Conceptually, it’s very intriguing, especially considering that decision-making by committee is usually less effective due to accountability being spread across many people, and ownership of the matter being ambiguous
Additionally, the consensus-driven nature of cooperatives may sometimes hinder innovation or bold decision-making, as every major decision requires a broader agreement among members.
It’s a delicate balance and the effectiveness of a cooperative model can significantly depend on the specific implementation, the sector in which the cooperative operates, and the culture of collaboration among its members.
In comparing to traditional hierarchical business models, cooperatives present a different set of challenges and benefits. The cooperative model’s emphasis on shared ownership and democratic decision-making can be empowering and equitable, but may require a more robust framework for accountability and decision-making to ensure operational efficiency and responsiveness to market dynamics.