This thesis explores how subsidiaries of cooperative multinational hybrids (CMHs) experience and respond to tensions between the cooperative model’s social goals and economic demands. Focusing on the North American subsidiary of a Mondragon cooperative, the study also examines how headquarters’ control influences autonomy and the experience at the subsidiary.  The literature reveals limited research on cooperative internationalization from the subsidiary perspective, particularly regarding control dynamics and the tensions between social and economic objectives. Adopting a qualitative approach, we conducted interviews and eight months of observation, using grounded analysis to identify key themes from employee experiences at the subsidiary. Our findings show that HQ subsidiary tensions in CMH are both structural and strategic. Centralized control mitigates the diverging growth rationales, ensuring subsidiary alignment to HQs economic objectives. However, these dynamics limit the subsidiary’s agility and responsiveness. Interestingly, while not formally institutionalized, elements of HQ’s cooperative social orientation such as some HR practices and work culture still permeate the subsidiary, reflecting a partial integration of cooperative practices. The research offers insights into cooperative internationalization, governance, and control by examining how control, social and economic tensions are experienced abroad. For practitioners it highlights how embedding subsidiary staff in projects at HQs may help preserve cooperative identity while enhancing alignment. Additionally, it shows the importance of designing adaptive control mechanisms to balance local responsiveness with the cooperative purpose. This study is based on a single case study of one North American subsidiary of a CMH, which limits the generalizability of the findings. While the in-depth qualitative approach offers rich insights into subsidiary-level experiences, future research could compare multiple subsidiaries CMH or cooperative groups.