A theory of socio-business diffusion: Understanding the influence of Mondragon Corporacion Cooperativa as a positive force for change at the intersection of business and society

The main purpose of this research is to understand how and what people are learning from an innovative business model that enjoins social and economic good. This study highlights an organization widely recognized as the most successful cooperative in history, Mondragon Corporacion Cooperativa (MCC) located in Basque Country. I present seven characteristics that define what I have entitled a socio-business innovation (SBI) based on the MCC model and as one way to understand how organizing at the intersection of business and society is actualized. A cases-within-a-case study approach has been utilized to understand two important aspects: (1) attributes of MCC that define it as an SBI and (2) the diffusion process of an SBI. Nine secondary cases demonstrate how such a model has been adapted culminating in an emergent Theory of Socio-business Diffusion reflected in a three-phase process: Phase I - Precursors to an SBI draws on participants' personal experiences to uncover the motivations leading them to embark on the innovation journey and to humanize the diffusion process making it more readily understandable and relatable; Phase II - Discovering and Experiencing an SBI addresses how and what people learned from engaging with the primary site; and Phase III - Actualizing an SBI focuses on showcasing how various adaptations of the MCC model is manifested worldwide. Spin-offs are noted at three distinct levels of impact to include: organization, local/regional and country. Key findings from the study point to the critical role of values throughout the process including linking the social business divide. This research also demonstrates that SBIs are generative in nature, having offspring that bear similar hallmarks but are contextually distinct. Further, unlike most technical innovations that rely on a high level of replication, SBIs are extremely mutable toward meeting the needs of a specific context thus ensuring a positive fit within the locale. This research offers the concept of an SBI as a way to challenge our existing frameworks for how we think about and enact business and social good by presenting an alternative paradigm for work organization and by providing a pathway toward the diffusion process.