Determinants of entrepreneurial orientation in cooperatives: organizational resources and the double-edged sword of member participation

Entrepreneurial Orientation (EO) is vital for the economic performance of cooperatives. However, research on cooperatives has yet to explore how EO depends on organizational factors. This study theoretically and empirically examines the relationship between organizational resources, the participative structure of cooperatives and EO. The survey results of 615 Swiss cooperatives (mainly SMEs) reveal that organizational resources explain some variance of EO, with the mobilization of internal- and external network resources being the most important determinants. Furthermore, it is shown that member participation is negatively related to EO. The results contribute to the research question of how cooperatives become more entrepreneurial by adapting organizational factors.