© 2024 The Au ho (s). Jou nal o Managemen S udies published by Socie y o he Ad ancemen o Managemen S udies
and John Wiley & Sons L d.
P oblema izing he Coope a i e Fi m: A Ma xian
View on Pa adoxes, Dialec ics, and Con adic ions
Jon Las He asa, Anjel E as ia and Ignacio B e osb
aUni e si y o he Basque Coun y; bUni e si y o Za agoza
ABSTRACT Schola s a e inc easingly u ning hei a en ion o coope a i e i ms, cha ac e ized
by wo ke owne ship and managemen , as a way o o ganiza ions o add ess he economic,
socie al and en i onmen al p oblems posed by co po a e capi alism. This enewed in e es
s ems om he po en ial o coope a i es o os e an al e na i e economic sys em g ounded in
democ a ic, solida y and en i onmen ally conscious alues. Howe e , p e ious s udies ha e no
p o ided a comp ehensi e analysis o he con adic o y na u e o coope a i es wi hin a b oade
in e - o ganiza ional and sys emic amewo k. Applying a Ma xian pe spec i e on pa adoxes
and dialec ics, we heo ize ha coope a i e i ms ope a ing wi hin capi alis economies
mus na iga e he ‘solida i y pa adox’ – he inhe en impossibili y o o e coming ma ke
compe i ion h ough pa ial and limi ed solida i y s a egies. D awing on an examina ion o he
Mond agon coope a i e g oup, we illus a e how such a undamen al con adic ion mani es s
i sel in o mul iple pa adoxes ha a e in e wo en, mu ually cons i u ed and insepa able. The
a icle con ibu es o c i ical managemen schola ship on coope a i es by o e ing a deepe
unde s anding o how hese o ganiza ions pe pe ua e sys emic capi alis pa e ns. I also
con ibu es o pa adox and dialec ics schola ship by heo izing ha pa adoxes a e no imeless
and uni e sal bu he esul o pe sis en con adic ions inhe en o his o ically con ingen
o ganiza ional o ms.
Keywo ds: Con adic ion, Coope a i e- i m, Dialec ics, Ma x, Mond agon, Pa adox
Two souls, alas, dwell wi h in his b eas ;
The one is e e pa ing om he o he .
Capi al, Ka l Ma x
Jou nal o Managemen S udies 0:0 Mon h 2024
doi:10.1111/joms.13175
Add ess o ep in s: Jon Las He as, Depa men o Economics & Managemen , Uni e si y o he Basque
Coun y, Leioa, Spain ([email p o ec ed]).
This is an open access a icle unde he e ms o he C ea i e Commons A ibu ion License, which pe -
mi s use, dis ibu ion and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
2J. Las He as e al.
© 2024 The Au ho (s). Jou nal o Managemen S udies published by Socie y o he Ad ancemen o Managemen S udies
and John Wiley & Sons L d.
INTRODUCTION
In a con ex o g owing in e es in how di e se o ms o o ganizing help ackle, o ein-
o ce, g and socie al, en i onmen al and e hical challenges (Adle e al., 2023; Gümüsay
e al., 2022; Wicke e al., 2021), managemen and o ganiza ion schola s a e inc easingly
ocusing on coope a i e i ms (de ined he e as wo ke - owned and managed companies)
as hese i ms o e ideal examples o discussing how an al e na i e economic sys em,
d i en by democ a ic, solida y and en i onmen ally conscious alues, could eme ge om
wi hin p e alen capi alis ela ions (Delb idge e al., 2024; Du ays e al., 2020; Gümüsay
and Reinecke, 2022).
Coope a i es ha e long a oused subs an ial schola ly in e es and deba e ega ding
hei po en ial and limi a ions in shaping a pos - capi alis economy (Jossa, 2005, 2020).
Th ee majo pe spec i es s and ou : u opian, scep ical, and nuanced iews o he ela-
ionship be ween coope a i e i ms and he capi alis sys em.
The u opian pe spec i e en husias ically ad oca es he adical al e na i e cha -
ac e o coope a i es is- à- is capi al- owned business en e p ises (De Cos e and
Zanoni, 2023; Gibson- G aham, 2006; Jaumie , 2017; Ranis, 2019), ega ding hem
as ‘ eal u opias’ (Gümüsay and Reinecke, 2022; W igh , 2010, 2019) ha p e igu e
pos - capi alis solu ions ‘bo h by c ea ing imagina ies o an al e na i e u u e and by
showing hei iabili y in hei e e yday p ac ices’ (Schille - Me kens, 2024, p. 458).
F om his pe spec i e, schola s ha e emphasized he ole o coope a i es in emanci-
pa ing he wo k o ce om class exploi a ion (Kocia kiewicz e al., 2021; Ranis, 2019;
Zanoni e al., 2017), educing income and social inequali y (Ba ilana e al., 2022), and
os e ing en i onmen al sus ainabili y (Delb idge e al., 2024). The scep ical pe spec-
i e p o ides a de e minis ic c i ique o coope a i es, assuming ha hese o ganiza-
ions a e una oidably doomed ei he o bank up cy o o degene a ion in o capi alis
o ms o o ganiza ion so as o su i e in a ma ke economy (see Co n o h, 1995;
Die enbach, 2019 o e iews o he degene a ion hesis). The nuanced pe spec i e
p o ides a mo e complex pic u e ha acknowledges he pa icula ensions coop-
e a i es ace in ealizing hei p inciples o democ a ic go e nance, solida i y and
equali y while emaining compe i i e in a ma ke economy (Cheney, 2002; E as i
e al., 2023; Kokkinidis, 2015; Pa anque and Willmo , 2014; Siedlok e al., 2024;
Va man and Chak aba i, 2004). Unde his app oach, some schola s ha e ecen ly
po ayed coope a i es as pa adoxical o ganiza ions ha ‘a e nei he ully demo-
c a ic no oliga chic bu si es o con inuous and un esol ed con es a ion be ween
oliga chic and democ a ic ensions’ (S o ey e al., 2014, p. 641; see also Ash o h and
Reingen, 2014; Audeb and, 2017; G i in e al., 2022; Soe ens and Huyb ech s, 2023;
B e os e al., 2024).
We a gue ha he i s wo pe spec i es su e om he me hodological limi a ion
o no ela ing coope a i es’ in e nal dynamics (i.e., hei con en ) o hei ex e nal
en i onmen (i.e., he o m h ough which hose dynamics a e media ed and eal-
ized), leading o unjus i ied and one- sided conclusions. On he one hand, u opian
schola s ail o g asp ha coope a i es’ solida i y p ac ices a e necessa ily compe i i e
as hey ope a e wi hin he cons ain s o ma ke compe i ion. On he o he hand,
scep ical schola s ail o g asp ha compe i i e dynamics can pe sis , e en h ough
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he expansion o he de elopmen o new o ms o solida i y. In his a icle, we build
on he nuanced iew while add essing a key sho coming wi hin i . In pa icula , ex-
is ing nuanced s udies acknowledge he ension be ween compe i ion and solida i y
(e.g., B e os e al., 2024; Pa anque and Willmo , 2014; Ren e ia- U ia e and Las
He as, 2022; S o ey e al., 2014), bu o en ea hem as sepa a e, opposing o ces,
sugges ing ha a sus ainable balance can be achie ed o e ime h ough he igh
s a egy. Consequen ly, nuanced s udies o e look ha bo h compe i ion and solida i y
a e simul aneously essen ial elemen s cons i u i e o he coope a i e o ganiza ional
o m. This o e sigh leads o ambigui y and inconclusi eness in hei assessmen o
he ans o ma ional po en ial o coope a i es a a sys emic and in e - o ganiza ional
le el.
We d aw on Ma xian ca ego ies and me hodology, as well as ecen con ibu ions
om pa adox and dialec ics heo ies (Be i and Cunha, 2023; Fa joun, 2019; Smi h and
Lewis, 2011), o a gue ha he o ganiza ional bounda ies o he coope a i e i m impose
hei own limi s on sys emic socie al ans o ma ion. This is because coope a i es en-
coun e wha we coin he ‘solida i y pa adox’: hey ace he necessi y o compe e h ough
pa ial and limi ed o ms o solida i y in o de o ensu e o ganiza ional sus ainabili y.
Thus, coope a i es na iga e he s a egic pa adox o ha ing o imp o e membe and
communi y li ing s anda ds while simul aneously keeping up wi h ma ke labou p o-
duc i i y s anda ds and capi al accumula ion a es o emain p o i able. D awing on a
c i ical examina ion o Mond agon (a g oup o membe - owned and managed coope a-
i es ha is o en celeb a ed as he mos success ul and in luen ial coope a i e expe ience
in he wo ld), we illus a e how such a undamen al ension mani es s i sel in i e pa a-
doxes ha a e in e wo en, mu ually cons i u ed and insepa able.
O e all, his a icle makes wo b oad con ibu ions. Fi s , by applying a Ma xian iew
o dialec ics and pa adoxes o coope a i e i ms, we p o ide a uni ied amewo k o assess
hei ans o ma ional po en ial, mo ing beyond one- sided analyses ha ocus solely on
in e nal solida i y pa e ns (e.g., Ash o h and Reingen, 2014; Kokkinidis, 2015; Siedlok
e al., 2024) o b oade con ex ual ac o s (e.g., McNally, 1993; Schweicka , 2018).
This app oach e eals how o ganiza ional con adic ions and alues, hough seem-
ingly sepa a e, a e ac ually in e dependen , highligh ing ha he coope a i e s uc u e
i sel impedes sys emic ans o ma ion. Second, we con ibu e o pa adox schola ship
by demons a ing ha dialec ics is no a ‘medium- ange’ heo y (Ha g a e and an de
Ven, 2017; Schad e al., 2019) bu an open me hod o c i ique (Fa joun, 2017, 2019).
Ou Ma xian analysis sugges s ha pa adoxes a e no uni e sal o imeless, as many pa -
adox schola s a gue (e.g., Lewis and Smi h, 2022), bu a e ins ead ela i ely s able symp-
oms o con adic ions inhe en in his o ically- con ingen o ganiza ional o ms, making
hem open o subla ion o anscendence (Au hebung in Ge man).
The emainde o he a icle is o ganized as ollows. Fi s , we e iew he heo e ical
and me hodological ounda ions o pa adox and dialec ics heo ies and ou line se e al
sho comings inhe en in pa adox schola s’ unde s anding o con adic ions and dia-
lec ics. Second, we build a Ma xian c i ique o he coope a i e i m by i s explain-
ing how commodi y- p oduc ion makes hem ep oduce a pa icula o ganiza ional
pa adox, o la e un old a dynamic se ing in which coope a i es a e d i en by ma ke
compe i ion, he h us o capi al accumula ion and sou ces o class s uggle. Thi d,
14676486, 0, Downloaded om h ps://onlinelib a y.wiley.com/doi/10.1111/joms.13175 by Readcube (Lab i a Inc.), Wiley Online Lib a y on [19/12/2024]. See he Te ms and Condi ions (h ps://onlinelib a y.wiley.com/ e ms-and-condi ions) on Wiley Online Lib a y o ules o use; OA a icles a e go e ned by he applicable C ea i e Commons License
4J. Las He as e al.
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we illus a e he heo e ical amewo k by analysing he solida i y pa adox h ough a
mul i- dimensional, mul i- le el and in e - o ganiza ional c i ique o Mond agon. The
inal sec ion summa izes he main heo e ical con ibu ions, p oposes se e al a e-
nues o u he esea ch, and concludes wi h impo an implica ions o managemen
esea ch.
THEORETICAL AND METHODOLOGICAL REMARKS ON PARADOX
AND DIALECTICS
Schola ly li e a u e on pa adox and dialec ics has gained g owing ele ance ac oss a
wide ange o managemen sub- ields such as s a egic managemen , leade ship, in e -
na ional business, and human esou ce managemen (Kelle and Sadle - Smi h, 2019;
Lewis and Smi h, 2022). Despi e he mul iple o igins o pa adox and dialec ics ap-
p oaches (Hahn and Knigh , 2021; Schad e al., 2016), hey all emphasize he ole
o con adic ion as a p inciple o o ganiza ional change ins ead o ‘linea , a ional
bina ies’ (Pu nam e al., 2016). Al hough he heo e ical and me hodological simi-
la i ies and di e ences be ween hese wo app oaches emain uzzy, ecen a emp s
ha e been made o compa e and in eg a e hem (Be i and Cunha, 2023; Ha g a e
and an de Ven, 2017; Raisch e al., 2018; Schad and Bansal, 2018). Ou Ma xian
app oach aims o b ing se e al new insigh s in o his ‘ ib an and polyphonic’ deba e
(Cunha and Pu nam, 2019, p. 97).
Pa adoxes ha e been de ined as ‘con adic o y ye in e ela ed elemen s ha exis si-
mul aneously and pe sis o e ime’ (Smi h and Lewis, 2011, p. 382). As a me a- heo y,
pa adox schola s de ine se e al gene al p inciples ha may be applied o mul iple heo-
ies bu , abo e all, hey emphasize he on ological p inciple o con adic ion o ‘uni y o
opposi es’ as cons i u i e o o ganiza ional eali y (Hahn and Knigh , 2021; Lewis and
Smi h, 2014). Pa adox schola ship has o en been used as a p oblem- sol ing esea ch
s a egy: he app op ia e esponse o pe sis en con adic ions being o ‘cope wi h’ seem-
ingly incompa ible demands (i.e., logical in isola ion ye con adic o y when jux aposed)
in o de o achie e peak pe o mance and long- e m o ganiza ional sus ainabili y (Lewis
and Smi h, 2022).
Acco dingly, pa adox schola s ha e highligh ed he o ganiza ional duali ies be ween
s abili y and change, explo a ion and exploi a ion, compe i ion and coope a ion, con ol
and collabo a ion, a ionali y and in ui ion, and discou se and ma e iali y, among o he s
(Fa joun, 2010, 2017; Kelle and Sadle - Smi h, 2019). Simila ly, an impo an body o
esea ch has emphasized he i econcilable ensions aced by hyb id o ganiza ions when
hey combine mul iple, and o en con lic ing, s a egic missions a hei e y co e (Ba ilana
e al., 2022; Jay, 2013). These include a a ie y o o ganiza ions ha ope a e acco ding o
comme cial equi emen s while simul aneously pu suing al e na i e goals such as he labou
ma ke in eg a ion o disad an aged people in wo k in eg a ion social en e p ises (Smi h
and Besha o , 2019), he empowe men o local p oduce s om he Global Sou h in ai
ade o ganiza ions (Huyb ech s e al., 2024), he p o ision o inancial se ices o poo
people in mic o inance o ganiza ions (Ba ilana and Do ado, 2010), and he p omo ion o
economic democ acy in wo ke coope a i es (Audeb and, 2017; B e os e al., 2024).
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Wi hin pa adox schola ship, dialec ics has been equen ly p esen ed as a subdi ision
o he o e all amewo k, pa icula ly in ela ion o he classical hesis- an i hesis ‘s ug-
gle’ o ecogni ion. In his iew, he s uggle in ol es seeking absolu e powe o e he
opposing pole, wi h he syn hesis eme ging as he esul o one pole domina ing he o he
(Ha g a e and an de Ven, 2017; Pu nam, 2015). Thus, dialec ics is iewed as a ‘mid-
ange’ me hod (Lewis and Smi h, 2022), as well as he ab up /non- linea momen wi hin
a lea ning spi al and o ganiza ional ans o ma ion (Raisch e al., 2018). The e o e, he
popula iew pe cei es pa adoxes as pe sis en , inhe en con adic ions o which a de-
ini i e esponse is impossible and ye indispensable, hence he pa adox. In con as ,
dialec ics e e s o speci ic con adic ions ha a e con ingen and su moun able ( o a
heo e ical e iew c . Be i and Cunha, 2023).
Howe e , we conside his de ini ion o o ganiza ional con adic ions and pa a-
doxes – whe e dialec ics is subo dina ed o pa adox due o he pe cep ion o i being
‘less pe sis en ’ – o be p oblema ic. I may e lec a ‘de ensi e mind- se ’ (Cunha and
Pu nam, 2019) ha esis s econside ing he ounda ions o pa adox heo y while un-
de aluing he c i ical and explana o y po en ial o he dialec ical me hod. We ag ee
wi h au ho s who ha e ques ioned whe he wha is o en labelled a pa adox may ac ually
be an ‘op imiza ion p oblem’, a me ely in e p e a i e dispu e, o an ideological ac ic
o ei y pa icula pa adoxes in o de o p ese e a s a us quo (Be i and Simpson, 2021;
Child, 2020; Gaim e al., 2021).
The e a e h ee u he me hodological p oblems wo h highligh ing wi h he abo e
dominan concep ions o con adic ions, pa adoxes and dialec ics. Fi s , pa adox
schola s ha e simplis ically de ined dialec ics h ough he classical iad o hesis-
an i hesis- syn hesis, bu o Hegel and Ma x, dialec ics has no sys ema ic me hod o en-
closed way o hinking. In ac , Ma x and Hegel ac ually p edica e he opposi e: ha
he co ec scien i ic me hod is o sc u inize ca ego ies (i we a e engaging in philo-
sophical analysis) and his o ically de e mined ela ions (i we a e pe o ming ma e-
ialis analysis) wi hou b inging unjus i ied assump ions o ex e nal elemen s in o
he hough p ocess (Ma x, 1993b, 1999). Hence, dialec ics and c i ical hinking a e
no abou imposing an abs ac iad, bu abou he manne in which he ‘ hinking
p ocess de elops and demands o be hough [when] we gua d agains he assump-
ions ha a e hidden in wha appea o be he simples and mos innocen ques ions’
(Houlga e, 2006, pp. 34–36).
Second, he o ganiza ional pa adox and dialec ics li e a u e has unde s ood con adic-
ion as ‘ he simul aneous p esence o wo essen ial elemen s ha a e connec ed o in e e-
la ed ye di ec ly opposed’ (Fa joun, 2017, p. 90, emphasis added). F om his pe spec i e,
con adic ion is abou add essing he in e dependence be ween wo essen ial elemen s
ha can exis independen ly (‘ he good’ and ‘ he bad’), logical in isola ion bu absu d o
i a ional when jux aposed (Lewis and Smi h, 2014; Pu nam e al., 2016). This is pa ic-
ula ly e iden in he li e a u e on hyb id o ganiza ions, which has gene ally conside ed
he in e play be ween con lic ing goals as a ade- o , whe e ad ancing one o en equi es
comp omising he o he (Ba ilana e al., 2022; Child, 2020; Shephe d e al., 2019; Smi h
and Besha o , 2019).
Howe e , ou Ma xian iew on con adic ions is abou ecognizing he necessi y o
g asp he ‘iden i y in di e ence’; ha he ull ealiza ion o one elemen canno ake
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place un il i inco po a es he de e mina ions o ano he ha was ini ially posi ioned
in opposi ion. Things come in o being h ough hei opposi e because hey a e pa ial and
limi ed when unde s ood in isola ion om he eali y hey eme ge om. In o he wo ds,
wha is dialec ical is no only he me hod bu eali y i sel . The e o e, he on ological
p inciple o con adic ion is no abou how wo sepa a e o dis inc elemen s o m a
new elemen (i.e., an unjus i ied a he han o ganic o de e mined ‘uni y o opposi es’),
bu abou showing how ‘e e y eal o m ealises i s quali a i e de e mina ion by ans-
o ming i sel in o a mo e conc e e o m, [because] he p ocess o de e mina ion is a
p ocess o becoming ano he , i.e., a mo emen o sel - media ion’ (S a os a, 2016, p. 82).
In sho , con adic ion is no wo dis inc hings abs ac ly pu oge he o make a new
one – a he , i was al eady one hing wi h con adic o y o ces wi hin i , one hing agains
i sel , e ealing i s inhe en po en ial o ans o m in o some hing else h ough i s oppo-
si e. This implies ha he meaning we o iginally asc ibed o some hing is expanded and
ans o med h ough i s opposi e – o example, solida i y can become calcula ing and
compe i i e.
As Todd McGowan s a es, he e is a dange in hinking o con adic ion simply as
di e ence, because ‘di e ence c ea es he illusion o he possibili y o ha monious
coexis ence’, bu ‘con adic ion, in con as , e eals ha no en i y can e e ha moni-
ously coexis wi h i sel ’, sepa a e om he es (McGowan, 2021, p. 145). Dialec ics,
hen, is he esea ch me hod ha ecognizes he con adic o y na u e o eali y, ha
is, he impossibili y o sel - iden i y. A dialec ical app oach o con adic ions and pa a-
doxes poin s o he openness o eali y, and ad oca es o a s ong p ocessual (Langley
and Tsoukas, 2017), his o ical (Vaa a and Lambe g, 2016) and sel - c i ical (G odal
e al., 2021) me hodology ha is la gely absen in pa adox s udies ( o excep ions,
see Schad e al., 2016; Fa joun, 2019). This second lesson enables us o unde s and
how coope a i es a e simul aneously compe i i e and solida is ic o ganiza ions. They
canno be one hing wi hou he o he , in con as o non- dialec ical concep ions ha
pe cei e hese wo o ganiza ional alues as dis inc a he han as di e en sides o he
same coin – he ‘iden i y in di e ence’ o a speci ic o ganiza ional o m (Las He as
and Messina, 2024).
Thi d, he examina ion o o ganiza ional complexi y h ough pa adox lenses has gen-
e a ed s udies in which he ela ion be ween dis inc and mul iple con adic ions and pa -
adoxes is unde e mined, imp ecise o ad hoc (see, e.g., Audeb and, 2017; Palakshappa
e al., 2024). Indeed, ecen calls om pa adox schola s u ge us o iew pa adoxes as in-
e connec ed and nes ed ac oss space and ime, as well as o sc u inize how undamen al
o unde lying con adic ions and pa adoxes can gi e ise o addi ional ones (Ja zabkowski
e al., 2019; Schad e al., 2016; Schad and Bansal, 2018). Howe e , and al hough a
weal h o o ganiza ional s udies ecognize he exis ence o ambiguous and con adic-
o y o ces wi hin coope a i es (e.g., B e os e al., 2024; Siedlok e al., 2024; Soe ens
and Huyb ech s, 2023) and o he hyb id o ganiza ions (Ba ilana and Do ado, 2010;
Jay, 2013; Smi h and Besha o , 2019), hese s udies ha e no engaged in sys ema ically
explaining how he ensions inhe en in a speci ic o ganiza ional o m can be exp essed
in di e en , mo e de eloped and complex ways. This highligh s he impo ance o show-
ing how mul iple con adic ions and pa adoxes de elop om a ounda ional one, as illus-
a ed by he ‘solida i y pa adox’ he e examined.
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In summa y, dialec ics challenges appea ances by g ounding hem in b oade his-
o ical p ocesses and explo ing why hey appea in such a o m. This in e s he
on ological p io i iza ion o pa adoxes o e con adic ions. F om a Ma xian pe spec-
i e, pa adoxes eme ge when con adic ions appea o be ixed in ime, go e ning
pa icula o ms o o ganiza ional li e and may disappea o mu a e when subs an ial
ans o ma ions occu . In his sense, dialec ics in ol es ecognizing how o ganiza-
ional ensions a e his o ically and poli ically add essed, and demons a ing ha ce ain
con adic ions may become pa adoxes when o ganiza ional o ms become ei ied o
na u alized. The pa adox hen ep esen s he p ac ical and ideological o m in which
he pa icula con adic ion appea s o o ganiza ional ac o s and esea che s as in-
su moun able. Ne e heless, pa adoxes a e eal because social ac o s a e unable o
e lec on hemsel es and collec i ely ans o m he ansi o y, pa ial and limi ed
na u e o he ela ions and o ganiza ions hey ha e c ea ed. In his sense, dialec ics
is an encompassing and open me hodology ha inco po a es pa adoxes wi hin i s
oolbox, impelling us o ques ion why pa adoxes become ixa ions o an inhe en ly
open and dis up i e eali y. Mo eo e , as he case o Mond agon will demons a e, a
simple con adic ion inhe en o a pa icula o ganiza ional o m mani es s in mul-
iple and di e en pa adoxes. This implies he possibili y o add essing complexi y
wi hou elying on unde - heo ized desc ip ions ha p esen pa adoxes as dis inc and
sepa a e, a he han as he conc e e mani es a ion o a p ima y con adic ion; ha is,
pa adoxes eme ge and un old h ough complexi y.
COMMODITY- PRODUCTION, THE COOPERATIVE FIRM
AND THE SOLIDARITY PARADOX
Acco ding o Ma x, capi alism is a social o de in which weal h is exp essed in he o m
o an ‘immense collec ion o commodi ies’ (1990, p. 125). While commodi y- p oduc ion
and ma ke s ha e exis ed in o he social o de s, Ma x explains how i is possible ha
he p oduc o human labou gene ally akes he social o m o a commodi y. In any
complex socie y ‘ he e is implici ly a social di ision o labo in he di e se o ali y o
use ul labo ac i i ies’, bu hei p oduc s need no necessa ily appea as commodi-
ies (Hein ich, 2021, pp. 85–6). Human labou has always had a social cha ac e , bu
‘only he p oduc s o mu ually independen ac s o labo , pe o med in isola ion [i.e.,
p i a ely and independen ly], can con on each o he as commodi ies’ (Ma x, 1990,
p. 132). Hence, i is no he sepa a ion o asks ha leads o commodi y p oduc ion;
a he , i is he social s uc u e unde lying he di ision o labou ha e eals he social
na u e o wo k (Ma x, 1990, p. 150). Building on he i s me hodological lesson om
he p e ious sec ion, a dialec ical analysis o he coope a i e i m mus examine i s eme -
gence wi hin i s social con ex .
A i s simples conc e e le el, we can hink o he es ablishmen o a coope a i e occu -
ing when (a leas ) wo wo ke s combine hei labou s eely and independen ly om di ec
ela ions o dominance o mu ually engende he coo dina ed p oduc ion o commodi ies
(c . Penca el e al., 2006, p. 25). Rega dless o he mo i es o he cons i u ion o he co-
ope a i e (e.g., poli ical, inancial, and e hical), i s wo ke s eely ag ee o o ganize hei
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labou s collec i ely h ough a di ec ela ionship o solida i y ha bonds hem legally in o
he p oduc ion o commodi ies. These independen coope a i e- wo ke s ag ee o bes ow
on each o he he igh o con ol hei espec i e indi idual labou - p ocesses. The e o e,
when coope a i e- wo ke s es ablish a coope a i e, hey en e in o a legal con ac as
equals, ag eeing o be pa o a pa icula poli ical ela ionship in which hei labou s
a e o ganized di ec ly, h ough solida i y a he han indi ec ly, h ough he impe sonal
ma ke .
These wo ke s ex end hei indi idual eedom by sha ing democ a ic con ol o e
hei labou ing capaci ies h ough a de e mina e ins i u ion, ha is, he assembly o
coope a i e- wo ke s. This b eeds a coope a i e di ision o labou ha u opian schola s
concei e o be ‘ adically dis inc ’ om adi ional capi alis i ms (c . Jaumie , 2017;
Kocia kiewicz e al., 2021; Schille - Me kens, 2024). The e a e wo easons o his:
i s , hese wo ke s ha e eely and independen ly en e ed in o a democ a ic and sol-
ida is ic associa ion ha secu es hei igh o in e ene in he o ganiza ion o hei
labou - p ocesses; and second, hey e ain he igh o a sha e o he p oduce and
po en ial su plus, ci cum en ing he exploi a i e ela ionship be ween he capi alis
and he wage- labou e (Ma x, 1993a, p. 511; Pa anque and Willmo , 2014, p. 616;
Schweicka , 2011, p. 49–50). The e o e, u opian schola s assume wage labou and
class exploi a ion as he undamen al ela ions o capi alism, a he han commodi y-
p oduc ion. As a esul , hey po ay he coope a i e i m as a adical al e na i e be-
cause i is bo h democ a ic and de oid o exploi a ion (e.g., Jaumie , 2017, pp. 231–5;
Panse a and Rizzi, 2020, p. 22). As Da id Schweicka a gues: ‘using he ma ke o
alloca e goods and se ices does no make a socie y capi alis , [ma ke ] compe i ion
is no he an i hesis o socialism’; wha makes a socie y capi alis is ha ‘ he capi alis
classes de i e hei weal h om hei owne ship o p oduc i e weal h, ha is, om cap-
i al’ (2011, pp. 23–4).
These analyses, howe e , ail o link he eme gence o coope a i es o he ma ke e-
la ions ha media e hei ep oduc ion, he eby no malizing he sys emic con adic ions
inhe en in hem. In his con ex , coope a i e- wo ke s canno plan o consciously o ga-
nize he dis ibu ion o hei p oduc s o mee social needs, since i is only a e – no be-
o e – ma ke exchange occu s ha hei p i a e and independen labou s a e ecognized
socially, ‘in he mids o he acciden al and e e - luc ua ing exchange ela ions be ween
p oduc s’ (Ma x, 1990, p. 168). The e o e, while coope a i e- wo ke s claim ha hei la-
bou s a e o ganized acco ding o solida y alues, such solida i y does no ex end o o he
commodi y p oduce s. In ac , he o ganiza ion o he socie al ep oduc ion in a ma ke
economy popula ed by coope a i es gi es coope a i e- wo ke s di ec collec i e con ol
o e he con en o hei p oduc (i.e., he labou - p ocess) bu simul aneously lea es hem
powe less wi h espec o he social o m i akes (i.e., ma ke compe i ion). Thus, e en i
all wo ke s we e in coope a i es, labou could no be conside ed ully coope a i e o he
ex en ha each indi idual coop would be in ma ke compe i ion wi h o he coops and
hei wo ke s.
He e, a p ima y con adic ion eme ges, no om a bi a ily jux aposing wo
opposi e alues, bu because bo h a e in insic o he o ganiza ion i sel . The un-
ce ain y o whe he hei collec i e labou will mee a social need makes was e a
po en ial ou come, along wi h mo e ex eme consequences, such as unemploymen ,
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compe i ion o su i al, inequali y, po e y, and ma e ial allou om economic c i-
ses (c . Hein ich, 2021, p. 122; McNally, 1993, p. 164; Vidal e al., 2015, pp. 414–6).
Hence, was e ul ma ke compe i ion and economic c ises we e ‘al eady p esen ’, as a
social necessi y when labou e s main ained hei one- sided solida i y h ough ma ke
in e ac ion. This made i ‘a ma e o chance’ whe he hei commodi ies would be
sold o no (Ma x, 1990, p. 203). The de elopmen o a solida is ic o ganiza ion ha
depends on ma ke success o i s su i al aises an impo an s a egic ques ion: How
much solida i y can coope a i e- wo ke s exp ess di ec ly (wi h hei co- wo ke s) and
indi ec ly (wi h he es o socie y) when he p oduc o hei labou s con on s hem as
an ex e nal powe – speci ically, he necessi y o he commodi y o be sold in a com-
pe i i e ma ke ? Should hey expand hei solida i y o include he es o commodi y-
p oduce s, o should hey ins ead b eak hei poli ical bonds in o de o su i e as a
p i a e and independen g oup o indi iduals?
The s a egic ques ion o how solida is ic o mili an coope a i e- wo ke s may choose
o be a ises om he coope a i e i m being simul aneously buil upon solida is ic and
compe i i e o ces ha oge he p oduce a con adic o y uni y. The ep oduc ion o such
a con adic o y uni y akes he o m o a ‘solida i y pa adox’ bo h objec i ely and in
he eyes o i s membe ship. I is a solida i y ha go e ns he labou - p ocess in o de o
engage wi h o he social ac o s compe i i ely h ough ma ke in e ac ion. The solida -
i y pa adox ep esen s an ongoing s a egic con adic ion o he coope a i e- wo ke :
being solida y wi h hei pee s o e he di ec con ol o e he labou - p ocess, and being
equally opposed o he es o commodi y p oduce s h ough a ela ion o compe i ion.
In o he wo ds, he pa adoxical consciousness o he coope a i e- wo ke becomes he
necessa y ei ied consciousness ha p ese es i s collec i e es angemen om all o he
commodi y p oduce s: a ai h ul ac o solida i y which seeks social uni y in he im-
pe sonal and diso ganized ma ke . In his sense, i is p ecisely by clinging o his e y
sel - gene a ed ‘absu d’ o ‘i a ional’ s a egic si ua ion ha coope a i e- wo ke s do no
oppose capi alis ela ions bu ins ead ep oduce hem in a speci ic way: by becoming a com-
muni y o commodi y- p oduce s who, a one and he same ime, sell commodi ies in he ma ke h ough a
calcula ed o m o solida i y.
Me hodologically, dialec ics has allowed us o ie wha we e ini ially concei ed
as sel - de e mining and logical e hical alues o ‘a his o ically de e mined conc e e
p axis’ (S a os a, 2016, p. 141), ha is, ha o commodi y- p oduc ion. Ins ead o
conc e e elemen s being logical ‘in- hemsel es’ bu pa adoxical when ‘jux aposed o
in e ela ed’ (Lewis and Smi h, 2022), dialec ics demons a es how con adic o y o -
ganiza ional alues, such as ‘solida i y’, e eal hei pa adoxical na u e when pu in o
p ac ice. This e eals ha hese alues migh also embody hei opposi e, hus becom-
ing sel - unde mining due o he en i onmen in which hey a e ep oduced. This un-
de lines how he ans o ma ional s a egy inhe en in he o ganiza ional o m o he
coope a i e is lawed om he ou se : an o ganiza ion o mu ualized labou s ha sys-
ema ically ep oduces compe i i e ela ions wi h o he social ac o s. Consequen ly,
he pe sis en con adic ion unde lying his solida i y s a egy appea s in he o m o
a pa adox.
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communi y o coope a i e- membe s who, in o de o p ese e hei jobs and income,
op o de eloping an indi ec and exploi a i e ela ion wi h hose who only possess
hei labou - powe .
The pa adox o he coope a i e di ision o labou . F om hei incep ion, Mond agon
coope a i es ha e impo ed p e ailing capi alis labou - p ocess sys ems, sou ced
om dominan economies such as he USA, Japan, and Ge many, also playing a
key ole in hei ins i u ionaliza ion in he Basque Coun y (Cheney, 2002). Un il he
mid- 1980s, ela ions on he shop loo o Mond agon’s indus ial coope a i es we e
based mainly on a Taylo is ic app oach (see Kasmi , 1996; Why e and Why e, 1991).
Since hen, Mond agon coope a i es ha e ex ensi ely adop ed he dominan Lean
Manu ac u ing and To al Quali y Managemen manage ial p og ams (Cheney, 2002;
He as- Saiza bi o ia, 2014).
Implemen a ion o hese pos - Fo dis models o wo k o ganiza ion has been ins u-
men al in enhancing he compe i i e posi ion o hese coope a i es as well as ensu ing
highe s anda ds o wo k sa e y, eamwo k, job en ichmen , and in o ma ion sha ing. In
addi ion, Mond agon manage s emphasize he posi i e e ec s o he es ablishmen o
less hie a chical and mo e lexible au ho i y and con ol sys ems, enhancing close man-
agemen –labou ela ionships and p omo ing wo ke s’ in ol emen in p oblem- sol ing,
con inuous imp o emen , and he day- o- day decisions ha a ec hei immedia e a ea
o wo k (see Bas e e xea e al., 2019).
Howe e , i is e iden ha he in oduc ion o dominan egimes o manage ialism
and p oduc i i y has no been de oid o au ho i a ian elemen s ypical o capi alis
i ms, as igid disciplina y and supe iso y p ocedu es a e applied in assembly lines
in o de o ma ch wo ke s’ hy hms o hose o he machines, wi h a clea sepa a ion
being made be ween manual asks and in ellec ual asks, o ensu e ha labou p o-
duc i i y keeps up wi h ma ke ends. Indeed, e hnog aphic s udies ha e e ealed
how he in oduc ion o lean p oduc ion sys ems in Mond agon coope a i es has e-
sul ed in lowe le els o employee sa is ac ion, wi h wo ke s epo ing g ea e s ess,
highe wo kload and exhaus ion, and inc eased p essu e (Bas e e xea e al., 2019;
Cheney, 2002; Kasmi , 1996).
Mo eo e , he in oduc ion o hese p e ailing manage ial p og ams has no been in
esponse o shop- loo wo ke s’ aspi a ions o sel - managemen and au onomy a wo k,
bu a he o manage ial conce ns o echnical e iciency, quali y imp o emen and cus-
ome ocus. Se e al quali a i e s udies ha e documen ed how he ene a ion o lean-
based managemen and o al quali y p inciples has displaced Mond agon’s adi ional
cul u e o subs an i e sel - managemen and democ a ic pa icipa ion in a ou o shal-
low, manage ially- d i en o ms o wo ke pa icipa ion ha a e con ined o low- le el
decision- making in he wo k a ea, o ien ed owa d educing p oduc ion cos s and en-
hancing p oduc i i y, and assessed in e ms o employee mo i a ion and commi men o
business goals (B e os e al., 2018; Cheney, 2002; He as- Saiza bi o ia, 2014). As a esul ,
a signi ican numbe o shop- loo wo ke - membe s inc easingly pe cei e Mond agon’s
o mal p inciples o sel - managemen and au onomy as me e he o ic and comple ely de-
ached om hei daily wo k (see, e.g., Azka aga e al., 2012; He as- Saiza bi o ia, 2014;
Bas e e xea e al., 2019).
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The e o e, while coope a i e- wo ke s ha e o mal igh s o pa icipa e in go e -
nance s uc u es, he limi s ha ma ke ela ions impose on he o ganiza ion o he
labou - p ocess subjec hem o he law o alue and capi alis accumula ion. This
compels coope a i es o adop managemen me hods simila o hose o hei cap-
i alis coun e pa s in o de o main ain a e age p oduc i i y a es (Ma x, 1993a,
pp. 294–301).
C ucially, con a y o he iew ha coope a i e alues a e being unde mined by an
inc easingly complex and aliena ing capi alis di ision o labou , as sugges ed by he
‘degene a ion hesis’ (Kasmi , 1996, 2016), a Ma xian c i ique helps us unde s and
ha i is h ough he i m- d i en p ac ice o coope a i e alues ha he mu ualized
di ision o labou o coope a i e- wo ke s has been p ese ed amids global compe-
i ion. Wha is a s ake, hen, is no he deg ee o isomo phism wi h capi alis i ms,
bu he s eady and g adual need o encompass managemen and labou - p ocess me h-
ods de eloped by hei an i he ical capi alis i ms, ha is, he eal subsump ion o
coope a i e di ision o labou o capi al accumula ion. Acco ding o Kasmi (2016,
p. 57), ‘wo ke - owne ship did no shield [coope a i e- wo ke s] om ac o y egimes
ha we e de ised o p o i maximiza ion and wo kplace discipline’. Howe e , his
mimicking e eals he opposi e – ha he capaci y o coope a i es o a icula e an
idiosync a ic coope a i e di ision o labou ha p oduces and sells commodi ies
h ough he adop ion and ine- uning o dominan managemen me hods ac ually
in eg a es indus ial coope a i e employmen in o global compe i ion and no de-
spi e i . The e o e, he o iginal pe cep ion o so e eign y and di ec con ol o e he
collec i e labou s ha subo dina es capi al o labou p o es o be he e e se: p i a e
and independen p ac ices a e subsumed by ma ke o ces in he endless expansion o
labou p oduc i i y and capi al accumula ion.
Thus, his second pa adox a ises h ough he con adic o y ac ha coope a i e-
wo ke s mus na iga e he unde lying o ces go e ning he wo commodi ies hey
pe soni y (money- capi al and labou powe ). Consequen ly, he imp o emen o
coope a i e- membe s’ wo king condi ions and in ol emen in decision- making a he
shop- loo le el (i.e., he alo iza ion o hei labou - powe ) has been p omo ed h ough
he ep oduc ion o exploi a i e manage ial me hods ha seek g ea e su pluses (i.e., he
alo iza ion o hei money- capi al).
The pa adox o pay egali a ianism. Mond agon’s ‘pay solida i y’ p inciple s a es ha wages
a e se acco ding o p inciples o solida i y be ween wo ke s wi hin each coope a i e,
be ween coope a i es and wi h wo ke s in con en ional capi alis en e p ises in he egion.
Du ing he ea ly de elopmen o Mond agon coope a i es, when all he wo ke s we e
membe s, hey ag eed o a compensa ion policy ha es ablished a maximum a io o 3:1
be ween he highes and he lowes sala y in o de o p omo e economic democ acy. This
a io, which also applies o p o i dis ibu ion, has been expanded a numbe o imes
h oughou Mond agon’s his o y in o de o ensu e success ul ec ui men o quali ied
manage s, enginee s and analys s. In pa icula , i was i s expanded o 4.5:1, hen o
6:1, and inally o he cu en 12:1.
Widening he pay a io has allowed he coope a i es o a ac and e ain highly- skilled
op manage s and hus acqui e he manage ial capabili ies necessa y o h i e in global
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ma ke s (B e os e al., 2020; Cheney, 2002), while main aining an in e nal wage dis i-
bu ion ha is s ill subs an ially mo e comp essed han in capi alis i ms ( he a e age
CEO- o- wo ke pay a io is 127:1 in Spain, and 354:1 in he USA (Fe dman, 2014)).
Compa ed o capi alis i ms o simila size in he same sec o , Mond agon ank- and- ile
wo ke s ypically ea n a ound 30 pe cen abo e he ma ke a e age, while op manage s
ea n a ound 30 pe cen less han he ma ke a e age.
The decision o align Mond agon income o ha o hei compe ing labou ma ke s e-
lec s he need o Mond agon coope a i es o bow o ma ke imposi ions and se com-
pe i i e wages o a cad e o high- le el manage s. In addi ion, al hough he 12:1 a io
in ol es an excep ionally equi able di e en ial compa ed o capi alis i ms, i is a a io o
hose o ou kind (calcula ed by he membe s o he membe s) and does no include he en-
i e wo k o ce (e.g., subcon ac ed wo ke s and o eign employees). Fo example, Basque
wage- wo ke s ea n a ound 80 pe cen o he wages paid o coope a i e- wo ke s, e ec i ely
educing labou cos s and inc easing labou p oduc i i y and co po a e p o i abili y as in
any o he capi alis i m (Bakaikoa e al., 2004). I we conside he alue o owne ship and
he sha e o p o i s and he many pe ks o membe ship – such as job secu i y, p i a e heal h
insu ance, ea ly e i emen , double e i emen pensions – he 12:1 a io would be educed
among membe s bu signi ican ly inc eased compa ed o non- membe s. The e o e, income
inequali y becomes he esul o conc e e ‘solida y s uggles’ o e he de e mina ion o he
p ice o wage- labou and money- capi al, which in no way en ails a sys emic ans o ma ion
o capi alis ela ions (Ma x, 1990, p. 375, 1993a, pp. 269, 361–368). In capi alism, sala ies
canno be ‘ ai ’ because hey ep esen he con ingen o m in which ce ain wo ke s secu e
hei ma e ial ep oduc ion h ough compe ing agains o he s.
The hi d pa adox a ises om he con adic ion o implemen ing egali a ian pay
schemes o mi iga e capi al accumula ion dynamics (i.e., equalizing he p ice o labou -
powe ) by o e ing compe i i e wages (i.e., buying labou - powe a ma ke p ices). This
app oach, howe e , ep oduces income inequali y as i seeks o e ain o a ac skilled
wo ke s wi h di e en capabili ies and ul ima ely sus ain he o e all paymen scheme.
The In e - O ganiza ional Con adic ions and Pa adoxes o Mond agon
Mond agon coope a i es a e igh ly linked h ough a ious sup a- coope a i e go e ning
bodies, elec ed by owne - membe s o he i s - ie coope a i es. These bodies play a c ucial
ole in s eng hening solida i y and in e - coope a ion among he membe - coope a i es and
enhancing hei capaci y o deal wi h he challenges o an inc easingly compe i i e and global-
ized ma ke economy (Bakaikoa e al., 2004; Why e and Why e, 1991). Unlike con en ional
capi al- owned business g oups, he Mond agon g oup has a se ies o in e - o ganiza ional
solida i y mechanisms and ools ha a e collec i ely unded by he membe - coope a i es.
The mos impo an mechanisms o in e - coope a i e solida i y include a p o i - pooling sys-
em whe eby pa o he losses o coope a i es in c isis a e co e ed by using su pluses om
o he coope a i es, and he eloca ion o wo ke - membe s among Mond agon coope a i es
in o de o p ese e jobs (Azka aga e al., 2012; E as i e al., 2017).
Despi e being con ede a ed unde he umb ella o he Mond agon g oup, each i s -
ie coope a i e is au onomous and i s so e eign y esides legally in he gene al assembly,
whe e all he membe - owne s a e ep esen ed and can democ a ically decide on he
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o ganiza ion’s policies, s a egies, and go e nance. Thus, in e - o ganiza ional coope a-
i e solida i y a ises om an indi idual commodi y- p oduce di ec ly ela ing o o he s
h ough he gene al assembly, which hen se es as he go e ning body h ough which
hey collec i ely decide o es ablish solida i y ies wi h o he coope a i es. In he ollow-
ing sec ions, we a icula e wo pa adoxes ha e lec he con adic ions o Mond agon’s
in e - coope a i e solida i y s a egies unde ma ke compe i ion. The i s pa adox, e-
la ed o calcula ed solida i y, is illus a ed by he exi o I iza om Mond agon; he
second pa adox, ela ed o compe i i e solida i y, is illus a ed by he bank up cy o
Fago - Elec odomés icos.
The pa adox o calcula ed solida i y. Th oughou Mond agon’s his o y, se e al coope a i es
ha e democ a ically decided o lea e Mond agon and s ike ou on hei own, mainly
due o hei dissa is ac ion wi h he g oup’s in e - coope a i e solida i y equi emen s.
Some o he mos p ominen cases include I iza and Ampo in 2008, and mo e ecen ly
in 2022, O ona (an ele a o manu ac u e employing 5500 wo ke s) and Ulma (a highly
di e si ied indus ial business employing 5200 wo ke s).
The case o I iza epi omizes se e al aspec s o he solida i y pa adox. The Basque-
based manu ac u e o luxu y buses and coaches employs a ound 3400 wo ke s in
i s 13 p oduc ion plan s in Spain, Mo occo, B azil, Mexico and Sou h A ica. A e
se e al yea s o losses, in 1991, I iza ecei ed assis ance om he o he Mond agon
coope a i es h ough inancial con ibu ions and o he in e - coope a i e solida i y
measu es such as he eloca ion o 65 o i s wo ke - membe s o o he Mond agon
coope a i es. The in e - coope a i e assis ance ecei ed, oge he wi h he adop ion o
a ious in e nal measu es such as he in oduc ion o a new managemen eam and
he coope a i e’s eo ganiza ion unde an inno a i e managemen and wo k o gani-
za ion sys em, led I iza o become, in he ea ly 2000s, he mos p o i able coope a-
i e in Mond agon and he one ha con ibu ed he mos economic esou ces o he
g oup’s in e - coope a i e unds.
Howe e , in 2008, I iza ’s gene al assembly app o ed he managemen ’s p oposal
o de ach om Mond agon, wi h 75 pe cen o he membe - owne s o ing in a ou .
O icially, I iza ci ed i s depa u e om Mond agon as a esul o he di e ences
be ween i s o ganiza ional model, which was ‘mo e ho izon al and pa icipa i e’
and based on ‘g ea e lexibili y and agili y in decision- making p ocesses’, and he
mo e igid and o hodox o ganiza ional cul u e o o he Mond agon coope a i es.
None heless, esea che s obse ed ano he , pe haps mo e impo an , unde lying ea-
son: he lack o solida i y wi h o he coope a i es, e lec ed in I iza membe s’ wide-
sp ead pe cep ion ha he coope a i e could be compe i i e wi hou Mond agon’s
in e - coope a i e assis ance, and hei eluc ance o con inue ans e ing a pa o
I iza ’s p o i s o less e icien and compe i i e coope a i es (see, e.g., A ando and
He ce- Leze a, 2023).
I iza ’s s a egic esponse o he ‘e hical’ pa adox o ei he p omo ing coope a i e
alues o main aining hei au onomy was o ac ‘une hically’, ul ima ely unde mining
Mond agon’s in e - coope a i e sys em. By i s ecei ing inancial aid and hen sepa a -
ing om Mond agon’s in e - coope a i e sys em, I iza ’s coope a i e p ac ices e ol ed,
leading o he p oduc ion o comme cial ehicles on a global scale. As Ma x pu i , ‘i
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is no because he is a leade o indus y ha a man is a capi alis ; on he con a y, he is
a leade o indus y because he is a capi alis ’ (1990, p. 451). In essence, ou a gumen
sugges s ha in con ex s whe e expanding solida i y is jus one o many op ions, p o i -
abili y calcula ions also become one o he p ima y d i e s o o ganiza ional su i al,
wi h he dynamics o class s uggle shaping i s conc e e mani es a ion. Hence, he abil-
i y o su i e he compe i i e s a egies o o he s shows he inhe en ly expansi e and
su plus- d i en logic ha coope a i es mus adhe e o. In he coope a i e i m, solida i y
becomes a calcula ed decision always subjec o economic conside a ions and he op ion
o wi hd aw. In e - coope a i e solida i y, he e o e, becomes a di e en o m o in e -
o ganiza ional compe i ion.
This ou h pa adox eme ges om he unde lying con adic ion o in e - o ganiza ional
solida i y s a egies being simul aneously es ic ed by p o i abili y equi emen s. I
e eals he p o isional and ins umen al na u e o solida i y among compe i o s who
mus secu e inancial s abili y o su i e (i.e., collec i ely alo izing hei labou - powe s
and money- capi als while emaining independen om and in compe i ion wi h o he
coope a i es).
The pa adox o compe i i e solida i y. The bank up cy o he home appliance manu ac u e
Fago - Elec odomés icos (1959–2013), lagship o he Mond agon g oup and i s la ges
coope a i e o decades, is pa icula ly ele an o unde s anding how solida i y mee s
he limi o capi al accumula ion. A i s peak, in 2006, Fago employed o e 11,000
people a 18 p oduc ion plan s in six coun ies, al hough coope a i e membe - owne s
ep esen ed only one- hi d o he o al wo k o ce. In he a e ma h o he global
inancial c isis, Fago cu o e 3000 jobs in he Basque Coun y and ano he 3500 in
i s F ench and I alian subsidia ies be ween 2007 and 2013. The ac ions aken o a oid
job losses among Fago ’s membe - owne s elied on Mond agon’s in e - coope a ion
mechanisms: mainly, he edis ibu ion o su pluses om o he coope a i es o Fago
(su pluses ha we e inc eased by he decision o he wo ke - membe s o many
coope a i es o empo a ily educe hei sala ies), inancing om a ious in e -
coope a i e unds, and he empo a y eloca ion o Fago ’s wo ke - membe s o o he
Mond agon coope a i es.
Despi e he ema kable solida i y endea ou s o Mond agon coope a i es, Mond agon’s
gene al council inally decided no o lend Fago any mo e money, a guing ha helping
Fago u he would jeopa dize he su i al o he o he coope a i es – Fago ’s deb wi h
Mond agon’s coope a i es amoun ed o €240 million by ea ly 2013 (E as i e al., 2017).
In Oc obe 2013, Fago decla ed bank up cy and, sho ly a e , he coope a i e was dis-
sol ed and sold o in pa s o p i a e compe i o s. In an unp eceden ed la ge escue
ope a ion, an employmen solu ion was ound o all Fago coope a i e- membe s. As o
2023, 1405 o he 1736 ini ially edundan coope a i e- membe s had a de ini i e solu ion
(p ima ily in he o m o pe manen eloca ion o o he coope a i es and ea ly- e i emen
ag eemen s), while he es we e in a ansi o y pe iod o empo a y eloca ion in o he
coope a i es. By con as , sala ied, non- membe employees a bo h he Basque and o -
eign plan s, no eligible o Mond agon’s in e - coope a ion mechanisms, los hei jobs.
In sho , Mond agon’s ad anced and ex ensi e sys em o in e - coope a i e solida i y
con ibu ed decisi ely o Fago ’s abili y o su i e longe han many o he capi alis
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compe i o s in he home appliance indus y. Ne e heless, and independen ly o Fago ’s
he y go e nance and managemen mis akes (c . Bas e e xea e al., 2022), i s demise
clea ly shows ha unp o i able coope a i es a e doomed o disappea in he long un,
ega dless o he s eng h o any in e - coope a i e and sup a- coope a i e solida i y
sys em.
Mo e speci ically, as discussed in he sec ion on capi al accumula ion, I iza and Fago
con on ed he challenge o how o alloca e hei esou ces in h ee ways: (i) consuming
all su pluses and expanding he p i a e weal h o he coope a i e- wo ke s; (ii) ein es ing
su pluses in hei own coope a i es in o de o upg ade o expand employmen ; o (iii)
inancing o he coope a i es (a ixed in e es a es) as equi ed by Mond agon’s in e -
coope a i e solida i y sys em. To make an unequal and c isis- p one sys em look a ional
a all, u opian schola s o en eso o p omo ing unmedia ed (i.e., abs ac and unde e -
mined) e hical and mo al p inciples in ended o p ese e he cohesion and sus ainabili y
o he coope a i e (e.g., De Cos e and Zanoni, 2023; Gibson- G aham, 2006; Schille -
Me kens, 2024). Un o una ely, none o hese s a egies is o ally e ec i e since he pu -
sui o hese p inciples depends on he ma ke equi emen s and a ying ac o s such as
in e es a es, he expec ed e u n o ein es ing su pluses in hei own coope a i es, and
he class s uggles media ing he expansion o in e - coope a i e solida i y mechanisms
o e o ganiza ional sus ainabili y.
Reso ing o he ex e nal in ol emen o s a e- like agencies (such as he Mond agon
Co po a ion) in he alloca ion o capi al in es men s may ‘sol e he p oblem in heo y
bu no in eali y’ (Co n o h e al., 1988, p. 43) because s a e agencies a e subjec o
capi al accumula ion equi emen s (Jessop, 2016), and ace he unsol able con adic-
ion o how o econcile wo mu ually- unde mining aims: p ese ing in a- and in e -
o ganiza ional solida i y and emaining economically iable p ojec s. The socialis s a e
eme ges, hen, as he ex e nal poli ical agen ha implemen s easonable egula ions
in o de o p ese e social cohesion wi hin a c isis p one sys em. Howe e , u opian
(Gibson- G aham, 2006; Schille - Me kens, 2024; W igh , 2019), degene a ion hesis
schola s (see Co n o h, 1995), and hose mo e nuanced s udies (E as i, 2015; He as-
Saiza bi o ia, 2014; Va man and Chak aba i, 2004) do no explain why he s a e would
be a capable agen in p o iding a cohesi e solu ion when i has o p ese e he economic
independence and so e eign y o coope a i es. Howe e , as De ine (1989) explains using
he examples o Yugosla ia and Hunga y, coope a i es s uggle by lobbying he s a e
and igh ing o a ou able egula ions and iscal policies o p o ec hei own p i a e
in e es s in ela ion o o he coope a i es. In e - coope a i e solida i y mechanisms a e
hus con adic o y in na u e because hey ha e o simul aneously supp ess he dis up i e
endencies o capi al accumula ion and in e - coope a i e s uggles (c . Ma x, 1993a, pp.
478–505). In sho , p ese ing he solida i y o some may be o he de imen o o he s.
The unde lying con adic ion o pu suing in e - coope a i e solida i y h ough
compe i i e o ganiza ional s a egies sugges s ha while coope a ion among coope a-
i es s ands ou as a basic coope a i e p inciple (i.e., mu ualizing hei labou - powe s
and money- capi als), i encoun e s a minimum capi al accumula ion h eshold, whe e
p io i izing collec i e wel a e may challenge indi idual inancial sus ainabili y (i.e.,
coope a i es need o acc ue and ein es su pluses in o de o keep hei a e age p o-
duc i i y s anda ds). This i h pa adox, he e o e, eme ges when coope a i es a emp
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and John Wiley & Sons L d.
o expand hei solida i y ex e nally h ough inancial mechanisms ha , d i en by
p o i abili y equi emen s, pu a s ain on he sus ainabili y o hei solida i y s a egy.
DISCUSSION
In his a icle, we employ he analy ical amewo k o dialec ics and Ma xian analysis o
examine how he ‘solida i y pa adox’ exp esses, in mul iple ways, he con adic o y con-
sciousness o a coope a i e- wo ke who simul aneously pe soni ies he in e es s o he
capi alis and he wage- labou e . We de elop he c i ique in h ee s eps: i s , we ques ion
he gene al assump ions o he li e a u e dealing wi h pa adox and dialec ics; second, we
apply dialec ics’ insigh s and Ma xian ca ego ies o he s udy o he coope a i e i m a a
mo e gene al and sys emic le el; and hi d, we ocus on he speci ic case o Mond agon.
In wha ollows, we ou line he a icle’s con ibu ions o c i ical managemen schola ship
on coope a i es and o he b oade ield o pa adox and con adic ion s udies. We hen
p opose h ee key di ec ions o u u e esea ch, and las ly conclude wi h some inal
ema ks.
Theo e ical Con ibu ions
Fi s , his a icle con ibu es o c i ical managemen schola ship on coope a i es by
cla i ying he ans o ma ional po en ial o hese o ganiza ions wi hin a sys emic
amewo k and by deepening he heo e ical implica ions o conside ing coope a-
i es as con adic o y o ganiza ions in which bo h compe i ion and solida i y become
hei opposi es. Coope a i es necessa ily appea pa adoxical o hei membe s be-
cause hey cling o his pa icula o ganiza ional o m wi hou being able o ans o m
he sys emic con ex in which hey exis . The solida i y pa adox eme ges because
commodi y p oduce s abs ac hei solida i y ies om he compe i i e ela ions hey
sys ema ically ep oduce and, hus, unconsciously pe pe ua e he s a us quo. To pa a-
ph ase Ma x’s opening quo e, wo souls dwell wi hin coope a i e- wo ke s’ b eas s, one e e
pa ing om he o he , since coope a i e- wo ke s canno econcile hei solida i y- based
p ac ices wi h hei embeddedness in he b oade dynamics o ma ke compe i ion. In
u n, he o ganiza ional o m o he coope a i e i m poses i s own limi s o socie al
ans o ma ion as i does no challenge he way in which ma ke s media e he ul il-
men o social needs.
By e isi ing he simples con adic ion o he coope a i e i m and he pa adox-
ical consciousness o na iga ing i , as well as he mul i- dimensional, mul i- le el and
in e - o ganiza ional con adic ions and pa adoxes o Mond agon, we show how bo h
u opian and degene a ion schola s a e mis aken in adop ing a one- sided iew ha
ocuses only on he good o bad aspec s o an o ganiza ion. An essen ialis app oach
o bo h o ganiza ional solida i y and compe i ion ob ia es he con adic o y na u e
o o ganiza ions, and how hese o ganiza ional alues a e sel - unde mining when
a icula ed h ough pa icula o ganiza ional o ms. In con as , he ew s udies ha
acknowledge he con adic o y na u e o coope a i es (B e os e al., 2024; E as i
e al., 2023; Siedlok e al., 2024; S o ey e al., 2014), and o he hyb id o ganiza ions
(Ba ilana and Do ado, 2010; Jay, 2013; Smi h and Besha o , 2019), ha e nei he
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and John Wiley & Sons L d.
conduc ed sys ema ic analyses no de eloped encompassing heo ies o explain why
hese pa icula con adic ions a e in insic o such o ganiza ions, why hey pe sis ,
and how hey ela e o o he appa en ly dis inc bu somewha simila con adic o y
o ganiza ions.
This a icle explo es how he pa adoxical na u e o coope a i es eme ges om hei
speci ic his o ical se ing wi hin he capi alis sys em, which o ces coope a i e- wo ke s
o sus ain he exis ing o de by main aining ela ionships ha a e nei he pu ely compe -
i i e no pu ely solida is ic bu embody bo h a he same ime. Ma ke compe i ion and
capi al accumula ion enable solida i y s a egies o ake conc e e shape in he o m o co-
ope a i es and, ice e sa, conc e e solida i y s a egies mus be inhe en ly calcula i e o
su i e ma ke compe i ion. Hence, coope a i es gene a e an idiosync a ic pa adoxical
consciousness because hei membe s pe soni y he o ces o wo mu ually unde mining
commodi ies: money- capi al seeking highe p o i s, and labou - powe seeking o secu e
be e wo king condi ions. By deploying a one- sided analysis and no loca ing coope a-
i es wi hin a b oade ecosys em, u opian, scep ical and nuanced s udies o e look how
hese o ganiza ions ac i ely ep oduce o ans o m a de e mina e o ali y.
Ou Ma xian analysis acknowledges he po en ial o coope a i es in ad ancing class
solida i y and gene a ing posi i e ou comes; in pa icula , educing income inequali y
among co- wo ke s (Ba ilana e al., 2022), p omo ing g ea e wo kplace pa icipa ion
and democ acy (Kocia kiewicz e al., 2021; Zanoni e al., 2017), and/o de eloping
mechanisms o in e - coope a i e employmen and inancial solida i y in he ace o eco-
nomic p essu es (A ando and He ce- Leze a, 2023; E as i e al., 2017). None heless, we
also unde line he impo ance o no conside ing hese ic o ies o achie emen s in isola-
ion, bu as solida i y s a egies ha enable hese o ganiza ions o ep oduce and expand
compe i i ely. Fundamen ally, ou sympa he ic c i ique o he coope a i e i m does no
es on p esupposing highe e hical coope a i e models, o sugges ing a ‘ eal al e na i e’
could exis only i coope a i e- membe s simply o ganized be e , unde he aegis o ‘less
ego is ic’, ‘mili an ’ and ‘solida y alues’ (e.g., De Cos e and Zanoni, 2023; Panse a
and Rizzi, 2020; Ren e ia- U ia e and Las He as, 2022). On he con a y, we pe cei e
he successes and ailu es o coope a i es as he esul o he ension in ol ed in applying
coope a i e alues while na iga ing ma ke compe i ion.
Second, ou Ma xian analysis o he coope a i e i m also en iches schola ly deba es
and esea ch me hodologies ha add ess socie al g and challenges (Adle , 2019; Vidal
e al., 2015) h ough he lenses o pa adox and dialec ics. Speci ically, we discuss he
sho comings o p e ailing app oaches o pa adoxes and dialec ics by a guing ha pa -
adoxes eme ge no as pe sis en and anshis o ical con adic ions (Schad e al., 2019;
Smi h and Lewis, 2011, 2022) bu as his o ically de e mined ones, a ising om speci ic
and con ingen social ela ions. In o he wo ds, a Ma xian pe spec i e o o ganiza ional
pa adox schola ship allows us o loca e pa adoxes his o ically a he han in a imeless
and uni e sal amewo k, hus opening up he possibili y o hei anscendence. This
insigh has bo h schola ly and socially implica ions (c . Wicke e al., 2021) as i edi ec s
a en ion om in a- o ganiza ional o in e - o ganiza ional ela ions, emphasizing hei
mu ually cons i u i e and con adic o y na u e.
As ou analysis e eals, adop ing he dialec ical me hod as a s ong p ocess app oach
(Be i and Cunha, 2023; Fa joun, 2017, 2019; Langley and Tsoukas, 2017) p o ides
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24 J. Las He as e al.
© 2024 The Au ho (s). Jou nal o Managemen S udies published by Socie y o he Ad ancemen o Managemen S udies
and John Wiley & Sons L d.
managemen and o ganiza ional schola s wi h a esh pe spec i e ha c i ically exam-
ines he pa adox schola ship’s ‘co e ounda ions’ (c . Schad e al., 2019). I shows ha
o ganiza ional pa adoxes a e no ‘absu d and i a ional’ when con adic o y o ces
a e jux aposed (see, e.g., Lewis and Smi h, 2014; Pu nam e al., 2016), bu a he a e
he essen ial s a egic consciousness ha pe pe ua es o ganiza ional con adic ions in
speci ic con ex s. In his sense, ou Ma xian engagemen wi h pa adox and dialec ics
li e a u e in e s he on ological p io i iza ion o pa adoxes and con adic ions, high-
ligh ing he pa ial and p o isional na u e o he o me . Thus, dialec ics should no
be seen as a ‘middle ange heo y’ (e.g., Ha g a e and an de Ven, 2017; Schad and
Bansal, 2018) bu an open me hod o o ganiza ional c i ique. This insigh enables
managemen schola ship o b eak ee om he me hodological cons ain o aking
ce ain o ganiza ional o ms o g an ed, os e ing a b oade pe spec i e – owa d
in e - o ganiza ional and sys emic pa e ns – ha highligh s he con ingen and p o-
isional na u e o pa adoxes. This shi places ac ual socie al p oblems, a he han
schola ly deba es, a he o e on o ou a en ion and ques ions how ou analyses
migh be ein o cing he s a us quo.
Ou mul i- dimensional, mul i- le el and in e - o ganiza ional sc u iny o Mond agon
s a egies ela ed o wo k o ganiza ion, pay equi y, employmen and in e - coope a ion
has also e ealed how a ounda ional pa adox may mani es i sel in mul iple ways,
ha is, how he ‘solida i y pa adox’ becomes complex and di e en ia ed in i s
own de elopmen h ough conc e e o ganiza ional p ac ices. C ucially, his occu s
no because pa adoxes a e on ologically dis inc o sepa a e om each o he (e.g.,
Palakshappa e al., 2024), bu because hey a e he conc e e exp ession o an unde -
lying con adic ion ealizing i s po en ial. These insigh s con ibu e o ecen calls in
he managemen li e a u e o a deepe unde s anding o he o e lapping na u e and
complex in e connec ions o pa adoxes and o explo e how a ounda ional pa adox
can mani es i sel in mul iple pa adoxes ha a e in e wo en, mu ually cons i u ed
and on ologically insepa able (Hahn and Knigh , 2021; Ja zabkowski e al., 2019).
The co olla y o his a gumen is ha add essing g and challenges and na iga ing
sys emic ans o ma ions h ough pa ial and limi ed o ganiza ional analyses will in-
e i ably lead o inadequa e ou comes, since he pe spec i e om which hey a e ap-
p oached will be unawa e o i s assump ions and sel - posi ed limi a ions, and so, i will
unconsciously emain sel - de ea ing.
Di ec ions o Fu u e Resea ch
We iden i y h ee p omising a enues o u u e esea ch. Fi s , we ha e shown how
commodi y- media ed ela ions p oduce pa icula con adic ions ha ake he o m o
solida i y pa adoxes wi hin he s a egic managemen o coope a i es. The o e all ame-
wo k is one o capi alis ela ions, meaning ou conclusions canno be di ec ly ansposed
o o he o ganiza ional o ms, such as hose o a planned socie y (e.g., Laibman, 2022).
In hese socialis o ganiza ions, social ac o s in e ac h ough (mo e o less) consensual
poli ical p ocesses, and so a e media ed by di ec o ganiza ional ies and p ocedu es
a he han he indi ec and impe sonal ela ions ha ma ke s necessi a e. The e o e,
ou analysis demons a es ha i is ma ke p o i abili y p edominan ly ( a he han o he
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25A Ma xian c i ique o he coope a i e i m
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and John Wiley & Sons L d.
poli ically- de e mined pe o mance p essu es) ha ul ima ely in o ms he s a egic em-
pla e o o ganiza ions such as Mond agon. Fu he esea ch is needed o explo e how
o he social o de s and o ganiza ional o ms may na iga e in e - o ganiza ional poli ical
con adic ions while p ese ing social cohesion.
Second, he mul iple solida i y pa adoxes iden i ied in he case o Mond agon a e
no necessa ily uni e sal o all coope a i es, bu may be speci ic o la ge and complex
ne wo ks o coope a i es ope a ing in highly compe i i e and globalized ma ke s. In
ac , his single- case analysis poin s o he need o u he esea ch in o he a iega ed
o ms in which a simple con adic ion may un old, depending on he di e en s a egies
adop ed by coope a i es. The analysis o smalle , less complex coope a i es ope a ing
in local niche- ma ke s could lead o he disco e y o o he con adic ions and s a egic
pa adoxes. In addi ion, his o ically sensi i e analyses could show whe he some con a-
dic ions a e mo e salien han o he s, and whe he he o m in which ce ain con adic-
ions a e cons ued and go e ned may gene a e new con adic ions and pa adoxes. The
In e na ional Coope a i e Alliance’s hep alogue on coope a i e p inciples (i.e., open and
olun a y membe ship; democ a ic membe con ol; membe s’ economic pa icipa ion;
au onomy and independence; educa ion, aining and in o ma ion; coope a ion among
coope a i es; and conce n o communi y) could se e as a poin o depa u e o unde -
s and how di e en coope a i es pu he coope a i e p inciples in o p ac ice, how hey
p io i ize ce ain p inciples o e o he s, he speci ic dynamics ha eme ge om his, and
how di e en pa adoxes a e legi imized in o de o p ese e o ganiza ional cohesion and
sus ainabili y.
Thi d, ou p esen a ion o he pape ’s cen al a gumen s o Mond agon’s lead-
e s was me wi h some scep icism; hei esponse was basically o emphasize ha
Mond agon coope a i es mus p agma ically adap o global ma ke equi emen s
i hey a e o su i e. P agma ism has been iden i ied as a guiding p inciple ha can
con ibu e o econciling compe ing demands in some coope a i es (Ash o h and
Reingen, 2014; Audeb and, 2017; Soe ens and Huyb ech s, 2023). Howe e , in i s
wo s exp ession, p agma ism can lead o a lack o e lexi i y and sel - c i ique among
a majo i y o membe - owne s wi hin coope a i es, pa icula ly e iden in Mond agon
(Azka aga e al., 2012; B e os e al., 2020; Kasmi , 1996). The e o e, we encou -
age schola s o adop c i ical pe o ma i i y- in o med esea ch me hods (Reedy and
King, 2019), based on playing a c i ical, ac i e, p oduc i e ole aimed a ans o ming
o ganiza ional p ac ice wi hin coope a i es in o de o econ igu e, ad ance and ex-
end solida i y p ac ices unde global ma ke equi emen s. In his way, schola s may
collabo a e wi h coope a i e p ac i ione s in wo king h ough pa adoxes collec i ely
and e- imagining u u e social a angemen s o go e ning he coope a i e i m (see
G i in e al., 2022; Wicke and Schae e , 2015). Mo eo e , ac ion- o ien ed, c i ically
engaged esea ch ep esen s a way o wa d in he dialec ical analysis o coope a i es,
as i may lead o new, p ac ice- based insigh s in o he a ied and dis inc i e con-
adic ions aced by coope a i es and he ways and ex en o which hese o ganiza-
ions con ibu e o sol ing socie al g and challenges (Gümüsay e al., 2022; Wicke
e al., 2021).
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