IMPACT OF GOOD GOVERNANCE ON PERFORMANCE OF COOPERATIVES IN NEPAL

This paper examines governance practices and their impact on the performance of selected Nepalese cooperatives. In order to address the objectives of the study, 400 sample members from eighteen primary cooperatives in provinces 3 and 6 of Nepal have been identified by stratified random sampling technique to collect primary data with a semi-structured questionnaire. The collected data have been analyzed using SPSS (version 23). Statistical tools like regression, correlation and chi-square tests were applied. The findings revealed that there is significant and positive relationship between professionalization; accountability and performance of cooperatives. Similarly, there are insignificant but positive relationships between participation; transparency and performance of cooperatives. However, there is an insignificant and negative relationship between legitimacy and performance of cooperatives. In conclusion, the performance of cooperatives depends on existence of factors of good governance such as legitimacy, participation, professionalization, accountability and transparency with honesty. On the basis of the study, it is concluded that good governance in cooperatives is the single most important panacea to uplift quality of life of members through economic, social, cultural and technological change in their practical lives. The paper contributes to the literature by identifying factors of good governance for performance of cooperatives from a developing country perspective.