COOPERATIVE RESEARCH IN COOPERATIVE RESEARCH IN FINLAND AND GLOBALLYFINLAND AND GLOBALLY

Iiro Jussila, Panu Kalmi & Eliisa TrobergIiro Jussila, Panu Kalmi & Eliisa Troberg

May 2008May 2008

CONTENTSCONTENTS

IntroductionIntroduction Objectives of this surveyObjectives of this survey How the survey was performedHow the survey was performed Cooperative research in economicsCooperative research in economics Cooperative research in business Cooperative research in business economics; management and organisationeconomics; management and organisation Research on social economy and social Research on social economy and social entrepreneurshipentrepreneurship Research on cooperative joint enterprises Research on cooperative joint enterprises and new implementationsand new implementations ConclusionsConclusions

IntroductionIntroduction Cooperative research has been based upon the Cooperative research has been based upon the international cooperative principles originated from international cooperative principles originated from Rochdale in the 1840-ties. The International Rochdale in the 1840-ties. The International Cooperative Alliance (ICA) renewed these Cooperative Alliance (ICA) renewed these fundaments for cooperative identity in 1995.fundaments for cooperative identity in 1995.

During the last two centuries cooperation has During the last two centuries cooperation has spread all over the world. There are many spread all over the world. There are many implementations of cooperation and cooperative implementations of cooperation and cooperative research is performed in many scientific disciplines research is performed in many scientific disciplines worldwide in universities and colleges. worldwide in universities and colleges.

Research is made both within cooperative Research is made both within cooperative institutes and on university departments in institutes and on university departments in different countries. The major part of the research different countries. The major part of the research is done outside the actual research units.is done outside the actual research units.

Introduction continued . .Introduction continued . . Of the academic research organisations among the strongest are Of the academic research organisations among the strongest are

CIRIEC (International Center of Research and Information on the CIRIEC (International Center of Research and Information on the Public, Social and Cooperative Economy). It is active with cooperative Public, Social and Cooperative Economy). It is active with cooperative research in universities and research institutes in Latin language research in universities and research institutes in Latin language countries (French, Spanish, Portuguese)countries (French, Spanish, Portuguese)AGI (Arbeitsgemeinschaft genossenschaftswissenschaftlicher AGI (Arbeitsgemeinschaft genossenschaftswissenschaftlicher Institute) which gathers cooperative research in German language Institute) which gathers cooperative research in German language universities in Central Europeuniversities in Central EuropeThe networks between researchers on cooperation i Asia. Africa and The networks between researchers on cooperation i Asia. Africa and North America. North America.

for example general and regional seminars of ICA and seminars for example general and regional seminars of ICA and seminars arranged by CIRIEC, AGI or the networks mentioned above.arranged by CIRIEC, AGI or the networks mentioned above.

Scientific periodicals and journals like ICA’s Review of Scientific periodicals and journals like ICA’s Review of International Co-operation, CIRIEC’s Annals of Public and Co-International Co-operation, CIRIEC’s Annals of Public and Co-operative Economy, AGI’s Zeitschrift fur das gesamte operative Economy, AGI’s Zeitschrift fur das gesamte Genossenschaftswesen, Journal of Rural Cooperation published in Genossenschaftswesen, Journal of Rural Cooperation published in Israel and the Swedish Kooperativ Årsbok published by Israel and the Swedish Kooperativ Årsbok published by Kooperativa Föreningen. Kooperativa Föreningen.

Objectives of this surveyObjectives of this surveyTo bring forward the different research areas To bring forward the different research areas on cooperatives and social economy both in on cooperatives and social economy both in Finland and globallyFinland and globally

To find out the position of Finnish To find out the position of Finnish cooperative research within international cooperative research within international researchresearch

This survey focuses on research within This survey focuses on research within economics, business economics and economics, business economics and management as well as the different fields of management as well as the different fields of social sciences. The majority of all research social sciences. The majority of all research on cooperatives is made within these on cooperatives is made within these disciplines.disciplines.

How the survey was How the survey was performedperformed

This survey has been performed by This survey has been performed by using cooperative research literature using cooperative research literature and other documentationand other documentation Documentation includes Documentation includes examination of the central examination of the central cooperative research institutes in cooperative research institutes in different countries, material from different countries, material from recent cooperative conferences and recent cooperative conferences and international journals.international journals.

Cooperative research in Cooperative research in economicseconomics

There was a lot of research on cooperation There was a lot of research on cooperation within economics before World War II. After that within economics before World War II. After that interest faded.interest faded.

Every now and then this subject becomes Every now and then this subject becomes popular – for instance a lot of research was popular – for instance a lot of research was made on worker self-managed enterprises in the made on worker self-managed enterprises in the 1970-ties.1970-ties.

The hottest subject of today is microfinance in The hottest subject of today is microfinance in developing countriesdeveloping countries

Cooperative research in economics continued . Cooperative research in economics continued .

Research on cooperative banks and mutual Research on cooperative banks and mutual insurance, especially effectiveness comparisonsinsurance, especially effectiveness comparisons IMF active on research on cooperative banks IMF active on research on cooperative banks recentlyrecently In agriculture economics common with studies In agriculture economics common with studies on cooperationon cooperation Less studies on cooperative retail societies or Less studies on cooperative retail societies or housing cooperativeshousing cooperatives Many journals publish occasionally, all top Many journals publish occasionally, all top journals have some papers on cooperationjournals have some papers on cooperation

Cooperative research in Cooperative research in Finnish national economic Finnish national economic

sciencescience Pellervo economic research Pellervo economic research institute PTT, focuses on food institute PTT, focuses on food industryindustry The Department of Economics at The Department of Economics at Helsinki School of Economics has Helsinki School of Economics has research on the following subjects: research on the following subjects: cooperative banks, microfinance, cooperative banks, microfinance, formation of new cooperatives, formation of new cooperatives, history and methodologyhistory and methodology

Cooperative research in Cooperative research in business economicsbusiness economics

Not much both globally and in FinlandNot much both globally and in Finland Investor ownership and maximizing profits rules!Investor ownership and maximizing profits rules!

Very fragmentedVery fragmented NNo homogenous frame of reference or binding o homogenous frame of reference or binding theoretical backgroundtheoretical background Seldom several studies on the same subjectSeldom several studies on the same subject

The institutes produce mostly surveys The institutes produce mostly surveys and teaching materialand teaching material

Educational needs direct the activities of the Educational needs direct the activities of the institutes and they lack recourses to achieve a long institutes and they lack recourses to achieve a long spanned development of the theoryspanned development of the theory

Cooperative research in business Cooperative research in business economicseconomics globally globally

The position of cooperation in international business economics The position of cooperation in international business economics journalsjournals

In the top journals (impact factor > 1.500) the number of articles on In the top journals (impact factor > 1.500) the number of articles on cooperation adds up to sevencooperation adds up to seven

In other journals that have impact factor (Thomson Reuters) there In other journals that have impact factor (Thomson Reuters) there were slightly over 20 articles on cooperationwere slightly over 20 articles on cooperation

A few journals concentrating on cooperation or with a positive A few journals concentrating on cooperation or with a positive attitudeattitude

Journal of Co-operative StudiesJournal of Co-operative Studies International Journal of Co-operative ManagementInternational Journal of Co-operative Management Annals of Public and Cooperative EconomicsAnnals of Public and Cooperative Economics Economic and Industrial Democracy Economic and Industrial Democracy

The position of cooperation on international business economics The position of cooperation on international business economics conferencesconferences

Occasional papers, cooperation has no institutional positionOccasional papers, cooperation has no institutional position

Mainly research related to management and organisation, also in Mainly research related to management and organisation, also in the field of financing and accountancythe field of financing and accountancy

Finnish cooperative research in business Finnish cooperative research in business economicseconomics

Emphasis in the field of management and Emphasis in the field of management and organisation organisation

Main theme of research for fewMain theme of research for few No professorships (e.g., on co-operative No professorships (e.g., on co-operative

management)!management)! Doctoral theses: Iiro Jussila, Merita Mattila, Eliisa Doctoral theses: Iiro Jussila, Merita Mattila, Eliisa

Troberg, Juha-Matti Saksa, Titta-Liisa Troberg, Juha-Matti Saksa, Titta-Liisa Koivuporras…Koivuporras…

Post graduate students: Jani Mäkinen, Pasi Post graduate students: Jani Mäkinen, Pasi Tuominen, Terhi Tuominen, Saila Rosas, Jussi Tuominen, Terhi Tuominen, Saila Rosas, Jussi Kuittinen, Anni Heikkilä, Eeva Kerola Kuittinen, Anni Heikkilä, Eeva Kerola

Subjects: ownership, strategic management, Subjects: ownership, strategic management, organisation, governance, membership relations, organisation, governance, membership relations, relations to interest groups…relations to interest groups…

Finnish cooperative research in business Finnish cooperative research in business economics continues…economics continues…

The department of Management and International The department of Management and International Business at LUT School of Business in Lappeenranta Business at LUT School of Business in Lappeenranta University of Technology has a research group specialized University of Technology has a research group specialized in cooperationin cooperation

Was established in 2005 and has more than 25 publications Was established in 2005 and has more than 25 publications on cooperation in international academic journals and on cooperation in international academic journals and conferencesconferences

Has long-term goals to develop cooperative management as Has long-term goals to develop cooperative management as an academic disciplinean academic discipline

Post doc research Post doc research Ongoing in management and organizations Ongoing in management and organizations Beginning in accountingBeginning in accounting

Post graduate research (topics)Post graduate research (topics) Cooperative entrepreneurship and entrepreneurial cooperationCooperative entrepreneurship and entrepreneurial cooperation Locality and regionality in strategic management of consumer Locality and regionality in strategic management of consumer

cooperativescooperatives Integration of an acquired public company in a cooperative bank Integration of an acquired public company in a cooperative bank

groupgroup Purchase management in cooperative banksPurchase management in cooperative banks

Research on social economy and Research on social economy and social entrepreneurshipsocial entrepreneurship

The concept of social economy comes from The concept of social economy comes from the 19th century even though precursors of the 19th century even though precursors of cooperatives and organisations with cooperatives and organisations with solidarity existed already in ancient Egypt. solidarity existed already in ancient Egypt.

Social economy as a term is not Social economy as a term is not unproblematic and there is no definite unproblematic and there is no definite definition in different countries.definition in different countries.

In the EU the expression CMAF is used In the EU the expression CMAF is used instead of social economy. CMAF = instead of social economy. CMAF = cooperatives, mutuals, associations and cooperatives, mutuals, associations and foundations. foundations.

In Finland social economy is connected to In Finland social economy is connected to private economic and social activities. private economic and social activities.

Research on social economy and social Research on social economy and social entrepreneurship continued . . entrepreneurship continued . .

Also the concept of social entrepreneurship is Also the concept of social entrepreneurship is complex and this is understood differently all over the complex and this is understood differently all over the world. world.

The European Commission included the social The European Commission included the social enterprise in the organisations regarded as social enterprise in the organisations regarded as social economy in 2004.economy in 2004. According to the Commission the meaning of a social According to the Commission the meaning of a social enterprise is an enterprise that uses its profits to enterprise is an enterprise that uses its profits to promote social goals.promote social goals.

The company form may, according to the The company form may, according to the Commission, be any organisation within social Commission, be any organisation within social economy or even a private company.economy or even a private company.

Research on social economy and social Research on social economy and social entrepreneurship continued . .entrepreneurship continued . .

Researchers from 15 European universities formed Researchers from 15 European universities formed the EMES-network (European Research Network) the EMES-network (European Research Network) concerning social economy, social entrepreneurship concerning social economy, social entrepreneurship and workers’ cooperatives in 1996.and workers’ cooperatives in 1996.

The importance of actors within social economy has The importance of actors within social economy has increased in solving social challenges and hence increased in solving social challenges and hence research dealing with social economy has strongly research dealing with social economy has strongly grown in Europe, USA and Canada in resent years.grown in Europe, USA and Canada in resent years.

This field of study is becoming ever more important; This field of study is becoming ever more important; among others social entrepreneurship, sustainable among others social entrepreneurship, sustainable development, different ways to report social development, different ways to report social responsibility and social accounting are clearly responsibility and social accounting are clearly subjects of growing interest.subjects of growing interest.

Research on social economy and social Research on social economy and social entrepreneurship in Finlandentrepreneurship in Finland

In Finland studies about social In Finland studies about social economy and social enterprises have economy and social enterprises have been among others produced by Juhani been among others produced by Juhani Laurinkari, Tapani Köppä, Pekka Laurinkari, Tapani Köppä, Pekka Pättiniemi, Anita Mattila, Marianne Pättiniemi, Anita Mattila, Marianne Nylund, Veli-Matti Poutanen, Torsti Nylund, Veli-Matti Poutanen, Torsti Hyyryläinen and Niina Immonen. Hyyryläinen and Niina Immonen.

Juhani Laurinkari, Tapani Köppä and Juhani Laurinkari, Tapani Köppä and Niina Immonen have studied social Niina Immonen have studied social economy especially from the point of economy especially from the point of view of cooperation.view of cooperation.

Research on cooperative joint enterprises Research on cooperative joint enterprises and new implementationsand new implementations

Cooperative entrepreneurship, workers’ cooperation Cooperative entrepreneurship, workers’ cooperation and new implementations of cooperation have been and new implementations of cooperation have been studied for several years within several disciplines, studied for several years within several disciplines, among others: economics, governance within among others: economics, governance within business economics and especially sociology within business economics and especially sociology within social sciences.social sciences.

Studies on workers’ cooperation have had strong Studies on workers’ cooperation have had strong emphasis on employee ownership and the impact of emphasis on employee ownership and the impact of employee participation in organizational decision employee participation in organizational decision making.making.

Employee ownership and its impacts Employee ownership and its impacts is still in in the is still in in the 21st century a central subject for studies within social 21st century a central subject for studies within social sciences and studies on governance and organisation sciences and studies on governance and organisation in business economics.in business economics.

Research on cooperative joint enterprises and Research on cooperative joint enterprises and new implementations continued . . new implementations continued . .

There has not been much research on There has not been much research on cooperative cooperative entrepreneurship as a form of entrepreneurship in itself entrepreneurship as a form of entrepreneurship in itself during the during the 1990-ties and this decade. However, the workers’ cooperative 1990-ties and this decade. However, the workers’ cooperative complex around Mondragon has been a subject for a large number of complex around Mondragon has been a subject for a large number of studies during last decades.studies during last decades.

In England there has been a long tradition on research about In England there has been a long tradition on research about management in employee owned cooperatives and the success management in employee owned cooperatives and the success factors herein (e.g. Cornforth and Spear).factors herein (e.g. Cornforth and Spear).

Small rural cooperatives have been subject for cooperative Small rural cooperatives have been subject for cooperative entrepreneurship research as well.entrepreneurship research as well.

Other subjects during this decade are studies on small women's’ Other subjects during this decade are studies on small women's’ cooperatives in Greece and in China as well as new cooperative cooperatives in Greece and in China as well as new cooperative implementations.implementations.

New implementations in cooperation is getting more and more New implementations in cooperation is getting more and more popular in the field of cooperative research.popular in the field of cooperative research.

Research on cooperative joint enterprises and Research on cooperative joint enterprises and new implementations in Finlandnew implementations in Finland

Thanks to the revival of small scale cooperation Thanks to the revival of small scale cooperation from the beginning of the 1990-ties joint from the beginning of the 1990-ties joint entrepreneurship in form of cooperation as well as entrepreneurship in form of cooperation as well as new implementations of cooperation have been new implementations of cooperation have been subject for research in Finland.subject for research in Finland.

Panu Kalmi, Eliisa Troberg and Eero Riikonen have Panu Kalmi, Eliisa Troberg and Eero Riikonen have done research on employee ownership among done research on employee ownership among other things.other things. Studies on new implementations of cooperation Studies on new implementations of cooperation have been published by for instance Tapani Köppä, have been published by for instance Tapani Köppä, Eero Riikonen, Iiro Jussila, Terhi Tuominen, Kari Eero Riikonen, Iiro Jussila, Terhi Tuominen, Kari Pirinen, Pekka Arponen, Pekka Hytinkoski and Eliisa Pirinen, Pekka Arponen, Pekka Hytinkoski and Eliisa Troberg. Troberg.

ConclusionsConclusionsDuring last decades international cooperative During last decades international cooperative

research has covered especially the following research has covered especially the following subjects:subjects:

In economics: particularly the effectiveness of In economics: particularly the effectiveness of cooperative banks, microfinance, employee cooperative banks, microfinance, employee ownership and its impacts.ownership and its impacts.

In business economics: management and In business economics: management and organisation, governance, membership relations, organisation, governance, membership relations, member commitment and studies regarding member commitment and studies regarding interest groups.interest groups.

Studies related to agricultural economicsStudies related to agricultural economics Studies concerning the impact of employee Studies concerning the impact of employee

ownershipownership Studies regarding cooperative values and Studies regarding cooperative values and

principlesprinciples Studies on new cooperative implementations and Studies on new cooperative implementations and

social economicssocial economics

Conclusions continued . .Conclusions continued . .

All the subjects mentioned above have not All the subjects mentioned above have not got the same attention in Finland. For instance got the same attention in Finland. For instance agricultural economic research is made quite agricultural economic research is made quite scarcely as well as research on mutual scarcely as well as research on mutual insurance. insurance. The large cooperatives have been studied The large cooperatives have been studied from many aspects in recent years, but more from many aspects in recent years, but more research on their juridical aspects, financing research on their juridical aspects, financing and accounting as well as their and accounting as well as their internationalisation would be needed.internationalisation would be needed. Regarding small cooperatives more studies Regarding small cooperatives more studies should be made on their impacts for instance should be made on their impacts for instance on employment and also on differentiation on employment and also on differentiation among small cooperatives in Finland. among small cooperatives in Finland.

Conclusions continued . . Conclusions continued . .

Much more research in all fields of business Much more research in all fields of business economics is needed on the international leveleconomics is needed on the international level The resources for financing should extensively be The resources for financing should extensively be developed internationally! developed internationally! The cooperatives would need a common framework The cooperatives would need a common framework for cooperative research in business economicsfor cooperative research in business economics More research on the differences between different More research on the differences between different types of cooperatives is neededtypes of cooperatives is needed Cooperative research should become a normal Cooperative research should become a normal subject in the well-known international scientific subject in the well-known international scientific journals and conferencesjournals and conferences

Conclusions continued . .Conclusions continued . .

Cooperative research in Finland has been both Cooperative research in Finland has been both qualitative and quantitative with more emphasis on qualitative and quantitative with more emphasis on the first. the first. New researchers appear, but they are still very fewNew researchers appear, but they are still very few Finnish cooperative science has the opportunity to Finnish cooperative science has the opportunity to become leader in the worldbecome leader in the world Above all conditions for long-term research should Above all conditions for long-term research should be createdbe created Much more resources for research from outside the Much more resources for research from outside the universities should be availableuniversities should be available

Funding for professorships on co-operationFunding for professorships on co-operation Funding for post doc –groups on co-operationFunding for post doc –groups on co-operation

Note: University financing is going through Note: University financing is going through changes!changes!

The key question is “Which organizational forms will be The key question is “Which organizational forms will be promoted by research and education in the future?”promoted by research and education in the future?”