Contextualizing the Governance of Community Co-operatives: Evidence from Austria and Germany

The article inquires into the role of the institutional context in explaining the governance of community co-operatives. These organizations do not solely focus on a member’s advantage but act on behalf of some collective identity. To enhance our understanding of the nature of co-operative governance on the neighborhood level, we draw on theoretical concepts that are context-sensitive, helping us to catch the institutional conditions in a specific place which are enabling individuals and groups to act and organize collectively. Thus, we enrich the abstract concept of governance put forward by New Institutional Economics. Based on a systematic analysis of case studies, the paper shows that the governance of community co-operatives is based on place-bound values. However, the encounter of divergent imaginations of the neighborhood results in different co-operative practices: e.g., either a government-directed practice to “discipline” the community or a community-initiated practice of self-organization.