Structural equation model on performance of cooperatives in Caraga Region

Abstract

The study aimed to establish a causal model of cooperative performance as influenced by structural capital, relational capital, and human capital among small cooperatives. The study utilized the descriptive-causal design through structural equation modeling. A total of 402 respondents were selected using a maximum sample of five staff per cooperative from 90 small cooperatives. Findings revealed significant relationships between all exogenous variables and the endogenous variable cooperative performance. The most parsimonious model (Model 4) conveyed a generalized new concept that performance of small cooperatives was grounded on business and management. It was significantly influenced by structural capital which was grounded primarily from system and programs and intellectual property rights. Also, it was highly reinforced by relational capital which was defined solely by customer capital. Further, it was significantly strengthened by human capital as defined by learning and education and experience and expertise. In conclusion, the final model depicted the direct causal relationships of structural capital, relational capital, and human capital and was found to be the best fit model on the performance of small cooperatives. Keywords: business administration, cooperative performance, structural capital, relational capital, human capital, structural equation model, Philippines