Does creating perceived co-operative member value pay off? An empirical study in the German co-operative banking context

Abstract

The relevance of co-operative values and principles has long been discussed in co-operative literature. Building on a structured literature review and expert interviews, I develop a measure of perceived co-operative member value. Using a multivariate data analysis method, I establish a structural path model that incorporates this new measure. In a sample of 390 members of German co-operative banks, perceived co-operative member value is found to be an important predictor of sustainable satisfaction, next to corporate reputation. The study’s main contributions are twofold: First, I develop an understanding of perceived co-operative member value building upon relevant literature and expert interviews. Second, I enhance the existing knowledge on co-operative principle and value’s importance by situating it in the broader context of co-operative members’ sustainable satisfaction, thereby combining it with marketing literature. In conclusion, I indicate how these contributions have implications for both co-operative theory and practice.