Dynamic Governance and Innovation in Tanzanian Co-operatives

Abstract

Dynamic governance is increasingly recognised as an important approach for strengthening organisational processes and fostering innovation. However, its role within Tanzanian co-operatives remains unclear. This study examines how dynamic governance is associated with innovation in cooperatives and explores whether managerial recruitment strengthens these relationships. A crosssectional design was used, with data collected from 320 respondents through proportionate random sampling. The data were analysed using Partial Least Squares Structural Equation Modelling (PLSSEM). The findings show that key dimensions of dynamic governance deliberate decision-making (β = 0.141, p = 0.010), planning (β = 0.219, p < 0.001), and deployment of expertise (β = -0.139, p = 0.035) are significantly associated with innovation. The model explains a moderate proportion of variation in innovation (R² = 0.48), with effects ranging from small to moderate in magnitude. In addition, managerial recruitment strengthens the relationship between planning and innovation (β = 0.208, p = 0.002), but does not significantly influence the other governance dimensions. In conclusion, the findings suggest that aligning recruitment practices with planning processes can play a meaningful role in enhancing innovation in co-operatives. The study contributes to theory by showing that recruitment acts as a context-dependent mechanism through which governance practices translate into innovation outcomes.