FACTORS INFLUENCING CO-OPERATIVE BUSINESS PERFORMANCE: A CONCEPTUAL FRAMEWORK

Abstract

In Malaysia, the co-operative movement started in 1922 with only 11 co-operatives and the number increased to 14,834 as of December 2021. The government has undertaken vigorous efforts by providing assistance programmes in the form of financial and non-financial support to intensify the co-operative business performance. However, the contribution of co-operative to Malaysia’s gross domestic products (GDP) is still insignificant. Furthermore, the management of the assistance programmes by the co-operatives must be taken into consideration to ensure the programmes meet their objectives. Hence, this study aims to examine the factors influencing co-operative business performance by investigating the relationship between financial support, non-financial support, and co-operative business performance. In addition, this study investigates the moderating role of managerial competencies on the relationship between financial support, non-financial support, and co-operative business performance. A conceptual framework is developed, and four hypotheses are established to facilitate the validation of the study. Theoretically, this study provides new insights into the body of knowledge, including the underpinning theories namely resource-based view (RBV) and competency-based view (CBV), and practically contributes information to the relevant stakeholders.