Co-operative Well-Being and Employee Resilience: A Comprehensive Review of the Literature

Co-operative Well-Being and Employee Resilience: A Comprehensive Review of the Literature

Siti Murni Mat Khairi^1*, Shazwani Mohd Salleh², Julina³, Mohd Hakimi Hanawi⁴ and Argustina Zainuddin⁵

^1,2Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia

³Fakultas Ekonomi dan Ilmu Sosial, Universitas Islam Negeri Sultan Syarif Kasim Riau, Pekanbaru, Riau, Indonesia

⁴Koperasi Pos Nasional Berhad, No.70-74, Wisma Koponas, Jalan Tun Sambanthan, 50470 Kuala Lumpur

⁵Regional HQ, Kia Asia Pacific Sdn. Bhd., Unit 1-43, Level 43, Naza Tower Platinum Park, No.10, Persiaran KLCC, 50088 Kuala Lumpur, Malaysia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8100095

Received: 04 October 2024; Accepted: 09 October 2024; Published: 06 November 2024

ABSTRACT

This study examines the intersection of co-operative well-being and employee resilience, addressing a notable gap in the existing literature concerning how cooperative models influence employee outcomes. The purpose of this research is to investigate the mechanisms by which co-operative structures foster resilience among employees while supporting overall well-being. A thorough literature review highlights that co-operative organizations emphasize democratic participation and collaborative practices, which can substantially improve employee engagement and job satisfaction. Previous research suggests that such environments contribute to stronger resilience, enabling employees to manage workplace challenges more effectively. The primary findings indicate that co-operatives not only support employee well-being through inclusive practices but also cultivate resilience by fostering a strong sense of community and shared purpose. Furthermore, the study identifies a lack of integrated strategies that utilize technology and policy frameworks to further strengthen these outcomes. The implications of this research indicate that increased collaboration between technology developers, policymakers, and social entrepreneurs is vital for developing innovative approaches that enhance co-operative well-being and resilience. By addressing these gaps, future initiatives may improve the sustainability of co-operative enterprises while fostering healthier workplaces and more resilient employees, ultimately benefiting both communities and the broader economy.

Keywords: Co-operative Well-Being, Employee Resilience, Co-operative Culture

INTRODUCTION

Co-operative organizations, recognized for their democratic governance and member-focused structure, place considerable emphasis on the well-being of their employees and members. Unlike conventional business models that prioritize profit maximization, co-operatives concentrate on improving collective well-being, cultivating a supportive work environment aligned with social and economic sustainability. Employee well-being in co-operatives extends beyond physical health, encompassing mental, emotional, and social aspects, thereby promoting a comprehensive approach to work-life balance (Elsamani, 2023). Additionally, employee resilience—the capacity to adapt and thrive amid adversity—has garnered increasing attention as a key factor in maintaining both individual and organizational well-being (Merdiaty et al., 2019). Resilience in co-operative contexts is vital, as these organizations frequently encounter distinctive challenges, such as economic pressures and market fluctuations. By fostering resilience through well-being initiatives, co-operatives can better equip their employees to manage stress, sustain performance, and contribute to the organization’s overall success (Luthar, 2000).

Employee resilience is pivotal in maintaining well-being, particularly in co-operative organizations that often confront unique challenges such as limited resources, democratic decision-making, and volatile market conditions. Resilience enables employees to adjust to adversity, stay productive, and contribute to a positive organizational culture despite external pressures. According to Luthar (2000), resilience is marked by an individual’s ability to adapt positively in the face of adversity, which is crucial for navigating the complexities of co-operatives. In these settings, where collective efforts are critical, resilient employees can help mitigate stress and prevent burnout, thus supporting the overall well-being of the organization (Merdiaty et al., 2019). This resilience is especially important for co-operatives, as their success often depends on the continued motivation and psychological well-being of employees, who must regularly adjust to economic and operational challenges (Elsamani et al., 2023). Ultimately, cultivating employee resilience is not only advantageous for individual well-being but also essential for the long-term sustainability of co-operative organizations.

The main research objective of this research is to examine the intersection between co-operative well-being and employee resilience through a comprehensive literature review. By bringing together findings from previous studies, this research seeks to understand how these two factors interact within co-operative organizations, which often face unique challenges compared to traditional business models. Recent studies emphasize that well-being plays a key role in building resilience, helping employees handle stress more effectively (Bakker & Demerouti, 2017). Additionally, co-operatives, grounded in collaborative values, require tailored approaches to employee engagement and support systems that encourage resilience while enhancing overall well-being (Okechukwu, 2021). This review will explore relevant empirical research and theoretical perspectives to gain a deeper understanding of the connection between co-operative well-being and employee resilience, ultimately providing insights for improving co-operative management and organizational development practices.

Co-operative well-being differs in several key aspects from traditional corporate well-being models. Co-operatives are built on collective ownership and democratic decision-making, where each member has an equal voice, promoting a sense of responsibility and shared community well-being. In contrast, traditional corporations often operate with hierarchical structures that limit employee influence (Elsamani, 2023; Merdiaty et al., 2019). According to the International Co-operative Alliance (ICA), co-operatives prioritize the economic, social, and cultural needs of their members, aligning their well-being efforts with communal goals, whereas traditional corporations primarily focus on maximizing shareholder profits, which can sometimes come at the expense of employee well-being. When it comes to profit distribution, co-operatives typically share profits equitably among members through patronage dividends, unlike corporations that prioritize returns for shareholders (Elsamani, 2023). Furthermore, co-operatives are often committed to creating positive impacts in their communities, enhancing social well-being, while traditional corporations place greater emphasis on financial performance (Mazzarol et al., 2011). These differences highlight how co-operatives offer a more holistic approach to well-being, integrating economic fairness, community focus, and democratic governance.

In the context of organizational behavior, resilience refers to an employee’s ability to adapt and thrive when faced with stress, adversity, and unexpected challenges. It involves using coping mechanisms to maintain both psychological well-being and professional performance under pressure. Employee resilience is closely tied to their capacity to adjust workplace behaviors to manage disruptions and stay productive in difficult circumstances (Liang et al., 2021). Organizational resilience—the collective ability of a company to endure and recover from crises depends significantly on the resilience of its workforce, as adaptive responses contribute to both individual and organizational growth (Ahmed et al., 2022). Resilience in the workplace involves not just bouncing back from challenges but also demonstrating competence and even achieving professional growth as a result of overcoming adversity (Wut, 2022). As such, resilience is a key factor for long-term sustainability and success in ever-changing environments.

Despite increasing recognition of the importance of co-operative well-being and employee resilience, there remain notable gaps in the literature, particularly in understanding how these two concepts intersect within co-operative organizations. While there has been substantial research on employee resilience and well-being individually, limited studies have explored their connection in co-operatives, which face distinctive operational challenges and cultural dynamics. This study seeks to address this gap by conducting a comprehensive review of the existing literature to explore how well-being initiatives can strengthen employee resilience in co-operative settings. The specific objectives include identifying major themes and findings in the literature, evaluating the effectiveness of resilience-building strategies in promoting well-being, and proposing a framework for co-operatives to integrate these concepts effectively.

LITERATURE REVIEW

A. Employee Resilience

Recent studies on employee resilience in cooperatives highlights the unique challenges and strengths that arise from the cooperative model’s distinctive structure. Unlike traditional corporations, cooperatives promote shared ownership, democratic participation, and mutual support among their members, which can strengthen resilience. Studies suggest that these features foster a collective ability to adapt to change and recover from adversity—key factors for maintaining sustainability in unpredictable environments (Voigt, 2024). Furthermore, resilience in cooperatives is closely tied to adaptability and social sustainability, as employees are encouraged to work together and draw on shared resources to navigate difficulties (Maltby and Hall, 2022). This emphasis on collaboration and community values enables cooperatives to develop a resilient workforce capable of enduring and thriving, even in the face of organizational and external pressures.

Recent models of employee resilience in the workplace highlight the interaction between individual traits, organizational support, and external factors. The Resilience Theory, for example, suggests that resilience is a dynamic process shaped by both personal qualities and the resources available within one’s environment. This indicates that employees can build resilience through a combination of internal strengths and external support systems (Lu et al., 2023). Another useful approach is the Psychological Capital Model, which focuses on developing hope, optimism, resilience, and self-efficacy (Youssef-Morgan, 2024). This model shows that fostering these psychological traits can significantly boost employee resilience and, in turn, improve overall performance at work. According to a study done by Zawawi and Nasurdin (2020) among nursing teams, high performance teams can identify resources more effectively and have less work duplication when they have enough information about the tasks they have been allocated. By definition, nursing teams that practice excellent task management would strive for high task performance. Additionally, the Job Demands-Resources (JD-R) Model explains how job demands can be balanced by the resources available to employees, fostering resilience by creating manageable workloads and supportive work environments (Bakker & Demerouti, 2017). Taken together, these models emphasize the role of both individual efforts and organizational support in building a resilient workforce, offering strategies to empower employees to thrive in the face of challenges.

B. Employee Well-Being

Employee well-being is a comprehensive concept that includes physical, emotional, psychological, and social health, along with the capacity to flourish and achieve life satisfaction (Dodge et al., 2012). It has progressed from traditional indicators of physical and mental health to incorporate broader aspects such as life satisfaction, social connections, and personal growth. Recently, research has increasingly focused on subjective well-being, which encompasses both hedonic aspects, such as pleasure and happiness, and eudaimonic dimensions, like meaning and personal development (Khairi et al., 2023; Smith and Rothbaum, 2020).

Co-operative well-being expands this individual framework to the group level, emphasizing the collective well-being of people within organizations or communities. It seeks a balance between personal and collective interests, promoting resilience, common objectives, and mutual support (Smith & Rothbaum, 2020). The development of co-operative well-being has mirrored the shift toward viewing organizations as ecosystems, where collective resilience and collaboration are considered essential to both personal and organizational success (Carr et al., 2016). This shift acknowledges that well-being in co-operative environments involves not only individual achievement but also the role of collaboration and shared values in enhancing the overall health and resilience of the group (Yao & Kotha, 2021).

Co-operatives support employee resilience by integrating well-being practices that take advantage of their unique organizational structure, which emphasizes collaboration, democratic participation, and shared ownership. These practices often involve creating a strong sense of belonging and community, fostering emotional and social well-being. Co-operatives also focus on the overall health of employees by incorporating physical, mental, and emotional support into their HR policies, helping staff develop stress-management strategies and adapt to challenges (Carr et al., 2016; Okechukwu et al., 2021). In addition, co-operatives are recognized for promoting well-being initiatives that encourage work-life balance, flexible work arrangements, and mental health support, all of which are vital for building resilience in the workforce (Maltby and Hall, 2022). By focusing on employee well-being as a core value, co-operatives strengthen their employees’ ability to overcome challenges and sustain performance in the face of difficulties.

LITERATURE REVIEW

A. Employee Resilience in Co-operatives

Recent studies on employee resilience within cooperatives reveal that the cooperative structure, rooted in democratic governance and mutual support, strengthens resilience at both individual and organizational levels. Cooperative principles such as solidarity, equity, and shared responsibility create an environment that promotes employee well-being and adaptability during difficult times. For example, Yuhertiana et al., (2022) illustrated how Indonesian and Malaysian cooperatives demonstrated resilience during the COVID-19 pandemic through strong internal values and government assistance. Additionally, Smith and Rothbaum (2020) highlighted that cooperatives play a key role in building resilient communities by effectively adapting to crises, showcasing their capacity for long-term sustainability. Collectively, these studies emphasize the significance of cooperative structures in nurturing employee resilience, often reinforced by participatory decision-making and a commitment to collective well-being.

Existing research indicates that employee resilience greatly enhances well-being in the cooperative sector by supporting adaptability and stress-coping mechanisms. Co-operatives, which focus on collective responsibility and mutual aid, frequently offer a setting conducive to building resilience. Studies suggest that resilient employees are better equipped to manage stress, maintain job satisfaction, and demonstrate behaviors such as teamwork and commitment, all of which contribute to higher levels of well-being (Bennett, 2017). Human Resource Management (HRM) practices designed for cooperatives further bolster resilience by fostering a supportive, participatory culture. This environment improves both individual and organizational performance through enhanced employee well-being (Voigt, 2024). Moreover, employee resilience contributes to greater organizational stability, especially during crises, as reflected in studies where cooperatives navigated economic downturns more effectively by leveraging resilient workforces (Youssef-Morgan, 2024).

In conclusion, several areas in the study of employee resilience and well-being, particularly in co-operative settings, remain insufficiently explored. First, while research has recognized the role of resilience in improving job satisfaction and performance, there is limited in-depth analysis of how specific HRM practices designed for co-operatives, such as participative decision-making, directly affect resilience and organizational stability. Additionally, although the impact of resilience during crisis situations has been noted, further empirical studies are needed across different cooperative sectors and geographical regions.

Moreover, existing research often overlooks to examine the long-term effects of resilience on both individual and organizational well-being beyond immediate crises. The connection between resilience and newer challenges, such as digital transformation and evolving work environments, also remains under-researched. Lastly, there is a notable gap in exploring how resilience-building can be integrated into formal co-operative management strategies, especially through focused training and development programs

B. Well-Being Interventions

Research on resilience interventions in organizations is evolving, with a focus on developing both individual and organizational resources. Employee resilience can be fostered through adaptive behaviors, learning, and network-leveraging, supported by organizational contexts (Kuntz et al., 2017). App-based interventions have shown promise in improving employee resilience and psychological well-being, offering a cost-effective approach for organizations (Avey et al., 2022). In cooperative settings, social capital mechanisms play a crucial role in building resilience capabilities, contributing to both economic and social viability (Wulandhari et al., 2022). Resilience-based approaches in social science research emphasize promoting well-being through recovery, sustainability, and growth. Interventions that cultivate emotional complexity and positive emotions can enhance resilience in individuals facing chronic stressors (Zautra et al., 2010). These studies highlight the importance of considering both individual and organizational factors in developing effective resilience interventions, particularly within cooperative structures that naturally emphasize collaboration and mutual support.

Recent research has explored psychological interventions to foster resilience in various populations, particularly healthcare students who face significant stressors. Studies have investigated diverse approaches, including mindfulness, skills-based training, psychoeducation, and coaching (Abulfaraj et al., 2024). A 4-week resilience intervention for college students demonstrated improvements in coping strategies, protective factors, and reduced symptomatology (Steinhardt & Dolbier, 2008). However, a systematic review of resilience interventions for healthcare students found very low-certainty evidence for their effects on resilience, anxiety, and stress (Kunzler et al., 2022). Researchers have identified limitations in current resilience intervention studies, including inconsistent definitions of resilience, unsuitable assessment instruments, and inappropriate study designs (Chmitorz et al., 2018). To address these challenges, experts recommend adopting an outcome-oriented definition of resilience, assessing resilience as changes in mental health relative to stressor load, and implementing improved methodological standards for future intervention studies (Chmitorz et al., 2018).

The successful integration of employee resilience and well-being within co-operatives can be seen in a range of initiatives that emphasize collaborative support and mental health. For example, one study demonstrates how co-operatives adopt asset-based strategies to strengthen resilience by fostering social connections and building supportive environments (Tonkin et al., 2022). These initiatives are complemented by structured programs aimed at improving mental health and well-being, which have been linked to positive outcomes in employee adaptability and performance (Obrenovic et al., 2020). Additionally, some co-operatives implement leadership approaches centered on humility and employee participation, which increase engagement and foster a culture of well-being (Bah et al., 2024). These approaches not only help employees effectively navigate challenges but also contribute to cultivating a more resilient organizational culture.

Future growth in the cooperative sector, especially in strengthening resilience and well-being, can be supported through several key strategies. First, co-operatives can focus on adopting digital technologies to boost member engagement and streamline operations, which is becoming increasingly crucial in today’s digital world. Additionally, placing greater emphasis on mental health and psychological well-being programs can help members better manage challenges, contributing to stronger community resilience (Kim, 2020). Co-operatives can also expand their role in promoting social sustainability by aligning with the United Nations Sustainable Development Goals, which could help attract more members and resources.

Cooperatives are recognized as important partners in achieving the United Nations Sustainable Development Goals (SDGs) due to their promotion of democracy, fair income distribution, social inclusion, and environmental care (Gagliardi & Gindis, 2022). The International Co-operative Alliance is actively promoting cooperatives’ role in implementing the SDGs, particularly in the Asia Pacific region. Research has identified eight types of cooperatives and their influence on each of the 17 SDGs (Lafont et al., 2023). Cooperatives’ focus on collective principles of solidarity, reciprocity, and sharing makes them well-suited to promote the SDGs and drive cultural change (Menezes, 2023). However, challenges remain, including limited national and international visibility, which may hinder cooperatives’ potential contributions to sustainable development (Gagliardi & Gindis, 2022). Finally, by utilizing the cooperative structure to encourage inclusive practices and provide focused support for marginalized groups, co-operatives can help create more resilient and unified communities. These strategies collectively position co-operatives as key contributors to promoting well-being and resilience in the face of future economic and social challenges.

C. The Role of Co-operative Culture

Co-operative culture plays a significant role in enhancing resilience and well-being among members compared to traditional organizational structures. This environment promotes values such as collaboration, mutual support, and shared responsibility, helping to build strong social connections and a sense of belonging. In co-operatives, employees often feel more ownership and involvement in decision-making, which can lead to greater engagement and job satisfaction. Research suggests that participative practices not only empower individuals but also create collective resilience, allowing organizations to adapt more effectively to challenges (Kim, 2020; Voigt, 2024). On the other hand, traditional corporate structures may prioritize top-down decision-making and profit-driven objectives, often overlooking the emotional and psychological needs of employees, which can negatively affect their well-being and resilience (Wiroko & Sugiharti, 2024). As a result, the community-oriented nature of co-operatives plays a key role in fostering a resilient workforce capable of thriving even in difficult times.

Co-operative culture also fosters resilience and well-being by promoting shared values and collective responsibility. The emphasis on collaboration and democratic decision-making in co-operatives encourages employee engagement and creates a sense of belonging, both of which are essential for building resilience in challenging situations (Zhenjing et al., 2022). Studies show that these environments increase employees’ commitment and adaptability, leading to improved performance and overall well-being (Liang and Cao, 2021). Additionally, the connection between employee resilience and organizational resilience demonstrates that supportive workplace cultures, such as those in co-operatives, positively impact an organization’s ability to adapt (Chmitorz et al., 2018). This mutual support ensures that when employees feel valued and supported, they are more likely to navigate uncertainties successfully, contributing to a stronger organizational foundation that prioritizes both individual and collective growth (Chmitorz et al., 2018; Kim, 2020).

Well-being practices in co-operatives play an important role in building employee resilience by creating supportive work environments that prioritize collective values and engagement. The focus on collaboration and democratic decision-making strengthens employees’ sense of belonging and commitment, helping them better handle challenges (Voigt, 2024). Research shows that human resource practices aimed at improving well-being significantly boost employee performance and resilience by fostering a positive social environment within the organization (Elsamani et al., 2023; Yuhertiana et al., 2022). Moreover, interventions focused on enhancing well-being have been shown to improve employees’ ability to cope with stress, allowing them to adapt more effectively to adversity (Hartwig et al., 2020). This close link between well-being and resilience in co-operatives underscores the importance of cultivating a supportive workplace culture that benefits both individual employees and the overall adaptability and success of the organization (Daniels, 2017).

FUTURE DIRECTIONS AND RESEARCH GAPS

Identifying gaps in the current research on co-operative organizations highlights several important areas for further exploration, particularly regarding the long-term effects of co-operative practices on employee well-being and organizational resilience. Many existing studies do not take a long-term view, which is crucial for understanding how well-being interventions affect employees over extended periods (Liang and Cao, 2021; Voigt, 2024). Future research should adopt cross-disciplinary approaches, drawing from fields like psychology, sociology, and organizational behavior to gain a well-rounded understanding of how co-operative values impact employee experiences and organizational success. There is also a need to examine the role of policy development in shaping co-operative structures, particularly how supportive government policies can enhance the ability of co-operatives to build resilience (Daniels, 2017; Lu et al., 2023). Another valuable area for future research is the role of technology in supporting co-operative practices, specifically how digital tools can improve communication and collaboration among members (Avey et al., 2023; Hartwig, 2020). By addressing these research gaps, future studies can offer important insights that will help strengthen co-operative practices and guide policy decisions for sustainable organizational growth.

Co-operative organizations prioritize employee well-being by creating a supportive work culture that boosts resilience among members. Through collaborative environments rooted in shared values and democratic decision-making, co-operatives allow employees to engage more deeply in their work, which is essential for managing stress and overcoming challenges (Youssef-Morgan, 2024). Research consistently demonstrates that employee resilience is positively associated with job performance, satisfaction, and well-being. Kašpárková et al. (2018) found that resilience correlates with job performance, partially mediated by work engagement. Similarly, Meneghel et al. (2016) revealed that job satisfaction fully mediates the relationship between resilience and performance. Cantante-Rodrigues et al. (2021) observed that work engagement partially mediates the resilience-performance link, while burnout showed no significant relationship with performance. Additionally, Meneghel et al. (2016) highlighted the importance of collective perceptions of social context in fostering individual resilience and job satisfaction. These studies collectively suggest that resilient employees tend to experience greater work engagement, job satisfaction, greater well-being and performance, emphasizing the significance of cultivating resilience in the workplace for improved organizational outcomes. By embracing these principles, co-operatives not only support individual growth but also strengthen organizational resilience, creating workplaces where both employees and the organization can thrive in the face of challenges (Maltby and Hall, 2022).

CONCLUSION

The existing literature on the topic of cooperative well-being and employee resilience sheds light on the significant part that cooperative structures play in enhancing the outcomes of both individuals and organisations. Studies have shown that cooperative organisations are able to establish settings in which the well-being of their employees is prioritised via democratic involvement and collaborative practices. This helps people become more resilient when confronted with obstacles in the workplace. Co-operatives have the potential to improve employee engagement, work happiness, and overall organisational success. This may be accomplished by cultivating cultures that are supportive. On the other hand, there are still significant gaps in our understanding of the long-term impacts of these activities, particularly with regard to social entrepreneurship and the incorporation of technology. In the future, research should concentrate on investigating these relationships, with the goal of highlighting the significance of collaboration between those who develop technology, those who decide policy, and social entrepreneurs in order to produce novel solutions that improve cooperative systems. There is the potential for such collaboration to result in the development of policies and technology that enhance the well-being and resilience of cooperatives, which would ultimately be beneficial to both communities and the economy as a whole.

ACKNOWLEDGMENT

The authors would like to express their sincere gratitude to the Kedah State Research Committee, UiTM Kedah Branch, for the generous funding provided under the Tabung Penyelidikan Am. This support was crucial in facilitating the research and ensuring the successful publication of this article.

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