An analysis of the Mondragon case's competitiveness from a systemic perspective

Abstract

Purpose: In this paper, the authors analyse some of the aspects that contribute to the better performance of Mondragon Corporation compared to other cooperatives and to the rest of the companies in the Basque Country from a systemic perspective.

Design/methodology/approach: First, a systematic review of the literature on the factors that could explain the higher competitiveness of Mondragon Cooperatives compared to the rest of firms has been performed. Then, a draft framework representing the existing relationship between the factors has been proposed by the authors. Then, a contrast with five experts with different perspectives of Mondragon Corporation has been made. Finally, the contributions of the experts to the proposal has allowed to obtain a final framework.

Findings: A framework is proposed that links and hierarchises the factors and establishes precondition relationships between them. This framework gives a special role to the basic intercooperative agreement structure as a condition to develop intercompany synergies.

Research limitations/implications: The article analyses a very specific case such as Mondragon Corporation and the testing of the framework has been made by a limited number of experts/This research adds a new perspective to a rich literature on the factors that explain Mondragon Cooperatives competitiveness.

Practical implications: This article gives insights into the factors that should be considered when trying to replicate the experience of Mondragon Corporation in other socioeconomic contexts.

Social Implications: This research stresses the relevance of a shared set of values as a base for the construction of strong synergetic relations between companies.

Originality/value: The existing literature related to the key factors for Mondragon Cooperatives’ competitiveness analysed them from an individual factor perspective. This research advances in the knowledge to understand the systemic interrelationship between them.