Investigating the prevailing knowledge about co-operatives in South Africa and the determinants of their success

• Main Author: Frans, Nonyameko
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2013
• Subjects: Cooperative societies > South Africa; Cooperative societies > Management
• Online Access: http://hdl.handle.net/10948/d1020206

The development of co-operatives has been increasingly seen, both globally and in developing countries, as a key strategy for a high economic growth rate, job creation and poverty alleviation. In trying to address these challenges, the South African government has been promoting co-operatives as an instrument for economic growth and socio-economic integration. Despite the realisation of the important role that cooperatives could play, not enough research has been done on the successes and failures of these organisations in achieving economic growth and socio-economic development in countries. The present study is an attempt to address this research gap. The primary objective of this study was to increase the success of co-operatives in South Africa by investigating the prevailing nature of operations of co-operatives and the determinants of the success of these organisations. More specifically, the study gathered qualitative information about co-operatives, identified which factors influence co-operatives in general and investigated which of these factors are the most important determinants of the success of these organisations in South Africa. A census was conducted of the 110 co-operatives registered in the database of the Leadership Academy (LA) of the NMMU Business School. Only 50 executive members of 26 co-operatives participated in the study (response rate of 23.6 percent). The empirical results revealed that the two most critical success factors for co-op success were the handling of finances and leadership; that language groups viewed coop success differently; and that females provide stronger leadership than males in cooperatives. The results also showed that skills development is an important factor in achieving these critical success factors. These results presented important managerial implications for the success of co-operatives.