Exploring linkages between formal, psychological and active ownership in financial cooperatives

Financial cooperatives (FinCoops) are member-owned organizations; however, formal ownership status does not necessarily ensure that members develop a sense of ownership or actively engage in their ownership roles. This study empirically examines the relationships between members’ formal ownership rights – namely control rights, surplus-sharing rights, access to information, and service quality – psychological ownership, and active ownership behavior. Data were collected from 1004 members across 12 FinCoops in the Democratic Republic of Congo. Using structural equation modeling, the findings indicate that perceived control, surplus-sharing, and service quality positively influence members’ psychological ownership. In turn, psychological ownership significantly and positively affects active ownership behavior. The article concludes by discussing the practical implications of these findings for cooperative governance and directions for future research.