Towards Deepening Co-operative Identity III: Re- Thinking the Co-operative Taxonomy for Business Modelling Framework

Abstract

Background: There are still complexities, paradoxes, and ambiguities in both co-operative business concepts and practices. Co-operatives will succeed only where people design the type of business that best meets their real needs. The question that remains then is, what the co-operative business models and classification are, and how to identify, select, design, and implement them successfully. Purpose and Methodology: The purpose of this study paper was to help broadly understand various co operative business taxonomies developed by various scholars and practitioners, their possible theoretical grounding, their attributes, and interconnections to establish and strengthen their business model propositions, which deepens the co-operative identity. The qualitative approach was used for this study to expand and synthesize the formerly introduced co-operative taxonomies and in the lens of Sub-Saharan Africa and Middle East. Results: This study finds out that scholars' approaches to co-operative classifications can be clustered in four clusters. Classification by scope (of purpose, sector, and target coverage), system (of ownership rights and investment), structure (of membership, governance, and management), and strategy (of member participation and marketing). Additionally, the study finds out that the co-operative taxonomies have been largely based on a "linear" co-operative business modelling framework. No singular co-operative taxonomy can succeed and be sustainable in all contexts and at all times. The success and sustainability co-operatives in various contexts are determined by the hybridized models. Conclusion: Hybridization of the co-operative business model is inevitable for co-operative success and sustainability. Multistakeholder (solidarity) co-operative is the model that can sustain and deepen the co operative identity in the face of the present socio-economic and global complexities. The "circular" co-operative business modelling framework can help practitioners to develop successful and sustainable co-operative business models in different contexts and at different periodical phases of their life cycle. The originality of the study paper is (1) the introduction of "4S" clustering of co-operative taxonomies on basis of scope, systems, structure, and strategy; (2) reinforces the different co-operative classifications' conceptual frameworks and directions; (3) making an analogy of co-operative business models to the human anatomy; and (4) developing a concept of a "circular" co-operative business modelling framework to deepen the co-operative identity in different contexts and periodical phases