Co-operative University of Kenya Journals
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Democratic Decision Making and Member Participation in Primary Agricultural Marketing Co-operatives in Tanzania: Evidence from Selected Primary Co-operatives of Bukoba and Moshi Districts
Full text linkAbstractCo-operatives play an important role in facilitating the dual aspect of economic and social development. Members have the dual rights to practice and participate democratically in the decision making on cooperative society’s governance. In Tanzania, the co-operative policy and legislation highlights democratic ownership and participative democracy in co-operatives; the elements have remained a blueprint and its practice has remained on the legislation. The study examined: membership and member fulfilment of participative obligations, participation on internal democracy in the primary Agricultural Marketing Cooperative Societies (AMCOs), members engagement in co-operative business, member ownership and decision making in the primary AMCOs, and primary AMCOs member access to democratic rights. It was guided by the principle agent theory that explains the relationship between members and management. The study was based on the evidence from the primary AMCOs of Bukoba and Moshi districts. 400 memberswere involved in the household survey. Further, key informant interviews and focus group discussion were employed. The findings show that members were not following the established procedures for acquiring memberships. Also, internal democracy was higher in Moshi District primary AMCOs compared to those in Bukoba. Further, the democratic practice in primary AMCOs was exercised more at joining the AMCOs and in electing board members. On the other hand, not all primary AMCOs members were selling their produce in the primary AMCOs. The Board and Managers should involve members in decision making as the cooperative members are the principle owners of the co-operative society thus requiring that they practice their democratic rights in order to own decisions made
Contribution of Co-operatives Towards Improving Food Security in Rural Tanzania: Implications of Horizontal Integration Practices
Full text linkAbstractSmallholder farmers often establish associations including co-operatives to address production and financial challenges and household level needs. However, due to drastic climate changes, agricultural co-operatives fail to address members’ production and food security needs among others. The study aimed to determine the food security status among co-operative members and determine whether horizontal integration of co-operatives has potential to improve food security. A cross-sectional design guided the study. Simple random sampling was used to select 384 respondents from the co-operative societies while purposive technique was used to select the non-members for comparison. Household survey, key informant interview and focus group discussion were used to collect data. Household Dietary Diversity Score (HDDS) was used to determine household food security status while descriptive statistics and independent samples t-test were used to analyze data. Findings show significant differences in household food securitystatus among respondents: multiple members had high food security (41.5%), single members (34.5%) while the non-members (38.7%). Thus, there was a significant difference in food security status among households which is attributed to the horizontal integration practices among co-operatives. As a result of integration, multiple members had more access to resources important towards meeting daily food requirements unlike their counterparts. In conclusion, horizontal integration practices have a significant influence in improving food security among households of co-operative members. Consequently, non-members should consider joining co-operatives to enhance their food security. Further, single members should consider the potential of becoming multiple members to improve and sustain their household food security status
Demutualization, Member Transactions and Financial Performance of Cooperatives in Kenya
Full text linkAbstractAs a reaction to competitive pressures, co-operative enterprises have relaxed their residual claim restrictions resulting in the emergence of innovative organizational forms. Cooperatives have adopted the hybrid model of demutualization to adapt to these pressures. Demutualization alters member income rights, which stem from member transactions, resulting in re-assignment of the residual claim on income generated between stakeholders. This has an implication on firm performance and organization structure. A question that arises is whether co-operative ownership structure is a decisive determinant of financial performance. We therefore investigate the influence of demutualization on the relationship between member transactions and financial performance. Using the time-series, cross-section design, we analyzed data from holding co-operatives in Kenya spanning 20 years (1998-2017). Our findings indicate there is a negative and significant relationship between member transactions and financial performance of co-operatives in Kenya and that demutualization had a positive but not significant effect on this relationship. We conclude that as far as these organizations continue to pursue a double bottom line, soon there may be no relation between member reward and member transactions as envisioned in the co-operative finance principle. Recommendations include the establishment of a secondary market for co-operative securities to enable inter-co-operative share trade that adheres to the international co-operative identity principles
Who is King: Customer or Employee? Effect of Customer vs. Employee Focus Strategies on Customer Retention by Selected Small Enterprises in Nakuru Central Business District, Kenya
Full text linkCustomer and employee focus strategies are critical impetus in attracting and retaining loyal customers to guarantee continuous and stable revenue flow. This study sought to establish the influence on customer retention when customer and employee focus strategies are compared. Competing Values model of organizational effectiveness is used as the main theoretical anchor to the study. Cross-Sectional survey (i.e. correlational research design) was adopted since it enables a researcher to study a phenomenon at one point in time and to establish the nature of relationships amongst study variables. The study population comprised of 189 SMEs. Stratified random sampling taking 30% in each stratum was used resulting in 57 SMEs within Nakuru Central Business District. Primary data was collected using structured questionnaires. Correlation and regression analyses were carried out to analyze data and to test hypotheses. Customer Retention Rate (CRR) was used as dependent variable. Findings reveal that although both employee and customer focus strategies significantly predict CRR, employee focus strategies are comparatively greater predictors of CRR than customer focus strategies. However, the combined effect of employee and customer focus strategies manifested greatest effect on CRR. The significance of employee focus in customer retention cannot, however, be overlooked. It is recommended that organizations should deliberately consider strategies that focus on employee empowerment and not over-emphasize “the customer is king” mantra. Consequently, a non-skewed and fair balance between customer and employee focus strategies is critical for customer retention
Positioning Co-operatives as Partners in Global Health Agenda: How to go about it in Africa
Full text linkAbstractPromoting global health is a trending agenda in global development. Its achievement calls for the involvement of various stakeholders including cooperatives. As socially responsible member-based organizations, co-operatives inAfrica are potential partners in promoting global health but there is a need to strategize best approaches for their involvement. This paper shares strategies through which co-operatives can, directly and indirectly, engage in the process. Guided by the theory of social suffering and theory of access, the paper applies an exploratory literature review approach to collect secondary data. Critical analysis of various works of literature have been done where 41 kinds of literature on cooperatives and global health were used based on a developed inclusion and exclusion criteria. A review protocol was used as a tool to guide the review with a focus on: health and demographic trends in Africa, options for co-operative model inclusion in global health, and the local and global cases. Further, consultations with stakeholders in co-operatives were done to collect evidence on local initiatives towards health issues. The findings show that different empirically proven strategies exist for co-operatives to engage directly and indirectly in promoting global health. The strategies include: establishing hospitalization services, providing health insurance, producing and supplying medical and nutritional products, operating mobile clinics, engage in health research and dissemination of health information, coordination of health service access and others. It is concluded that co-operatives can be direct and indirect reliable partners in promoting global health agenda in Africa. The paper calls for awakening the African co-operative movement, policy reforms and stakeholders’ collaboration in mobilizing resources and investments for active inclusion of the co-operative model in global health agenda
The Analysis of the historical relations between consumer cooperatives and the labour movement in Kenya
Full text linkKenya celebrated 100 years in 2008 since the first Co-operative enterprise was established by British colonial settler community in Kipkelion in Kericho. Today, the Co-operative landscape in Kenya is dominated by Co-operatives infour economic sectors: financial (mainly savings and credit, banking and insurance), agriculture (mainly for export crops), housing (mainly land buying and real estate development) and transport (mainly mini-bus public transport for urban and peri-urban areas). These Co-operatives employ about 450,000 people directly and perhaps close to 1 million in related support services. Three key categories of Co-operatives that have not taken off in Kenya include, but are not limited to, consumer Co-operatives, workers’ Cooperatives and environmentally-friendly Co-operatives. There is little understanding of the reasons for the low uptake of these categories of Cooperatives in Kenya. The research investigated the historical context in which the consumer Co-operatives emerged in Kenya; their chronological development; their organization structure and socio-economic impact. Based on the five key questions that guided the study, it was found that (a) many people and the labour movement institutions in Kenya do have full understanding of the nature, benefits and operations of Consumer Cooperatives (b) the main factors that have contributed to the failure of established consumer Co-operative enterprises is poor governance and management capacity of Co-operative leaders and members of consumer Cooperative enterprises (c) the labour movement played a key role in the establishment and support of consumer Co-operative enterprises during the colonial period and the first three decades after independence (1960s and 1980s) but now play an insignificant role today, and (d) the Kenyan government should provide the requite political good will and support national institutional structures to assure sustainability
FACTORS INFLUENCING THE NEED FOR PERFORMING CONSUMER COOPERATIVE SOCIETIES IN NAIROBI KENYA.
Full text linkConsumers in Kenya continue to face exploitation because of the privatization of most of the organizations that supply goods. This is due to failure to form a performing and well managed consumer cooperative in Kenya. The main aim of the study was to assess the factors influencing the need to establish performing consumer cooperatives in Nairobi, Kenya. The researcher used a descriptive survey research design, which was considered appropriate in this kind of study because it targeted a large population of members of COMOCO SACCO. This target population included both ordinary and employee’ members. The researcher targeted the members of COMOCO SACCO because they already have the working knowledge of co-operatives and are consumers who buy goods from small scale shops and minisupermarkets. The researcher used a questionnaire as a key tool for data collection. The questionnaire was pretested through a pilot study of 7 respondents. The pilot study indicated that the instrument was valid and reliable for the purpose of this study. Purposive sampling technique was used to select a sample of 10 employees as respondents which was desirable for the purpose of the study. Meanwhile, a systematic sampling technique was applied to select 60 respondents from ordinary members. The total sample size therefore comprised 70 respondents, out of which, 66 successfully completed the survey questionnaire. Data analysis was done using descriptive statistics whereby data was presented in form of percentages, tables, graphs and pie charts. The software used to simplify the data analysis procedure was MS excel. The findings from the study revealed that, the level of awareness of the potentials of consumer cooperatives is low; and that the consumer cooperatives are profitable to invest in, but only if well managed. Also, favorable socio-economic conditions that can influence people to promote consumer cooperatives were identified as exploitation by readily established retail stores and enhancement of consumers’ quality of life. The prime strategies that can be used to promote a performing consumer cooperative were identified as competitive pricing and effective customer care. The researcher concluded that a need exists to establish viable consumer cooperatives in Nairobi Kenya and therefore substantial efforts should be directed towards the promotion of this type of co-operative. The researcher recommended the need for an extensive public education programme to inform people what the consumer co-operatives entail and how they can benefit from them
PRACTICES AND SUSTAINABILITY OF HANDCRAFTS CO-OPERATIVES IN KENYA: LESSONS FOR EMERGING BAMBOO FARMING ENTERPRISES.
Full text linkWood carving industry has positively impacted on many Kenya communities especially, the Akamba community whotraditionally own the skill. This paper is based on a survey of three wood-based, handicraft cooperatives in Kenya: (i) Wamunyu handicraft Cooperative Society Ltd in Machakos County; (ii) Nairobi Handicraft Industrial Cooperative Society Ltd; and (iii) Akamba Handicraft Cooperative Society Ltd in Mombasa. The objective of the study was to assess the handcraft cooperatives’ marketing systems in Kenya and identify best practices that should be replicated in the upcoming bamboo production and processing cooperative enterprises in South Nyanza for former tobacco smallholder farmers undergoing transformation. The primary data was collected through participatory observations, stakeholder interviews and review of secondary data sources. The study established that handicraft co-operative movements started in the early 1930s, and over the years, have remained competitive and vibrant, courtesy of strong cooperative rules and bylaws that guide governance of the cooperatives. The study also indicated that the cooperatives have diversified sources of incomes that stretch beyond their core business of handcrafts making. Again, for sustainability reasons, the cooperatives collaborate with one another through established linkages and working partnerships in conducting their business and for quality control especially in international marketing. All cooperatives displayed gender representation disparities with the marginalization of women and youths. Scarcity of quality raw materials, poor rural infrastructure, competitive local and international market conditions, cooperative management and governance, political instability and insecurity are the key challenges facing handicraft cooperatives in the country. The sustainability of the wood-based handicraft cooperatives therefore demands, environmental conservation practices, use of alternative curving materials, especially bamboo, integration of best management and governance practices and improvement of national security among others
Big Data in Co-operatives: Establishment, Growth and Management of Cooperative Societies
Full text linkThe advent of new technologies, means of communications and devices for capturing and storing data has resulted into massive data creation which when accumulated and get big result into big data. Generally, three sources of big data exist: Social Networks (SNs), Traditional Business Systems (TBSs) and Internet of Things (IoTs). SNs provide data from inter alia Twitter, Instagram and Flickr. TBSs produce data such as commercial transactions, stock records and medical records. IoTs forms data generated from sensors that are connected to electronic devices. In addition to these three, there are other sources not much explored and known such as from co-operatives societies. This study focused on activities, responsibilities and roles performed during establishment, growth and management of co-operative societies to see how they create data. A descriptive research design was employed to describe these activities, responsibilities and roles. Findings show that, during establishment of a co-operative society, data created include but not limited to history of the area and its accessibility, bylaws, population and types of economic activities taking place in the area where a co-operative society will be established. During growth, data created include new members, economic activities and profit. Some of the data created during management of the cooperative society are reviewed and approved business and financial plan, determined interest on shares, decisions and financial records. Generally, the creation of these data is dynamic and they are created in large volumes with different speeds, formats and sources
ECO VENTURE PRODUCT ON SUSTAINABLE DEVELOPMENT AMONG SMALL AND MEDIUM ENTERPRISES IN NAIROBI COUNTY.
Full text linkThis study was designed to investigate the relationship between eco-venture product on sustainable development among SMEs in Nairobi County. A sample representation of 246 from three levels of management of all SMEs wastaken from the study using simple random sampling. In the process of answering the fundamental questions, a questionnaire for this study consisted of two sections: the profile of the respondents and their business, and the mainquestionnaire, which contained questions on the eco-venture product. After the data the data collection, it was analyzed for parametric tests. Most of the data gathered using the Likert scale was ordinal. Open-ended questionswere analyzed using descriptive content analysis. There was error checking before data analysis to check for correctness of data input to the system cleared out transcription errors. Descriptive statistics such as the mean, therange, the standard deviation and variance gave a good idea of how the respondents reacted to the items of thequestionnaire and how useful the things measured were. Exploratory data analysis included reliability tests forconstructs at both individual and composite level, and measurement of both convergent and constructed validity wascarried out using regression analysis to determine the relationship between the eco-venture products on sustainabledevelopment. The findings established the effect of the eco-venture product on sustainable development as having agood fit since all were above or below the recommended levels. Regression model results indicated the eco-ventureproduct as (R2 0.525, P < 0.000). Eco eco-venture product had a significant effect on sustainable development (P >0.004). The study recommends for an integrated environmental aspect into the eco-venture products that would address the experiences of the environmental entrepreneurs in their endeavor to achieve sustainable development goals. The study established theoretical foundations drawn basically from Social Cognitive Theory (SCT) started as the Social Learning Theory (SLT) eco-venture product and sustainable development