Book Chapter
Network Externalities and Cooperative Networks

A Comparative Case Study of Mondragón and La Lega with Implications for Developing and Transitional Countries

The Mondragón Co-operative Corporation (MCC) in the Basque region of Spain and La Lega cooperative network in Italy are arguably the most striking examples of globally competitive, worker-managed cooperatives. This Chapter makes a systematic comparison of the innovative and evolving mechanisms developed by these networks to mitigate the disadvantages inherent in the typical cooperative structure, but without substantially forgoing or compromising too much on the offsetting advantages and attractive features of cooperative forms of organization.