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Rescuing firms in a co-operative way: worker buyouts in Italy

Author

Listed:
  • Andrea Bernardi

    (Oxford Brookes University, United Kingdom)

  • Andrea Cori

    (Research Institute of the Italian Cooperative Federation "Lega Nazionale delle Cooperative e Mutue - Centro Studi Legacoop", Italy)

  • Mattia Granata

    (Research Institute of the Italian Cooperative Federation "Lega Nazionale delle Cooperative e Mutue - Centro Studi Legacoop", Italy)

  • Keti Lelo

    (Roma Tre University, Italy)

  • Salvatore Monni

    (Roma Tre University, Italy)

Abstract

We have carried out an empirical study of WBOs in Italy since 1985, describing the role of two key institutions - the legal framework and the cooperative associations. WBO operations were officially recognized in 1985 by the Italian policy-maker. The research has led to establishing a sample, wider than any previously done in Italy, resulting from the analysis of data collected by the Legacoop's Area Studi and provided by the main actors in the promotion and financing of WBOs (Cooperazione Finanza Impresa, COOPFOND, Federazione Trentina della Cooperazione) and the data published by Banca Etica and the Italian Network of Recovered Companies. This has led to being able to closely study the effectiveness and features of WBOs in Italy. We found that longer lifespans and higher rates of activity are associated with the membership of a cooperative association. The sectoral and geographic analysis confirms the conclusions of previous studies, highlighting a clear concentration of WBOs in the Central and North-Eastern regions of Italy and in the manufacturing sector. The average lifespan of the co-operatives, as well as the survival rate, proves the positive economic and social impact of WBOs in times of crisis. The findings have implications that go beyond Italy. We conclude discussing the importance of an appropriate legal framework supporting WBOs and the importance of cooperative associations, including their financial branches.

Suggested Citation

  • Andrea Bernardi & Andrea Cori & Mattia Granata & Keti Lelo & Salvatore Monni, 2022. "Rescuing firms in a co-operative way: worker buyouts in Italy," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(1), pages 242-260, September.
    • Handle: RePEc:ssi:jouesi:v:10:y:2022:i:1:p:242-260
    DOI: 10.9770/jesi.2022.10.1(13)
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    References listed on IDEAS

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    1. Andrea Cori & Mattia Granata & Keti Lelo & Salvatore Monni, 2021. "Mapping cooperatives in Italy," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 136-163, March.
    2. M. Wright & R. S. Thompson & K Robbie, 1989. "Privatisation Via Management And Employee Buyouts," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 60(4), pages 399-430, October.
    3. Salvatore Monni & Giulia Novelli & Laura Pera & Alessio Realini, 2017. "Workers' buyout: the Italian experience, 1986-2016," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(4), pages 526-539, June.
    4. Andrea Bernardi & Cécile Berranger & Anita Mannella & Salvatore Monni & Alessio Realini, 2022. "Sustainable but Not Spontaneous: Co-Operatives and the Solidarity Funds in Italy," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
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    More about this item

    Keywords

    cooperatives; Workers Buy Out (WBO); Italy; cooperative associations; employers' associations; institutions; employment policies;
    All these keywords.

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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