College of Dryland Agriculture and Natural Resources Management

Permanent URI for this communityhttps://repository.mu.edu.et/handle/123456789/13

Browse

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Determinants of Cooperative Marketing Development in Tigray, Ethiopia: The Case of Consumer Cooperative Societies in Mekelle.
    (Mekelle University, 2025-04-17) Yemane Gebremeskel Gebrehiwet
    The overarching objective of this study was to investigate determinant factors affecting consumer cooperative marketing development: The case of consumer cooperatives in Mekelle of Tigray. In response to the objective, a descriptive research design was employed by using mixed research, which comprises both quantitative and qualitative methods. Both primary and secondary sources of data were used. Data were gathered through questionnaires and key informant interviews. Purposive sampling was used to select the study area Mekelle due to the potentiality of the consumer cooperatives. To collect representative and reliable data, 334 respondents were selected from the target population using a random sampling technique. The data gathered through the Likert scale questionnaire were analyzed using SPSS software version 27. Pearson correlation and multiple linear regression model analysis were also used to magnify and verify the effect of the independent variables on the dependent variable. The study found that consumer cooperatives lose the user-control principle due to a lack of rigorous auditing and financial reporting, which fosters distrust between members and the board of directors. However, members have equal voting power, vote democratically, exercise their rights at general assembly meetings, and support the user control principle. The study also found that the cooperative's service delivery and supply of goods were insufficient, members practically do not user benefit of the cooperatives and members' sense of ownership and user benefits of the cooperative have been weakened. The study admitted that the cooperative and its members lack market information. Similarly, cooperatives' market interactions with unions and other organizations were found to be poor and insufficient. The cooperatives lack a strategic and business plan development, leading cooperatives to uncertainty about where to go and what to do in both long and short-term programs. The youth's participation in cooperative membership and marketing activities was also found to be limited, and thus, the cooperative's long-term survival would be restricted and affect its market development. Gender diversity was found to strengthen the board's monitoring role by providing diverse viewpoints on the cooperative; however, board gender diversity in the cooperative has weakened, and there is no clear legislative framework to promote women on the board of directors. Despite the board directors' education qualifications having a positive effect on cooperative market development, they lack the necessary skills and experience to lead and manage the cooperatives, and the board's academic qualifications were not considered during general assembly elections, implying weak governance in the cooperative. Sadly, cooperatives are now led without policies and strategies, which would undoubtedly hinder cooperative market development. The study ascertained that there was a statistically significant and positive relationship (effect) between the marketing and governance predictors with market development. This revealed that the marketing variables such as market linkage, member participation, economic motivation, and member cooperative knowledge, and the governance variables board commitment, board communication, board gender diversity, board qualification, and government intervention were found to be a strong correlation and statically significant positive effect on the dependent variable (market development of consumer cooperatives). Implying that effective use of these predictors influences and enhances the market development of consumer cooperatives in the study area. The most difficult challenges found in cooperatives are the lack of strategic collaboration among cooperatives, a serious lack of knowledge of cooperative marketing, and a lack of procedures and guidelines for marketing. The study recommends that cooperatives should consult trained professionals or hire experts to develop strategic business plans, the government must develop cooperative policies and strategies to build cooperatives, during general assembly elections, coops should consider the board's academic qualifications, develop a legislative framework to promote women on the board of directors, coops should work solidly to ward youth participation in membership and marketing activities, build solid relationships with unions and other organizations that can broaden their market transactions.