The P-network as an interpretation tool for co-ops

This paper introduces Aoki (1993) “P-network” framework as a theoretical tool to classify and interpret the governance and organizational configuration of cooperative firms. The proposed framework is also employed to discuss some general and desirable features of incentive-compatible financial instruments for cooperative firms. An interesting point is how efficient can the cooperative governance be in capital-intensive industries. Or, to put it another way: can incentive-compatible financial instrument for cooperative firms be so efficient to support the growth of a cooperative firm in a capital intensive industry? This is a typically empirical question, but may still be analyzed in the light of the “P-Network” approach.