Citation
Worker cooperatives as an organizational alternative: Challenges, achievements and promise in business governance and ownership
TL;DR
Worker cooperatives show higher survival rates than conventional businesses (~90% vs ~50%)
This paper analyzed Mondragon and other worker cooperatives, examining how democratic governance with quorum requirements creates resilient organizations. The authors showed that cooperative structures outperform conventional businesses in long-term survival and stakeholder alignment.
The research demonstrates that formal quorum mechanisms in governance can prevent minority capture and ensure decisions reflect genuine collective will.
Key Findings from Cheney et al. (2014)
- Worker cooperatives show higher survival rates than conventional businesses (~90% vs ~50%)
- Democratic governance with quorum requirements prevents minority capture
- Costly signals (capital contributions) ensure genuine commitment
- Cooperative structures create alignment between worker and organizational interests