ABSTRACT
This chapter deals with an exploratory analysis to identify the process dynamics of innovative governance in agricultural co-ops, leading to key lessons in new ways of governance.
Our research question is to know if co-op democratic governance, deeply rooted in its values, history and complex bylaws, can also be innovative, in response to members’ requirements.
We made semi-structured interviews with executive management, managers, chairpersons and directors of four agricultural co-ops of South of France. We also collected internal data as well as external information.
Our theoretical framework concerning co-op governance is based on stakeholder theory (ST), transaction cost economics (TCE) and democracy, in relation to organisational innovation, crucial to cope with members’ vision.
We found that challenges in internal governance are very linked to significant and strategic changes due to restructuration, mergers as well as to important tensions between members and leaders (opposition, misunderstanding, lack of democracy). Governance is torn between representative democracy and participative democracy, calling into question part of the co-op model. But, during these turbulent periods, co-op democracy can be improved thanks to formal and informal devices.
