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The cooperatives are user-owned, user-controlled and user-benefit organizations. There is a thin line between the members, followers and leaders in cooperative organizations. This paper aims to explicate the role of followership behaviour... more
The cooperatives are user-owned, user-controlled and user-benefit organizations. There is a thin line between the members, followers and leaders in cooperative organizations. This paper aims to explicate the role of followership behaviour on membership satisfaction as well as the cooperatives performance that may moderate the relationship. This is a qualitative study that utilized both primary and secondary data including: cooperatives financial audit reports and annual general meetings minutes, observation and interviews of co-operatives' members. The study investigated how performance, interact with followership behaviour for member satisfaction. The paper found out that, members' effective followership perceived greater membership satisfaction when organizational performance was high, since they are also the cooperative owners. The limitation of this paper is that the study is based only on organizational performance of donor-initiated cooperatives which have more of inef...
Globalisation is generating immense organisations' competitive environment. To grow and survive in such environment, organisations are obliged to perform. Performance is one of the major goal for organisation, which many human... more
Globalisation is generating immense organisations' competitive environment. To grow and survive in such environment, organisations are obliged to perform. Performance is one of the major goal for organisation, which many human resource management scholars are trying to demonstrate the link between HRM and organisational performance. There are studies that affirm the conviction and those that are doubtful of the demonstrable link between HRM and organisational performance. There is however, a continuous need to improve theoretical and analytical frameworks of HRM, performance and the link between HRM and organisational performance. This conceptual paper, theoretically shows HR practices that define HRM; levels of performance outcomes that makes the link between HRM and performance more evident; and, comparison of linear causal models through which HR practices ultimately impact organisational performance. This paper synthesises key models that illustrate the link between HR pract...
The cooperative organisations play a significant role in Africa's socioeconomic development, which has prompted their promotion and development in various countries. Since the structural adjustment programmes in the continent, the... more
The cooperative organisations play a significant role in Africa's socioeconomic development, which has prompted their promotion and development in various countries. Since the structural adjustment programmes in the continent, the agricultural cooperatives have been faced with political, funding and organisation changes. These changes requires management through appropriate leadership approaches. This paper's objective was to theoretically analyse the impact of authentic leadership on change management in agricultural cooperatives , since the introduction of the structural adjustment programme by World Bank and International Monetary
Innovation in agricultural sector is inevitable. One of the key agricultural sub-sector in Kenya that innovations plays a critical role is poultry production. The indigenous poultry production in the country is still very low compared to... more
Innovation in agricultural sector is inevitable. One of the key agricultural sub-sector in Kenya that innovations plays a critical role is poultry production. The indigenous poultry production in the country is still very low compared to the very high demand for indigenous poultry products. The low productivity per indigenous poultry farmer is largely attributed to diffusion of innovation to cope with the challenges of the common free-range method. In this study, using information from 326 farmers in Kitui County, the study examined the relative effect of cooperative membership compared with the effects of other socioeconomic factors on farmers' adoption of poultry farming innovations. Cooperatives has a high effect compared to other socioeconomic factors such as age, sex, and level of formal education. Thus, for adoption of agricultural innovation, a cooperative is a platform for innovators, early adopters and early majority. It therefore recommended that intervention programs ...
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Background: Today, cooperatives are increasingly becoming hybridized to fill the economic development gaps in the state-owned enterprises (SOE), not-for-profit social enterprises (NFPSE), and for-profit investor-owned firms (IOF).... more
Background: Today, cooperatives are increasingly becoming hybridized to fill the economic development gaps in the state-owned enterprises (SOE), not-for-profit social enterprises (NFPSE), and for-profit investor-owned firms (IOF). However, there is limited specialized attention accorded to the systematic analysis of cooperative business model ontology or structure. Purpose and Methodology: The purpose of this study paper was to help broadly understand the development of the business model ontology from Investor-Owned Firms (IOF), Social Enterprises (SEs), and Cooperatives and Mutual Enterprises (CMEs) perspectives; to reconfigure an elaborative Circular Cooperative Business Model Canvas (CC-BMC) that can complete the circular cooperative business modelling framework, which deepens the cooperative identity. Specifically, the study was to (1) explain the key elements of the CME business model from the epistemological, axiological, and taxonomical viewpoint, and (2) demonstrate how the cooperative business model canvas (of attributes component and building blocks) can be integrated from a conceptual perspective, (3) illustrate how the cooperative business model might be reconfigured to ensure cooperative sustainability. The qualitative approach was used for this study. This is a qualitative study based on interpretivism and constructivism of various related secondary data and based on experiences in Sub-Saharan Africa and the Middle East. Results: It was established that there is a possibility to understand how a sustainable cooperative business model can be designed to create, deliver, capture, measure, communicate and 'destruct' value in the changing contexts and periodic phases for self-adapting and self-renewal for sustainability. This study reconfigures 13blocks' circular cooperative business model canvas (CC-BMC) that can be applied by cooperative practitioners in strategic management. They are drawn from the studies on cooperative epistemology, axiology and taxonomy. Conclusion: The result of this study stimulates structured strategic thinking, managerial practices, and the setting up of value propositions for the sustainable cooperative business models in the changing environment.
Background: There are still complexities, paradoxes, and ambiguities in both co-operative business concepts and practices. Co-operatives will succeed only where people design the type of business that best meets their real needs. The... more
Background: There are still complexities, paradoxes, and ambiguities in both co-operative business concepts and practices. Co-operatives will succeed only where people design the type of business that best meets their real needs. The question that remains then is, what the co-operative business models and classification are, and how to identify, select, design, and implement them successfully.
Purpose and Methodology: The purpose of this study paper was to help broadly understand various co-operative business taxonomies developed by various scholars and practitioners, their possible theoretical
grounding, their attributes, and interconnections to establish and strengthen their business model propositions, which deepens the co-operative identity. The qualitative approach was used for this study to expand and synthesize the formerly introduced co-operative taxonomies and in the lens of Sub-Saharan Africa and Middle East.
Results: This study finds out that scholars' approaches to co-operative classifications can be clustered in four clusters. Classification by scope (of purpose, sector, and target coverage), system (of ownership rights and investment), structure (of membership, governance, and management), and strategy (of member participation and marketing). Additionally, the study finds out that the co-operative taxonomies have been largely based on a "linear" co-operative business modelling framework. No singular co-operative taxonomy can succeed and be sustainable in all contexts and at all times. The success and sustainability co-operatives in various contexts are determined by the hybridized models.
Conclusion: Hybridization of the co-operative business model is inevitable for co-operative success and sustainability. Multistakeholder (solidarity) co-operative is the model that can sustain and deepen the cooperative identity in the face of the present socio-economic and global complexities. The "circular" co-operative business modelling framework can help practitioners to develop successful and sustainable co-operative
business models in different contexts and at different periodical phases of their life cycle. The originality of the study paper is (1) the introduction of "4S" clustering of co-operative taxonomies on basis of scope, systems,
structure, and strategy; (2) reinforces the different co-operative classifications' conceptual frameworks and directions; (3) making an analogy of co-operative business models to the human anatomy; and (4) developing a concept of a "circular" co-operative business modelling framework to deepen the co-operative identity in
different contexts and periodical phases
Key Word: Co-operative, Business, Taxonomy
The value of cooperatives , whether real or imagined, the basic philosophy underlying all cooperative action is that, through joint effort and mutual self-interest individuals may collectively achieve objectives unattainable by acting... more
The value of cooperatives , whether real or imagined, the basic philosophy underlying all cooperative action is that, through joint effort and mutual self-interest individuals may collectively achieve objectives unattainable by acting alone. Since their inception in 1498 (see Fairbairn, 2012; Williams, 2007), the importance of cooperative organizations across the world cannot be overemphasized or underestimated. Cooperatives are considered by development agents as grand instruments of development and redress of the socio
With a rallying call for "deepening our cooperative identity" to secure the future. Based on the current global crisis as a framework, the congress discussions were aimed to deepen the cooperative identity by examining the cooperative... more
With a rallying call for "deepening our cooperative identity" to secure the future. Based on the current global crisis as a framework, the congress discussions were aimed to deepen the cooperative identity by examining the cooperative values, strengthening cooperative actions, committing to cooperative principles, and living the cooperative achievements. Behind these pertinent issues, is the centrality of knowledge and information for cooperative business models development and management by practitioners in various contexts across the world. Purpose and Methodology: The purpose of this study paper was to help identify types and sources of the from broad cooperative development and management knowledge and show how epistemologies contribute to the cooperative business modelling framework in different contexts. The qualitative methodology was used by reviewing, discussing, and drawing on conclusion of the different epistemologies into the context of the cooperative's development and management. Results: The cooperative development and management is based on at least both the Foundationalism (Justificationism) and Fallibilism epistemologies. The specific epistemologies for cooperatives development are largely historical relativisms (i.e., history of cooperatives development), Criticalism (i.e., theories), Instrumentalism (i.e., schools of thoughts), Paradigmatic Relativism (i.e., development trends), and Paradigmatic Justificationism (i.e., definitions and principles) and Pragmatism (i.e., cooperative laws). The battleground of the epistemologies for cooperative development and management is between the Criticalism (especially Critical Rationalism) and Solidarist Relativism (in particular cultural relativism, paradigmatic relativism, communitarian relativism, and historical relativism). Conclusion: The results of this study inform the cooperative scholars and practitioners on how to gain knowledge on the successful development and management of cooperatives. Thus, the study delineates the specific epistemologies that contribute to the cooperative development and management.
"ABSTRACT Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they,... more
"ABSTRACT Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they, individually, face various agricultural production and marketing challenges. In this, regard smallholder farmers across the country have been encouraged to embrace agribusiness through formation of agricultural cooperatives between various political and economic eras. Agricultural cooperatives in Malawi have long history beginning in mid-1940s, but it was not until 1990s that critical national strategies, policies and legislation, programmes and projects were initiated to support cooperatives development in the country. This has been exhibited by the increased number of agricultural cooperatives in the country to date. However, various national and international statistics and studies have shown alarming minimal contribution of Malawian cooperatives to private sector development; and specifically, of agricultural cooperatives to agricultural sector development. This is an indication of ‘dark and silent’ cooperatives development’s periods, agricultural cooperatives have in one way or the other have lived through. This study explores institutional and governance factors affecting agricultural cooperatives’ performance and eventual sustainability in Malawi, in respect to comparisons and contrasts of cooperatives principles, values, roles, problems and theoretical perspectives. Agricultural cooperatives play an important role in agricultural production and marketing. However, most of the smallholder agricultural cooperatives in Malawi are not performing this role as they are faced with weak capacity of cooperatives management and poor coordination of cooperative stakeholders; exacerbated by political, social and economic institutional weaknesses. Even though Malawian smallholder farmers in agricultural cooperatives have confidence in the cooperative model in improving their livelihoods, they are still disgruntled with their own poor performance and worried of the high probability of their un-sustainability. Specifically, agricultural cooperatives’ worsening performances depict that: cooperatives’ members have little control of management; investments are short-term; and accumulated investments are below the economic optimum. In essence, the relevance of cooperatives cannot be overemphasized in Malawi, but their full potentials have not been unlocked to necessitate their growth and vibrancy. In order for agricultural cooperatives in Malawi to improve their organizational and business performance and be sustainable; to enhance the ‘doing capacity’ among the cooperators, promoters and facilitators; to optimize the stakeholders ‘cooperative consciousness’; to rejuvenate fully the cooperative movement (having experienced almost a half century of darkness and/or silence), there need for turn-around strategies to address the governance and institutional problems identified. This study, therefore, makes three major recommendations in respect to strengthening the capacities of cooperators and stakeholders to: adherence to the cooperatives legal and regulatory framework; implementation and enforcement of the cooperative development policy and legal and regulatory framework; and review of cooperatives development policy and amendment/repeal of Cooperative Societies Act, 1998 and Cooperative Societies Regulations, 2002 in respect to ILO Recommendation 193, 2002. These recommendations are meant to: strengthen agricultural cooperatives’ internal and external legitimacy to support self-determination; to promote the leadership, vision, and goals as well as multiple bottom lines of cooperatives; to enhance the agricultural cooperatives’ organizational, financial, and business capacity; to enhance farmers active participation and committed involvement in cooperatives formation and operations; to communicate more broadly to the agricultural cooperatives’ stakeholders; and to strengthen agricultural cooperatives’ partnerships with community and other stakeholders. In this respect, transformation of cooperatives from conventional forms to non-congenial structures and systems of cooperatives that would encourage: proportionate patronage to investment; appreciable and transferable share values; and allowance of non-patron equity participation. Significantly, the study is to help cooperatives’ promoters, policy makers, legal and regulatory institutions, academicians and the cooperators in general to; understand institutional and governance issues related to cooperatives’ philosophy, values and principles; make use of or build upon as they find helpful; to present ideas for the strategic guidance of cooperatives development – the ideas based on reflection about experience and practice within cooperatives, as well as cooperative theory, relevant to contemporary discussions of cooperative strategies; ...
ARTICLE INFO ABSTRACT Innovation in agricultural sector is inevitable. One of the key agricultural sub-sector in Kenya that innovations plays a critical role is poultry production. The indigenous poultry production in the country is still... more
ARTICLE INFO ABSTRACT Innovation in agricultural sector is inevitable. One of the key agricultural sub-sector in Kenya that innovations plays a critical role is poultry production. The indigenous poultry production in the country is still very low compared to the very high demand for indigenous poultry products. The low productivity per indigenous poultry farmer is largely attributed to diffusion of innovation to cope with the challenges of the common free-range method. In this study, using information from 326 farmers in Kitui County, the study examined the relative effect of cooperative membership compared with the effects of other socioeconomic factors on farmers' adoption of poultry farming innovations. Cooperatives has a high effect compared to other socioeconomic factors such as age, sex, and level of formal education. Thus, for adoption of agricultural innovation, a cooperative is a platform for innovators, early adopters and early majority. It therefore recommended that intervention programs in the agricultural sector should focus more attention on developing, strengthening and expanding farmers' cooperatives for better diffusion and use of innovations; and better linking of the social capital with extension service agencies, funders, markets, and other agricultural value chain players. Copyright©2017, Jared Mark Ochieno Matabi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited.
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The cooperatives play a vital role in development. A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and... more
The cooperatives play a vital role in development. A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. However, cooperative organisations face diverse problems that are power-related ones in regard to control and influence cost. This paper sought to analyse the use of power by the leaders, and its impact in cooperative leadership and followership in Kenya. The study was done on Kiambu Bunge SACCO Society Limited in Kenya. The study established that, in cooperatives there is no notable relationship between hierarchical position and power of individuals – leader or follower-but there is concentration of power in the hands of a few select individuals, especially the executive and credit committee member; and thus, the existence power bases among leaders and followers has a corresponding effect on the cooperative performance. The relationship in the cooperative is based on how leaders and followers behave when power is exercised over them. Both the leaders and followers show resistance or agreement when the power is exercised over them in varying situations and seasons. In a cooperative environment it is logical that both the leaders and followers hold powers to influence each other almost equally to achieve a common goal. In an organizational environment where the legitimate power is very key it is expected that both the leaders and followers accept the power that is exercised over them. The study is significant to leaders in consolidating the working relationship with their followers for positive leadership and governance in cooperative organisations, hence organisational performance.
Research Interests:
Many cooperatives are facing challenges in developing business strategy. This paper shows a facilitative process and models for developing a strategy for a cooperative in Kenya's branding and marketing industry. The branding and marketing... more
Many cooperatives are facing challenges in developing business strategy. This paper shows a facilitative process and models for developing a strategy for a cooperative in Kenya's branding and marketing industry. The branding and marketing industry in Kenya is growing to the extent that it is attracting small and micro enterprises (SMEs). The SMEs environment has explicit and implicitly external and internal factors that determine their success. The industry's market conditions are competitive, even with key success factors for SMEs competencies. In Nairobi, SMEs in the branding and marketing industry have formed the Brand Ambassadors Marketing (BAM) cooperative society; as a business model for competitiveness with big companies. This paper explores the strategy development of BAM cooperative. The Mintzberg design school of strategy is applied is relation to Porter's value chain analysis, and five forces model, SWOT analysis and BSC. The focus areas of the strategy are: learning and growth of members and employees; internal business processes; markets and customers; and finance. Being a business model for selling branding products and services, the cooperative is to adopt a diversification market strategy based on RBV. This strategy paper will help the cooperative members to strategically build a sustainable youth-driven platform of productive SMEs for jobs creation in branding and marketing industry in Kenya. Furthermore, this paper may help strategic management practitioners and scholars have deeper understanding on strategy formulation methodology from the design school of strategy and strategy formulation and implementation tools such as Porter's value cahin analysis and market forces model, SWOT analysis, BSC and RBV. However, design school of
Research Interests:
The cooperatives are user-owned, user-controlled and user-benefit organizations. There is a thin line between the members, followers and leaders in cooperative organizations. This paper aims to explicate the role of followership behaviour... more
The cooperatives are user-owned, user-controlled and user-benefit organizations. There is a thin line between the members, followers and leaders in cooperative organizations. This paper aims to explicate the role of followership behaviour on membership satisfaction as well as the cooperatives performance that may moderate the relationship. This is a qualitative study that utilized both primary and secondary data including: cooperatives financial audit reports and annual general meetings minutes, observation and interviews of co-operatives' members. The study investigated how performance, interact with followership behaviour for member satisfaction. The paper found out that, members' effective followership perceived greater membership satisfaction when organizational performance was high, since they are also the cooperative owners. The limitation of this paper is that the study is based only on organizational performance of donor-initiated cooperatives which have more of ineffective followers than effective followers. Thus, more studies are needed to validate the causal directions of the findings. The present findings show that effective followership had greater relationship with membership satisfaction when organizational performance was high. For high engaged members (active followers) in organizations, leaders should emphasize high performance orientation of the organization. This study contributes to the broader literature in leadership and cooperative sector; as it tests the moderating role of organizational performance factor on the relationship between followership and member satisfaction in organizations.
Research Interests:
The cooperative organisations play a significant role in Africa's socioeconomic development, which has prompted their promotion and development in various countries. Since the structural adjustment programmes in the continent, the... more
The cooperative organisations play a significant role in Africa's socioeconomic development, which has prompted their promotion and development in various countries. Since the structural adjustment programmes in the continent, the agricultural cooperatives have been faced with political, funding and organisation changes. These changes requires management through appropriate leadership approaches. This paper's objective was to theoretically analyse the impact of authentic leadership on change management in agricultural cooperatives , since the introduction of the structural adjustment programme by World Bank and International Monetary
Research Interests:
Globalisation is generating immense organisations' competitive environment. To grow and survive in such environment, organisations are obliged to perform. Performance is one of the major goal for organisation, which many human resource... more
Globalisation is generating immense organisations' competitive environment. To grow and survive in such environment, organisations are obliged to perform. Performance is one of the major goal for organisation, which many human resource management scholars are trying to demonstrate the link between HRM and organisational performance. There are studies that affirm the conviction and those that are doubtful of the demonstrable link between HRM and organisational performance. There is however, a continuous need to improve theoretical and analytical frameworks of HRM, performance and the link between HRM and organisational performance. This conceptual paper, theoretically shows HR practices that define HRM; levels of performance outcomes that makes the link between HRM and performance more evident; and, comparison of linear causal models through which HR practices ultimately impact organisational performance. This paper synthesises key models that illustrate the link between HR practices and organisational performance. While, drawing from various theories and (linear) models, this paper established so. However, there are continuous arguments over the number of HRM mediating variables and its content to show a clear link between HR practices and organisational performance. This challenge notwithstanding, the literature review opens an opportunity to develop a (cyclical) model, which is inclusive of common variables that
Research Interests:
The role of the co-operatives' sector in socioeconomic development in Africa cannot be underestimated. There are several factors that lead to improved cooperatives performance and competitiveness. This paper explores the HR factor in the... more
The role of the co-operatives' sector in socioeconomic development in Africa cannot be underestimated. There are several factors that lead to improved cooperatives performance and competitiveness. This paper explores the HR factor in the cooperative competitiveness. Through the review of the existing literature on HR, co-operatives' competitiveness and social capital concept, the paper reports cooperatives as social capital given the interrelation between co-operative's seven principles and social capital's three dimensions. In regard, to cooperative competitiveness, the paper hypothesises that the three major HR challenges revolve around employee abilities, motivation and opportunities to participate – the AMO model. These the key factors affecting co-operatives' competitiveness. Thus, it is recommendable that two sets of HR practices be enhanced in cooperatives – training and compensation, and motivation and participation of employees. The paper's originality is in proposal of a new co-operatives' competitiveness model, HRAMO-SRC model, which is recognises the difference in the nature of cooperatives compared to the manufacturing industry, which is grounded on the AMO model.
Research Interests:
The cooperatives " significance in Kenya is unquestionable, just as it is acknowledged worldwide. But country " s cooperative movement has been conventional. Today, there are emerging global issue trends on development and sustainability.... more
The cooperatives " significance in Kenya is unquestionable, just as it is acknowledged worldwide. But country " s cooperative movement has been conventional. Today, there are emerging global issue trends on development and sustainability. At all levels, sustainable development and cooperatives have been emphasized in the recent times – with development of new agendas and frameworks such as the: Kenya " s 2010 constitution and Vision 2030; UN International Year of Cooperatives 2012 and Vision 2020 for Cooperatives Decade; East Africa Cooperative Societies Bill, 2014; and, Agenda 2030 for Sustainable Development Goals. Kenya is therefore in transition phase of governance of sustainable development and cooperatives. USAID through various structures, especially the 2014-2018 Country Development Cooperative Strategy, has been supporting Kenya in this phase, importantly on ensuring effective implementation of devolution. The USAID/Co-operatives Development Program (CDP) by Global Communities, is among other objectives, supporting Kenya in rethinking and transitioning of the Cooperatives Development Policy and Legislation to the County levels, with
Research Interests:
ABSTRACT Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they, individually, face various... more
ABSTRACT
Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they, individually, face various agricultural production and marketing challenges.  In this, regard smallholder farmers across the country have been encouraged to embrace agribusiness through formation of agricultural cooperatives between various political and economic eras.  Agricultural cooperatives in Malawi have long history beginning in mid-1940s, but it was not until 1990s that critical national strategies, policies and legislation, programmes and projects were initiated to support cooperatives development in the country. This has been exhibited by the increased number of agricultural cooperatives in the country to date. However, various national and international statistics and studies have shown alarming minimal contribution of Malawian cooperatives to private sector development; and specifically, of agricultural cooperatives to agricultural sector development. This is an indication of ‘dark and silent’ cooperatives development’s periods, agricultural cooperatives have in one way or the other have lived through.

This study explores institutional and governance factors affecting agricultural cooperatives’ performance and eventual sustainability in Malawi, in respect to comparisons and contrasts of cooperatives principles, values, roles, problems and theoretical perspectives. Agricultural cooperatives play an important role in agricultural production and marketing. However, most of the smallholder agricultural cooperatives in Malawi are not performing this role as they are faced with weak capacity of cooperatives management and poor coordination of cooperative stakeholders; exacerbated by political, social and economic institutional weaknesses.

Even though Malawian smallholder farmers in agricultural cooperatives have confidence in the cooperative model in improving their livelihoods, they are still disgruntled with their own poor performance and worried of the high probability of their un-sustainability.  Specifically, agricultural cooperatives’ worsening performances depict that: cooperatives’ members have little control of management; investments are short-term; and accumulated investments are below the economic optimum. In essence, the relevance of cooperatives cannot be overemphasized in Malawi, but their full potentials have not been unlocked to necessitate their growth and vibrancy.
In order for agricultural cooperatives in Malawi to improve their organizational and business performance and be sustainable; to enhance the ‘doing capacity’ among the cooperators, promoters and facilitators; to optimize the stakeholders ‘cooperative consciousness’; to rejuvenate fully the cooperative movement (having experienced almost a half century of darkness and/or silence), there need for turn-around strategies to address the governance and institutional problems identified. This study, therefore, makes three major recommendations in respect to strengthening the capacities of cooperators and stakeholders to: adherence to the cooperatives legal and regulatory framework; implementation and enforcement of the cooperative development policy and legal and regulatory framework; and review of cooperatives development policy and amendment/repeal of Cooperative Societies Act, 1998 and Cooperative Societies Regulations, 2002 in respect to ILO Recommendation 193, 2002. These recommendations are meant to: strengthen agricultural cooperatives’  internal and external legitimacy to support self-determination; to promote the leadership, vision, and goals as well as multiple bottom lines of cooperatives; to enhance the agricultural cooperatives’ organizational, financial, and business capacity; to enhance farmers active participation and committed involvement in cooperatives formation and operations; to communicate more broadly to the agricultural cooperatives’ stakeholders; and to strengthen agricultural cooperatives’ partnerships with community and other stakeholders. In this respect, transformation of cooperatives from conventional forms to non-congenial structures and systems of cooperatives that would encourage: proportionate patronage to investment; appreciable and transferable share values; and allowance of non-patron equity participation.

Significantly, the study is to help cooperatives’ promoters, policy makers, legal and regulatory institutions, academicians and the cooperators in general to; understand institutional and governance issues related to cooperatives’ philosophy, values and principles;  make use of or build upon as they find helpful; to present ideas for the strategic guidance of cooperatives development – the ideas based on reflection about experience and practice within cooperatives, as well as cooperative theory, relevant to contemporary discussions of cooperative strategies;  understand cooperative related policy and legal and regulatory frameworks that need redress; and, coordinate efforts to improve cooperatives’ performances and eventual sustainability.

Key Words: Cooperatives, agriculture, farmer, governance, institutions, new institutional economics theory, policy, legal and regulatory framework, performance, sustainability, Malawi.
ABSTRACT Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they, individually, face various... more
ABSTRACT
Agriculture is a key sector to the Malawi’s economy. Smallholder farmers who contribute immensely to agriculture sector itself have been circumvented in the vicious cycle of poverty as they, individually, face various agricultural production and marketing challenges.  In this, regard smallholder farmers across the country have been encouraged to embrace agribusiness through formation of agricultural cooperatives between various political and economic eras.  Agricultural cooperatives in Malawi have long history beginning in mid-1940s, but it was not until 1990s that critical national strategies, policies and legislation, programmes and projects were initiated to support cooperatives development in the country. This has been exhibited by the increased number of agricultural cooperatives in the country to date. However, various national and international statistics and studies have shown alarming minimal contribution of Malawian cooperatives to private sector development; and specifically, of agricultural cooperatives to agricultural sector development. This is an indication of ‘dark and silent’ cooperatives development’s periods, agricultural cooperatives have in one way or the other have lived through.

This study explores institutional and governance factors affecting agricultural cooperatives’ performance and eventual sustainability in Malawi, in respect to comparisons and contrasts of cooperatives principles, values, roles, problems and theoretical perspectives. Agricultural cooperatives play an important role in agricultural production and marketing. However, most of the smallholder agricultural cooperatives in Malawi are not performing this role as they are faced with weak capacity of cooperatives management and poor coordination of cooperative stakeholders; exacerbated by political, social and economic institutional weaknesses.

Even though Malawian smallholder farmers in agricultural cooperatives have confidence in the cooperative model in improving their livelihoods, they are still disgruntled with their own poor performance and worried of the high probability of their un-sustainability.  Specifically, agricultural cooperatives’ worsening performances depict that: cooperatives’ members have little control of management; investments are short-term; and accumulated investments are below the economic optimum. In essence, the relevance of cooperatives cannot be overemphasized in Malawi, but their full potentials have not been unlocked to necessitate their growth and vibrancy.
In order for agricultural cooperatives in Malawi to improve their organizational and business performance and be sustainable; to enhance the ‘doing capacity’ among the cooperators, promoters and facilitators; to optimize the stakeholders ‘cooperative consciousness’; to rejuvenate fully the cooperative movement (having experienced almost a half century of darkness and/or silence), there need for turn-around strategies to address the governance and institutional problems identified. This study, therefore, makes three major recommendations in respect to strengthening the capacities of cooperators and stakeholders to: adherence to the cooperatives legal and regulatory framework; implementation and enforcement of the cooperative development policy and legal and regulatory framework; and review of cooperatives development policy and amendment/repeal of Cooperative Societies Act, 1998 and Cooperative Societies Regulations, 2002 in respect to ILO Recommendation 193, 2002. These recommendations are meant to: strengthen agricultural cooperatives’  internal and external legitimacy to support self-determination; to promote the leadership, vision, and goals as well as multiple bottom lines of cooperatives; to enhance the agricultural cooperatives’ organizational, financial, and business capacity; to enhance farmers active participation and committed involvement in cooperatives formation and operations; to communicate more broadly to the agricultural cooperatives’ stakeholders; and to strengthen agricultural cooperatives’ partnerships with community and other stakeholders. In this respect, transformation of cooperatives from conventional forms to non-congenial structures and systems of cooperatives that would encourage: proportionate patronage to investment; appreciable and transferable share values; and allowance of non-patron equity participation.

Significantly, the study is to help cooperatives’ promoters, policy makers, legal and regulatory institutions, academicians and the cooperators in general to; understand institutional and governance issues related to cooperatives’ philosophy, values and principles;  make use of or build upon as they find helpful; to present ideas for the strategic guidance of cooperatives development – the ideas based on reflection about experience and practice within cooperatives, as well as cooperative theory, relevant to contemporary discussions of cooperative strategies;  understand cooperative related policy and legal and regulatory frameworks that need redress; and, coordinate efforts to improve cooperatives’ performances and eventual sustainability.

Key Words: Cooperatives, agriculture, farmer, governance, institutions, new institutional economics theory, policy, legal and regulatory framework, performance, sustainability, Malawi.