Strategic Planning, Internal Control and Capability Toward Sustainable Performance of Cooperatives

This study examines the relationship between strategic planning, internal control, capability, and sustainable performance in Malaysian cooperatives. It focuses on the mediating role of capability in linking strategic planning to performance outcomes and examines the moderator effect of strategic planning between internal control and sustainable performance. This study employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine data collected from 132 cooperatives in Malaysia, particularly in medium and large sizes. Results indicate that strategic planning and internal control do not directly impact sustainable performance, while capability has a positive effect. Capability significantly mediates the relationship between strategic planning and sustainable performance. While strategic planning moderates the relationship between internal control and sustainable performance, the effect is nonsignificant. This study is expected to contribute to the body of knowledge by supporting previous studies and advancing literature about the understudied variables. Despite its focus on Malaysian cooperatives and reliance on questionnaire-based data, which may introduce biases or inaccuracies, the findings provide valuable insights for advancing research on strategic planning, internal control, and capability. This study contributes to the theoretical understanding of these factors, supporting prior research and offering practical implications for enhancing performance in cooperative organisations.