Project Periodic Report

Co-op Isomorphism

PROJECT PERIODIC REPORT

Grant Agreement number: PIOF-GA-2013-623051

Project acronym: Co-op Isomorphism

Project title: Co-op Isomorphism: From epidemiology of implicit anthropologies to good co-operative governance.

Funding Scheme: International Outgoing Fellowships Call: FP7-People-2013-IOF

Date of latest version of Annex I against which the assessment will be made: 21 July 2014

Periodic report: 1st◙ 2nd□ 3rd □ 4th □

Period covered: from1 July 2014 to 30 June 2015

Name, title and organisation of the scientific representative of the project's coordinator[1]:

Saioa Arando Lasagabaster, Ph. D. M.I.K. S.COOP (University of Mondragon), Ibarra Zelaia 2, 20.560 Oñati

Tel: + 34 943-719191

Fax: + 34 943718162 / + 34 943719192

E-mail:

Project website[2] address: stocki.org

Declaration by the scientific representative of the project coordinator

• The attached periodic report represents an accurate description of the work carried out in this project for this reporting period;
• The project (tick as appropriate)[3]:

• The public website, if applicable

• To my best knowledge, the financial statements which are being submitted as part of this report are in line with the actual work carried out and are consistent with the report on the resources used for the project (section 3.4) and if applicable with the certificate on financial statement.

• All beneficiaries, in particular non-profit public bodies, secondary and higher education establishments, research organisations and SMEs, have declared to have verified their legal status. Any changes have been reported under section 3.2.3 (Project Management) in accordance with Article II.3.f of the Grant Agreement.

3.1 Publishable summary

In this research we address two questions. (1) Why do some co-operatives become more and more similar to capital venture companies in their operations and thus are under threat of losing their co-operative identity? (2) How can co-op members and executives recognize strategic value in the adherence to Co-operative Values and Principles, audit themselves and their co-op and avoid this isomorphism? Identity has become one of the key psychological concepts that explains economic behaviours. Thus the two disciplines merge to respond to major human issues. In this research we will apply the multidisciplinary and multilevel approach drawing on organizational psychology, economics, management and sociology, to define the co-operative “identity crisis”. Given their associational character on the one hand, and market pressure on the other, co-ops may be susceptible to isomorphism. This co-op isomorphism is noted in a number of studies and some government policies which help to privatise co-ops like in Ireland or in Poland. The reasons for this isomorphism are traditionally sought for in areas delineated by classical studies of DiMaggio and Powell (1983) who propose three forces of institutional isomorphism: (i) coercive; (ii) mimetic (iii) normative. Market and financial power of corporations to influence culture and epidemiology of representations may seem responsible for isomorphic trends toward conventional values and the corresponding dilution co-operative values. In the planned research we claim that apart from market and economic factors, isomorphism has psychological roots in the contagion of implicit anthropologies, business and economy literacy of the owners and governance structure and propose to audit the additional factors with new tools developed during the fellowship. They aim at individual diagnosis and organizational multidisciplinary audit. This approach may improve awareness of isomorphism and change it by means of policies and development methods based on upgraded Vroom's contingency model (2003).

Co-op isomorphism and loss of co-operative identity have not been successfully solved at least in part because of monodisciplinary approaches. The main goal of the research during this fellowship is to develop a new transdisciplinary response to this issue and to propose actions that would strengthen co-operatives’ immunity to loss of identity and isomorphism in the future.

There were following objectives of the project enumerated in the application:

• Review the theory and practice of isomorphism and test to what extent this problem is a real issue for co-operatives. Recognise the mechanisms responsible for isomorphism on the institutional level, namely: to what extent professional development of co-op leaders resembles that of ordinary capital based companies, what is its availability, and perceived significance, access to model solutions in case of ambiguity in daily decision making, legal and formal restrictions on cooperatives. We should expect that scarcity of professional training and model case studies for coops increase their vulnerability to isomorphism.
• Test impact of implicit anthropologies. So the objective is first to recognise and investigate in quantitative and qualitative ways the content of the implicit anthropology of leaders and members in various co-operatives.
• Next objective is to measure in a quantitative way the spread of various implicit anthropologies in co-operatives in order to test the quantitative hypotheses about epidemiology of cognitive structures.
• Measure isomorphism. The main objective of the studies is to measure isomorphism in decision making practices of co-ops. The operational definition of isomorphism will enable us to measure it and test hypotheses. This objective makes it possible to find a common language with the co-operatives and to discuss the results. Later it will be used for diagnosing and training.
• Making sense of the results. This objective is to interpret the results together with the co-op representatives so as to be able to outline further practical decisions about action plans. Finding the roots of isomorphism.
• Developing intervention. Assuming the contingency approach of Vroom and Jago (2007), and implicit anthropologies we will propose an educational algorithm showing how implicit anthropology, business literacy and consequently cognitive models of reality depend on 12 aspects of the situation the co-operative operates in. This algorithm will later be applied in the design of education and consulting tools to make co-operatives more immune to isomorphism.
• Adaptation of the results to the European context. Replication of the study in one or two Mondragon co-operatives. In the return phase of the project, tools for European co-ops based on Canadian experience will be proposed. Specific educational, promotional and managerial actions will be proposed. Also consequences for learning and career development practices should be presented taking into account different supportive legal framework for co-ops available in Spain and other European countries.
• Drawing conclusions for the future. Using the data collected for creating an international benchmarking database (Co-opIndex Benchmarking Database – CIBD). The task of distributing the tool may be given to Impact Co-operative Diagnostic Services Limited, a non-profit co-operative registered in Canada the copyrights owner of Co-opIndex.

A description of the work performed since the beginning of the project and the main results achieved so far

• The theoretical reflection on isomorphism (DiMaggio & Powell, 1983) was continued and in fact overwhelmed by the concepts of institutional logics. As can be illustrated by a paper by Kanter (2012) that was part of McKinsey's Report on co-operative enterprise (2012), the isomorphism has reached the level of research. This is what Kanter says (p. 53): Although the examples I cite are of public companies, this same institutional logic applies to the management of super coops. Similar equating co-ops and public corporations with value declarations is present in other places, such as business encyclopedias for example. It is a result of misunderstanding the very essence of what co-ops are. They are created to meet many needs of their members and not to offer sensible, participatory and ethical place of work. It goes without saying that this common misunderstanding of co-ops specificity pervades the coops. Thanks to this fellowship, I happily have a chance to cooperate with a group of co-operative thinkers and practitioners, for whom even the idea of stakeholders is alien to the co-operatives. This is why I can be particularly sensitive to isomorphism. This view is reflected in my Lisbon presentation (Stocki, 2015c).
• Implicit anthropologies. In the application I proposed to use Wrightsman's (year) questionnaire as a measure of implicit anthropologies. The assumption was that the implicit assumptions about human nature can be critical in being a successful co-operative member. The tool had two major drawbacks – first it was outdated, second it was based on introspection without a possibility to validate the statements. This is why the implicit anthropologies concept was substituted with the concept of lifestyles as practical reflections of one's personal anthropologies and values. The lifestyle issue is discussed in my paper for Critical Studies Conference in Leicester (2015). This change allowed to fit the research to previous research conducted by Erdal (2014) and Freundlich and Gago (2012). These two new changes led me to modify and elaborate on the initial model presented in the application into one shown in figure below:

A)As can be seen in Figure above, also the expertise component of the research has been expanded to cover five domains.

B)The project realisation has encountered two major obstacles. The first was difficulty to find five Canadian co-ops ready to participate in the research. Although the research was presented at the Canadian Worker Cooperatives Federation conference, only three worker co-ops responded to the invitation and were initially interested in participating in the research. Another fourth co-op will be approached soon.

C)The second difficulty was finding appropriate tools for measuring all the variables of the model and testing the reliability of CoopIndex. The latter was possible, on the basis of the results from previous eight US and Canadian co-ops. Not only the reliability of most scales was confirmed but principal components analysis allowed us to find a new interesting model for the data. The results were presented at the Canadian Association of Studies of Cooperatives in Ottawa (Stocki, 2015a). The paper based on the analysis will be written in the summer in collaboration with Peter Hough who conducted most of the eight co-op diagnoses.

D)One tool in particular consumed much more time than expected, namely, the tool for measuring Co-operative expertise. After performing the planned mapping of co-operative knowledge, I revealed that co-operative knowledge has most probably tacit character. I decided to develop an original tool which will test the co-operative tacit knowledge. The whole process of developing the tool is described in the paper that will be presented in Lisbon (Stocki, 2012c).

E)I have also applier to the Saint Mary's University Research Ethical Board for approval of the whole research, tools and procedure. I expect the answer at any moment now.

F)Presently I am working on placing all the tools on the project platform, so they can easily be completed on-line. I also plan to update the project web page and write blog posts regarding rationale of each and every tool used in the research. On the basis of the blog posts and tools and academic papers, I plan to write a handbook “12 Steps to Improve My Life Through My Co-operative” which will on one hand show the personal importance of the research results for persons participating in it, and on the other hand will guide the persons participating in the research and their coops through the complexities of the research.

G)The approach I propose in the research completely changes the perspective of viewing a co-operative. So far it was viewed from organizational (institutional) perspective. I propose to view it from individual perspective – one more proper and appropriate given their character. But for a co-op to be able to help its members to realize their needs, it has to employ competent employees. So everyone’s expertise is a precondition for a co-op to meet its goals.

H)I hope the co-ops that will participate in the research will confirm the approach being useful for the co-op and its members’ future.

I)One of the tools tested and used in my research – CoopIndex -- has found interest among users in Cuba. In this way the results of this research will also be disseminated in Cuba. This may make it easier to disseminate in other Latin America countries.

J)I hope the 12 tools tested in this research will become an important development tool for limiting co-op isomorphism and allowing prosperity of co-ops within the Values and Principles.

Dissemination: the address of the project public website: stocki.org . It summarizes the links below:

LinkedIn to the blog posts related to the research:

K)

L)

M)

N)

The posts were also promoted through Facebook and Twitter

Slideshare presentations

O)

P)

Q)

R)

Drafts of conference papers available at academia.edu

Recordings of the research asuumptions recorded on vimeo:

The publishable summary should be updated for each periodic report. ((finqq

3.2Core of the report for the period: Project objectives, work progress and achievements, project management

3.2.1Project objectives for the period

The detailed project objectives with a short comment

A)Recognise the mechanisms responsible for isomorphism on an institutional level. To address this objective I shall conduct review of literature on the subject as well as conduct several group consultations and interviews with representatives of different stakeholders in the co-operative world.
The new model has been developed where lifestyle is the main factor responsible for isomorphism. (See Figure above).

B)Convince the co-op members and make them interested in how mental models of co-operative reality are present in what they think about co-ops and as a result what choices the co-ops make as regards decision making. To address this objective, I propose individual interviews and if possible drawing the cognitive maps of the co-operative reality from the point of view of leaders and members of selected co-operatives. I expect to gather ca 10 such cognitive maps.
I had seven cognitive maps drawn by co-op experts, that were basis for further analysis. I also presented the concept of the research at two conferences and found 3 co-ops willing to participate in the research.

C)Recognise and investigate what is the implicit anthropology of co-op members and leaders.
This objective will be met by applying Revised Philosophies of Human Nature Scale (Wrightsman, 1992). The use of the scale may have high predictive meaning for the future success of individuals in the co-operative sector.
Implicit anthropology is best reflected in one's lifestyle so the tool was replaced with Lifestyle Appraisal Questionnaire.

D)After the consultation and explanation of the method an on-line version of the Wrightsman's Scale will be presented to all leaders and members of the co-ops. Although quantitative in nature, the method will allow respondents to comment on questions, add explanations, express doubts, in other words it will be as participative and co-operative as a quantitative survey can be. The co-ops will also be diagnosed by other methods as well. For the analysis of the management issues we shall use the Co-opIndex, while for the purposes of measuring Economic and Business Literacy and Economic Effectiveness new surveys shall be designed.
All the necessary methods have been developed and together with the procedure were sent to Research Ethics Board of Saint Mary's University for approval.

E)Analysis of decision making processes is the most difficult point of the research as it is based on qualitative data. It will be performed in the form of co-operative inquiry. This kind of analysis cannot be performed under any time pressure. These discussions will be performed as moderated discussions after a short presentation of Vroom's contingency model and how it translates to daily action. The workshop will require about two days for the participants to learn the theoretical assumptions and methodology and a way of drawing conclusions.The conclusions from each discussion will be summarised on a flip-chart and later rewritten and approved by the participants. If time permits 3-7 such two day workshops could be conducted both in Canada and in Spain.
After interviews with representatives of the co-ops the duration of the research has to be shortened. An on-line decision-making evaluation will replace the long twoday workshops. After analysis of the results and preparing the individual reports a short half a day workshop will be proposed to each co-op participating in the research. Of course co-ops willing to extend the length of the workshops will be encouraged to do so.

F)Analysis, within the co-operative inquiry teams, of how implicit anthropology and consequently cognitive models of reality depend on 12 aspects of the situation the co-operative operates in.
All the previous analyses will be the input for the formulation of the final model and a practical book (report or/and paper) at the end of the project. This report should give guidance to co-op leaders how to be aware of the potential for isomorphism and how to avoid it in co-operative management.
The handbook will be developed prior to the research to guide the participants' activity during the research phase. The workshops for participants as well as individual consultations will be an occasion to correct the content of the handbook.

Training objectives

Objective 1: Gain knowledge related to co-operative economics, critical management studies, multiple bottom lines i.e. disciplines that are important for my research of organizational participation, but are not in my present domain of expertise – organisational psychology. I plan to do this by completing parts of the Master's Programme at MMCCU. I also plan to consult Jean H. Mills and Albert J. Mills (at SMU) who represent critical management studies. Depending on other obligations I would like to cover the greatest possible part of the programme so as to be able to transfer the knowledge to Polish co-operatives and other European co-operatives, particularly those in the post-communist countries in Central Europe.