Abstract:
Co-operatives are considered key vehicles for increased market orientation among smallholder
farmers. Nonetheless, there are limited studies on its influence on the performance of co-operatives
in developing and emerging economies. The paper examined the effect of market orientation
dimensions on financial performance among Irish potato farmer co-operatives (IPFCs) in Rwanda.
Data were collected by interviewing 387 members from 32 co-operatives. Secondary data from
audited financial statements were collected to analyze financial performance between selected
IPFCs in terms of Return on Equity (ROE). Pearson correlation and multiple linear regression were
used for data analysis. The results showed a positive significant relationship between customer
orientation and financial performance (b = 0.091, p < 0.001), and competitor orientation and
financial performance (b = 0.065, p < 0.001), while supplier orientation has shown a negative
correlation (b = -0.023, p < 0.05). Furthermore, the results revealed a non-significant relationship
between inter-functional coordination and financial performance (b = 0.03, p > 0.001). Based on
the findings, the most IPFCs experience ineffective market orientation due to limited financial
capacity, which impairs their financial performance. In order to raise capital and implement the
market orientation concept, it is recommended that IPFC's leaders address the barriers that prevent
members from increasing their shareholdings. This study could serve as a framework for IPFCs
leaders, policy makers and community development partners to formulate appropriate strategies
for IPFCs to be market-oriented. The study contributes to the literature by analyzing market
orientation dimensions that affect the financial performance of agricultural co-operatives in
developing and emerging economies.
