ASSESSING THE FINANCIAL MANAGEMENT GUIDANCE NEEDS OF COOPERATIVE BOARD MEMBERS: A MIXED-METHODS APPROACH

Abstract

Financial management is a crucial aspect of the operation and success of cooperatives. However, according to previous studies, one of the main challenges faced by cooperative board members (CBMs) lies in the field of financial management. A lack of understanding of financial management can lead to failure in managing assets and financial resources, thereby decreasing the overall efficiency of the cooperative. In line with the need to achieve cooperative success, CBMS need to receive appropriate guidance in financial management. Therefore, this study aims to assess the specific guidance needed in the field of cooperative financial management. This research adopts a mixed-methods approach, utilizing survey questionnaires and focus group interviews as data collection tools. Data were collected from 221 respondents through survey questionnaires, while 14 informants participated in focus group interviews to provide deeper insights. The findings identified 12 guidance needs, namely capital management, budget management, working capital management, performance analysis, financial reporting, marketing, accounting system handling, inventory management, financial management, risk management, governance, and accounting system recording, all of which require serious attention and immediate action. The outcomes are expected to inform policy-makers and training institutions, such as the Cooperative Institute of Malaysia (IKMa), in designing programs that strengthen the financial management practices of cooperatives, thereby contributing to their sustainability and growth.