Shared Services Cooperatives: A Qualitative Study - Exploring Applications, Benefits & Potential

The story of shared services cooperatives is compelling for the breadth and depth of its utility across multiple sectors of the US economy.

Shared services cooperatives are member associations formed to meet a variety of institutional needs for economies and efficiencies of scale through collaboration in areas such as purchasing, marketing, processing and distribution. They are organized and operate as for-profit or not-for-profit business entities and appear in a broad array of industry and public service sectors, providing a variety of benefits, services and opportunities today in rural, suburban and urban communities throughout the US.

This qualitative study sets out to describe the ways in which shared services cooperatives are organized, who are the members, how shared services cooperatives benefit their members and why the members formed a cooperative as opposed to other forms of collaboration (joint ventures, subsidiaries or collaborative agreements). 

Shared services cooperatives in all the cases studied have led to long-term impacts in addressing organizational needs. All the cooperatives in this study have effectively served their members’ needs. Whether it was a cooperative designed to enhance competitiveness, or to lower risks, to acquire new sources of funding or to allow the cooperative members to scale up or sustain the organization, the story has been the same. The shared services cooperative works very well as a way to meet these varied needs. 

CONTENTS

FIGURES

TABLES

ABBREVIATIONS

ACKNOWLEDGEMENTS

PREFACE

1: AN INTRODUCTION TO THE SHARED SERVICES COOPERATIVE MODEL

Abstract

A Problem of Nomenclature

Shared Services & the Sharing Economy

Shared Service as a Form of Collaboration Networking

The Social Ecology of Shared Services

The Research Design

The structure of the ebook

2: SHARED SERVICE COOPERATIVES IN THE PUBLIC RESOURCE, PUBLIC SERVICE & NON-PROFIT SECTORS

Abstract

The Role of Enabling Legislation

Cooperative Transit Systems

Public Education

Public Library Services

The Southern California Library Cooperative

Analysis of the library shared services cooperatives

Water Resource Management

Southern California’s use of shared services in natural resources

The Walnut Valley Water District

The Gateway Water Management Authority

Analysis of shared services cooperatives in water districts and watershed authorities

US Government Land Conservation 

Conclusion

3: SHARED SERVICE COOPERATIVES IN HEALTH CARE

Abstract

Cooperatives in the US Health Care System 

Consumer cooperatives

Workers’ cooperatives

Multi-stakeholder cooperatives

Shared services cooperatives

The Hospital Cooperative

The Rural Wisconsin Hospital Cooperative

The Affordable Care Act & Health Insurance 

Patient Physician Cooperatives

New Seattle Massage: A Cautionary Case of Shared Services

Conclusion

4: SHARED SERVICE COOPERATIVES IN THE FINANCIAL SECTOR: THE CREDIT UNION EXPERIENCE

Abstract

Credit Unions in the US

Credit unions by the numbers 

Statutory constraints imposed on credit unions

Credit unions’ performance

Organization ecology theory 

Challenges

Technology

Membership

Growth

Competition

Inadequacy of viable solutions

Shared Services: A Sustainable Solution for Credit Unions

Data collection 

Data analysis

Challenges facing credit unions

The Public Service Credit Union

Conclusion

Benefits of shared services for credit unions

Implications of shared service benefits for credit unions and their members

5: SHARED SERVICE COOPERATIVES IN BUSINESS

Abstract

The Shared Economy in the Global Economy

The Shared Economy & Cooperative Practices

The advantages of shared service cooperatives

Johnstone Supply Company

Origin and structure

Challenges

Members empowerment

The National Information Solutions Cooperative

History and challenges

The business model

New Seattle Massage

Challenges

Networking

CDS Consulting Coop

History and challenges

Administrative flexibility

Carpet One & CCA Global Partners

History and challenges

Administrative flexibility

6: CONCLUSION

Abstract

Shared Services Is Different from the Shared Economy

The Cross Case Comparative Analysis

Lessons from the Field for Further Shared Services Cooperative Development

Benefits of Shared Services 

For public, non-profit and quasi-government entities 

For cooperatives in health care

END NOTES

REFERENCES

THE AUTHORS