Mondragòn: Come far Convivere Successo Economico e Valori Cooperativi (Mondragón: How to Conciliate Economic Success and Cooperative Values)

Posted: 23 Jun 2012

Date Written: June 12, 2012

Abstract

Mondragón Corporación Cooperativa (MCC) is the bigger cooperative industrial group in the world in terms of turnover. It originated in the 1950s and tracked an unique development path based on internal and dimensional growth which led to relevant governance innovations. In light of this, during the 1990s MCC became a strongly internationalized group. Foreign subsidiaries are not cooperatives: this issue triggered off a debate focused on the matter if the group had lost its original identity.

In this paper it is shown how the group has conciliated its cooperative goals, its relationship with the local communities and the necessary need of efficiency and competitiveness by adopting a peculiar organizational structure. In this scheme, cooperatives are clustered in industrial divisions and coordinated by central bodies which are made up by the members of the cooperatives themselves. The complex institutional organization of MCC Group has allowed to rationalise the presence of cooperatives on markets and to sharpen their efficiency and competitiveness. On the other hand, cooperatives do not need to give up their typical prerogatives and can fulfill, on a wide scale, the social goals which characterise this form of enterprise.

In the early 2000s a further stage of MCC international growth has been launched: this step is characterized by the attempt to recover the cooperative identity even in foreign subsidiaries.

Note: Downloadable document is in Italian.

Keywords: Mondragón, employee ownership, multi-localization, cooperative governance, cooperatives internationalization

JEL Classification: P13, J54

Suggested Citation

Di Giulio Cesare, Dario, Mondragòn: Come far Convivere Successo Economico e Valori Cooperativi (Mondragón: How to Conciliate Economic Success and Cooperative Values) (June 12, 2012). Euricse Working Paper No. 39 | 12, Available at SSRN: https://ssrn.com/abstract=2083093 or http://dx.doi.org/10.2139/ssrn.2083093

Dario Di Giulio Cesare (Contact Author)

affiliation not provided to SSRN ( email )

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