Exploring institutional embeddedness and democratic governance in German and Italian cooperatives: A narrative case study

Abstract

This study examines governance practices in cooperatives from Germany and Italy through a comparative narrative case study approach. Drawing on institutional theory and a paradox perspective on cooperative governance, it explores founding motivations, institutional influences, and the operationalization of democracy. Using document analysis and four semi-structured interviews, the study investigates how cooperatives in distinct institutional contexts manage organizational paradoxes, align governance systems, and construct organizational democracy. Insights into four key paradoxes – member cohesion (homogeneity vs. heterogeneity), member participation (efficiency vs. collectivity), performance measurement (economic vs. social goals), and identity and integrity (mainstream vs. alternative) – highlight how these organizations adapt their governance structures and assign meaning to democracy. The findings underscore how institutional environments influence cooperative governance and how cooperatives, in turn, influence their surroundings through social innovation and democratic engagement. These insights offer practical examples of sustaining cooperative values across diverse contexts and provide a foundation for future research on the evolving role of cooperatives in modern economies.