WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?

Research background: In the current competitive agricultural market, where substantial capital investment is required to pursue growth related competitive strategies, agricultural cooperatives’ performance mainly relies on members’ willingness to contribute equity capital. Members are the single and...

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Autores principales:	Tibebu BEZABIH, Fekadu BEYENE, Jema HAJI, Tesfaye LEMMA
Formato:	article
Lenguaje:	EN
Publicado:	Slovak University of Agriculture 2021
Materias:	agricultural cooperatives members’ willingness equity capital contribution binary logit ethiopia Agriculture S Agriculture (General) S1-972
Acceso en línea:	https://doaj.org/article/4813d216355e497daa7cbd907bfdc7b6
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spelling	oai:doaj.org-article:4813d216355e497daa7cbd907bfdc7b62021-11-10T21:23:34ZWHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?1336-926110.15414/raae.2021.24.02.50-61https://doaj.org/article/4813d216355e497daa7cbd907bfdc7b62021-10-01T00:00:00Zhttps://roaae.org/wp-content/uploads/RAAE_2_2021_Bezabih_et_al.pdfhttps://doaj.org/toc/1336-9261Research background: In the current competitive agricultural market, where substantial capital investment is required to pursue growth related competitive strategies, agricultural cooperatives’ performance mainly relies on members’ willingness to contribute equity capital. Members are the single and most important source of investment capital. Purpose of the article: This study investigated factors influencing members’ willingness to contribute equity capital to their agricultural cooperatives in Ethiopia with the intention of providing empirical evidences to decision makers with regard to specific measures to be taken to enhance members’ willingness to contribute equity capital, and thereby improve agricultural cooperatives’ performance. Methods: Multi-stage random sampling technique was employed to select the study districts, farmer associations, agricultural cooperatives and respondent households. Semi-structured questionnaire was employed to collect cross-sectional data from randomly selected 214 households. The data were analysed using binary logistic regression model. Findings & value added: We found that education level; past role as a committee member; trust on other members’ commitment and directors’ leadership – influence positively and significantly members’ willingness to contribute equity capital. While age and perception on the cooperatives’ weaknesses affect negatively and significantly members’ willingness. The important policy recommendations are developing and fostering trust among members and between members and directors; re-orienting service provisions in line with the needs and interests of their members; assessing agricultural cooperatives’ performance depending on the values that their members expect to obtain from membership. This study investigated the influence of trust on members’ willingness to contribute equity capital, and hence will add value to better understanding of the role of trust in enhancing members’ commitment in cooperative organizations. Lastly, this cross-sectional survey study subjected to limitations associated with this type of study. Hence the generalizability of its results to other areas of agricultural cooperatives needs further investigation.Tibebu BEZABIHFekadu BEYENEJema HAJITesfaye LEMMASlovak University of Agriculturearticleagricultural cooperativesmembers’ willingnessequity capital contributionbinary logitethiopiaAgricultureSAgriculture (General)S1-972ENReview of Agricultural and Applied Economics, Vol 24, Iss 2, Pp 50-61 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	agricultural cooperatives members’ willingness equity capital contribution binary logit ethiopia Agriculture S Agriculture (General) S1-972
spellingShingle	agricultural cooperatives members’ willingness equity capital contribution binary logit ethiopia Agriculture S Agriculture (General) S1-972 Tibebu BEZABIH Fekadu BEYENE Jema HAJI Tesfaye LEMMA WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
description	Research background: In the current competitive agricultural market, where substantial capital investment is required to pursue growth related competitive strategies, agricultural cooperatives’ performance mainly relies on members’ willingness to contribute equity capital. Members are the single and most important source of investment capital. Purpose of the article: This study investigated factors influencing members’ willingness to contribute equity capital to their agricultural cooperatives in Ethiopia with the intention of providing empirical evidences to decision makers with regard to specific measures to be taken to enhance members’ willingness to contribute equity capital, and thereby improve agricultural cooperatives’ performance. Methods: Multi-stage random sampling technique was employed to select the study districts, farmer associations, agricultural cooperatives and respondent households. Semi-structured questionnaire was employed to collect cross-sectional data from randomly selected 214 households. The data were analysed using binary logistic regression model. Findings & value added: We found that education level; past role as a committee member; trust on other members’ commitment and directors’ leadership – influence positively and significantly members’ willingness to contribute equity capital. While age and perception on the cooperatives’ weaknesses affect negatively and significantly members’ willingness. The important policy recommendations are developing and fostering trust among members and between members and directors; re-orienting service provisions in line with the needs and interests of their members; assessing agricultural cooperatives’ performance depending on the values that their members expect to obtain from membership. This study investigated the influence of trust on members’ willingness to contribute equity capital, and hence will add value to better understanding of the role of trust in enhancing members’ commitment in cooperative organizations. Lastly, this cross-sectional survey study subjected to limitations associated with this type of study. Hence the generalizability of its results to other areas of agricultural cooperatives needs further investigation.
format	article
author	Tibebu BEZABIH Fekadu BEYENE Jema HAJI Tesfaye LEMMA
author_facet	Tibebu BEZABIH Fekadu BEYENE Jema HAJI Tesfaye LEMMA
author_sort	Tibebu BEZABIH
title	WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
title_short	WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
title_full	WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
title_fullStr	WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
title_full_unstemmed	WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?
title_sort	what factors are influencing members willingness to contribute equity capital in agricultural cooperatives?
publisher	Slovak University of Agriculture
publishDate	2021
url	https://doaj.org/article/4813d216355e497daa7cbd907bfdc7b6
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WHAT FACTORS ARE INFLUENCING MEMBERS WILLINGNESS TO CONTRIBUTE EQUITY CAPITAL IN AGRICULTURAL COOPERATIVES?

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