Journal of Co-operative Studies, 37(3), 5-20

Abstract

This paper continues the tradition of comparative analysis of co-operative and capitalist organisations by focusing on social capital as the distinctive foundation of the former. The paper aims to demonstrate why and in what cases co-operatives represent an effective alternative to capitalistic governance mechanisms; to develop an economic rationalisation of the 'double nature' of co-operatives; to consider major distinctions in governance of the two major forms; and to understand co-operative principles as governance instruments aimed at the reinforcement of social capital.