How cooperatives generate and absorb social capital has attracted a great deal of attention due to the fact that they are collective organizations owned and democratically managed by their members, and, accordingly, are argued to be closely linked to the nature and dynamics of social capital. However, the extant literature and knowledge on the relationship between cooperatives and social capital remain unstructured and fragmented. This paper aims to provide a narrative literature review that integrates both sides of the relationship between cooperatives and social capital. On the one hand, one side involves how cooperatives create internal social capital and spread it in their immediate environment, and, on the other hand, it involves how the presence of social capital promotes the creation and development of cooperatives. In addition, our theoretical framework integrates the dark side of social capital, that is, how the lack of trust, reciprocal relationships, transparency, and other social capital components can lead to failure of the cooperative. On the basis of this review, we define a research agenda that synthesizes key trends and promising research avenues for further advancement of theoretical and empirical insights about the relationship between cooperatives and social capital, placing particular emphasis on rural and agricultural cooperatives.

Organisations with alternative structures have been forced to grow internationally in order to remain competitive in the current global context. Some of the industrial cooperatives that belong to the Mondragon Corporation have since the 1990s followed internationalisation strategies that have increased their competitiveness, the number of their employees and their ability to create wealth. However, these moves have also called into question the founding nature of these enterprises. Recently, the Corporation itself has adopted a discourse based on strengthening workers’ participation in capitalist subsidiaries, but to date, the initiatives taken by its multinational cooperatives have been few and the results not particularly impressive. This article investigates this disconnect, delving into the problems of replicating the cooperative model in these subsidiaries and seeking solutions. It focuses on the case of Fagor Ederlan (Mondragon Corporation), examining the efforts to transform capitalist subsidiaries, especially the ‘cooperativisation’ of the Fagor subsidiary in Tafalla (Spain), which is the biggest regeneration project in Mondragon’s Industrial Division. This work also contributes to the broader field of organisational theory by analysing the tensions and opportunities for regeneration in worker-owned organisations under the current globalised context.

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.

Drawing on qualitative research and longitudinal data on two Mondragon multinational cooperatives, the authors examine the multinational expansion of these co-ops and the diffusion of the cooperative model’s employment practices to their subsidiaries in Brazil, China, Slovakia, France, and Poland. The results show that international expansion can radically transform the organizational architecture of co-ops and exacerbate dilemmas about how to put their hallmark values into practice. Moreover, the findings reveal a fragmented and inconsistent introduction of the cooperative model overseas. Work organization practices are homogeneous across the various sites, whereas job security, training, and pay equity practices are not. Core cooperative practices (i.e., employee participation in ownership, profit sharing, and general management) have not been implemented in any foreign operation. The study illustrates how market influences, institutions, and macro- and micro-politics shape the transfer of employment practices.