The role of governance in balancing conflicting institutional logics in a Canadian credit union

Abstract

Credit unions are traditionally small, community-embedded and co-operatively-owned financial services organizations that developed to correct various market failures. Recent changes to regulatory policy in the financial services industry in Canada, coupled with advances in technology and urbanization of the population, have led to numerous mergers and consolidations among credit unions, particularly in Western Canada. This has the potential to undermine some of the historic benefits of CUs when compared to other financial services organizations, as it may require credit unions to begin to operate more like banks. My thesis provides a detailed examination of how senior leaders in one large Western Canadian credit union are handling these issues, and explores what the broader implications might be for policy and governance of credit unions in Canada. Using data collected through semi-structured interviews with top management and board members, this study provides insight into senior leaders’ perceptions of and responses to competing institutional logics in a credit union. Implications for policy, as well as decision-making surrounding co-operative governance, strategy, and structure will be discussed.