Why do SMEs join Co-operatives? A comparison of SME owner-managers and Co-operative executives views

Abstract Small to Medium Enterprises (SMEs) can benefit from membership of a co-operative. This study aims to test previous antecedents of why SMEs join a co-operative. We interviewed members and executives of four Australian co-operatives to investigate reasons why SME owners joined them. All interviewees agreed that the co-operative had to provide economic benefits in addition to information, business support, knowledge, and networking. The SME owners’ disposition of collective action towards a common sense of purpose supported the decision to become a member of their co-operatives. Asset, temporal, location & relational specificity provided the external resources through their co-operative to challenge the environmental uncertainty the SMEs faced.