The increasing importance of knowledge in the economy and the phenomenon of globalization are transforming higher education. Universities must prepare students for lifelong learning so that they don’t fall behind in the face of changing labor market demands.

To meet this challenge, it is important for universities to transform themselves into entrepreneurial ones . Europe, for example, has promoted reforms to its higher education system to make it more attractive and competitive globally.

University governance

When, in addition to training and research, higher education institutions innovate and foster entrepreneurship, we speak of entrepreneurial universities : engines of economic and social development in the regions where they operate. This allows them to better respond to market demands and maximize their impact on society. However, adopting this approach to teaching, research, and outreach requires them to transform their university governance model.

The governance of an organization refers to the design, definition, and implementation of the strategies and structures that will enable it to achieve its objectives . To understand how the type of governance affects entrepreneurial behavior, we analyze the case of the Faculty of Engineering at Mondragon University, a cooperative university that is part of the business group of the same name.

Cooperativism: commitment and collaboration

Mondragon University, of which the Higher Polytechnic School is a part, has its origins in the cooperative movement initiated by the Basque priest José María Arizmendiarrieta , in the mid-1950s in the town of Mondragón (Guipúzcoa).

Its operation is based on the participation and contributions of three groups of members:

1. Working members, which include teaching and non-teaching staff.
2. Beneficiary members, the students.
3. Collaborating members, primarily companies, institutions, and local administrations (e.g., municipalities and inter-municipal entities), with equal representation on the Governing Boards and General Assemblies of the university and its faculties.

Internally, this cooperative university guides its objectives through four-year strategic plans, which are complemented each year by the respective management plans.

In terms of organization, it uses a matrix in which the three university missions—teaching, research, and lifelong learning and transfer—are located vertically. And horizontally, the subjects of study: mechanics and electronics. In this way, the people involved in the educational process respond to the needs of all three missions.

In general, in cooperative organizations , governance is aligned with the principles of participatory management, solidarity in resource distribution, and intercooperation. Furthermore, it seeks to strengthen commitment and collaboration among cooperators to generate a sense of belonging and inclusive management.

Entrepreneurial behaviors

For a university to have an entrepreneurial orientation means that it focuses its strategy on entrepreneurial behaviors such as the capacity for innovation, risk-taking, and proactivity to fulfill the three university missions .

These behaviors are manifested through the use of innovative and constantly evolving methodologies, the creation of new spaces for research, and the quality of research itself.

By transferring value to society and promoting continuing education—the third mission of universities, beyond teaching and research—we foster relationships with businesses and academic entrepreneurship. This translates into benefits such as: greater connection with the productive sector, the generation of new entrepreneurial initiatives, and a dynamic and adaptable academic offering.

The governance of the Polytechnic School

Once entrepreneurial behaviors were identified, the objective of our research was to deepen our understanding of how these behaviors interrelate with key elements of university governance at the Mondragon University Higher Polytechnic School.

MGEP’s cooperative governance is based on horizontal structures to foster individual participation, open communication, a sense of belonging, and continuous learning among all its members, leading to transparent and equitable decision-making.

In an organization with cooperative governance, entrepreneurial behaviors can be integrated into the three university missions (teaching, research, and outreach). There are three key mechanisms that facilitate this integration:

1. A commitment to a long-term vision, driven by shared ownership and a strong sense of identification with the region’s development.
2. The use of management tools that enable and encourage staff to actively identify and exploit opportunities, including equity participation and incentives.
3. The practice of linking decision-making to collective stakeholder engagement, fostering cohesion and a shared vision.

These mechanisms, which strengthen commitment, innovation, and connection with the productive environment, can serve as a reference for other universities. Although not all institutions have a cooperative nature, many can adapt these approaches to foster entrepreneurial behaviors and promote a culture of participation, self-management, and collaborative decision-making.

Author Bios: Maite Couto-Ortega works with Innovation, Entrepreneurship, Technology Adoption and Transfer, Results Valuation, and University-Business Cooperation at Mondragon University, Davide Hahn is Assistant Professor at Università degli Studi di Bergamo, Leire Markuerkiaga Arritola is Professor and Researcher in Innovation and Entrepreneurship at Mondragon University, Lucia Rodriguez-Aceves is Assistant Professor at Pan-American University and Tommaso Minola is a Full Professor at Università degli Studi di Bergamo