Performance of primary agricultural marketing co-operatives in Rombo district Tanzania

Abstract

Studies on co-operatives have been evaluating performance by considering the financial performance while ignoring the non-financial performance. This traditional approach tends to come up with a bias conclusion. This study aimed at evaluating the performance of the primary Agricultural Marketing Co-operative Societies (AMCOS), by using Balanced Scorecard approach, integrating both financial and non-financial measures. Specifically, the study assessed both no-financial and financial performance of the primary AMCOS; the mean difference between the financial and non-financial performance and the contribution of non-financial performance aspect on financial performance. The study used the balanced scorecard approach by involving five aspects; social, learning, internal business process and financial. Questionnaire was distributed to 334 respondents who are the owners and decision makers of the primary AMCOS. Key Informants Interview was conducted to collect the qualitative data. Data were analysed descriptively to assess the performance while inferential statistics were done using paired T-test and multiple regression analysis to assess the mean differences and relationships. The results show that financial performance in primary AMCOS was found to be average (M = 3.3) while non-financial was above average (M = 3.9). Indicating that primary AMCOS are doing better in the non-financial aspect than in the financial aspect. The results showed that there was a statistical mean difference in performance scores between the perception on financial and non-financial performance. The study concludes that it is perceived that, primary AMCOS are doing better in nonfinancial performance than in the financial performance. It is however concludes that, both financial and non-financial performance are of the same importance. The study recommends that much effort should be directed to the financial aspect, without impairing the non-financial aspect, so as to balance the situation. Both economic and social performance should not be separated in decision making as emphasised by the Dual Motive theory. The Modified Balanced Scorecard is appropriate for assessing the performance of primary AMCOS.