Business models and values for social change The case of Mondragon Corporation

How do cooperatives that want to be competitive in the market combine the Total Quality Management philosophy and their own characteristics as organizations owned by workers and democratic functioning? The purpose of this article is to address this question and make a strong case for the cooperative model, as a business model that represents an alternative for social and economic models that are more egalitarian and participative, and that it produces well-being among those who are involved in it. This paper presents the results from two case studies featuring two cooperatives (MAIER and ULMA) pertaining to the Mondragon Corporation, and more specifically it presents the analysis of 14 in-depth interviews with different workers profiles from these two organizations. The results evidence that cooperatives based on the Mondragon Management Model perform better and recover, both economically and socially than other business even during economic crises due to the cooperative values it promotes. Finally, the paper discusses and invites new research about the transferability of these successful features of the Mondragon Management Model to other businesses.

Ramon Flecha is Doctor Honoris Causa of the West University of Timişoara and Professor of Sociology at the University of Barcelona. He has been Chair of the Expert Group on Evaluation Methodologies for the Interim and Ex-post evaluations of Horizon 2020. He has directed 3 projects form the European Union’s Framework Program (FP5), (FP6) and (FP7). His scientific works have been published in scientific journals such as Nature, Organization, Harvard Educational Review, Qualitative Inquiry, Current Sociology, or Journal of Mixed Methods Research.

Ana Burgues has received a Ph.D. from the University of Barcelona – Spain, Barcelona in 2014. Adjunct Professor at the Sociology Department of the University of Barcelona. Her research interests are in the areas of Cooperativism.
Liviu-Catalin Mara has received a Ph.D. from the University Rovira and Virgili – Spain, Tarragona in 2018. Postdoctoral Researcher at the Business Management Department of the University Rovira and Virgili. His research interests are in the areas of Cooperativism, Social Impact, Innovation and Lifelong learning.

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Employee participation; Mondragon Management Model; Social change.