Collective entrepreneurship and cooperative principles: Configurations for achieving social and economic goals in cooperatives

Can cooperatives remain commercially competitive without compromising the principles that make them different?

This 2025 study examines exactly that question. Drawing on research involving 68 New Zealand cooperatives, the authors challenge the long-held assumption that cooperatives must trade off democratic governance and member ownership in order to succeed commercially.

Instead, the research finds that cooperative principles and strong business performance are not mutually exclusive. Different combinations of cooperative principles can support entrepreneurial success, depending on a cooperative's strategy and stage of development. Perhaps most significantly, the study concludes that knowledge sharing between the cooperative and its members is the critical ingredient that enables both economic and social outcomes.

Research at a glance

• Author: Frank Siedlok, Lisa Callagher and Vareska van de Vrande

• Year: 2025

• Publication: International Small Business Journal: Researching Entrepreneurship

• Focus: Cooperative principles, entrepreneurship, governance and knowledge sharing

• Geographic scope: New Zealand (68 cooperatives)

• Format: Peer-reviewed academic journal article

Why this research matters

This study provides strong academic evidence against one of the most common misconceptions about the cooperative business model; that democratic ownership inevitably reduces competitiveness.

Instead, it suggests cooperatives succeed when they deliberately connect governance, member engagement and business strategy.

For boards and executives, the findings reinforce that investing in member education, transparent communication and strategic dialogue is not simply good governance, it is a source of competitive advantage.

The research is particularly relevant for New Zealand's producer cooperatives, where member businesses must continually align individual commercial interests with collective long-term success.

Key findings

• Cooperative principles do not limit commercial success: Successful cooperatives can achieve strong commercial performance while maintaining cooperative principles, with success depending on how those principles are applied to support strategy rather than being abandoned.

• There is no single formula for a successful cooperative: The research identifies four different configurations of cooperative principles, showing there are multiple pathways to achieving both entrepreneurial success and cooperative purpose.

• Knowledge sharing is the differentiator: Regular discussion of strategy and operations, supported by education and transparent communication, enables stronger governance, innovation and member alignment.

• Cooperative principles should evolve with strategy: The importance of individual cooperative principles changes as organisations mature and pursue different competitive strategies, demonstrating that their application is dynamic rather than fixed.

Key takeaways

• Cooperative principles and commercial performance can reinforce one another.

• Different cooperative strategies require different combinations of cooperative principles.

• Knowledge sharing between members and management is a critical driver of entrepreneurial success.

• Democratic governance becomes more effective when supported by education, transparency and strategic communication.

• Cooperative principles should be viewed as adaptable strategic tools rather than a fixed checklist.

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