Factors Contributing for Members’ Satisfaction with Their Cooperatives: The Case of Cooperative in South Wollo Zone, Ethiopia

Abstract

This study explores the factors that contribute to the satisfaction of members in their cooperatives. A principal component factor solution, with data from cooperative members, delineates two factors that contribute to members’ satisfaction in their cooperatives. The two factors retained are labeled as ‘cooperatives’ internal management and operational issues’ (with 7 variables) and ‘members’ comparative feelings about their cooperatives with non cooperative businesses’ (with 5 variables) which explain 35.32 % and 33.93% of variance, respectively. Using the factor score, comparatively SACCO members are more satisfied than other cooperative members. In fact, over all cooperative members are satisfied by their cooperatives in both factors. The study found also that membership duration and members’ satisfaction on the ‘internal management and operational factor’ is negatively correlated. In general, in order to enhance members’ satisfaction, cooperatives should work on the management and resource administration, comparative speedy of service, comparative full availability of provisions and provision of special benefit to members’ etc.
Keywords: Cooperatives, Members satisfaction, Factor analysis, Satisfaction dimension