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

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 cooperative 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.