Mainstreaming Cooperatives in the Agribusiness Sector

Agriculture is an important sector in Malaysia. For many years, this sector has been the backbone of Malaysian economy by producing agricultural products for domestic consumption, as the earner of foreign exchange. Agriculture also contributes to the national gross domestic product (GDP). It provides major employment for the people, especially from the rural areas. In 2014, this sector contributed about 7% of Malaysia’s GDP. In Malaysia, there are 2,547 cooperatives registered as agricultural cooperatives with a total membership of 744,406 members as of December 2014. However, only part of those cooperatives is actively involved in agricultural, agro-based industry, or plantation activities. Hence, to make cooperatives an effective contributor towards national development, they are encouraged to participate in high-value agriculture activities and operate on large-scale basis with the application of modern technology for increased results. They are also encouraged to develop this sector through mergers or strategic alliances and appoint successful cooperatives in this sector as mentors and also collaborating with technical agencies. Related government agencies such as Malaysia Cooperative Societies Commission, Cooperative College of Malaysia, and apex body for cooperative movement in Malaysia, ANGKASA play their roles to achieve the development of cooperatives involved in the agricultural sector in Malaysia based on the established strategic thrusts under the National Cooperative Policy 2011–2020. Th is paper aims to discuss on issues and challenges on agribusiness sector, direction and strategy to implement particularly in the context of agricultural cooperatives in Malaysia

Contemporary Performance Measurement Systems, Organizational Commitment and Managerial Performance of Top 100 Cooperatives in Malaysia

Purpose: The aim of this study is to examine the impact of contemporary performance measurement systems (PMS) on managerial performance in the cooperative sector. In addition, it investigates the mediating effect of organizational commitment between contemporary performance measurement system and managerial performance.   Theoretical Framework: The Resource Based Theory used to explain the relationship between contemporary performance measurement, managerial commitment and managerial performance.   Design / Methodology / Approach: The survey was carried out to investigate the research framework in the empirical field. The population investigation is composed of cooperative management in the top 100 cooperatives in Malaysia. Utilizing a quantitative approach, 395 valid cooperatives’ managements were taken as the sample of this study   Findings: The results of the study found that there is a positive relationship between contemporary performance measurement systems, organizational commitment, and managerial performance. Moreover, organizational commitment mediates the relationship between contemporary performance measurement systems and managerial performance.   Research /, Practical & Social Implications: Practically, the model in this study can act as an important management tool for cooperatives to gain a sustainable competitive advantage that can affect managerial performance. Managerial performance is an essential element in a successful organization.   Originality/ Value: The value of the study is to highlight the important of managerial commitment as mediating factor between contemporary performance measurement system and managerial performance. Furthermore, contemporary performance measurement system must apply three components: comprehensive, strategic and dynamic.Este estudio intenta examinar el impacto de los sistemas de medición de desempeño contemporáneos (PMS) en el desempeño gerencial en el sector cooperativo. Además, investiga el efecto mediador del compromiso organizacional. Se realizó una encuesta para indagar el marco de investigación en el campo empírico. La investigación de la población se compone de la gestión cooperativa en las 100 principales cooperativas de Malasia. Utilizando un enfoque cuantitativo, se tomaron como muestra de este estudio 395 gerencias cooperativas válidas. Los hallazgos del estudio encontraron que existe una relación positiva entre los sistemas contemporáneos de medición del desempeño, el compromiso organizacional y el desempeño gerencial. Además, el compromiso organizacional media la relación entre los sistemas contemporáneos de medición del desempeño y el desempeño gerencial. En la práctica, el modelo de este estudio puede actuar como una importante herramienta de gestión para que las cooperativas obtengan una ventaja competitiva sostenible que puede afectar el desempeño de la gestión. El desempeño gerencial es un elemento esencial en una organización exitosa

Dividend and Profit Allocation Practices of Performing Cooperatives in Malaysia

<p>This paper explores the dividend payout and profit allocation practices of performing cooperatives in Malaysia, specifically how net profits were distributed as between dividends and various funds established for the benefit of members, after the necessary statutory deduction has been made. This paper is an exploratory study that is confined to performing co-operatives throughout Malaysia of different sizes and activities. Figures were derived from the 2008, 2007 and 2006 audited annual financial statements provided by the co-operatives themselves. Overall the study revealed that micro co-operatives are found to have paid the highest average dividend payouts, followed by the large co-operatives. Credit co-operatives which have a sizeable amount of shares and subscriptions are observed to have the lowest average dividend payout ratio. The highest dividend payout is given out by the construction and consumer co-operatives. Besides dividends, co-operatives normally allocate part of their annual net profit for the benefit of members in the form of specific funds for members&rsquo; social and related purposes. It was observed that in 2007, all co-operatives have increased their allocation towards members&rsquo; benefits except for co-operatives in the services sector. In conclusion, the credit, agriculture and industrial co-operatives are the top three functions with the highest level of contribution to members' benefit fund.</p> <hr /><p>Este art&iacute;culo analiza el pago de dividendos y pr&aacute;cticas de reparto de beneficios que siguen las cooperativas de Malasia, espec&iacute;ficamente el sistema en los que los beneficios netos, despu&eacute;s de realizar las deducciones legales pertinentes, se distribuyen entre dividendos y los fondos creados para el beneficio de los miembros. Se ha realizado un estudio exploratorio que analiza las cooperativas de diferente tama&ntilde;o y actividad limitadas a Malasia. Los datos se derivan de las auditor&iacute;as de los a&ntilde;os 2008, 2007 y 2006, que presentan las propias cooperativas. En general, el estudio demostr&oacute; que las micro-cooperativas realizan, de media, los pagos de dividendos m&aacute;s elevados, seguidos por las cooperativas de gran tama&ntilde;o. Se ha observado que las cooperativas de cr&eacute;dito, que tienen una considerable cantidad de intereses y suscripciones, mantienen sin embargo media m&aacute;s baja de reparto de intereses. El pago de dividendos m&aacute;s elevado lo realizan las cooperativas de la construcci&oacute;n y el consumo. Adem&aacute;s de los dividendos, las cooperativas normalmente destinan parte de sus beneficios netos a favorecer a sus miembros, mediante fondos especiales destinados a proyectos sociales de los miembros. Se ha observado que, en 2007, todas las cooperativas aumentaron el reparto destinado a los beneficios para los miembros, con la excepci&oacute;n de las cooperativas en el sector servicios. Como conclusi&oacute;n, las cooperativas de cr&eacute;dito, agr&iacute;colas e industriales son los tres tipos de cooperativas con un mayor nivel de contribuci&oacute;n al fondo para beneficio de los miembros.</p> <p><strong>DOWNLOAD THIS PAPER FROM SSRN:</strong> <a href="http://ssrn.com/abstract=2194316" target="_blank">http://ssrn.com/abstract=2194316</a></p

Perkembangan dan prospek Koperasi Orang Asli: Kajian kes negeri Perak dan Pahang

Matlamat kajian ini adalah bagi melihat perkembangan yang telah dicapai oleh koperasi Orang Asli, dari segi penglibatan dalam kegiatan ekonomi sesuai dengan matlamat Pelan Strategik Jabatan Kemajuan Orang Asli (PSJAKOA) 2011-2015 yang meletakkan sasaran untuk menjadikan koperasi Orang Asli sebagai satu platform bagi pembangunan usahawan dan aktiviti pemiagaan dalam kalangan masyarakat Orang Asli.Sampel kajian adalah 33 buah koperasi di negeri Perak dan Pahang dan 655 Ketua Isi Rumah (KIR) di mana 241 orang adalah anggota koperasi.Data kajian diperoleh melalui soal selidik dan temu bual secara bersemuka yang dijalankan oleh penyelidik bersama sekumpulan pembanci terlatih yang terdiri dari kalangan anak-anak Orang Asli.Secara keseluruhan, didapati perkembangan dan tadbir urus koperasi Orang Asli adalah ditahap yang rendah, tidak mempunyai kakitangan professional dan masih belum mempunyai aktiviti ekonomi yang stabil yang boleh menjana pendapatan untuk koperasi.Penglibatan anggota sebagai anggota, pengguna, pekerja atau pembekal dalam aktiviti koperasi juga adalah sangat kecil.Dari segi ekonomi, sebilangan besar KIR (73%) menyara diri dan keluarga dengan bekerja sendiri sebagai petani, peladang atau peniaga di tempat mereka tinggal, dengan purata pendapatan tidak lebih dari RM700 sebulan.Di dapati 71 KIR(1 l%)terlibat dalam perniagaan memasarkan produk atau perkhidmatan secara kecil-kecilan di kawasan mereka sendiri dan juga ke daerah lain. Walaupun mempunyai potensi untuk berkembang, peniaga menghadapi masalah untuk mendapatkan modal, bekalan dan premis perniagaan serta berhadapan dengan isu pemasaran, pesaingan , masalah kredit dengan pelanggan serta kesusahan berurusan dengan agensi kerajaan.Bagi meningkatkan aktiviti ekonomi, keusahawanan dalam kalangan masyarakat Orang Asli dan keberkesanan institusi koperasi, disamping infiastruktur dan kemudahan asas, program pendidikan koperasi, latihan kemahiran serta orientasi untuk menyediakan warga Orang Asli memasuki pasaran buruh perlu diadakan. Kajian ini juga mencadangkan satu model pembangunan melibatkan masyarakat Orang Asli, koperasi, agensi kerajaan dan pihak swasta berdasarkan pendekatan Model Ekonomi Baru, yang dapat menjadikan koperasi sebagai wadah yang efektif dalam pembangunan ekonomi masyarakat Orang Asli