ABSTRACT
This chapter introduces different forms of business groups. It focuses on the importance of cooperative groups to the Italian cooperative sector. The chapter explains the context that led cooperatives to establish cooperative groups. It discusses the key economic benefits derived from cooperative groups. The chapter examines how various cooperatives have developed into cooperative groups. It assesses the benefits and risks associated with the cooperative group model. The formation of business groups is one of four major organizational models that businesses adopt to compete in the market. These models are: modern firms; business groups; industrial districts; and inter-firm networks. There are a number of economic factors that led cooperatives to form cooperative groups as their preferred business model. These included: internationalization; the formation of joint ventures; separately managing non-core activities; acquisitions; accessing external capital; better management of risks and resources; and market positioning.
