Volumes

Social Audit of Oromia Coffee Farmers Cooperative Union, Oromia Region, Ethiopia

Abstract

Social Audit is one of the evaluation methods applied to the organizations, which are engaged in commercial and social activities. The objective of social audit is to bring to light for public knowledge how far an organization has discharged its responsibilities to the society and to make an assessment of the social performance of an organization. Here, social audit has particular relevance, because it reinforces the cooperative’s “commitment to social improvement which lies at the heart of the co-operative philosophy”. The present study is unique in Ethiopia in the context of changing role assigned to the cooperatives. The main objective of this study is the application of the social audit measures on the social responsibilities of Oromia Coffee Farmers Cooperative Union (OCFCU). Case study method is adopted for the present study. All the Board of Directors, all the employees, 100 members and 100 non-members are selected as samples. Stakeholder survey as a social audit model is employed to elicit information from the stakeholders of the union. The collected data are processed through SPSS and social audit measures are used to analyze and assess the relationship of cooperative activities with the stakeholders of the union. Oromia Coffee Farmers Cooperative union is a small holder coffee grower owned cooperative union established in June 1, 1999 by 34 cooperatives with 22,503 farmers and capital ETB 825,000 ($90,000). To date there are 217 cooperatives with 202,397 households and capital ETB 161, 575, 474. Annual coffee production is 202,524 tons and area under cultivation is 327,921 ha. OCFCU is a democratic member owned business operating under the principles of International Cooperative Alliance and one among objectives is to improve the social conditions of farmers. With their fair trade premiums they have constructed four schools, two health clinics and clean water supply tanks. They now have a cupping lab located at their office and are in the process of constructing two warehouses. They hope to have their own processing plant within the next three years. The union has accomplished very many social projects for the well being of the community where it exists. This union is a model for other cooperatives in fulfilling the social objectives in relation to stakeholders. The results out of stakeholders survey reveals that the union is sincerely adhered to and practice the principle of “Concern for Community”.

FACTORS CONTRIBUTING TO THE SUCCESS AND EXCELLENCE OF CREDIT COOPERATIVES IN MALAYSIA, SPECIAL FINDING ON ISLAMIC FINANCING PRODUCT

Abstract

The purpose of this research is to identify the examplary entrepreneurial attitudes which characterizes board members of an excellent credit cooperatives in Malaysia, with a view to act as role model for other cooperatives, against the backdrop of numerous hurdles it has been encountering including certain government policies as well as external competitions. This study is carried out based on a survey questionnaire method using several instruments that are adapted from the “Entrepreneurs Perception of Success Inventory” (EPSI). Out of the 588 registered credit cooperatives, there are only 35 cooperatives, which are listed among the best 100 cooperatives by the Cooperative Commission of Malaysia, representing a total population of 350 credit cooperative board members. The variables tested in this study are; 1) The dependent variable represented by the phenomenon factors of credit cooperatives success and 2) The independent variables, that are represented by nine dimensions, are goal setting, personality, knowledge, motivation and Islamic fnancing. The data were analyzed using SPSS version 21. Tests were conducted prior to factor analysis and the seven variables tested by correlation analysis showed signifcant results. From the results obtained, regression model can be built and the most dominant variable that contributes to the success of credit cooperatives is setting clear goals and the value of relationship strength of the tested variants is 25%.

Keywords: 35 excellent credit cooperatives; Entrepreneurs’ Perception of Success Inventory (EPSI); goal setting, personality; knowledge; motivation and Islamic fnancing.

CRITICAL SUCCESS FACTORS OF THE ISLAMIC PAWN BROKING SERVICES IN MALAYSIA – VIEWS FROM PROVIDERS

Abstract

Islamic Pawn broking industry is still new in Malaysia in which many of the outlets commenced operation actively since 2002. Up until now research pertaining to Ar-Rahnu is limited. Previous study only concentrated on customers’ awareness and satisfaction of providers of the industry. The main purpose of this paper is to study on critical success factors of Ar-Rahnu, providers of micro-credit through Islamic pawn broking practices. Altogether a total of 109 respondents, comprising representatives of Ar-Rahnu outlets throughout Malaysia were selected for the study. The feld works were conducted in late 2010 and early 2011. There were 7 organisations involved in the Ar-Rahnu business such as YaPEIM, Bank Rakyat, Agrobank, MAIDAM, PKB, Ar-Rahnu Cooperatives and Franchise Ar-Rahnu Cooperatives. These organizations were further divided into 3 clusters according to nature of their businesses. Data for the study were obtained from survey and SPSS facilitated data analysis. The performance of the Ar-Rahnu outlets under study is measured using variables implicit in the Ar-Rahnu business, including general business operation, types of gold, pawning conditions and charges, security, and internal as well as external control. In general the research found the modus operandi of each and every outlet is more or less similar – having standard operating procedures (SOP). Pawning process is also similar between clusters with each charging safekeeping fee at rates ranging from RM0.50 to RM0.80 for every RM100 of pawn value. A common issues of importance across Ar-Rahnu providers is competency in gold testing because of the presence of imitation gold and gold jewellery. Customer trust is a primary critical success factor (CSF) for all clusters, followed by competitive safekeeping charges, competency of employees, good quality service and strategic location. It was found that securing capital is not an issue for the larger organisations, but it is for the smaller ones.

Keywords: Islamic Pawn Broking, Microcredit, Critical Success Factors (CSFs)

PERFORMANCE AND CHALLENGES OF COOPERATIVES IN HOUSING ACTIVITIES IN MALAYSIA

Abstract

Housing development is a high cost investment that influences the performance of a cooperative. It is noted however, that Malaysia’s cooperatives do not venture into housing development that much in spite of the fact that their main vision and mission include providing members with houses at affordable prices. Consequently, this study seeks to evaluate the performance of cooperatives involved in housing projects and identify the challenges faced by those keen to venture into this business. Data were obtained from interviews and survey questionnaire with board members of cooperatives that are involved in housing development. The results show that there is still a dearth of cooperatives venturing into the housing sector in the country, and that those currently involved in the business are facing myriad of challenges. These challenges are with respect to planning and implementation, funding and management or administration associated with housing development. It is proposed that further research be carried out with an objective to establish a guideline for cooperatives going into housing development and identify what the government can do to help achieve the National Cooperative Policy.

Keywords: Housing cooperatives, performance, challenges

FISHERIES COOPERATIVES: A COMPARATIVE STUDY OF SABAH FISHERY AND FISHERMEN COOPERATIVES AND HOKKAIDO FEDERATION OF FISHERIES COOPERATIVES

Abstract

Co-operative Commission of Malaysia has identifed Agriculture as a potential sector to further develop. The objective is to contribute 6% of the GDP in 2014 and 10% in 2020. In Malaysia, 6.78 million people or 27% of the total population are members of co-operatives. Fisheries Co-operative society is formed for the promotion of thrift, self help and mutual assistance of the members. Therefore, this paper aims to highlight on the fshery subsectors under co-operative in Sabah to drive its growth especially in Ko-Nelayan Sabah. A comparative study was done based on literature review, descriptive study on a successful Hokkaido Fisheries of Cooperatives to emulate some factors to be recommended in Malaysia.

Keywords: fsheries, cooperatives

AMALAN PERANCANGAN STRATEGIK DALAM KALANGAN KOPERASI DI MALAYSIA

Abstract

Perancangan strategik dalam koperasi merupakan satu proses pengurusan bagi melakar strategi jangka panjang perniagaan demi mencapai matlamat penubuhan koperasi. Kajian ini bertujuan untuk menilai tahap amalan perancangan strategik koperasi dan mengukur kekuatan hubungan elemen serta perbezaan amalan. Sampel adalah sejumlah 660 buah koperasi atau lebih kurang 33% daripada populasi koperasi yang aktif dan berdaftar dengan Suruhanjaya Koperasi Malaysia. Tujuh elemen utama dikenal pasti bagi memperihalkan amalan perancangan strategik koperasi iaitu struktur, pelaksanaan, matlamat, aktiviti, teknik, penambahbaikan dan kepentingan. Dapatan kajian menunjukkan bahawa amalan perancangan strategik dalam kalangan koperasi berada pada tahap menggalakkan. Malah kebanyakan koperasi mempunyai struktur dan pelaksanaan perancangan strategik yang rasmi. Kebanyakan koperasi juga menjalankan aktiviti perancangan strategik dengan teknik yang disarankan dalam beberapa model perancangan strategik. Hubungan antara elemen amalan perancangan strategik tersebut pula didapati kuat. Wujud juga perbezaan ketara antara elemen amalan perancangan strategik dengan kewangan koperasi (pendapatan, keuntungan, ekuiti dan aset) dan beberapa faktor demografk (pekerja dan zon). Perbincangan dalam kajian ini memberi gambaran tentang kepentingan dan penambahbaikan perancangan strategik dalam koperasi agar koperasi mampu berdaya maju dan berdaya tahan dalam pasaran perniagaan di Malaysia.

KATA KUNCI Perancangan strategik, elemen amalan, tahap amalan, pengurusan strategik koperasi.

MODUS OPERANDI PENAMBAHBAIKAN INSTRUMEN EPSI DAN STATUS PENILAIAN KOPERASI KREDIT DI MALAYSIA, TERCIPTANYA INSTRUMEN EPSI VERSI 2013

Abstract

Jumlah koperasi berdaftar di Malaysia adalah melebihi 10,087 buah dengan jumlah keanggotaan melebihi 7 juta orang dan mereka adalah layak untuk mendapat faedah pembiayaan peribadi dari koperasi kredit. Tetapi koperasi kredit sentiasa menghadapi berbagai-bagai rintangan dari polisi dalaman Suruhanjaya Koperasi Malaysia mahupun halangan luaran. Tujuan kajian ini untuk menggariskan satu prosedur penambahbaikan instrumen EPSI untuk mengukur status koperasi kredit di Malaysia. Penambahbaikan Instrumen Entrepreneurs Perception of Success Inventory” (EPSI ) yang diperkenalkan oleh Paige (1999) dijalankan secara sistematik yang melibatkan lima pakar membuat validasi dan item-item asal diperastukan tanpa pertindihan elemen penilaian mengikut atribut secara jitu.s dan indeks kesahan mencapai kriteria standard. Langkah berikutnya dipiawaikan dengan keputusan analisis faktor yang menetapkan enam atribut yang mencatat nilai kebolehpercayan Cronbach Alra antara 0.65 hingga 0.91. Hasil daripada analisis faktor yang dijalankan ke atas 190 responden menunjukkan faktor yang dihasilkan adalah sama dengan dimensi rekabentuk yang ditetapkan dan memenuhi semua syarat yang dibincangkan oleh Hair et al (1998).

Kata kunci: Koperasi kredit, instrument Entrepreneurs Perception of Success Inventory (EPSI), kesahan kandungan, ujian faktor analisis, ujian kebolehpercayaan dan ujian syarat regresi berganda.