Development of Performance Model for Micro Multipurpose Cooperatives in Ilocos Norte, Philippines

Abstract

Introduction

Modern-day cooperatives are facing troubles due to a lack of membership engagement. They become fewer representatives of their communities because they cannot properly address the needs of the members that diminish the collaborative nature of their organization. It leads to a lack of economic participation that undermines the feasibility to derive financial support from their members (Grauvilardell, 2013). It was within these premises that the study developed a performance model for micro multipurpose cooperatives in Ilocos Norte for them to improve their social and financial performances.

Methods

The study utilized the Research and Development (R&D) Methodology composed of three stages: planning, development, and validation. Linear regression was used to predict the factors in the internal environment in terms of intellectual capacity, governance, management, and external environment along with political-legal, economic and technological (information technology) environments that influenced the social and financial performances of the cooperatives.

Results

Along with the cooperatives' social performance, the state of the sub-components that were identified as critically important creates a valuable impact on social development in their community. Almost all of the sub-factors are very influential to the social performance of the micro multipurpose cooperatives. Since the micro multipurpose cooperatives are still in their period of establishing their business ventures and social networks, hence having efficient internal and external environments are very crucial for the cooperatives to realize their social performance. On the other side, it was only the general assembly that critically influenced the cooperatives’ financial performance. Moreover, this is due to the general assembly’s role as the highest governing body of the cooperative wherein every business activity of the cooperative should be approved by the body. However, the model does still recognizes the contributions of the other sub-factors which were not identified critical, only that they are not being emphasized too much compared to the sub-factors that were identified as critically important.

Discussions

The study recommends that the micro multipurpose cooperatives to adopt the performance model; to conduct an evaluation on the relevance of the model three years after adoption, and to identify updates that are needed by the micro multipurpose cooperatives. Further, a similar study could be conducted in other parts of the country.