A3 Book section, Chapters in research books
Efficiency vs. values : Institutional logics, situated rationality, and performance measurement in a cooperative bank (2023)

Järvenpää, M., Teittinen, H., Auvinen, T., Sajasalo, P., Sintonen, T., & Takala, T. (2023). Efficiency vs. values : Institutional logics, situated rationality, and performance measurement in a cooperative bank. In P. Kalmi, T. Auvinen, & M. Järvenpää (Eds.), Responsible Finance and Digitalization : Implications and Developments (pp. 78-96). Routledge. https://doi.org/10.4324/9781003144427-7

JYU authors or editors

Publication details

All authors or editors: Järvenpää, Marko; Teittinen, Henri; Auvinen, Tommi; Sajasalo, Pasi; Sintonen, Teppo; Takala, Tuomo

Parent publication: Responsible Finance and Digitalization : Implications and Developments

Parent publication editors: Kalmi, Panu; Auvinen, Tommi; Järvenpää, Marko

ISBN: 978-0-367-70061-4

eISBN: 978-1-003-14442-7

Publication year: 2023

Publication date: 09/08/2022

Pages range: 78-96

Number of pages in the book: 296

Publisher: Routledge

Place of Publication: Abingdon

Publication country: United Kingdom

Publication language: English

DOI: https://doi.org/10.4324/9781003144427-7

Publication open access: Not open

Publication channel open access: 

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/83961

Abstract

This qualitative case study explores how situated rationality is achieved and maintained between two coexisting institutional logics, ‘global’ financial efficiency and ‘local’ customer-owners, around a performance measurement system in a large cooperative bank. We focus especially on the relationship between financial performance measures and softer, cooperative and communal organisational values. The results highlight that communal values may be effectively used to smooth and manage managerial contradictions; thus, situated rationality for operations can be achieved and maintained. This may also explain the resilience and success of communal values and cooperatively formed organisations in markets, even though the efficiency of such organisations is sometimes doubted. This also indicates the potential of alternative, more responsible and moderate modes of banking and finance for healing some of the problems of an extreme style of capitalism.

Keywords: banking sector; cooperative banks; performance-based management; values (conceptions); efficiency (properties); communality; responsibility (properties); corporate responsibility

Contributing organizations

Ministry reporting: Yes

VIRTA submission year: 2023

JUFO rating: 3