ABSTRACT
This chapter analyzes the relationships between member participation and changes in productivity of consumer cooperatives on the basis of the fact that solidarity between local cooperatives during the 1997 Financial Crisis in Korea appears as member participation within each cooperative. It discusses differences between the mainstream theory of the firms and the theories dealing with cooperative by reviewing both perspectives. The chapter examines changes in productivity and causes of such changes observed in ‘Hansalim consumer cooperative’ using their financial and non-financial indicators. Data and materials analyzed include the annual reports of the branches, and reports of the board of directors, and the member activity department and the management strategy department. Performance and outcomes generated by cooperative do not necessarily mean economic performance, so it is important to look through various indicators that highlight the value and performance of cooperative in order to measure productivity change of Hansalim Seoul properly.
