FUNDING-GOVERNANCE NEXUS AND COOPERATIVE SUSTAINABILITY IN MALAYSIA: EVIDENCE FROM SKM DATA (2020-2024)
DOI:
https://doi.org/10.55197/qjssh.v7si4.1550Keywords:
cooperative sustainability, funding factors, governance quality, Malaysia, panel dataAbstract
This study investigates the relationship between financing-related factors, specifically funding sources, funding allocation, and expenditure patterns, and cooperative sustainability in Malaysia's cooperative sector from 2020 to 2024, utilizing governance quality as a moderating institutional mechanism. The study specifically aims to: (i) investigate the correlation between funding source concentration and sustainability outcomes within cooperative size clusters; (ii) analyze disparities in funding allocation efficiency among cooperative functional categories; (iii) explore how expenditure patterns influence sustainability trajectories; and (iv) evaluate whether geographic performance variation aligns with governance quality as a moderating factor in the funding–sustainability relationship. The research utilizes secondary data from the 2024 Malaysian Cooperative Statistics issued by the Malaysian Cooperative Commission (SKM), encompassing 16,284 cooperatives from 2020 to 2024. The analysis use compound annual growth rates (CAGR) and ratio-based metrics to assess funding sources (equity and subscriptions), allocation efficiency (asset utilization), sustainability performance (revenue and membership expansion), and governance-related structural patterns. The results demonstrate that varied and internally sourced finance is positively correlated with sustainability, since large cooperatives dominate sectoral assets and exhibit more robust capital growth. Sustainability performance is more significantly affected by allocation efficiency than by asset size, and disciplined expenditure patterns enhance sustainability outcomes, with small cooperatives surpassing micro cooperatives. Substantial inter-state disparities in asset utilization further underscore the influence of governance quality as a moderating factor affecting financial efficacy. This study enhances the literature on cooperative sustainability by framing governance quality as a moderating institutional factor that influences the efficacy of financial resources, rather than as a direct determinant of performance. Policy implications underscore the necessity for size-specific measures, enhanced governance, and capacity-building initiatives to bolster cooperative sustainability in Malaysia.
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