Cooperative performance quality and socio-economic empowerment: Assessing the mediating effect of financial inclusion at the Golden Group Gabay (GGG) Puhunan Brotherhood Multi-Purpose Cooperative

• Main Author: Batac, Alex L., Jr.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Cooperative societies—Philippines; Cooperative societies—Philippines—Finance; Entrepreneurial and Small Business Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6445; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/13509/viewcontent/Batac_FINAL_Body___approved_for_printing2.pdf
• Institution: De La Salle University

The intention of this research was to explore the mediating effect of financial inclusion between cooperative performance quality and socio-economic empowerment. A total of 365 members stratified to represent each office of the cooperative participated in the survey. Two experts in the field of cooperative development were also interviewed to corroborate the survey findings. The results showed that the cooperative performance quality of GGG is excellent. Moreover, the members attained high levels of financial inclusion and the overall socio-economic empowerment is strongly evident among them. In addition, the simple linear regression analyses revealed that the cooperative performance quality of GGG significantly influences financial inclusion and socio-economic empowerment. Furthermore, the multiple regression analysis revealed that financial inclusion partially mediates the link between cooperative performance quality and socio-economic empowerment. Both expert respondents had similar insights and corroborated the results of the survey and by large were consistent with the a priori knowledge regarding the constructs. Some of the key recommendations are (a) to continue upholding excellence in cooperative performance through competent management, active engagement and involvement of of members in the cooperative’s activities and decisions while maintaining the core values and founding principles of the cooperative, (b) to maintain two-way communication to keep the “for the members, by the members” principle to ensure that the socio-economic needs of the members are raised and addressed by the cooperative, and (c ) to continuously innovate and adapt best practices in the industry to ensure the financial products and services offered are relevant while ensuring the core principles of the cooperatives are preserved.