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Evaluating governance and operations management practices in agricultural cooperatives
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Evaluating governance and operations management practices in agricultural cooperatives

Simo Khumalo
M.Eng., University of Johannesburg
2025
Handle:
https://hdl.handle.net/10210/520823

Abstract

This study examines governance and operations management practices in South African agricultural cooperatives, with particular attention to the application of cooperative principles and their linkage to operational and financial performance. The study further assesses operational efficiency and explores barriers to effective implementation of cooperative principles. The Resource-Based View (RBV) provided the theoretical lens for analysing how cooperatives leverage internal resources while sustaining their socio-economic mission. A quantitative research approach was adopted, and data were collected using a structured paper-based questionnaire administered to 200 members of primary agricultural cooperatives across South Africa. Data analysis employed chi-square tests, correlation analysis, and multiple regression. The chi-square analysis produced a value of 15.55 (p = 0.41), while regression results indicated significant positive effects for financial management (β = 0.42, p < 0.01) and strategic planning (β = 0.33, p < 0.01). Instrument reliability was confirmed through Cronbach’s alpha coefficients exceeding 0.70 across all constructs, including governance structure, financial management, and member satisfaction. Correlation analysis revealed coefficients ranging from 0.42 to 0.62, with the strongest relationship observed between financial management and member satisfaction (r = 0.62). Participants reported moderate levels of agreement regarding governance practices, with mean scores between 1.92 and 2.98 and agreement rates ranging from 35% to 55%. The findings suggest that although governance structures are present, significant improvements are required, particularly in clarifying roles and responsibilities and strengthening complaint-handling mechanisms. Overall, the study concludes that strengthening cooperative governance can enhance both financial outcomes and operational performance in agricultural cooperatives.
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