature source Description A set of choices, decisions, resources, and actions that are performed to create business value Afuah, 2004 , Aversa et al, 2015 , Baden-Fuller and Morgan, 2010 , Casadesus-Masanell and Heilbron, 2015 , Girotra and Netessine, 2014 A description of a firm’s roles, responsibilities, resources, and relationships Cosenz, 2017 , Casprini et al, 2014 , Fielt, 2014 , Markides, 2015 , Osterwalder and Pigneur, 2010 , Morris et al, 2006 Structure An architecture or system that aggregates resources for business success Al-Aali and Teece, 2013 , Amit and Zott, 2012 , Baden-Fuller and Haefliger, 2013 , Chatterjee, 2013 , Kavadias et al, 2016 , Kohler, 2015 , Page and Spira, 2016 , Teece, 2010 , Timmers, 1998 , Zott and Amit, 2010 . An architecture of the product, service, and information flows including a description of the various business actors and their roles and a description of the potential benefits for the various business actors as well as a description of the sources of revenue Mazzarol et al, 2018 , Timmers, 1998 Unit of Analysis A method of harnessing a firm’s resources to better serve customers and remain competitive and sustainable Afua and Tucci (2003) A system of independent activities that transcend the focal firm and spans its boundaries Amit and Zott, 2012 , Zott and Amit, 2010 A business articulation that provides an understanding of a firm’s activity portfolio …”

Achieving sustainability requires systemic business transformation

“…For example, companies established as or that become B Corporations attempt to explicitly balance purpose and profit and are required to consider how their decisions affect a range of stakeholders, including workers, customers, suppliers, their communities and the natural environment (e.g., Clark & Babson, 2012). Other companies have historically had (or sometimes adopted) structures that allow for more democratic operations, such as cooperatives (Mazzarol et al, 2018) and employee share ownership plans (ESOPs) (Betit, 2017). A few others pursue open-book policies (Stack & Burlingham, 2013), in which employees and other key stakeholders are exposed to the company's books so that they understand where and how resources flow.…”

The Hybridization of Credit Co-Operatives in the Tradition of F.W. Raiffeisen: The Austrian Example

“…There have been various attempts to break down the member-value proposition of co-operatives into partial benefits (Bhattacharya & Sen, 2004;Byrne & McCarthy, 2014;Mazzarol, Clark, Reboud, & Limnios, 2018;Weidmann, 1996). According to the literature, the membership value is composed of five components (Beuthien, Hanrath, & Weber, 2008;Fischer, 2009;Grosskopf, 1990;Ringle, 2006):…”