Growing economic inequality, environmental degradation, technological disruption, and governance failures have intensified concerns regarding the long-term sustainability of prevailing economic systems. While shareholder capitalism has promoted economic growth and innovation, its emphasis on shareholder value has often been associated with widening inequalities and weakened social and environmental outcomes. Conversely, state-led economic systems have frequently encountered limitations related to bureaucratic inefficiencies and reduced institutional adaptability. Existing scholarship on cooperative enterprises remains fragmented across sectoral and organizational contexts, with limited theoretical integration explaining how cooperative governance can function as a comprehensive model of economic governance. In particular, the concept of **Cooperative Capitalism** has not been systematically developed as a governance paradigm that reconciles market efficiency with democratic ownership and sustainable development. This study develops a conceptual framework of Cooperative Capitalism that explains how democratic ownership, participatory governance, and equitable value creation can contribute to inclusive and resilient economic development.The study adopts a qualitative conceptual research design based on a critical synthesis of Institutional Economics, Stakeholder Theory, Collective Action Theory, and Cooperative Governance. Evidence from internationally recognised cooperative enterprises, including Mondragon Corporation, Amul, and India's Primary Agricultural Credit Societies (PACS), is used to illustrate the practical relevance

of the proposed framework. The study conceptualizes Cooperative Capitalism as an emerging governance paradigm that integrates democratic ownership with market-based economic coordination. The proposed framework demonstrates how cooperative governance, supported by digital technologies and enabling institutions, can strengthen organizational resilience, financial inclusion, innovation, and sustainable development while extending existing theories of economic governance. The findings suggest that supportive regulatory frameworks, digital transformation, cooperative finance, leadership development, and multi-stakeholder partnerships are essential for strengthening cooperative institutions and enhancing their contribution to the Sustainable Development Goals (SDGs).The study advances the literature by proposing the first integrated theoretical framework positioning Cooperative Capitalism as a distinct governance paradigm rather than merely an organizational form. It provides a foundation for future empirical research while offering policy-relevant insights for governments, cooperative institutions, and development agencies seeking more inclusive, democratic, and sustainable pathways for economic development...