Freedom to enter Enterprises as the basis

Abstract

Business models are a better predictor of performance than industry classifications and indeed some business models lead to better performance than others do. One such a model is the co-operative business model that drives co-operatives to sustainable performance and better response to economic crises than investor owned models. This paper provide insights on the structure of co-operative business model, particularly how the Cooperative organizational purpose, key resources and key business processes influence enterprise performance. It outlines views on the co-operative business model and its sustainability from a model elements perspective. The literature reviewed demonstrates that co-operative model elements contribute to sustainable performance of co-operative enterprises. However, to continue the debate and in consistent with the perception that cooperative business model elements result to resilient firm performance, this paper recommends future research on the effects of interrelationships of model elements on firm performance, where the influence of combinations rather than characteristics of single elements is established. A hypothetical framework of model elements is also explained.