Relationship Between Performance Measurement System Aspects Among Agricultural Marketing Co-Operative Societies In Rombo District, Tanzania

Abstract

Co-operative like any other institution has various performance measurement aspects that can be grouped into financial aspect and non-financial aspect. The non-financial aspect can be also subdivided into learning and growth, internal business process and members/customers. There has been a lot of theoretical claims on the causal relationship between performance measurement aspects. However, the empirical evidence on causal effect relationship between these aspects in co-operative sector has not got much attention. This paper, empirically, examined the causal relationships among performance measurement system aspects in Agricultural Marketing Co-operative Societies (AMCOS). Specifically, the paper examined the relationship between learning, business process, member and financial aspects. The study adopted a cross sectional design, where 334 respondents were involved. Structural Equation Model (SEM) was conducted to test the hypothesis. The findings revealed that: learning has a positive significant relationship with internal business process, internal business process with member aspect and member aspect with financial aspect. It also established a positive significant relationship between the learning aspect and financial aspect. The study concludes that, there is an empirical evidence on the presence significant relationship among co-operative performance aspects. The study recommends that, so long as learning and growth appear to influence all the other aspects, policy makers should put much efforts in developing human capital. Furthermore, it is recommended to those in charged with internal business processes to use the expertise and skills they have to come up with innovative ideas to provide quality services to members.