Integrated Framework for Governance of Cooperative: An Interpretive Structural Modeling Approach

Background: The concerns for cooperatives are related to both economic and governance and regulatory concerns and governance issues holds high importance. The study aims at identifying the key governance enablers for enhancing the efficiency of cooperatives.

Methods Used: The study uses critical review of existing literature to identify the factors that cooperatives take into consideration while choosing a particular human resource for governance. The research also explores the decision of selecting local governance bodies in a cooperative and examines the decisions taken by the personnel. The study uses Interpretive Structural modeling to build a theoretical framework for the variables found out from the literature.

Findings: The framework gives a basic guideline for strategizing the decisions taken by the statutory decision making body. The framework includes both internal and external variables to measure the performance of the cooperatives with special reference to the decisions taken by the decision making authority. The results also classify the variables using MICMAC analysis which would help in understanding their ramifications. The prime challenge identified is trust which drives regulatory concerns, qualities of the leader, commitment of stakeholders and work culture. The performance of the cooperatives is the desired output which is placed at topmost of the hierarchy.

Applications: The study helps to analyze the linkages between the factors and would help them to fight against the challenges in a sequential manner rather than in a haphazard manner thereby enhancing their efficiency and reduce their turnaround time to resolves issues.