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The Viability of Cooperatives: The Fall of the Mondragon Cooperative Fagor

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Listed:
  • Anjel Errasti
  • Ignacio Bretos
  • Aitziber Nunez

Abstract

This article presents a case study of the rise and fall of the Mondragon cooperative Fagor Electrodomésticos (1959-2013). Fagor, after playing a key role in the creation of the Mondragon cooperative experience, had been transformed into a multinational corporation competing in the global home appliance market. Given Fagor’s role as a leading cooperative, the general question of the viability of workers’ cooperatives is also at stake in its failure.

Suggested Citation

  • Anjel Errasti & Ignacio Bretos & Aitziber Nunez, 2017. "The Viability of Cooperatives: The Fall of the Mondragon Cooperative Fagor," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(2), pages 181-197, June.
    • Handle: RePEc:sae:reorpe:v:49:y:2017:i:2:p:181-197
    DOI: 10.1177/0486613416666533
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    References listed on IDEAS

    as
    1. Christina A. Clamp, 2000. "The Internationalization of Mondragon," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 71(4), pages 557-577, December.
    2. 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.
    3. Ben-ner, Avner, 1984. "On the stability of the cooperative type of organization," Journal of Comparative Economics, Elsevier, vol. 8(3), pages 247-260, September.
    4. Baleren Bakaikoa & Anjel Errasti & Agurtzane Begiristain, 2004. "Governance of the Mondragon Corporación Cooperativa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 61-87, March.
    5. 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.
    6. Joseba Azkarraga Etxagibel & George Cheney & Ainara Udaondo, 2012. "Workers’ Participation in a Globalized Market: Reflections on and from Mondragon," Palgrave Macmillan Books, in: Maurizio Atzeni (ed.), Alternative Work Organizations, chapter 4, pages 76-102, Palgrave Macmillan.
    7. Anjel Mari Errasti & Iñaki Heras & Baleren Bakaikoa & Pilar Elgoibar, 2003. "The Internationalisation of Cooperatives: The Case of the Mondragon Cooperative Corporation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(4), pages 553-584, December.
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    More about this item

    Keywords

    worker cooperatives; viability; degeneration; Mondragon; Fagor Electrodomésticos;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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