The role of Co-operative joint enterprises in enhancing the sustainability of their members:

Abstract

Despite their growing importance in co-operative development, empirical research on the function of Co-operative Joint Enterprises (CJEs) in the sustainability of their member organisations in Tanzania is scarce. This study, based on economies of scale theory, examined the contributions of a prominent CJE in Lake Zone, with a focus on collective production, marketing, processing, and service delivery as sustainability measures. A case study design was used, using quantitative and qualitative data from 66 purposively selected union co-operative board members and key informant interviews with CJE management and operation managers. Descriptive statistics were used to analyse quantitative data, whilst content analysis was used to analyse qualitative data. The study findings revealed that CJEs are perceived to have a major impact on several aspects of sustainability. The majority of respondents recognised the CJE’s function in resource pooling (89.4%), promoting market access (84.8%), strengthening bargaining power (81.8%), and minimising economic shocks (75.7%). Furthermore, 78.8% perceived that the CJE has assisted governance and financial management training, while 72.7% supported ecologically friendly practices, particularly climate-smart agriculture. These achievements have resulted in higher household income, more intra-member cooperation, and greater socioeconomic resilience among union members. The study also revealed ongoing challenges that prevent the full realisation of CJE’s sustainability initiatives. These include limited access to financial services (71.2%), weak governance frameworks (65.2%), insufficient infrastructure (63.6%), and turbulent market conditions. The study concludes that while CJEs provide a realistic paradigm for their members’ sustainability, focused policy interventions are required. The study recommends enhancing access to finance, increasing governance capabilities, investing in infrastructure, and encouraging adaptive market strategies. The study recommends further longitudinal research to assess the long-term socioeconomic impacts of CJEs on member livelihoods, thereby providing strong evidence to inform policy and scale sustainable co-operative models.