The management gap : pooled resource governance and decision making within co-operative housing

Abstract

The aim of the research is to find relationships that explain co-operative housing institutions through understanding the institution, management board and their decision making preferences. In the process of achieving the explanatory relationship, an analysis and overview of co-operative housing institutions is conducted with reference to the individual board member’s understanding of the institution. Individuals are reviewed in context of their contractual relationship within the management structure using a principal-agent continuum conceptualized from agency theory. Individual board members are subsequently required to make a practical decision based on their now defined understanding of the co-operative institutional context. This decision records individuals’ degree of self-interest behaviour as opposed to the institutional interest and individuals’ responsibility of equitable distribution of common pooled resources. Significant relationships were found to explain the degree of self-interest portrayed by board members for the cooperative institution and a relationship construct was devised to illustrate the various aspects. Recommendations were made to reduce the degree of self-interest behaviour that board members portray in favour of behaviour that is within the best interest of the institution.