A Cooperative Value Co-Creation Framework for SMEs

Thesis Abstract

This study addresses the persistent gap in small and medium enterprise (SME) performance attributed to suboptimal value co-creation processes with stakeholders, including customers, suppliers, and local communities, within cooperative economics and management. It contends that a structured framework for cooperative value co-creation can enhance innovation, resource efficiency, and resilience by aligning actors’ capabilities with SME strategic goals. The aim is to develop, validate, and illustrate a Cooperative Value Co-Creation Framework (CVCCF) that integrates governance, networked learning, and shared value creation. Specific objectives are (1) to identify the multi-stakeholder value co-creation activities that drive performance outcomes in SME cooperatives; (2) to formulate a theoretical model linking governance mechanisms, relational capital, and co-created value to SME performance metrics; (3) to operationalize a CVCCF with measurable constructs and indicators; (4) to test the model using empirical data from cooperative SMEs across the manufacturing and agri-food sectors; and (5) to provide actionable guidance for practitioners and policy makers. The methodology adopts a mixed-methods research design, combining a cross-sectional survey with qualitative case studies. The population comprises SME cooperatives registered under national cooperative laws in two metropolitan regions, totaling approximately 1,200 firms. A two-stage sampling approach yields a quantitative sample of 350 SMEs, selected via stratified random sampling by sector (manufacturing, agrifood, and services) and cooperative size (micro, small, medium). Additionally, purposive sampling identifies 6 in-depth case study cooperatives to explore contextual dynamics. Data collection instruments include a structured questionnaire measuring constructs such as relational capital, governance quality, co-creation activities (customer involvement, supplier integration, community partnerships), value outcomes (economic performance, social value, and innovation), and perceived value co-creation capability. The case studies utilize semi-structured interview guides and archival documents. Validity and reliability are ensured through content validity assessment by a panel of cooperative governance experts, pilot testing with 20 SMEs, and calculation of Cronbach’s alpha (targeting ? ? 0.70) for all multi-item scales. Data analysis employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed structural model and mediating/moderating effects, complemented by Multi-Group Analysis (MGA) to assess sectoral differences. The qualitative data are analyzed using thematic analysis, triangulated with quantitative findings to enrich interpretation. A model specification includes constructs for governance mechanisms, relational capital, co-creation activities, co-created value (economic, social, and environmental dimensions), and SME performance indicators (sales growth, profitability, market share, and capacity utilization). Key expected findings include (a) governance quality and relational capital positively influence the extent and effectiveness of co-creation activities; (b) co-creation activities mediate the relationship between governance/relational capital and co-created value outcomes; (c) co-created value significantly enhances SME performance, with stronger effects observed in manufacturing and micro-to-small enterprises; (d) the CVCCF demonstrates invariant validity across sectors, though effect sizes vary, and (e) case studies reveal contextual factors such as trust, information transparency, and existing cooperative culture as critical enablers or barriers to co-creation. The study contributes to knowledge by operationalizing a concrete, testable framework for cooperative value co-creation in SMEs, integrating theories of social exchange (Resource-Based View and Relational Capital Theory) and stakeholder governance into a single model. It advances measurement by developing validated scales for multi-stakeholder co-creation processes within cooperative settings and demonstrates the differential impact of governance and relational factors on performance outcomes. Policy implications include guidance for cooperative regulators and development agencies on nurturing governance maturity, knowledge sharing platforms, and local ecosystem collaborations that promote sustainable value creation. The main conclusion posits that a deliberate, governance-informed, relationally rich co-creation architecture substantially enhances SME performance while delivering broader social value. Recommendations advocate for formalizing stakeholder engagement routines, investing in trust-building and information-sharing infrastructure, and fostering sector-specific co-creation communities of practice to sustain competitive advantage through shared value creation.