Business Performance of Cooperatives in Malaysia: Issues, Challenges and Future Direction (original) (raw)
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The cooperative society plays significant roles towards the economic development in Malaysia. It was first established in 1922 to protect the welfare of rural people and has expanded its establishment until today. With the aim to help its members, it is said that cooperative needs to accelerate its performance. However, there are issues regarding its weaknessess, especially in the management, financial and members' participation. Therefore, this study aims to identify the factors influencing its performance through strategic planning and members' participation. Questionnaires constructed have been distributed among cooperatives board members in Kota Setar District, Malaysia. The findings provide guidance for the cooperative to improve its shortcomings performance towards realizing the National Cooperative Policy 2011-2020.
An Analysis of the Financial Performance of Credit Cooperatives in Malaysia
2021
Objective – The aim of this study is to assess the financial performance of credit cooperatives in Malaysia. Design/methodology – This study utilizes the unpublished financial data of credit cooperatives from the Malaysian Cooperative Commission. This study picks 9 credit cooperatives which serially listed in 100 best cooperatives from 2010 to 2017. Five basic financial ratios (equity ratio, liquidity ratio, leverage ratio, profitability ratio, and dividend payout ratio) were calculated to measure the financial performance. Results – The result shows that the equity ratio is in the range of 0.61 to 0.9 possibly because credit cooperatives utilize more funding from shareholder equity compared to debt. The result also shows a high dividend pay-out ratio. However, the liquidity ratio is still low and credit cooperatives that score the highest liquidity ratio might be due to the age of establishment. Last but not least, the leverage ratios and profitability ratios of Malaysian credit co...
Scholars in management and strategy found that the participation of members correlated with business performance. However, the business performance of cooperatives in Malaysia does not clearly show this trend. As such, this study aims to examine the level of members " participation and its correlation with the cooperatives " business performance. The members " participation constructs were decision making, share capital and the usage of products and services measured through multi-dimensional analysis, despite current literature that focuses on unidimensional construct. Data was collected using the survey of 148 members of Koperasi PTSS Berhad. By using descriptive analysis, the result shows that usage of products and service was the highest level of members " participation, followed by share capital and decision-making. While correlation analysis found that all three variables had a significant positive relationship with the cooperatives " business performance. These findings are useful as they contribute to a better understanding of the members " participation constructs as well as relationship strategies to link with the cooperatives " business performance. Several suggestions have been made for future research.
Philippine Social Science Journal, 2022
Cooperatives are vital in the economy, hence, it is practically important to examine the factors that may influence their performance. This study focused on determining the factors that predict cooperatives' perceived effectiveness in terms of financial and social performance in Eastern Visayas, Philippines. A random sampling technique was employed to gather primary data to 438 respondents composed of the board of directors, managers, officers, and members. For data analysis, Partial Least Square-Structural Equation Modeling (PLS-SEM) was utilized to analyze the Likert scale data based on the survey participants' responses. Results showed that cooperatives' governance, members' participation, and training and development significantly predicted cooperatives' perceived effectiveness in terms of financial and social performance. Hence, management of the cooperatives should develop a culture of effective governance that includes transparency, management accountability, and members' democratic participation; encourage members' economic participation and; conduct periodic training to help the cooperatives attain their social and financial goals. This article published by Philippine Social Science Journal (PSSJ) is licensed under a Creative Commons Attribution-Noncommercial 4.0 International (CC BY-NC 4.0). You are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Under the following terms, you must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. You may not use the material for commercial purposes.
Cooperatives are organizations that are formed jointly by members to meet their economic needs and interests. The role of cooperatives is to increase the socioeconomic status of the members as well as eliminate poverty problems. Nevertheless, the performance of cooperatives in Malaysia in terms of turnover is still low compared to the other countries. This will be a cause for concern because inadequacies of financial decisions lead to the failure of cooperatives. Hence, this study aims to evaluate the financial performance and efficiency of cooperatives in Malaysia. This study applies Ratio Analysis to evaluate the financial performance of the cooperatives. Data Envelopment Analysis (DEA) was also employed in this study to determine the efficiency scores of cooperatives over the period 2010 to 2017. DEA results obtained that inefficiency of managerial performance leads to the inefficiency of the overall technical efficiency. The study recommends that the management of cooperatives in Malaysia should enhance their managerial performance because pure technical efficiency was found to contribute less to overall technical efficiency.
Asia Pacific Journal of Academic Research in Business Administration, 2021
Cooperative is a profitable opportunity, which gives the reason why many are motivated to establish and join. Today, establishing a business is quite tough due to constraints in the capital and it paves the way for an individual to look for other individuals, which can help them to jumpstart the undertaking at the possible lowest cost to organize. The output of this study would be a proposed management performance framework based on the variables that are significant to the members’ satisfaction, management and financial performance of cooperatives. This model can be a basis for strategic planning in fulfilling the mission, vision, goals and objectives of a cooperative. This research determines the service quality, managerial and financial performance of cooperatives in Lipa City. Descriptive type of research method was used to gather information in assessing respondents from the cooperative. Respondents with higher level of assessment on service quality are also those respondents with higher level of assessment on managerial performance. Cooperatives are efficient in its profitability performance, have institutional strength, majority of the assets are considered to be earning assets and are able to generate earnings from its operations.
The Cooperatives Performance Indicators, Based on Balance Scorecard
Revista San Gregorio, 2020
The Objectives Measurement of Cooperation Performance Indicators of Balance Score Card-Based (BSC) is to know the performance of certified cooperatives in Jakarta (capitol of Indonesia). Specific targets to be generated from this research are the Measurement of Cooperative Performance Indicators that can measure the performance of the Cooperative at the moment and can be used as a consideration for future decision making in a sustainable manner. The research methodology used is descriptive, beginning with identifying and describing various aspects of cooperatives related to cooperative performance from a business side, such as marketing, operation/production, finance, human resources, legality, institutional, cooperation and so on. This research was carried out through a survey in several certified cooperatives in Jakarta that was sampled. The data were collected by using questionnaires, interviews and observation and in-depth interviews. The results of this study indicate in gener...
The main purpose of this study was to identify members' characteristics that influence co-operatives growth, in the Western-Azerbaijan Province, Iran. The methodological approach of this study employed an analytical method (relational study). Through a multi stage stratified randomization sampling technique, 190 members were selected from 51 co-operatives for the study. The results of the study showed that among the averages of the variables of contribution in educational courses, rate of participation in co-operative establishment and co-operatives growth, significant differences are exposed. In addition, the results of the study showed that the relationship between the variables of use of mass media and studying rate were significantly correlative linked with co-operatives growth. The results obtained from the factor analysis reveal that the eight following factors, socio-cultural, educational, participation, economical, personal, motivational, skill and family characteristics...