Modelling the Impact of Strategic Planning, Structural Capital, Relational Capital, Members’ Participation, Governance Practices and Human Capital Development on Cooperatives’ Performance

  • Mahazril Aini Yaacob
  • Hafizah Hammad Ahmad Khan
  • Zuraini Yaacob
  • Zaliha Hussin

Abstract

In Malaysia, cooperatives was first introduced in 1922 to settle the problems of rural farmer being exploited and to overcome the financial problems among the government servants. Since then, the cooperative society plays a significant role towards the economic development in Malaysia and need to accelerate its performance in order to help its members. Despite the efforts to improve the cooperatives’ performance, there are issues regarding its weaknesses, especially in management, financial, and members’ participation. Thus, this study aims to examine the impact of strategic planning, structural and relational capital, members’ participation, governance practices and human capital development on cooperatives’ performance and to develop the model of cooperatives’ performance. Questionnaires constructed are distributed among 72 cooperatives board members listed under the 100 best cooperatives in Malaysia for the year 2011. By using Pearson's correlation and Multiple Regression Analysis, this study found that the relational capital plays a vital role in exerting a positive influence on the cooperatives’ performance. It is suggested that the cooperatives should always be involved in all the activities organized by the Suruhanjaya Koperasi Malaysia so that it can promote the product and services provided to the society as a whole. This would improve the networking of the cooperatives with the government, suppliers, and customers, which indirectly would give a positive influence on its performance. This finding will provide guidance for the cooperative to improve its shortcomings performance towards realizing the National Cooperative Policy 2011-2020.

Downloads

Download data is not yet available.

References

Aboagye-Otchere,F., Bedi, I. and Kwakye, T.O. (2012), “Corporate governance and disclosure practice of Ghanaian listed companies”, Journal of Accounting in Emerging Economies, Vol.2, No.2, pp.140-161.

Amini, A. M., & Ramezani, M. (2008). Investigating the Success Factors of Poultry Growers' Cooperatives in Iran's Western Provinces. World Applied Sci. J, 5, 81-87.

Bontis, N. (2001). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41-60.

Cabrita, M. D. R., & Bontis, N. (2008). Intellectual capital and business performance in the Portuguese banking industry. International Journal of Technology Management, 43(1), 212-237.

Dawna L.Rhoades. (2001). “Corporate Governance: An International Review. Vol.9, Issues 4, pp. 311-319. Retrieved from http://onlinelibrary.wiley.com

Ghorbani, S., & Zavareh, S. T. (2013). Does corporate governance matter in Iran?. International Journal of Banking and Finance, 9(3), 3.
Glaister, K. W., Dincer, O., Tatoglu, E., Demirbag, M., & Zaim, S. (2008). A causal analysis of formal strategic planning and firm performance: evidence from an emerging country. Management Decision, 46(3), 365-391.

Hahn, W., & Powers, T. L. (2010). Strategic plan quality, implementation capability, and firm performance. Academy of Strategic Management Journal, 9(1), 63-81.

High Level Finance Committee on Corporate Governance. (2002), “Malaysian Code on Corporate Governance”. Retrieved from http://www.sc.com.my

Kamel, M.A. (2013), “The Impact of Structural on Business Performance in Jordanian Pharmaceutical Manufacturing Companies”, European Journal of Business and Management, Vol.5, No.10, pp. 177-189.

Liu, C. (2009, September). Study on the Effect of Intellectual Capital on Firm Performance. In Management of e-Commerce and e-Government, 2009. ICMECG'09. International Conference on (pp. 228-231). IEEE.

Mahathir Mohamad (1983), “Speech on Malaysia Cooperative Day”, Kuala Lumpur. Retrieved from http://www.pmo.gov.my/ucapan

Mahazril ‘Aini,Y, Hafizah,H.A.K., and Zuraini, Y. (2012). Factors Affecting Cooperatives’ Performance in Relation to Strategic Planning and Members’ Participation. Procedia-Social and Behavioral Sciences, 65, 100-105.

Mazlan, I., Abdul, H. R., Raduwan, S., Nooh, A. B., & Ahmad, R. S. (2005, May). The Influence of Intellectual Capital on the Performance of Telekom Malaysia. The National Conference on Management of Technology and Technology Entrepreneurship (Vol. 31, pp. 197-215).

Mohd Safaai Said (2010). “Rancangan Malaysia Kesembilan (RMK-9) dan Pembangunan Modal Insan Dalam Gerakan Koperasi Di Malaysia”. Retrieved from http://jpmportal.prison.gov.my.

Ogundipe, E.O., Idowu, A., & Ogundipe, L.O. (2012). Working Capital Management, Firm’s Performance and Market Valuation in Nigeria. International Journal of Social and Human Sciences, 6, 143-147.

Shih, M.S.H. (2010). Measuring discretionary accruals: Are ROA-matched models better than the original Jones type models? Working paper, National University of Singapore.

Suruhanjaya Koperasi Malaysia (2011). Retrieved from http://www.skm.gov.my/Kedah.

Sushila Devi, R., Nurizah, N., Mohd. Shahron, A.S., Rafedah, J., & Farahaini, M.H. (2010). Success factors of cooperatives in Malaysia: An exploratory investigation. Malaysian Journal of Co-operative Studies, 6, 1-24.

Taiwo,A., and Idunnu, F. (2007). “Impact of Strategic Planning on Organisational Performance Survival. Research Journal of Business Management, 1(10), pp. 62-71. Retrieved from http://dx.doi.org.

The Cadbury Report. (1992). Global Governance Codes and Regulation. Retrieved from http://www.icaew.com/en/library/subjects-gateways.

United States Department of Agriculture (2011), “Member Participation in Agricultural Cooperatives: A Regression and Scale Analysis”, RBS Research Report 165. Retrieved from http://www.rurdev.usda.gov/rbs/pub.

Wan Zulkifli W.S.,Kamarul Ariffin Mansor., Rosidah A. (2005). Statistics for Business and Economics. Yusran Publishing House Sdn Bhd.
Published
2014-10-01
How to Cite
YAACOB, Mahazril Aini et al. Modelling the Impact of Strategic Planning, Structural Capital, Relational Capital, Members’ Participation, Governance Practices and Human Capital Development on Cooperatives’ Performance. Journal of Business & Management (COES&RJ-JBM), [S.l.], v. 2, p. 249-256, oct. 2014. ISSN 2306-7179. Available at: <http://centreofexcellence.net/index.php/JBM/article/view/281>. Date accessed: 17 july 2019.
Section
Articles