Author(s) :

DonVito B. Valle, Teresita P. Rosales.

Volume :

Abstract :

Co-operatives provide local households with access to goods and services at cost while encouraging self-help and democratic participation. In contrast to traditional investor- owned frms, these co-operatives enforce shared values and contribute to the development of social capital within communities. Unfortunately, only about one third of the number of registered co-operatives, consisting of small, fragmented community organizations in the Philippines, was considered active. This paper suggests co-operative merger as an alternative strategy from a theoretical and empirical perspective. A key distinction is made between mergers involving investor- owned frms and those of co-operatives. The economic nature of co-operatives draws upon a list of potential problems and opportunities for streamlining the merger process. A merger is deemed as a force that ―unfreezes the status quo and may disrupt the existing organizational inertia. However, this type of strategy is envisioned to reinforce the community resources and potentials for effective delivery of services to members.

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