African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4137

Full Length Research Paper

Assessment of factors affecting performance of agricultural cooperatives in wheat market: The case of Gedeb Hasasa District, Ethiopia

Tewodros Biset Amene
  • Tewodros Biset Amene
  • Department of Marketing, College of Business and Economics, Hawassa, Ethiopia.
  • Google Scholar


  •  Received: 09 March 2017
  •  Accepted: 10 May 2017
  •  Published: 28 August 2017

Abstract

The purpose of this study is to provide an explanation of factors Affecting Agricultural Cooperatives Marketing Performance (In The Case Of Gedeb Hasasa District). In this study, descriptive statistics tools were used to give clear picture about the socio-demographic characteristics of respondents. To answer the research questions and measure the construct and predictors effects on Agricultural Cooperatives Marketing Performance (ACMP), both Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were used. EFA results showed that the Kaiser-Mayer Olkin of 0.90 and Bartlett test of 0.00 shows that factor analysis is appropriate. The principal component analysis extraction method was used to analyze the data with Promax Rotation Method; five factors were extracted and statistically significant. The first factor explained 32.11% of the variance, the second factor explained 11.92% of the variance, the third factor explained 8.08% of the variance, the fourth factor explained 7.07% of the variance and the fifth factor explained 4.56 %, of the variance. The obtained results from the EFA results revealed that five extracted factors explained 63.75 % of the variation of influencing factors on agricultural cooperatives. Under CFA, Measurement Model and structural modeling techniques were used with the aid of AMOS and Smart PLS3 statistical packages to explain the relationships among multiple manifested variables and exogenous and endogenous factors. CFA confirmed that five factors have a significant positive impact on ACMP. Implications of this research work will help ACs and CPO to identify the major factors that can affect ACMP.                              

Key words: Agricultural cooperatives (ACs), agricultural cooperatives marketing performance (ACMP), cooperative governance factor (CGF), financial factor (FF), infrastructural factor (IF), marketing factor (MF) and members value factor (MVF).