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Assessing Mondragon: Stability & Managed Change in the Face of Globalization

Author

Listed:
  • Saioa Arando
  • Fred Freundlich
  • Monica Gago
  • Derek C. Jones
  • Takao Kato

Abstract

By drawing on new interview evidence gathered during several field trips and new financial and economic data from both external and internal sources, we document and assess the changing economic importance and performance of the Mondragon group of cooperatives as well as the two largest sectors within the group. Compared to conventional firms in the Basque Country and Spain, and producer co-ops (PCs) and employee owned firms elsewhere, in general we find evidence of growing group importance and strong performance and a similarly strong record for the industrial and retail divisions...

Suggested Citation

  • Saioa Arando & Fred Freundlich & Monica Gago & Derek C. Jones & Takao Kato, 2010. "Assessing Mondragon: Stability & Managed Change in the Face of Globalization," William Davidson Institute Working Papers Series wp1003, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2010-1003
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/133017/1/wp1003.pdf
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    References listed on IDEAS

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    2. John Pencavel & Luigi Pistaferri & Fabiano Schivardi, 2006. "Wages, Employment, and Capital in Capitalist and Worker-Owned Firms," ILR Review, Cornell University, ILR School, vol. 60(1), pages 23-44, October.
    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. 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.
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    Cited by:

    1. Tortia, Ermanno C., 2021. "Employment protection regimes and dismissal of members in worker cooperatives," MPRA Paper 109214, University Library of Munich, Germany.
    2. Luigi BONATTI & Lorenza A. LORENZETTI, 2018. "Why Wages Tend To Be Lower In Worker‐Owned Firms Than In Investor‐Owned Firms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 563-580, December.
    3. Steven Toms, 2012. "Producer co-operatives and economic efficiency: Evidence from the nineteenth-century cotton textile industry," Business History, Taylor & Francis Journals, vol. 54(6), pages 855-882, October.
    4. Paranque, Bernard, 2017. "The need for an alternative to shareholder value creation? The Ethomed student experience," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 686-695.
    5. Armstrong, J. Scott & Green, Kesten C., 2013. "Effects of corporate social responsibility and irresponsibility policies," Journal of Business Research, Elsevier, vol. 66(10), pages 1922-1927.
    6. Alfonso Estragó, 2021. "Dualidad y disonancia en la gestión de las cooperativas de trabajo," Revista Ciencias Administrativas (CADM), IIA, Universidad Nacional de La Plata, Instituto de Investigaciones Administrativas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, issue 17, pages 85-96, January-J.
    7. Lagoarde-Segot, Thomas & Paranque, Bernard, 2018. "Finance and sustainability: From ideology to utopia," International Review of Financial Analysis, Elsevier, vol. 55(C), pages 80-92.
    8. Malleson, Tom, 2014. "After Occupy: Economic Democracy for the 21st Century," OUP Catalogue, Oxford University Press, number 9780199330102.
    9. Marina Albanese & Cecilia Navarra & Ermanno Tortia, 2017. "Equilibrium unemployment as a worker insurance device: Worker insurance and wage setting in worker owned enterprises," DEM Working Papers 2017/09, Department of Economics and Management.
    10. Dario Di Giulio Cesare, 2012. "Mondrag n: come far convivere successo economico e valori cooperativi," Euricse Working Papers 1239, Euricse (European Research Institute on Cooperative and Social Enterprises).
    11. Marina Albanese & Cecilia Navarra & Ermanno Tortia, 2019. "Equilibrium unemployment as a worker insurance device: wage setting in worker owned enterprises," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 653-671, October.
    12. Ignacio Bretos & Anjel Errasti & Carmen Marcuello, 2019. "Multinational Expansion of Worker Cooperatives and Their Employment Practices: Markets, Institutions, and Politics in Mondragon," ILR Review, Cornell University, ILR School, vol. 72(3), pages 580-605, May.
    13. Anjel ERRASTI & Ignacio BRETOS & Enekoitz ETXEZARRETA, 2016. "What Do Mondragon Coopitalist Multinationals Look Like? The Rise And Fall Of Fagor Electrodomesticos S. Coop. And Its European Subsidiaries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(3), pages 433-456, December.
    14. Tortia, Ermanno Celeste, 2019. "Employment protection regimes in worker co-operatives: dismissal of worker members and distributive fairness," MPRA Paper 94536, University Library of Munich, Germany.
    15. Izaskun AGIRRE & Pedro REINARES & Amaia AGIRRE, 2014. "Antecedents To Market Orientation In The Worker Cooperative Organization: The Mondragon Group," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(3), pages 387-408, September.
    16. Seung C. Ahn & Josef C. Brada & Jos� A. M�ndez, 2012. "Effort, Technology and the Efficiency of Agricultural Cooperatives," Journal of Development Studies, Taylor & Francis Journals, vol. 48(11), pages 1601-1616, November.
    17. Marina Albanese, 2020. "Social and Relational Variables in Worker Cooperatives: Implications for the Objective Function," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 9(1), pages 26-44.

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    More about this item

    Keywords

    employee ownership; producer cooperatives; labor managed firm; productive efficiency; Mondragon;
    All these keywords.

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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