The challenge for Mondragon : searching for the cooperative values in times of internationalization

Ramon FLECHA*, Ngai PUN

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

45 Citations (Scopus)

Abstract

Competitiveness today requires being able to operate at a global scale. The financial crisis invigorated this requirement, posing new challenges to the economic viability of conventional companies and demanding alternative organizational forms of production. Although a wealth of research has focused on capitalist companies, little attention has been paid to the way these challenges affected worker cooperatives. Drawing from a qualitative case study of the Mondragon Cooperative Group, this article discusses the obstacles to internationalization faced by worker cooperatives, as well as the specific conditions and implications involved. In particular, the article analyzes Mondragon’s contradiction between being forced to expand and trying to keep cooperative values during this expansion. Two main actions aimed at responding to this contradiction are analyzed: the creation of mixed cooperatives and the extension of the corporate management model. The analysis of this process will shed light on actions for the global expansion of worker cooperatives.

Original languageEnglish
Pages (from-to)666-682
Number of pages17
JournalOrganization
Volume21
Issue number5
Early online date20 Aug 2014
DOIs
Publication statusPublished - 1 Sep 2014
Externally publishedYes

Bibliographical note

Funding Information: The results presented here build on the research “The Contribution of Competitive Cooperativism to Overcoming Current Economic Problems” (Cooperativismo Competitivo: Aportacions a la sostenibilidad y calidad del empleo en el momento económico actual), which is funded by the Spanish Ministry of Science and Innovation through the National R&D Program.

Keywords

  • Cooperative values
  • expansion
  • internationalization
  • worker cooperatives

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