Board Capital, Organizational Capital and Organizational Performance of Agricultural and Non-Agricultural Co-operatives in Thailand
Co-operatives in Thailand have played an important role in promoting self-reliance and financial advantages for their members. However, these co-operatives have also encountered their own technical and financial performance issues. This study asks whether a co-operative’s board capital (i.e., human capital and social capital) can positively influence that co-operative’s organizational performance via the mediating role of organizational capital (i.e., structural capital and financial capital). Data were collected from 133 co-operatives in several regions in Thailand, with the population sample comprising 133 managers and 529 employees of Thai co-operative businesses. Structural equation modeling (SEM) analysis of aggregated employee data (n = 529 [board capital]) and organizational-level data (n = 133 [organizational capital and organizational performance]) provided full support for the proposed hypotheses (X2/df = 1.827, RMSEA = .079, CFI = 0.911, TLI = 0.901, SRMR = 0.053). In particular, the board capital of the co-operatives was found to positively influence organizational performance via the mediating role of organizational capital. Furthermore, the results showed that agricultural co-operatives were rated significantly lower in terms of their board capital and organizational performance in comparison to non-agricultural co-operatives. These findings highlight the importance of different types of capital and the discrepancies that exist between agricultural and non-agricultural co-operatives, which deserves further attention from researchers.
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