Journal of Co-operative Studies, 59(1), 30-39
When ambition overrides co-operative principles: Insights from Canadian and US outdoor products co-operatives
| Open access |  | Short article (Editorial review) | Published online: July 2026 |
When ambition overrides co-operative principles: Insights from Canadian and US outdoor products co-operatives
Howard L. Smith* 
Richard Discsenza**
*University of Washington Tacoma, USA; **University of Colorado, USA
Vol 59 No 1, 30-39
Abstract
When co-operatives progressively drift away from their primary principles and values, crisis and even catastrophe can happen. Ambition overriding co-operative fundamentals is analysed in the leading recreational apparel and equipment retail co-operatives in Canada and the United States. The paper draws on the concept of degeneration, that leads to an insulated managerial elite and subsequent tension with key stakeholders such as personnel and members, to study Mountain Equipment Co-operative (MEC) and Recreational Equipment Incorporated (REI). Fiscal measures and performance metrics such as membership growth patterns are explored to reveal contributory factors that led REI to a point of crisis and MEC to dissolution. Although the co-operatives accomplished many great things, the sense of community in both co-operatives was diluted and roadblocks hampered members’ role in governance. In effect, degeneration was occurring to the point that in both co-operatives’ democratic principles were undermined. Other co-operatives addressing similar hostile external challenges or pressures to shift toward corporatisation should consider the experience and lessons of MEC and REI. Findings from the study suggest an evidence-based research agenda that explores how co-operatives can accentuate self-help and accountability to members, democratic control, and concern for community in resisting degeneration and pressures for corporatisation.
How to cite this article: Smith, H.L. & Discenza, R. (2026). “When ambition overrides co-operative principles: Insights from Canadian and US outdoor products co-operatives. Journal of Co-operative Studies, 59(1),30-39. https://doi.org/10.61869/OFBM1548
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