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Assessing the performance of co-operatives in Malaysia: an analysis of co-operative groups using a data envelopment analysis approach

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  • Azmah Othman
  • Norma Mansor
  • Fatimah Kari

Abstract

This study assesses the performance of co-operatives in Malaysia by evaluating 56 out of the 70 co-operative groups. The productivity and efficiency of the groups were evaluated in the first- and second-stage analysis by employing the data envelopment analysis and Tobit regression model. Despite the financial and non-financial support by the federal government and perceived significant role played by the co-operatives in the country's development, the findings indicate that the performance of co-operatives have not been satisfactory. Only 19.6% of the groups under study were found to be efficient and the 'big co-operatives' that comprise less than 2% of total co-operatives in the country dominated among the successful ones. The results endorse the general perception that co-operatives in Malaysia are facing challenges necessitating immediate attention.

Suggested Citation

  • Azmah Othman & Norma Mansor & Fatimah Kari, 2014. "Assessing the performance of co-operatives in Malaysia: an analysis of co-operative groups using a data envelopment analysis approach," Asia Pacific Business Review, Taylor & Francis Journals, vol. 20(3), pages 484-505, July.
    • Handle: RePEc:taf:apbizr:v:20:y:2014:i:3:p:484-505
    DOI: 10.1080/13602381.2014.933065
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    1. AfDB AfDB, 2013. "Millennium Development Goals (MDGs) Report 2013 - Executive Summary," MDG Report 471, African Development Bank.
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    2. Almudena Martínez-Campillo & Yolanda Fernández-Santos & María Pilar Sierra-Fernández, 2018. "How Well Have Social Economy Financial Institutions Performed During the Crisis Period? Exploring Financial and Social Efficiency in Spanish Credit Unions," Journal of Business Ethics, Springer, vol. 151(2), pages 319-336, August.
    3. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    4. Paolo Esposito & Emanuele Doronzo & Spiridione Lucio Dicorato, 2023. "The financial and green effects of cultural values on mission drifts in European social enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 1-29, January.

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