Theoretical and empirical studies of producer cooperatives: will ever the twain meet?

Producer cooperatives (PC) have existed since the first factories were set up in Western economies. The characteristics of PCs with regards to worker motivation, productivity, investment and capital formation were assessed based on existing economic literature and compared with conventional firms. The extent of influence and the nature of operations vary depending on the country and industry. Usually, PCs abound in the plywood, printing and construction industries. Empirical studies have shown that PC practices promote worker productivity and performance.