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Abstract
The aim of this article is to discuss the suitability of the cooperative form for
the knowledge intensive business sector. First, core elements in organizing
and managing knowledge intensive enterprises have been identified through
a literature review. The existence of these core elements are then examined
in two Finnish worker cooperatives operating in the consulting business. The
cooperatives are compared to limited liability enterprises in order to crystallize
the specific features of the cooperative business form. The findings show
that the cooperatives of this study possess major important elements for well-functioning
knowledge intensive enterprises, such as a strong organizational
culture with shared values and the possibility of the knowledge workers to
take part in the decision-making of the enterprise. However, a cooperative is
a demanding form of organization because of the large number of decisionmakers
and the great extent of flexibility associated with the form. The
flexibility is one factor leading to the existence of passive members in both
cooperatives of this study.