Social Movements Beyond the Iron Cage: Weak Ties in Territorial Development

The incentives and governance system of organizations are important in explaining how they behave in localized development processes. This article builds on the observation that the literature on territorial development does not generally address the action of social movements. At the same time, research on social movements rarely studies their effects on the territories in which they act. This text is a contribution to fill this gap. It compares two social movement organizations: a trade union federation and a credit cooperative system operating throughout southern Brazil. Both organizations share common origins and social bases, yet their impacts on territories have been quite different. The analysis focuses on the social ties that link trade unions and cooperatives to their territories to show that governance systems may explain the performance of each organization, especially with regard to their capacity for innovation.