Dynamic Governance and Innovation in Tanzanian Co-operatives:

Abstract

Dynamic governance has been recognized as a crucial strategy to enhance recruitment and innovation. However, its effectiveness in the Tanzanian cooperative sector remains unclear. This study investigated the impact of dynamic governance on cooperative innovation and examined how managerial recruitment mediates this relationship. A cross-sectional research design was employed, and proportionate random sampling was used to select 320 respondents. Partial least squares structural equation modeling was applied to analyse the data. The results indicate that dynamic governance, in the forms of deliberate decision-making, planning, and deployment of expertise, has a significant positive relationship with innovation. Additionally, the study confirmed that managerial recruitment moderates the relationship between planning and innovation. However, managerial recruitment did not moderate the relationships between deliberate decision-making and innovation or between the deployment of expertise and innovation. Therefore, it is recommended that the board should be meticulous in its recruitment practices, ensuring deliberate decision-making, effective planning, and the efficient deployment of recruited managers' expertise.