1.1 The Cooperative Potential

This book explores how cooperatives can and are meeting the challenges of a changing world. While concepts to describe the dire and unpredictable state of our world have proliferated—VUCA (Bennis & Nanus, 2007), poly-crisis (WEF, 2023), tipping-point (Lenton et al., 2019), wicked problems (Reinecke & Ansari, 2016), grand societal challenges (Ferraro et al., 2015), to name but a few—scientists across diverse disciplines are clear that the present is a particularly perilous time for our global civilization. Climate change has already begun to impose severe human and financial costs across the world. Digitalization has changed how we do business and relate to one another, in some cases, such as with generative AI, essentially overnight. At the same time, violent conflict and geopolitical tensions are again affecting the lives of millions. Across a host of other social, economic, and ecological themes—such as gender equality, poverty, and deforestation—our progress has stalled, if not reversed, as measured by the Sustainable Development Goals (Gutmann & Gorman, 2022).

The premise of this book is twofold. First, cooperatives can provide—and in some contexts already are providing—an effective organizational form to tackle many of these challenges. Their role though is often underestimated because, while cooperatives are many, they tend to be small and integrated in a local context. Therefore, one theme cutting across the book is a discussion about how we can make cooperatives' impact more visible, as well as scalable.

The second premise is that there is much we can learn from the recent history of Swiss cooperatives. The Swiss cooperative movement has a long and distinguished history. Far too often, however, the discourse about Swiss cooperation remains isolated: it neither integrates input from international, English-language studies, nor does such studies in return pay much attention to the Swiss example. This is a missed opportunity because there is much that we can learn from the Swiss experience. Another theme cutting across the book, therefore, is connecting the analysis of Swiss cooperatives with that focused on cooperatives in different countries. There is much, we believe, that we can learn from the Swiss context to inform debates happening elsewhere.

While the world has changed, human-centered and participative organizations, such as cooperatives—defined by the International Cooperative as “people-centered enterprises jointly owned and democratically controlled by and for their members to realize their common socio-economic needs and aspirations”(International Cooperative Alliance)—have endured as organizations that can strengthen local economies and societies. They can contribute to a resilient society by offering an alternative economic model based on the principles of values-based orientation, cooperation/participation, and profit optimization instead of profit maximization. In times of crisis, cooperatives often highlight this as their advantages (Hettlage, 1998; Voß, 2002; Birchall & Ketilson, 2009; Allgeier, 2011). In fact, these moments of crisis have been a decisive impetus for cooperatives’ development and evolution. For example, the Industrial Revolution and the associated problems led to the establishment of the first cooperative in the industrial age in Rochdale in 1844 (Fairbairn, 1994). The emergence of credit cooperatives in the German-speaking region in the mid-nineteenth century also traces back to times of crisis (Faust, 1977; Brendel, 2011).

Because cooperatives fundamentally address the needs of all members, certain excesses of capitalism are limited or mitigated avoided. The goal is not to pursue quick and large profits. Instead, cooperatives are designed to operate successfully and responsibly in the long term (Schäfer, 2022). However, this fundamental praise is met with an equally fundamental criticism. The cooperative idea is accused of being the realm of social romantics—values-based orientation in an economic context is not necessarily desired (Schäfer, 2018).

One concept used to understand the types of challenges the world is currently facing is that of Grand Societal Challenges. The GSC represents wicked barriers that, if removed, would help solve widespread societal problems (George et al., 2016, p. 1881). These kinds of challenges are complex and uncertain by nature (Ferraro et al., 2015) and our understanding and amelioration of them depend on the different evaluations of the actors affected (Kim et al., 2019). They are widespread, often connecting global problems. However, they manifest locally. Therefore, they operate at different geographical locations (Mair et al., 2012, 2016) and are at intertwined scales (Chatterjee et al., 2023). Consequently, effective responses to Grand Societal Challenges require deep knowledge of the peculiar institutional characteristics of the local communities affected by these problems (Claus et al., 2021), and a deep understanding of the broader systems of values and principles that shape them (Berrone et al., 2016; Jarzabkowski et al., 2019).

While most of the Grand Societal Challenges are global, this book focuses particularly on Swiss cooperatives and, in select cases, cooperatives in neighboring countries. The reasons for this are manifold. For one, cooperatives are a firm fixture of the Swiss economy and society. Cooperatives can be found in a wide range of industries and sectors in Switzerland, including agriculture, banking, insurance, housing, and consumer goods. Among the most well-known cooperatives in Switzerland are the supermarkets Migros and Coop, which are owned and operated by their members.

An average Swiss resident today may purchase groceries, buy insurance, bank with, rent an apartment from, and subscribe to a cooperative ride-sharing platform. According to the most recent estimate, every other Swiss is a member of at least one cooperative (Weiss, 2012, p. 8). The proportion of residents interacting with cooperatives in some form—as a customer, worker, or supplier—is almost certainly higher.

The high degree of integration of cooperatives into Swiss life is also evident in a global comparison. Ranked by cooperative members per capita, only France and Finland rank above Switzerland. Ranked by cooperative employees per capita, only one country—New Zealand—tops Switzerland (Grace, 2014, p. 2). In 2022, Switzerland was home to six of the world’s 300 largest cooperatives—more than comparatively sized countries such as New Zealand, Norway, Belgium, and Austria (World Cooperative Monitor, 2022). Beyond the global comparison, the tenor and cadence with which cooperatives are spoken of in politics and the media hint at an organizational form with strong roots in Switzerland.

Moreover, Swiss cooperatives are strongly committed to sustainability and social issues. In addition to their economic focus, cooperatives inherently have a social orientation (dual character). These two aspects can sometimes be in tension with each other. While some cooperatives have business activities that serve as social activities, there are also cooperatives where the business model is detached from social activities and other entities fulfill the societal engagement role.

Overall, cooperatives have played an important role in the Swiss economy and society for many years. They offer a unique and democratic model of business ownership and can provide significant benefits to both their members and the broader community. However, in order to fully realize their potential, cooperatives must adapt to the evolving economic and social landscape. This may involve adopting new technologies and business models, as well as finding ways to attract and engage younger members. Adaptability is an essential tool for organizations operating in the market, including cooperatives. Cooperatives have successfully demonstrated this in the past, becoming a resilient business model. As we will see in the chapters of this book, it is exactly these features that enable cooperatives to respond in ways that other business forms cannot.

1.2 The Book

All of the above-mentioned challenges and upheavals are cross-border phenomena and thus require action on a local level—in our case the Swiss cooperatives—but also a collaboration on a wider scale. Therefore, the book proceeds in three sections, starting with Swiss perspectives moving to international contributions, which can serve as learning cases, for example, when facing legal changes. The first section, titled “Cooperatives in the Swiss Context” and composed of four chapters, provides a comprehensive exploration of the diverse landscape, legal framework, and historical development of cooperatives in Switzerland. In Chap. 2, Anja Niedworok and Martin Gutmann delve into the contemporary landscape of Swiss cooperatives. In particular, they provide a quantitative overview of cooperatives, which they complement with a qualitative assessment of the different types of cooperatives, with examples such as Migros and housing cooperatives.

In Chap. 3, Nadia Fabrizio examines the unique features of Swiss cooperative law, exploring how it shapes the purpose, financing, and growth potential of cooperatives. On the question of whether the current legal landscape promotes or prevents cooperative growth, Fabrizio’s assessment is mixed. Building on this, Fabrizio recommends specific modernization measures in Swiss cooperative law.

In Chap. 4, Monique Bolli’s chapter focuses on the participatory governance characteristic of cooperatives discussing the tensions surrounding inclusion, perceptions of obsolescence, and the balance between idealism and pragmatism in sustaining the cooperative mission. In particular, based on extensive interviews, she describes three inherent tensions: first, that inclusion is not a given through participation, second, that many perceive cooperatives as outdated, and three, that to avoid mission drift, different approaches are required.

Lastly, in Chap. 5, Martin Gutmann offers a comparative analysis of the origins and trajectory of cooperatives in Switzerland, revealing both unique dimensions and similarities to cooperatives in comparable countries. Together, these chapters contribute to a comprehensive understanding of cooperatives in the Swiss context, challenging perceptions, exploring legal frameworks, highlighting participatory governance, and examining historical trajectories.

The second section of the book, titled “The Future of and with Swiss Cooperatives,” delves into the prospects and challenges surrounding Swiss and international cooperatives. Richard Sturn’s Chap. 6 “Digital Transformation and Solidarity in Cooperatives” explores how digital advancements impact the cooperative sector. Sturn highlights the potential for new power asymmetries and the selective displacement of traditional institutional functions. However, he also emphasizes the promising potential for cooperatives in a digitalized world, particularly in knowledge-based and data-intensive sectors. Sturn calls for a balance between technological integration and upholding cooperative values of solidarity and collaboration.

In Chap. 7, Anselm Balk and Michaela Schaffhauser-Linzatti present a qualitative and quantitative study on the perception of Austrian cooperatives during the COVID-19 pandemic. The findings indicate that both experts and cooperative members consider cooperatives well positioned to meet current and future challenges. The agricultural and energy sectors are particularly identified as having significant potential. However, there is a need to further implement cooperative values and communicate them effectively to the public. Members express ambivalence toward digitalization, welcoming it for improving efficiency but remaining cautious about reducing direct member contact.

Sonja Novkovic’s Chap. 8 “Changing the Mindset: Cooperatives and Complexity. Looking into the Future,” highlights the unique nature of the cooperative enterprise model and its potential to contribute to socio-economic transformation for sustainability. Novkovic suggests that cooperatives offer a different mindset, placing the enterprise within the social sphere and prioritizing social impact and collective goals. By challenging existing paradigms and embracing a radical imagination, cooperatives can play a crucial role in driving the needed transformation.

Chapter 9, which Kata Isenring titled “Balancing Flexibility and Stability: Leveraging Cooperatives for Organizational Resilience,” provides an overview of recent resilience research in organization and management studies, focusing on cooperatives. It advocates a shift from viewing resilience reactively, emphasizing the need for organizations to proactively design capabilities to anticipate and effectively respond to adverse events while reducing vulnerability. Through three Swiss cooperative case studies, the chapter demonstrates how their democratic principles and community engagement foster problem-solving and adaptive capabilities, enabling them to navigate challenges while minimizing susceptibility.

Theresa Theurl's Chap. 10 “Cooperative Ecosystems: Perspectives and Challenges,” investigates the concept of cooperative ecosystems and their potential for cooperatives. Theurl examines the dimensions of cooperative ecosystems, such as governance structures, resource sharing, and knowledge exchange. By leveraging partnerships and collaborations, cooperatives can create synergies, enhance innovation, and expand their impact. The chapter also highlights the challenges associated with cooperative ecosystems and provides recommendations for their growth and sustainability.

In summary, this section delves into the future of Swiss cooperatives, exploring various dimensions such as digital transformation, crisis response, mindset shift, societal resilience, and ecosystem perspectives. The chapters collectively highlight the potential of cooperatives in navigating the evolving landscape and contributing to a sustainable and resilient future. Emphasizing solidarity, collaboration, and transformative action, the section underscores the importance of cooperatives in shaping a thriving cooperative movement in Switzerland.

Section Three, titled “Cooperatives and Grand Societal Challenges,” broadens the scope to examine larger challenges and the cooperative response thereto. It includes three chapters that examine the Italian context, as this forms a unique counter-perspective to the Swiss example of cooperative experience.

In Chap. 11, “Collaborative responses to grand challenges: the case of La Scuola Open Source,” Nunzia Coco examines the relevance of cooperative initiatives and open innovation strategies in tackling contemporary global “grand challenges” encompassing economic, financial, and health crises. Through a case study of “La Scuola Open Source,” a cooperative project in a socially disadvantaged context, the chapter analyzes the dynamics of crowdsourcing as a means to navigate societal shifts. Emphasizing the significance of open practices and design-driven methodologies, the study illustrates their role in fostering a strong community identity and propelling a community-driven endeavor into a formalized cooperative entity, offering valuable insights for practitioners and policymakers addressing pressing societal challenges.

In Chap. 12, “The evolution and evaluation of the Italian legislation on social cooperatives and social enterprises: facilitator or obstacle to their diffusion?” Silvia Velmer delves into the historical significance of Italian cooperatives, which have traditionally served as a cornerstone of the national economy, catering to members' needs with accessible products and services. The chapter focuses on the transformative journey of social cooperatives, originally conceived to address local social concerns, evolving into pivotal providers of welfare services in Italy. It highlights the evolving dynamics between social and conventional cooperatives, emphasizing the former's enduring commitment to social impact, particularly in the face of contemporary global challenges, owing to their deep-seated community integration.

Chapter 13, “Opportunity recognition and innovative solutions to societal challenges: the case of community cooperatives in Italy,” written by Riccardo Maiolini and Tommaso Ramus, offers initial empirical insights into the distinctive challenges faced by community cooperatives in recognizing entrepreneurial opportunities. These entities, dedicated to generating value for their community rather than exclusively for their members, grapple with the complexity of accommodating diverse community needs within resource constraints. Drawing from the experiences of eight Italian community cooperatives, the study suggests that their deep community integration both complicates opportunity recognition and stimulates creative processes to devise innovative solutions, ultimately contributing to social innovation. These findings contribute to the emerging research on community-based enterprises and enrich the broader discourse on entrepreneurship, underscoring how cooperatives serve as agents of social progress while remaining rooted in a human-centered ethos aimed at uplifting marginalized populations.

In Chap. 14, “Is SwissCovid a Responsible Innovation for a Grand Societal Challenge? The Case for Better Deliberative Capacities in Innovation Governance,” Andreas Scherer, Christian Voegtlin, and Dana Entenza underscore the necessity for collaborative efforts among public, private, and non-profit entities to tackle Grand Societal Challenges (GSC) through Responsible Innovation (RI), a framework emphasizing innovations that prioritize non-harm and positive impact on people and the environment. Responsible governance plays a crucial role in enabling such innovations by managing diverse rationalities, worldviews, and conflicting objectives of participants. The chapter builds on deliberative democracy literature, contending that authentic, inclusive, and consequential deliberation is essential for addressing tensions in innovation governance. The case study of the SwissCovid contact tracing app is used to illustrate these criteria, revealing that participant behavior and the urgency of the issue can influence the quality of deliberation and consequently, the responsible nature of the innovation. The chapter proposes the implementation of robust institutional safeguards and principles to enhance deliberative capacities in innovation governance, contributing to the existing literature on deliberation quality in this context.

In Chap. 15, Chiara Carini, Paola Delvecchio, and Ilana Gotz offer a comprehensive overview of large cooperatives worldwide, highlighting their pivotal role in fostering equitable and sustainable development. It draws upon data from the World Cooperative Monitor, a project led by the International Cooperative Alliance with support from Euricse, showcasing the economic importance and societal impact of cooperatives and mutuals globally. The chapter specifically focuses on results from 12 editions of the project, emphasizing the economic scale of cooperatives, their resilience during the COVID-19 crisis, and their contribution to achieving the Sustainable Development Goals.

Chapter 16 “Cooperative Approaches as a Way to Build Resilient Societies,” written by Friederike Edel, Maximilian Grund, Johanna Möbius, Armin Schuster, and Werner Stork, delves into the impact of cooperative approaches on modern societies, particularly in the context of evolving into resilient and responsible entities. It emphasizes the need for a more precise understanding of societal resilience, examining its development at individual, organizational, and societal levels. The authors posit that every citizen serves as a co-producer of resilience within the state and society, with the cooperative approach providing essential impetus, and they analyze the similarities and differences between cooperatives and other forms of resilient organizations.

In Chap. 17 “Understanding cooperatives from a Bourdieusian perspective,” Gaëlle Cotterlaz-Rannard and Manuel Méndez utilize Bourdieu's theory of capital forms, including economic, social, cultural, and symbolic dimensions, as a relational framework, to analyze the distinctive attributes of cooperatives. Through longitudinal case studies of a housing cooperative in Switzerland and a cultural cooperative in the UK, the authors investigate how cooperatives strategically accumulate and convert diverse forms of capital, providing insights into the dynamic processes that enable them to operate effectively and gain recognition across various community levels.

1.3 The Contributions

The contributions of this book are several. First, it emphasizes the role of cooperatives in effectively addressing social challenges. Cooperatives are not the remedies for everything, nor are they themselves immune to many of the upheavals of our current moment in time. Yet, as the chapters in this book show, cooperatives have certain predispositions—their anchor in a social purpose beyond generating revenue; their attention to participation; their focus on providing local answers to global challenges—to adapt and respond well to the severe difficulties our world is facing.

The second contribution is to showcase specifically Swiss cooperatives, which, while numerous and diverse, have made scant appearances in the international literature. Cooperatives in general, however, could and should be more appreciated. Their significance is often underestimated due to their predominantly small scale and localized nature. Much of their impact is limited to a specific context in a specific area. Still, their impact is visible and important. Nevertheless, it is important to foster the discussion about how to enhance their visibility and the scalability of their activities. By improving coordination, collaboration, and overall organizational effectiveness, organizations can have a greater positive impact on their environment and society. Swiss cooperatives have much to offer to this conversation.

Third, the book suggests that how cooperatives foster collaboration among diverse stakeholders is exemplary. Cooperatives pool diverse resources and knowledge bases together.

Cooperatives offer a transformative approach to business organizations, within which individuals may reconcile the fulfillment of their own needs with the broader needs of society. Shared prosperity, collaborative decision-making, sustainability, resilience, community building, and ethical business practices are part of this model. Cooperatives can provide a very effective example of a different ways of organizing economic activities, an example that—while integrated into the fabric of Swiss society—has not received the public recognition that it deserves, at home and abroad. This cooperative framework represents a powerful and value-driven way of doing business with the potential to create a more equitable and sustainable future.

There are many questions this book does not answer fully. Many issues remain open. Much remains to be done. What impact will digital technologies have on cooperatives? What new legislation will be designed and implemented to regulate the growth of cooperatives? How can we maintain high levels of participation as cooperatives scale up their activities? This book does not provide answers to all these questions, but hopefully suggests a structured way to frame the conversation about cooperatives, both in Switzerland and abroad.

Cooperatives have given much to Swiss society, and they can offer much more.