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In this paper, my claim is that employee ownership of industrial companies enables economic survival, democracy, and joint responsibility. My main focus is a case study of Ljuders Nickelsilfverfabrik and its change to employee ownership. In 1980, 36 of the 42 employees became owners. My research question is how have the economy and democracy in an employee-owned industrial company changed over the years? My main research method includes a 35-year in-depth longitudinal case study of Ljuders Nickelsilfverfabrik since its employee takeover. The empirical material includes documents, interviews, participant observations, and informal talks over the entire study period. My theory is based on the study by Connell Fanning and McCarthy (1983, 1986), who have compiled the critical literature on employee-owned companies and have asked why so few employee-owned companies exist in Western economies. They formulate six non-viability hypotheses for employee ownership, against which I present my empirical study and conclude that employee ownership is possible. From my case study in combination with the literature about organizational changes, I formulate a recipe for a successful employee takeover and collective entrepreneurship. The experience of Ljuders Nickelsilfverfabrik shows that a more complete business idea can subsequently unfold with the help of different people’s knowledge and experiences. Degeneration from democratic to more traditional ownership and control can be avoided by placing new people in leadership positions. The management must create legitimacy for a different organizational form for internal and external stakeholders.

This study compares dispute resolution strategies of workers in hierarchical, conventional businesses with those of members of worker cooperatives – organizations in which all workers co-own and co-manage the business. Drawing on data from three industries (coal mining, taxicab driving, and food distribution), this study finds some support for predictions in the literature that assert that the cooperative's flattened structure and egalitarian ideology will affect workers’ grievance resolution. Although the data do not indicate a single pattern in dispute resolution strategies (i.e., with all members of the cooperatives resolving their disputes one way and all non-cooperative employees using a different strategy), the data do demonstrate that, when comparing matched cooperative and conventional businesses within each industry, the worker cooperative members possess more dispute resolution strategies than their conventionally employed counterparts.