The German cooperative banking group as a strategic network: function and performance

Autoren: 
Greve, Rolf
Aus der Reihe: 
Arbeitspapier
Band: 
29
Veröffentlichungsort: 
Münster
Veröffentlichungsdatum: 
2002
Abstract: 

According to institutional economics, credit cooperatives and the cooperative banking group can be interpreted as hybrid organizational forms (cooperation). The relationship between customers and the cooperative bank on the one hand, and between the cooperative banks and the central units within the group on the other hand can be called precarious because dependencies can be uses in an opportunistic way. Hybrid organizational forms have been established to solve hold up and moral hazard issues that are caused by opportunistic behavior. The institutional devices of the cooperative banking group have to be adapted on the changing general settings. Nowadays, as in the past, the core competence of cooperative banks in Germany is the membership that ensures dependability in precarious relationships. The suitable strategy is a member-oriented relationship-management. A structure in line with this strategy can be a strategic network. In order to continuously create a strategic network the cooperative banking group has to modify its institutions. Some of the required measures correspond to the latest strategy-paper by the central association of the German cooperative banking system. The institutional change is already in full swing.