Factors affecting the Performance of Livestock based Cooperative Societies in Isiolo County, Kenya

Abstract

The study examined factors affecting the performance of livestock based cooperatives societies in Isiolo County. The specific objectives were: to find out the effect of organizational systems, to examine corporate governance, to identify the effect of leadership and to investigate organizational structure affects performance of the Livestock Based Cooperatives in Isiolo County. The study adopted descriptive research design. It was aided by the use of a questionnaire as the research instrument, specifically in relation to collection of primary data. The questionnaire was pre-tested for validity and reliability. The target population were cooperatives members, boards and clients situated in Isiolo county, central sub-county with active membership. In total, 205 questionnaires were distributed but only 152 successfully filled and returned giving a response rate of 74 percent. The data collected were edited and coded before analysis to check for consistency and completeness. Statistical package for social sciences (SPSS) and MS Excel was adopted for analysis. Data analysis was conducted descriptively (using frequency and percentages) and inferential (Chi square test) statistics to realize the set objectives. The respondents were selected using simple random sampling. The study revealed that 68 percent of the respondent on the organizational systems have no clear understanding of boundaries between departments. The study established further 91.4 percent of the interviewed alluded to adherence to the by-laws hence that there was a significant association (p<0.05) between adherence of bylaws with the board and staff dealings and members obtaining relevant information. The outcome of the study also disclosed that 74.4 percent of the interviewed showed leadership affect organizational performance of the cooperatives. In addition, 49.3 percent of the respondent shows cooperative receives funding from the donors that influences the organizational performance. The research concluded organizational systems, corporate governance, leadership and organizational structure are not well understood by the members and boards hence have effects on organizational performance of the cooperatives. Also, corporate governance and leadership are highly associated with the performance of the livestock based cooperatives. The study recommended for the triangulation with other non-deposit taking societies performance and review of the policies. The study also suggested for an organization’s review and its interrelationship in order to improve efficiently of each sub-unit. Further, the study called for the need to strengthen and build the capacity of members to appreciate its contribution towards ensuring fairness, equity and equality in the prosperous Sacco's, need for training programs on leadership and associated and regulating dynamics.