Effect of pluralistic ignorance on participation in meetings and in decisions about the distribution of operational surposes in cooperative companies
Abstract
Objective: This research had two main objectives. First, it sought to verify the influence of Pluralistic Ignorance on decisions about the distribution of operating surpluses in cooperative companies. Second, it verified the relationship between the leftovers distribution policy, transparency in the disclosure of the assemblies and the social embarrassment with the perception of the importance of participation in the assemblies.
Method: To collect data, a questionnaire was applied to members of cooperatives in the State of Santa Catarina. 107 responses were collected from 17 different cooperatives. Data were analyzed using the Mann-Whitney test and structural equation modeling (PLS/SEM).
Originality/Relevance: The Theory of Pluralistic Ignorance was used as a theoretical framework in order to verify the behavior of cooperative members in their decisions about the allocation of operational leftovers in the assemblies. A behavioral view can bring light to the topic by adding knowledge to discussions with economic guidelines.
Results: The results indicate that Pluralistic Ignorance affects decisions about the distribution of net operating surpluses and that the embarrassment to expose opinions about the distribution of surpluses is a factor that inhibits participation in meetings. The study also showed that friendship ties can be important in increasing the participation of cooperative members.
Theoretical/methodological/practical contributions: The article contributes to the issue of governance by demonstrating that an error in assessing the social norm can change the decision regarding the distribution of operating surpluses. It also contributes to the practice by evidencing dysfunctionality in the decision-making process in the assemblies. Studies on governance are predominantly based on economic theories, and this research sought to understand the behavior of associates in collective decisions, based on a theory of social psychology.
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