Cooperatives, social capital and entrepreneurship: A theoretical perspective

Abstract

This article examines, from a theoretical perspective, the relationship between social capital and cooperatives under a twofold approach. On the one hand, it addresses the ability of cooperatives to create social capital and disseminate it in their broader local environments. In this vein, we identify several organizational characteristics of cooperatives that can promote the generation of internal social capital, as well as some key mechanisms that intervene in the diffusion of social capital at the community level. On the other hand, the influence of regional social capital on cooperative entrepreneurship is addressed. In this area, we analyse how various factors related to social capital can promote the creation of cooperatives in a given region. Moreover, drawing on an extensive literature review about social capital, entrepreneurship and cooperatives, an agenda for further research is proposed, which highlights some key limitations of the previous literature and proposes some avenues to advance knowledge of the bidirectional relationship between social capital and cooperatives. The article also discusses the practical implications of our findings and their consequences for important strands of inquiry in the current academic literature.