Analysis of the Mondragon case’s competitiveness from a systemic perspective

Abstract

Purpose: This study analyses 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: First, a systematic review of the literature on the factors that can explain the higher competitiveness of Mondragon cooperatives compared to the rest of the firms was performed. Then, a draft framework representing the existing relationship between the factors was proposed based on the previously analysed studies. Next, a contrast with five experts having different perspectives of Mondragon Corporation was made. The contributions of the experts to the proposal yielded the final framework. Findings: A framework that links the factors and establishes precondition relationships among them is proposed. This framework assigns a special role to the basic inter-cooperative agreement structure as a condition for developing intercompany synergies. Research limitations/implications: In this study, a specific case of Mondragon Corporation was analysed, and the framework was tested by a limited number of experts. This study adds a new systemic perspective to the rich literature on the factors that explain Mondragon cooperatives’ competitiveness. Practical implications: This paper provides insights into the factors that should be considered when trying to replicate the experience of Mondragon Corporation in other socioeconomic contexts. Social implications: This study stresses the relevance of a shared set of values, basic agreements and governance institutions as a base for the construction of strong synergetic relationships among 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 the knowledge to understand the systemic interrelationships among them.