IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/dp2001-27.html
   My bibliography  Save this paper

Blooming Together or Wilting Alone?: Network Externalities and Mondragón and La Lega Co-Operative Networks

Author

Listed:
  • Stephen C. Smith

Abstract

This paper examines strategies developed by Mondragón Co-operative Corporation in the Basque Region of Spain, and La Lega co-operative network in Italy, to mitigate disadvantages of the typical co-operative organizational structure and market position but without losing its critical advantages and attractive features. A detailed institutional overview of these most prominent examples of successful co-operative clusters is presented.

Suggested Citation

  • Stephen C. Smith, 2001. "Blooming Together or Wilting Alone?: Network Externalities and Mondragón and La Lega Co-Operative Networks," WIDER Working Paper Series DP2001-27, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-27
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/dp2001-27.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adsera, Alicia & Ray, Debraj, 1998. "History and Coordination Failure," Journal of Economic Growth, Springer, vol. 3(3), pages 267-276, September.
    2. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 551-575.
    3. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    4. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    5. Stephen C. Smith, 1994. "On The Law And Economics Of Employee Ownership In Privatization In Developing And Transition Economies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 65(3), pages 437-468, July.
    6. Dow, Gregory K, 1993. "Why Capital Hires Labor: A Bargaining Perspective," American Economic Review, American Economic Association, vol. 83(1), pages 118-134, March.
    7. Bonin, John P & Jones, Derek C & Putterman, Louis, 1993. "Theoretical and Empirical Studies of Producer Cooperatives: Will Ever the Twain Meet?," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1290-1320, September.
    8. Stephen C. SMITH & Meng-Hua YE, 1987. "THE BEHAVIOR OF LABOR-MANAGED FIRMS UNDER UNCERTAINTY Product diversification, income insurance and layoff policy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 58(1), pages 65-82, January.
    9. Smith, Stephen C., 1991. "On the economic rationale for codetermination law," Journal of Economic Behavior & Organization, Elsevier, vol. 16(3), pages 261-281, December.
    10. Daron Acemoglu, 1997. "Training and Innovation in an Imperfect Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 445-464.
    11. Will Bartlett & John Cable & Saul Estrin & Derek C. Jones & Stephen C. Smith, 1992. "Labor-Managed Cooperatives and Private Firms in North Central Italy: An Empirical Comparison," ILR Review, Cornell University, ILR School, vol. 46(1), pages 103-118, October.
    12. Smith, Stephen C., 1994. "Innovation and market strategy in Italian industrial cooperatives: Econometric evidence on organizational comparative advantage," Journal of Economic Behavior & Organization, Elsevier, vol. 23(3), pages 303-320, May.
    13. repec:bla:rdevec:v:6:y:2002:i:2:p:263-83 is not listed on IDEAS
    14. Miyazaki, Hajime, 1984. "On Success and Dissolution of the Labor-Managed Firm in the Capitalist Economy," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 909-931, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Derek C. Jones & Panu Kalmi, 2012. "Economies of Scale Versus Participation: a Co-operative Dilemma?," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 37-64, December.
    2. Imanol Basterretxea & Chris Cornforth & Iñaki Heras-Saizarbitoria, 2022. "Corporate governance as a key aspect in the failure of worker cooperatives," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(1), pages 362-387, February.
    3. Guillermo Alves & Gabriel Burdin & Paula Carrasco & Andrés Dean & Andrés Rius, 2012. "Empleo, remuneraciones e inversión en cooperativas de trabajadores y empresas convencionales: nueva evidencia para Uruguay," Documentos de Trabajo (working papers) 12-14, Instituto de Economía - IECON.
    4. Pedro Henrique Rodrigues de Sousa & Edgar Reyes Junior & Víctor del Corte Lora, 2024. "Development, validation, and reliability of a measurement scale for investigating the principle of intercooperation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 553-572, June.
    5. Alí Colina Rojas & Pilar Zarzosa Espina, 2012. "Comparative productivity analysis between labour-managed firms and conventional capitalist companies in Spain," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(33), pages 11-41, January-J.
    6. Arando, Saioa & Gago, Monica & Podivinsky, Jan M. & Stewart, Geoff, 2012. "Do labour-managed firms benefit from agglomeration?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 193-200.
    7. Francesca Gagliardi, 2009. "Financial development and the growth of cooperative firms," Small Business Economics, Springer, vol. 32(4), pages 439-464, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azariadis, Costas & Stachurski, John, 2005. "Poverty Traps," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 5, Elsevier.
    2. Smith, Stephen C., 1995. "Employee participation in China's TVEs," China Economic Review, Elsevier, vol. 6(1), pages 157-167.
    3. Joshi, Sumit & Smith, Stephen C., 2008. "Endogenous formation of coops and cooperative leagues," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 217-233, October.
    4. Dow,Gregory K., 2019. "The Labor-Managed Firm," Cambridge Books, Cambridge University Press, number 9781107589650, September.
    5. Carranza, Luis & Galdon-Sanchez, Jose E., 2004. "Financial intermediation, variability and the development process," Journal of Development Economics, Elsevier, vol. 73(1), pages 27-54, February.
    6. Siddhartha Bandyopadhyay, 2004. "Endogenous Market Thickness and Honesty : A Quality Trap Model," Industrial Organization 0408006, University Library of Munich, Germany.
    7. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    8. Benjamin F. Jones, 2008. "The Knowledge Trap: Human Capital and Development Reconsidered," NBER Working Papers 14138, National Bureau of Economic Research, Inc.
    9. Gregory Dow, 2001. "Allocating Control over Firms: Stock Markets versus Membership Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(2), pages 201-218, March.
    10. Young-Chul Kim & Glenn Loury, 2014. "Social externalities, overlap and the poverty trap," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 535-554, December.
    11. Francesca Gagliardi, 2009. "Financial development and the growth of cooperative firms," Small Business Economics, Springer, vol. 32(4), pages 439-464, April.
    12. Haider A. Khan, 2007. "Social Accounting Matrices(SAMs) and CGE Modeling:Using Macroeconomic Computable General Equilibrium Models for Assessing Poverty Impact of Structural Adjustment Policies," CIRJE F-Series CIRJE-F-463, CIRJE, Faculty of Economics, University of Tokyo.
    13. Doucouliagos, Chris, 1996. "Conformity, replication of design and business niches," Journal of Economic Behavior & Organization, Elsevier, vol. 30(1), pages 45-62, July.
    14. Siddhartha Bandyopadhyay, 2005. "Endogenous Market Thickness, Prices and Honesty: Quality Demand Traps," Discussion Papers 05-02, Department of Economics, University of Birmingham.
    15. Haider A. Khan, 2007. "Trade Liberalization and Poverty Reduction in General Equilibrium: The Role of Labor Market Structure," CIRJE F-Series CIRJE-F-462, CIRJE, Faculty of Economics, University of Tokyo.
    16. Maria Emma Santos, 2009. "Human Capital and the Quality of Education in a Poverty Trap Model," OPHI Working Papers 30, Queen Elizabeth House, University of Oxford.
    17. Smith, Stephen C. & Cin, Beom-Cheol & Vodopivec, Milan, 1997. "Privatization Incidence, Ownership Forms, and Firm Performance: Evidence from Slovenia," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 158-179, October.
    18. Bandyopadhyay, Siddhartha, 2013. "Market thickness, prices and honesty: A quality demand trap," Mathematical Social Sciences, Elsevier, vol. 65(1), pages 52-59.
    19. Burdín, Gabriel & Dean, Andrés, 2009. "New evidence on wages and employment in worker cooperatives compared with capitalist firms," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 517-533, December.
    20. Chris Doucouliagos, 1997. "The Comparative Efficiency and Productivity of Labor-Managed and Capital-Managed Firms," Review of Radical Political Economics, Union for Radical Political Economics, vol. 29(2), pages 45-69, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:dp2001-27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.