Values congruence and SMEs’ active membership in business co-operatives

Abstract

This research examines how values congruence (person-organisation fit), affective commitment (personal preference for membership) and perceived value (e.g., quality vs price) influence the active membership of small to medium enterprise (SME) owner-managers, who are members of business co-operatives (e.g., those owned by businesses). A sample of 264 SME owner-manager members was obtained and a path model utilising SEM was used to estimate the relationships between the constructs. Significant relationships were found between all constructs. Values congruence influenced affective commitment and overall value that, in turn influenced active membership. The results provide empirical support for suggestions about the factors that influence active membership in co-operatives. Particularly those with SMEs as members. It also suggests co-operative managers should focus on ensuring there is a congruency in values with members, rather than solely focusing on members’ patronage. The paper highlights the importance of co-operatives to be built on the foundation of congruency in value, and value between the co-operative and its members, rather than solely focusing on economic outcomes.