An organizational aapacity model for wine cooperatives

Abstract

We propose a model of Organizational Capacity for wine cooperatives. Cooperatives are organizations with distinct characteristics, in particular, they have a dual nature: they are simultaneously a business and non-profit driven organizations owned by their members. This poses specific challenges to cooperative management. Organizational Capacity is a construct developed for nonprofit organizations, but it has not been applied to cooperatives. Based on a qualitative study with 19 wine cooperatives in Portugal, we developed an organizational capacity model that accounts for the social and the economic dimensions of cooperatives and the peculiarities of their identity. The model comprises seven interdependent capacity elements: infrastructure, financial, strategic planning, marketing, human resources, relationship with members, and management capacity. We explore each of these capacities and how they relate to each other, highlighting their specific relevance in cooperatives.