The contextual embeddedness of organizational identity in cooperatives – An exploratory study of the champagne region

Cooperatives are organizations that combine business, nonprofit, and democratic logics to pursue economic and social goals, guided by shared principles and values oriented toward member and community well-being. While these characteristics define what cooperatives are designed to be, they do not fully explain what constitutes cooperative identity in practice. Research on cooperative identity has tended to privilege internal principles, downplaying how identity is formed in interaction with external actors, elements, and influences. We advocate for an integrated perspective that links organizational theory with contextual and regional embeddedness to explain how cooperative identity is shaped in and by territorial business ecosystems. Drawing on a qualitative research design, we analyze interviews with eight cooperatives and archival materials representing the Champagne-Ardenne appellation, the designation of origin for Champagne. We identify two families of identity-shaping elements: strategic-operational elements and context-environmental elements. Together, these elements enact a cooperative identity that is proactive, place-based, and collectively disciplined. We show how the territorial business ecosystem underpins sustainable development at the organizational, brand, and product levels and co-produces cooperative identity beyond the boundaries of any single firm. We call for cooperative scholars to pay attention to contextually embedded factors to advance our understanding of identity dynamics in cooperative business.