Cooperatism, social capital and regional development: the Mondragon experience

This article discusses the importance of the principles of social capital within the Mondragon cooperative experience. It investigates the impact of social capital on the value creation and innovation capacity of the Mondragon group. It proposes to investigate how social capital fosters collective action, participation and innovation to build dynamic communities and regional development. The article describes the development of the Mondragon cooperative movement around a four-pillared structure which includes training, research, enterprise promotion, and financial and social support. The article also demonstrates that the success of the Mondragon experience is linked to factors such the setting up of networks of communication, trusting relationships, and exploration and exploitation of new situations.