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Member activism, governance, and performance in Cooperatives

Author

Listed:
  • Norman Mohd-Saleh

    (Universiti Kebangsaan Malaysia)

  • Md Daud Ismail

    (Universiti Kebangsaan Malaysia)

  • Mohamat Sabri Hassan

    (Universiti Kebangsaan Malaysia)

  • Maizatulakma Abdullah

    (Universiti Kebangsaan Malaysia)

  • Zaleha Abdul Shukor

    (Universiti Kebangsaan Malaysia)

Abstract

The demise of prominent cooperatives around the world raises questions about the viability of cooperative governance. One important aspect rarely discussed in the field of cooperative governance is the role of member activism. This study investigates whether member activism can influence cooperative performance through good cooperative governance as a mechanism. Using a newly developed member activism measure derived from mutual incentive theory and the dynamic capability theory, along with a cooperative performance measure that incorporates both financial and non-financial aspects, the results suggest that member activism enhances the governance and performance of cooperatives. The study also finds that member activism is a factor that can improve governance, subsequently leading to better cooperative performance. The impact of this study is relevant to regulatory bodies such as the Cooperative Commission of Malaysia, as well as to cooperatives’ boards and management, highlighting the importance of improving member activism to ensure better accountability to stakeholders.

Suggested Citation

  • Norman Mohd-Saleh & Md Daud Ismail & Mohamat Sabri Hassan & Maizatulakma Abdullah & Zaleha Abdul Shukor, 2025. "Member activism, governance, and performance in Cooperatives," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(2), pages 305-319, June.
    • Handle: RePEc:pal:ijodag:v:22:y:2025:i:2:d:10.1057_s41310-024-00258-z
    DOI: 10.1057/s41310-024-00258-z
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    More about this item

    Keywords

    Cooperative; Governance; Member activism; Developing countries; Oil palm farmers;
    All these keywords.

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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