Journal of Co-operative Studies 53(2), 16-30

Abstract

Polanyi uses the term embeddedness to describe organisations that do not solely rely on market forces, but instead take into account social and cultural aspects, so that the economic, social, and cultural may become interlinked. The article makes the argument that co-operatives have the capacity potential for high degrees of embeddedness, and because of that characteristic, they may exhibit increased resilience in turbulent times. Two case studies are presented where historic co-operatives faced institutional and market challenges. First is the case of Saskatchewan Wheat Pool in Canada, where the co-operative undertakes a process of dis-embeddedness that ultimately leads to its demise. A different approach is presented in the second case, the case of Valio in Finland, where the co-operative becomes re-embedded and successfully adapts to market challenges. The article highlights how the unique nature of co-operatives allows for increased embeddedness and further contributes to the ongoing discussion on organisational change and adaptation.

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