The Effect of Organizational Internal Factors on the Performance of Cooperative Governance in Malaysia
DOI:
https://doi.org/10.52962/ipjaf.2024.8.1.157Keywords:
Cooperative Governance, Cooperative Sector, MalaysiaAbstract
This study aims to gain a comprehensive explanation and understanding of the internal issues and problems faced by cooperative management that may affect the performance of cooperatives in Malaysia. The objective of this study is to determine whether the factors of cooperative management leadership, cooperative organizational culture, and the effectiveness of the cooperative’s internal audit committee affect the cooperative’s governance performance. A total of 420 questionnaires were distributed, and 144 questionnaires were obtained. The results of the analysis found that there is a non-significant relationship between management leadership and cooperative organizational culture with cooperative governance performance. However, the study’s results found that the effectiveness of the cooperative’s internal audit committee has a significant relationship with the cooperative’s governance performance. The limitation of the study is that the study only focuses on large cluster cooperatives. Therefore, the findings of this study describe the governance system in large cluster cooperatives only. The study’s findings on medium and small cluster cooperatives cannot be compared. Future research can be done by considering medium- and small-sized cooperatives. In addition, other independent variables can be added to the study model. This study has developed a cooperative governance performance model based on core values that can be used by the cooperative, especially as a guide to obtaining excellent cooperative governance.
Downloads
References
Abd Rahman, H. A., Mustaffa, M. Z., Zubaidah, Z. A., & Roslani, E. (2015). The Level of Knowledge of Corporate Governance in Federal Statutory Bodies in Malaysia. Procedia Economics and Finance, 28, 170–175. http://doi.org/10.1016/S2212-5671(15)01097-7
Al-Baidhani, A. M. (2016). The Role of Audit Committee in Corporate Governance: Descriptive Study. International Journal of Research & Methodology in Social Science, 2(2), 45–57. http://doi.org/10.2139/ssrn.2487167
Azmah, O., & Fatimah, K. (2008). Enhancing Co-operative Movement To Achieve Malaysia’s Development Goals. In ICA Research Conference: The Role of Co-operatives in Sustaining Development and Fostering Social Responsibility (pp. 1–39). Riva del Garda, Trento, Italy.
Berita Harian. (2012). 9.8% Kes Koperasi Terbiar Tidak Terurus.
Birchall, J. (2004). Cooperatives and The Millennium Development Goals. Geneva, International Labour Organization.
Braun, S., Peus, C., Weisweiler, S., & Frey, D. (2013). Transformational Leadership, Job Satisfaction and Team Performance: A Multilevel Mediation Model of Trust. The Leadership Quarterly, 24, 270–283. http://doi.org/10.1016/j.leaqua.2012.11.006
Cameron, K. S., & Freeman, S. J. (1991). Cultural Congruence Strength an Type: Relationships to Effectiveness. Research in Organizational Change And Development, 5, 23–58.
Castelli, P. A. (2016). Reflective Leadership Review: A Framework for Improving Organisational Performance. Journal of Management Development, 35(2), 217–236. http://doi.org/10.1108/JMD-08-2015-0112
Cavazotte, F., Moreno, V., & Hickmann, M. (2012). Effects of Leader Intelligence, Personality and Emotional Intelligence on Transformational Leadership and Managerial Performance. The Leadership Quarterly, 23, 443–455. http://doi.org/10.1016/j.leaqua.2011.10.003
Chaghadari, M. F. (2011). Corporate Governance and Firm Performance. In International Conference on Sociality and Economics Development (Vol. 10, pp. 484–489). http://doi.org/10.1007/s10997-011-9170-9
Cornforth, C. (2004). The Governance of Cooperatives and Mutual Associations: A Paradox Perspective. Annals of Public and Cooperative Economics, 75(1), 11–32. Retrieved from [email protected]
Gideon A, E., Sonrandein, K. E., & Georgina.I., E. (2013). Implications of Organisational Culture on Performance of Business Organisations. IOSR Journal of Business and Management (IOSR-JBM), 11(1), 11–18. Retrieved from www.iosrjournals.org
Gil, F., Rico, R., Alcover, C. M., & Barrasa, A. (2005). Change-Oriented Leadership, Satisfaction and Performance in Work Groups: Effects of Team Climate and Group Potency. Journal of Managerial Psychology, 20(3/4), 312–328. http://doi.org/10.1108/02656710210415703
Gillan, S. L. (2006). Recent Developments in Corporate Governance: An Overview. Journal of Corporate Finance, 12(3), 381–402.
Goromonzi, W. O. (2016). Organizational Culture, Strategy Implementation and Commercial Bank Performance in Zimbabwe. International Review of Management and Marketing, 6(2), 307–316. Retrieved from www.econjournals.com
Hair, Jr., J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural equation Modeling (PLS-SEM) (SAGE). Los Angeles.
Hernandez, S. (2006). Striving for Control: Democracy and Oligarchy at a Mexican Cooperative. Economic and Industrial Democracy, 27(1), 105–135. http://doi.org/10.1177/0143831X06060593
ICA. (2015). The International Co-operative Alliance. Retrieved from http://ica.coop/en/international-co-operative-alliance
International Federations of Accountants. (2001). Governance in the Public Sector: A Governing Body Perspective. Chartered Institute of Public Finance and Accountancy (CIPFA). United Kingdom.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. http://doi.org/10.1016/0304-405X(76)90026-X
Khan, H. (2011). A Literature Review of Corporate Governance. In International Conference on E-business, Management and Economics (Vol. 25, pp. 1–5).
KPDNKK & SKM. (2010). Dasar Koperasi Negara 2011-2020. Suruhanjaya Koperasi Malaysia & Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan.
Lees, M., & Volkers, R. (1996). General Trends, Findings and Recommendations. Review of International Co-Operation, 89(4), 37–49. Retrieved from http://www.uwcc.wisc.edu/icic/orgs/ica/pubs/review/ICA
Leviten-Reid, C., & Fairbairn, B. (2011). Multi-Stakeholder Governance in Cooperative Organizations: Toward a New Framework for Research? Canadian Journal of Nonprofit and Social Economy Research, 2(2), 25–36.
Mahazril, A. Y., Hafizah, H. A. K., & Zuraini, Y. (2012). Factors Affecting Cooperatives’ Performance in Relation to Strategic Planning and Members’ Participation. Procedia Social and Behavioral Sciences, 65, 100–105. http://doi.org/10.1016/j.sbspro.2012.11.098
Maslinawati, M., Intan Waheedah, O., & Arun, M. (2013). Accountability Issues and Challenges: The Scenario for Malaysian Cooperative Movement. International Journal of Social, Management, Economics and Business Engineering, 7(6), 664–669. Retrieved from http://www.waset.org/publications/1437
McColl-Kennedy, J. R., & Anderson, R. D. (2002). Impact of Leadership Style and Emotions on Subordinate Performance. The Leadership Quarterly, 13(5), 545–559.
Mohd Hassan, C. H., Rashidah, A. R., & Mahenthiran, S. (2008). Corporate Governance, Transparency and Performance of Malaysian Companies. Managerial Auditing Journal, 23(8), 744–778. http://doi.org/10.1108/02686900810899518
Noor Afza, A., & Ayoib, C. A. (2009). Family Business, Board Dynamics and Firm Value: Evidence from Malaysia. Journal of Financial Reporting and Accounting, 7(1), 53–74. http://doi.org/10.1108/19852510980000641
Obiwuru, T. C., Okwu, A. T., Akpa, V. O., & Nwankwere, I. a. (2011). Effects of Leadership Style on Organizational Performance: A Survey of Selected Small Scale Enterprises in Ikosi-Ketu Council Development Area of Lagos States, Nigeria. Australian Journal of Business and Management Research, 1(7), 100–111.
Sacchetti, S., & Tortia, E. (2012). The Internal and External Governance of Cooperatives: Effective Membership and Consistency of Values. Cooperative Education Trust Scotland (CETS) Workshop on “Democratic Enterprise.” New Lanark.
Salameh, R., Al-Weshah, G., Al-Nsour, M., & Al-Hiyari, A. (2011). Alternative Internal Audit Structures and Perceived Effectiveness of Internal Audit in Fraud Prevention: Evidence from Jordanian Banking Industry. Canadian Social Science, 7(3), 40–50. http://doi.org/10.3968/j.css.1923669720110703.007
Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir, L. (2012). Impact of Organizational Culture on Organizational Performance: An Overview. Interdisciplinary Journal of Contemporary Research in Business, 3(9), 975–985. Retrieved from ijcrb.webs.com
Sheehan, M. (2013). Human Resource Management and Performance: Evidence from Small and
SKM. (2016). Laporan Tahunan SKM 2015.
SKM. (2012). Laporan Tahunan SKM 2011.
SKM. (2015). GP27: Garis Panduan Tadbir Urus Koperasi.
Utusan Malaysia. (2012). Tuntutan Integriti dalam Pengurusan Koperasi, p. 11.
Uzkurt, C., Kumar, R., Semih Kimzan, H., & Eminoglu, G. (2013). Role of Innovation in the Relationship between Organizational Culture and Firm Performance. European Journal of Innovation Management, 16(1), 92–117. http://doi.org/10.1108/14601061311292878
Zainudin, A. (2012). Research Methodology and Data Analysis (Second Edi). UiTM Press.
Zehir, C., Ertosun, Ö. G., Zehir, S., & Müceldili, B. (2011). The Effects of Leadership Styles and Organizational Culture over Firm Performance: Multi-National Companies in Istanbul. Procedia Social and Behavioral Sciences, 24, 1460–1474. http://doi.org/10.1016/j.sbspro.2011.09.032
Zelhuda, S., Abdul Ghafar, I., & Bayu, T. P. (2014). Membina Ciri-Ciri Tadbir Urus di kalangan Lembaga Pengarah Koperasi di Malaysia. In 1st ICoMM E-Proceedings (pp. 71–78). Retrieved from http://www.kuis.edu.my/icomm/1st/e-proceedings.html
Zulkarnain, M. S., Shamsher, M. R., & Yusuf, K. (2009). Audit Committee and Auditor Independence: The Bankers’ Perception. International Journal of Economics and Management, 3(2), 317–331.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Indian-Pacific Journal of Accounting and Finance
This work is licensed under a Creative Commons Attribution 4.0 International License.
Site users
Copyright of all articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) belongs to their respective authors. Site users are permitted to download and print the articles for personal use. Further reproduction and/or distribution is not permitted, except for brief excerpts or quotations intended for inclusion in some other original works. In this case, proper attribution must be made to the author/copyright holder, and the place of publication must be acknowledged. Altering, editing or otherwise modifying the content of information obtained from the Indian Pacific Journal of Accounting and Finance (IPJAF) is a breach of copyright.
Authors
While you retain the copyright of your original material, by publishing in the Indian Pacific Journal of Accounting and Finance (IPJAF) , you will have agreed to the following contractual terms:
- The article is the original work of the stated author(s).
- The work has not been published previously.
- If the Article contains copyright material owned by others, written permission has been obtained from the copyright owner(s) to republish such material in any print or electronic medium and that you have included appropriate acknowledgement of such rights in the Article.
- The author agrees to grant a non-exclusive license to the Indian Pacific Journal of Accounting and Finance (IPJAF) to communicate the work to the public.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may use the article for publicity purposes.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may publish the article on third-party sites.
- Any subsequent publication of the article by the authors will carry the acknowledgement: First published in the Indian Pacific Journal of Accounting and Finance (IPJAF) [http://ipjaf.omjpalpha.com]
Disclaimer
The Indian Pacific Journal of Accounting and Finance (IPJAF) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
