The Impact of Globalisation and Relocation Strategies in Large Cooperatives: The Case of the Mondragón Cooperative Fagor Electrodomésticos S. Coop

Abstract

This paper deals with globalisation and the productive relocation of cooperative firms. The relocation phenomenon is defined, and its dimensions, causes and consequences in the context of globalisation are analysed. A case study of the international expansion of Fagor Electrodomésticos S. Coop. is presented next. During the last decade, Fagor, a member of MCC, pursued a strategy of international growth that transformed it from the local cooperative into a multinational group of firms with many affiliated companies abroad. We examine the business, economic, social and cooperative implications of this strategy. The paper concludes with a suggestion of strategies for the cooperative multinational firms in dealing with the challenge of globalisation and relocation, while maintaining their cooperative identity.

Citation

Errasti, A. and Mendizabal, A. (2007), "The Impact of Globalisation and Relocation Strategies in Large Cooperatives: The Case of the Mondragón Cooperative Fagor Electrodomésticos S. Coop", Novkovic, S. and Sena, V. (Ed.) Cooperative Firms in Global Markets (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 265-295. https://doi.org/10.1016/S0885-3339(06)10010-1