Consumer cooperatives as an alternative form of governance: the case of the broadband industry

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

Uittreksel

With a growing number of consumer cooperatives in non-agrarian industries such as energy and broadband, there is a need to better understand their emergence as a viable form of governance. In this context, the paper uses Mikami’s (2010) model on consumer cooperatives to explain their emergence as a result of their ability to generate additional equity financing through the membership market. It focuses on the motivations of consumers to financially contribute to a cooperative by examining the risks and benefits associated with the investment. Based on a survey of 759 consumers, it links their motivations for joining a cooperative to different forms of risks and benefits associated with the investment. It shows that the risks related to cost sharing and switching costs are important determinants for consumers. Other factors that affected the likelihood of joining a cooperative were expected benefits with respect to user network externalities and infrastructure gains.
TaalEngels
Pagina's86-97
Aantal pagina's12
TijdschriftEconomic Systems
Volume41
Nummer van het tijdschrift1
Vroegere onlinedatum20 nov 2016
DOI's
StatusGepubliceerd - 2017

Vingerafdruk

Governance
Industry
Broadband
Cost sharing
Network externalities
Switching costs
Energy
Factors
Equity financing

Citeer dit

@article{46fd387f148c41549176655dbc226e44,
title = "Consumer cooperatives as an alternative form of governance: the case of the broadband industry",
abstract = "With a growing number of consumer cooperatives in non-agrarian industries such as energy and broadband, there is a need to better understand their emergence as a viable form of governance. In this context, the paper uses Mikami’s (2010) model on consumer cooperatives to explain their emergence as a result of their ability to generate additional equity financing through the membership market. It focuses on the motivations of consumers to financially contribute to a cooperative by examining the risks and benefits associated with the investment. Based on a survey of 759 consumers, it links their motivations for joining a cooperative to different forms of risks and benefits associated with the investment. It shows that the risks related to cost sharing and switching costs are important determinants for consumers. Other factors that affected the likelihood of joining a cooperative were expected benefits with respect to user network externalities and infrastructure gains.",
author = "B.M. Sadowski",
year = "2017",
doi = "10.1016/j.ecosys.2016.04.004",
language = "English",
volume = "41",
pages = "86--97",
journal = "Economic Systems",
issn = "0939-3625",
publisher = "Elsevier",
number = "1",

}

Consumer cooperatives as an alternative form of governance: the case of the broadband industry. / Sadowski, B.M.

In: Economic Systems, Vol. 41, Nr. 1, 2017, blz. 86-97.

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

TY - JOUR

T1 - Consumer cooperatives as an alternative form of governance: the case of the broadband industry

AU - Sadowski,B.M.

PY - 2017

Y1 - 2017

N2 - With a growing number of consumer cooperatives in non-agrarian industries such as energy and broadband, there is a need to better understand their emergence as a viable form of governance. In this context, the paper uses Mikami’s (2010) model on consumer cooperatives to explain their emergence as a result of their ability to generate additional equity financing through the membership market. It focuses on the motivations of consumers to financially contribute to a cooperative by examining the risks and benefits associated with the investment. Based on a survey of 759 consumers, it links their motivations for joining a cooperative to different forms of risks and benefits associated with the investment. It shows that the risks related to cost sharing and switching costs are important determinants for consumers. Other factors that affected the likelihood of joining a cooperative were expected benefits with respect to user network externalities and infrastructure gains.

AB - With a growing number of consumer cooperatives in non-agrarian industries such as energy and broadband, there is a need to better understand their emergence as a viable form of governance. In this context, the paper uses Mikami’s (2010) model on consumer cooperatives to explain their emergence as a result of their ability to generate additional equity financing through the membership market. It focuses on the motivations of consumers to financially contribute to a cooperative by examining the risks and benefits associated with the investment. Based on a survey of 759 consumers, it links their motivations for joining a cooperative to different forms of risks and benefits associated with the investment. It shows that the risks related to cost sharing and switching costs are important determinants for consumers. Other factors that affected the likelihood of joining a cooperative were expected benefits with respect to user network externalities and infrastructure gains.

U2 - 10.1016/j.ecosys.2016.04.004

DO - 10.1016/j.ecosys.2016.04.004

M3 - Article

VL - 41

SP - 86

EP - 97

JO - Economic Systems

T2 - Economic Systems

JF - Economic Systems

SN - 0939-3625

IS - 1

ER -