Organization

This special issue of Organization treats cooperatives as alternative forms of business and organization, focusing on worker-owned-and-governed forms. In reviewing extant research and considering the seven articles in this special issue, we treat five main challenges that workers’ cooperatives face: (1) the organizational resources, structures, and dynamics allowing for social as well as economic resilience for worker cooperatives; (2) the complex types and roles of leadership in worker cooperatives and related organizational forms; (3) the capacity of and obstacles to the reinvention of democracy within cooperatives; (4) the relationships between cooperatives and organized labor, the state, the community, and the larger financial system; and (5) the pursuit of cooperative values and policies within international market and environmental contexts. The examination of these challenges in relation to the worker cooperatives specifically can inform new projects in employee ownership and governance as well as perhaps assist with democratic organizational transformations in other firms and sectors.

The structures of ownership and governance at John Lewis, a major UK employee-owned retailer, have been commended by those who wish to recuperate capitalism and by those who seek to transform it. From a perspective of ‘critical performativity’, John Lewis is of special interest since it is celebrated as a successful organization and heralded as an alternative to more typical forms of capitalist enterprise. By examining the cooperative elements of the John Lewis structures of ownership and governance, we illuminate a number of issues faced in realizing the principles ascribed to employee-owned cooperatives—notably, with regard to ‘democratic member control’, ‘member economic participation’ and ‘autonomy and independence’.

Employee-owned businesses have recently enjoyed a resurgence of interest as possible ‘alternatives’ to the somewhat tarnished image of conventional investor-owned capitalist firms. Within the context of global economic crisis, such alternatives seem newly attractive. This is somewhat ironic because, for more than a century, academic literature on employee-owned businesses has been dominated by the ‘degeneration thesis’. This suggested that these businesses tend towards failure—they either fail commercially, or they relinquish their democratic characters. Bucking this trend and offering a beacon—especially in the United Kingdom —has been the commercially successful, co-owned enterprise of the John Lewis Partnership whose virtues have seemingly been rewarded with favourable and sustainable outcomes. This article makes comparisons between John Lewis Partnership and its Spanish equivalent Eroski—the supermarket group which is part of the Mondragon cooperatives. The contribution of this article is to examine in a comparative way how the managers in John Lewis Partnership and Eroski have constructed and accomplished their alternative scenarios. Using longitudinal data and detailed interviews with senior managers in both enterprises, it explores the ways in which two large, employee-owned, enterprises reconcile apparently conflicting principles and objectives. The article thus puts some new flesh on the ‘regeneration thesis’.

The Mondragon Cooperative Experience has been one of the worker-owned alternative organizations that has received the most attention in the academic world. Despite its economic success, this experience has also been wrought with its own share of tensions and internal paradoxes. Surprisingly, the perspective of worker–member–owners in the analysis of those inconsistencies in Mondragon has been given very little prominence. Similarly, the equivalence between the formal policies defined in that experience and the day-to-day activity has been widely taken for granted in the literature. This article aims to fill this gap and contribute to the literature by analyzing the extent to which Mondragon’s basic cooperative principles are applied in the daily practice from the perspective of worker–member–owners. To that end, in-depth interviews were conducted with worker–member–owners of Mondragon outside their working environment. An interpretative analysis provides evidence of a decoupling of cooperative principles from the workers’ daily activity. Furthermore, a tacit and non-formal principle frequently surfaces in the interviews: the principle of the primacy of secure membership and guaranteed employment. This seems to be the most solid tie that binds members to their organization, in a context with growing individualization and precarious employment conditions, together with a ubiquitous managerial discourse that encourages shallow forms of workplace participation. This work contributes to the broader field of organizational theory and sheds light on the dissociation process in formal policies of organizations governed by alternative founding principles. It also tries to contribute to the study of the sustainability of such alternative organizations.

Competitiveness today requires being able to operate at a global scale. The financial crisis invigorated this requirement, posing new challenges to the economic viability of conventional companies and demanding alternative organizational forms of production. Although a wealth of research has focused on capitalist companies, little attention has been paid to the way these challenges affected worker cooperatives. Drawing from a qualitative case study of the Mondragon Cooperative Group, this article discusses the obstacles to internationalization faced by worker cooperatives, as well as the specific conditions and implications involved. In particular, the article analyzes Mondragon’s contradiction between being forced to expand and trying to keep cooperative values during this expansion. Two main actions aimed at responding to this contradiction are analyzed: the creation of mixed cooperatives and the extension of the corporate management model. The analysis of this process will shed light on actions for the global expansion of worker cooperatives.

Although worker cooperatives offer an organizational model that critical management scholars could adopt to demonstrate the utility of their normative ideals, little is known about how academia can contribute to the creation of worker cooperatives. Building on the concept of performativity and the case of the Technological Incubators for Popular Cooperatives in Brazil, we provide an account of constructing incubators for worker cooperatives across multiple universities. Our study uncovers the challenges that scholars face in performing the model of worker cooperatives by cognitively embedding actors within both economic and cooperative principles through teaching. Our results clarify the role of feedback loops, knowledge circulation, and the building of ‘chains of translation’ in the concrete manufacturing of worker cooperatives, and we show how universities can help develop a multilevel, flexible, and complex support network that enhances the performativity of the worker cooperative model. We advance the concept of a ‘critical performativity engine’ to describe the process whereby the first method for incubating cooperatives was developed and then translated across settings.

This article synthesizes the results of a research on the emergence of organizational forms within solidary economy in Brazil. Discussion on solidary economy highlights the problem of how to apprehend its typical interstitial organizing phenomena. The response is given with the aid of Victor Turner’s anthropological concepts ‘liminality’ and ‘communitas’—or ‘anti-structure’—which define the ontology of social interstices. After contextualization to contemporary capitalism and to the field of organizational studies, a new approach to the solidary economy organizing process is proposed through the theoretical construct called liminal organization. The analytical framework is applied in a case study of a company taken over by workers. Empirical evidence shows that liminal organizations live in contradiction as organizing processes in which structure and anti-structure are permanently tensioned.

The aim of this article is to provide structured information on the profile, trends, and challenges of worker cooperatives in Romania. Its main purpose is to help refine the current explanatory framework for worker cooperatives in post-communist countries in the light of empirical evidence drawn from research conducted in Romania. Building on the literature and empirical research, it identifies and highlights some of the present issues and challenges facing Romanian worker cooperatives. Our analysis has shown that many of the elements that are considered key to the successful development of worker cooperatives on the basis of international good practice are missing in Romania. While some enabling elements are impossible to replicate, there are others that might be improved and could help worker cooperatives develop further: a shift away from policies that discriminate against cooperatives in terms of access to credits and the development of governmental programs that could open the public market more to these entities; a better organization of type II cooperatives and of the services they offer to their members; better public image and communication strategies, and greater investment to enhance the advocacy skills of these organizations.