Factors Affecting the Success of Agricultural Cooperative Operations in the Lower Northeastern Region 1, Thailand

Abstract

Background and Aims: The development of Thailand’s agricultural sector continues to face persistent structural challenges, including fluctuating production costs, limited bargaining power of small-scale farmers, risks associated with climate change, and market and logistical constraints in rural areas. Agricultural cooperatives, therefore, serve as key socio-economic mechanisms for collective action. This study aimed to: (1) examine internal and external factors related to agricultural cooperatives, (2) assess the level of operational success of agricultural cooperatives, (3) analyze the factors influencing operational success of agricultural cooperatives in Lower Northeastern Region 1, and (4) propose development guidelines to enhance cooperative performance in the region.

Methodology: A mixed-methods approach was employed, utilizing questionnaires and interviews as research instruments. The sample consisted of 400 members of agricultural cooperatives in Lower Northeastern Region 1. The key informants included 10 cooperative managers and chairpersons from award-winning and nationally recognized outstanding cooperatives. Quantitative data were analyzed using mean, standard deviation, and multiple regression analysis, while qualitative data were analyzed through content analysis.

Results: The findings revealed that: (1) the overall levels of internal and external factors related to agricultural cooperatives were rated high, (2) the overall level of operational success of cooperatives was also high, (3) organizational management, participatory management, social factors, and technology significantly influenced cooperative success in Lower Northeastern Region 1 at the .05 level, with a predictive power of R² = .758 or 75.80 percent, and (4) development guidelines for cooperative success include: establishing clear organizational plans aligned with member needs, ensuring financial transparency and stringent budget management, promoting participatory decision-making and open communication channels, and implementing performance-based reward systems. Socially, the focus should be on strengthening social capital and networks with external organizations, adapting to consumer preferences that favor community-based products. In terms of technology, emphasis should be placed on developing integrated member information systems, promoting modern agricultural technologies, and utilizing market data analytics to design responsive products and marketing strategies.

Conclusion: The study concludes that both internal and external factors and the overall operational success of agricultural cooperatives were at high levels. Key determinants of success included organizational management, participatory management, social factors, and technology, all of which had statistically significant influence at the .05 level. Essential development strategies include transparent planning and budgeting, broadening member and staff participation, strengthening social capital and collaboration networks, and advancing the use of technology and information systems to enhance the efficiency and sustainability of agricultural cooperative operations in Lower Northeastern Region 1.