Board Strategic Leadership, Regulatory Framework and Growth of Agricultural Marketing Co-operative Societies in Simiyu, Tanzania

Abstract

This study examines the relationship between Board Strategic Leadership (BSL) and the growth of Agricultural Marketing Co-operatives (AMCOS) in Simiyu, Tanzania. Concurrently, it assesses the moderating role of the co-operative regulatory framework on this relationship, thereby addressing the notable empirical gap. Resource-Based Theory and Institutional Theory guided it. A cross-sectional survey design was employed, using a structured questionnaire for data collection and stratified random sampling to select 237 AMCOS managers (82.3% response rate). Data were analysed using Partial Least Squares Structural Equation Modelling(PLS-SEM) and linear regression. The findings revealed that BSL has a positive influence on AMCOS growth (β = 0.205, p = 0.012), with membership growth being the most prominent indicator, compared to asset growth and product innovation. Importantly, the regulatory framework significantly moderates this relationship (β = 0.03, p = 0.032) and has a direct effect on AMCOS growth (β = 0.388, p = 0.000). The study concludes that BSL is a significant driver of AMCOS's growth, with membership growth serving as the key indicator. This influence is significantly amplified by a supportive regulatory framework, highlighting a critical interplay between internal and external governance for the sustained co-operative success. The study provides policymakers in Tanzania with valuable insights to refine the cooperative regulatory framework, ensuring accountability, operational autonomy, clarity, and strategic flexibility for the AMCOS board. Additionally, it highlights the need for targeted training and capacity-building for leaders to enhance BSL and promote sustainable co-operative growth