Effect of non-financial attributes on operational performance of dairy cooperative societies in Kiambu county, Kenya

Abstract

This study examined the effect of non-financial attributes, specifically aggregation strategies, technology adoption, and governance practices, on dairy cooperative societies' operational performance in Kiambu County, Kenya. Given the increased interest in cooperative sustainability beyond financial inputs, the study sought to ascertain the effect of these organizational factors on productivity and member rewards. A descriptive research design was employed, with a stratified purposive sample of 78 individuals comprising of cooperative managers, board members, and other key stakeholders from 19 county registered dairy cooperatives. Data were collected using structured questionnaires and supplemented with secondary data on milk production and payment rates. Reliability was ascertained through Cronbach's alpha (α > 0.7 for all factors), whereas data were analyzed with the help of descriptive and inferential statistics, notably multiple regression analysis. It was discovered that all the three non-financial attributes had positive and statistically significant correlations with operational performance. The study indicates that the cooperatives should invest more in institutionalized aggregation processes, adopt technologies and improve governance practices to increase operational performance. Policy formulation and strategic planning for Kenya's dairy sector and similar agricultural cooperatives in the developing economies can be guided by these findings.