Bruce L. Anderson

Cooperative strategy: Theory and practice

The theoretical literature suggests 12 strategies through which cooperatives could produce differential benefits for members. Six of these strategies would primarily generate additional returns, and six would primarily operate to reduce the risk inherent in returns. Through in-depth interviews with CEOs from 21 northeastern US cooperatives, it was determined that: the taxonomy of theoretical strategies matched will with actual strategies, cooperatives use a mix of returns and risk-management strategies, actual strategic motivations are sometimes at odds with those suggested by theory, and cooperative information systems appear inadequate to support strategic decision making.