Members' Trust Acts as a Mediator Between their Dual Roles and Cooperative Identity: An Empirical Study of Industrial Cooperatives
► Chinju Chandran S (Corresponding Author)
chinjusabin@cusat.ac.in
https://orcid.org/0000-0003-2726-9993
► Rajitha Kumar S
c s.rajith.kumar234@gmail.com
https://orcid.org/0000-0003-0348-3207
Received: 13 June, 2024
Final Revision: 20 January, 2025
Accepted: 7 February, 2025
Published: 14 February, 2025
10.52283/NSWRCA.AJBMR.20240901A02
Abstract
Industrial cooperatives are a unique organizational model that strikes a balance between economic objectives and social responsibility. As member-driven organizations, they uphold a distinct identity rooted in cooperative principles by relying on members’ dual roles as owners and workers, which help to shape their identity and operational success. However, despite their significance in fostering inclusive growth and sustainable business practices, the extent to which industrial cooperatives effectively uphold and fulfil their cooperative identity remains an underexplored area in the available literature. The situation at hand is that cooperative institutions are experiencing difficulties in putting their cooperative principles into effect in the real world. In this situation, the current study investigates how members' dual roles influence the fulfillment of cooperative identity articulated in cooperative principles. The study also sought to analyze the mediating effect of members’ trust on the relationship of members’ dual roles and fulfillment of cooperative identity by industrial cooperatives. To analyze these relationships a conceptual model has been formulated with the support of Social Identity Theory and Social Exchange Theory. The conceptual model formulated has been empirically tested by collecting primary data by conducting face-to-face interviews with members of industrial cooperative societies in Kerala. Structural Equation Modeling (SEM) analysis is used to examine how cooperative identity is influenced by members’ dual roles. The findings indicate that when members engage positively in their dual roles as owners and workers, it brings benefits to the cooperatives in terms of implementing cooperative identity. Members' trust is regarded as an intermediate variable that connects both their dual roles to favorable behavior towards the cooperatives. Thus, this study provides statistical evidence that the trust of members plays a crucial role in enhancing their involvement as both owners and workers towards establishing the cooperative identity of the industrial cooperative societies.
Keywords: Cooperative Identity, Members’ Trust, Dual roles, Members’ Identification, Occupational Self-efficacy