Evidence of Cooperative Business Impacts – a Realist Perspective

Brentnall, Catherine ORCID: https://orcid.org/0000-0003-2301-984X, Lever, John ORCID: https://orcid.org/0000-0002-2188-8518 and Downing, Gareth ORCID: https://orcid.org/0000-0003-1325-0810 (2024) Evidence of Cooperative Business Impacts – a Realist Perspective. Project Report. Co-operative Councils Innovation Network.

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Abstract

This report emerged from a Policy Lab commissioned by Kirklees Council and supported by the Cooperative Councils’ Innovation Network and Power to Change. The Policy Lab focused on developing a framework and toolkit to help Cooperative Councils in their goal to support and develop more cooperatives. During the research, it was identified that better evidence was needed about the impact of cooperatives, as well as more knowledge about the breadth, depth and complexity of the cooperative movement (Appendix II: Primary Research Report). Around this time, a Rapid Evidence Review was published about plural ownership effects – that is, the effects of cooperatives, social enterprises and municipal enterprises - which found that overall “there is no strong evidence for or against claims about the importance of plural ownership for firm performance” (What Works Centre for Local Economic Growth, 2024a, p. 3). While this review was focused on areas associated with economic growth, such as employment, productivity, sales and production costs, the accompanying evidence briefing suggested that plural and local forms of ownership may have other benefits. These included businesses creating a sense of belonging, ownership, empowerment, and feeling proud of, and connected to, community. However, it was stated that, “in most cases, these benefits are likely to be small and difficult to measure” (What Works Centre for Local Economic Growth, 2024b, p. 19). The ‘What Works’ perspective is underpinned by a particular set of assumptions which value certain types of research approaches and evaluations, and which tend to generate certain sorts of judgements. The purpose of this report is to provide an alternative and complementary perspective on evidence about the impacts of cooperative businesses. This report will expand evaluative thinking, beyond ‘What Works’ and towards ‘What works for whom and why’. It introduces a realist perspective on evidence and evaluation (Pawson, 2024; Emmel et al., 2018; Pawson, 2013; Pawson, 2006; Pawson and Tilley, 1997), which has been developed to embrace the complexity of social phenomena and moves beyond average effect sizes as the main or best way to understand or articulate impact.