Съвременният кооперативен бизнес модел – предизвикателства и перспективи
The Contemporary Cooperative Business Model – Challenges and Perspectives

Author(s): Ivan Boevsky, Krasimir Kostenarov
Subject(s): Social Sciences, Economy, Business Economy / Management, Sociology, Management and complex organizations
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: cooperatives; business model; governance; member value; sustainability
Summary/Abstract: This paper examines the contemporary cooperative business model as a distinctive organizational form shaped by cooperatives’ dual nature as both an enterprise and a membership community. Building on this premise, the study operationalizes the “value creation–delivery–capture” framework and argues that cooperative value stems not only from market transactions but also from members’ coordination and interaction, since members simultaneously act as users, owners, and carriers of democratic control. The analysis identifies three major challenge areas affecting cooperative sustainability: (1) weakening member participation, information, and engagement, which disrupts the causal link between member promotion and economic outcomes; (2) managerial professionalization without robust accountability, resulting in competence asymmetries, formalized democracy, and reduced effective member control; and (3) intensified market pressure and competition, which increase the likelihood of convergence toward investor-oriented model. The paper then outlines perspectives for sustainable development: strengthening the alignment between cooperative values, governance, and economic performance; implementing systematic education, training, and information as a functional mechanism enabling meaningful democratic oversight; and fostering business model innovation, including digitalization to enhance transparency, member involvement, and operational efficiency.

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