Development of a Model for the Assessment of the Performance of Rural Producers’ Cooperatives: A Case Study of Isfahan Province, Iran

Abstract

The present study pursues a two-fold objective: to evaluate the performance of rural producers’ cooperatives in Isfahan Province, Iran, and to develop a general model for this purpose. To develop a model for the comprehensive assessment of rural producers’ cooperatives in Isfahan, the survey method is employed in the present descriptive-analytical study and use is made of an especially-designed questionnaire as well as the structural equation modelling. Efforts are also made to include in a most comprehensive and systematic manner all the parameters involved in rural producers’ cooperatives. The statistical population comprises all the membership and decision-making bodies (including the General Assembly, Board of Directors and Inspectors) of the cooperatives in Isfahan. The sample size as determined by Cochran’s formula comprises 375 people. Sampling is accomplished using a two-stage stratified and cluster sampling with simple random sampling included. Results indicate that 63.36% of the cooperatives investigated record a satisfactory performance and that, from among the independent variables, the Chief Executive Officer (CEO) behaviour records the highest direct impact on the performance of the cooperatives. Finally, the model fit indices reveal the capability of the proposed model in performing a comprehensive assessment of rural producers’ cooperatives.