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

• Published in: Journal of co-operative organization and management Vol. 12; no. 1; p. 100227
• Main Authors: Ghauri, Shahid, Mazzarol, Tim, Soutar, Geoffrey N.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.06.2024
• Subjects: Affective commitment; Co-operatives; Perceived value; SMEs; Subjective values congruence perception; Subjective values congruence perception; Affective commitment; Co-operatives; Perceived value; SMEs
• ISSN: 2213-297X
• DOI: 10.1016/j.jcom.2023.100227

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. •Values congruence influences affective commitment which influences active SME membership in co-operatives.•Co-operatives should be focusing on ensuring there is values alignment between their members.•Co-operatives should not solely focus on economic outcomes.•The foundations of co-operatives and SME members are built upon congruency of value and values.•Consistent communications ensures member engagement align value and values between both parties.