A Structural Equation Model of Fund Management and Member Self-Reliance in Thai Village Financial Institutions: A Case Study of the Ban Huai Thuan Village Fund
Article Sidebar
Main Article Content
Abstract
Community financial organizations create capital systems, developing grassroots economies while village funds strengthen members’ self-reliance. This study aimed to analyze the consistency of the member self-reliance model and examine the direct, indirect, and total associations between the proposed factors and the self-reliance of Ban Huai Thuan Village Fund members. Using simple random sampling, 260 fund members completed questionnaires. Data analysis employed Structural Equation Modeling to examine model consistency between the proposed model and the empirical data, as well as to explore the associations among variables. Results demonstrated that a structural equation model of fund management and member self-reliance in Thai Village Financial Institutions is consistent with empirical data, as indicated by indices: χ² = 54.847, df = 42, p value = .0883, χ²/df = 1.305, CFI = 0.996, TLI = 0.992, RMSEA = 0.034, SRMR = 0.026. It was also found that fund management and the strength of the fund are positively associated with member self-reliance. Fund management is positively related to the strength of the fund and is indirectly associated with member self-reliance through its relationship with fund strength. Fund management shows the strongest association with member self-reliance, followed by fund strength.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
• Adams, J., Nishikawa, T., & Rao, R. (2016). Mutual fund performance, management teams, and boards. Journal of Banking and Finance, 92(C), 358–368. https://doi.org/10.1016/j.jbankfin.2016.09.006
• Adeniyi, O. B., & Yoloye, T. W. (2021). Cooperative society’s fund creation and economic strength promotion among teachers in Ibadan, Oyo State, Nigeria. Interdisciplinary Journal of Rural and Community Studies, 3(2), 23–29. https://doi.org/10.51986/ijrcs-2021.vol3.02.03
• Armendáriz, B., & Morduch, J. (2010). The economics of microfinance (2nd ed.). MIT Press.
• Ban Huai Thuan Village Fund. (2024). Phonkan damnoenngan kongthun muban Ban Huai Thuan [Report on the operations of Huai Thuan Village Fund]. https://drive.google.com/file/d/1LYfBridwS0WSe_sk6aNa7RA97of1QNTb/view?usp=sharing
• Benjamin, L., Rubin, J., & Zielenbach, S. (2004). Community development financial institutions: Current issues and future prospects. Journal of Urban Affairs, 26(2), 177–195. https://doi.org/10.1111/j.0735-2166.2004.00196.x
• Benmira, S., & Agboola, M. (2021). Evolution of leadership theory. BMJ Leader, 5, 3–5. https://doi.org/10.1136/leader-2020-000296
• Cahyandari, R., Ibrahim, R., & Yuningsih, S. (2024). The influence of accountability, transparency and community participation on the effectiveness of Cibungur Tasikmalaya Village Fund Management. International Journal of Humanities, Law, and Politics, 2(2), 62–67. https://doi.org/10.46336/ijhlp.v2i1.81
• Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94(1), S95–S120. http://www.jstor.org/stable/2780243
• Cropanzano, R., & Lehman, M. (2023). What Henri Fayol couldn’t know: Managing gig workers in the new economy. Organizational Dynamics, 52(4), Article 100123. https://doi.org/10.1016/j.orgdyn.2023.101010
• Department of Community Development. (2015). Phan patibat ratchakan krom kan phatthana chumchon pracham pi ph.s. 2559 [Annual action plan of the Department of Community Development for the year 2016]. BTS Press Co., Ltd. https://plan.cdd.go.th/wp-content/uploads/sites/97/2017/05/แผนปฏิบัติราชการกรมฯ-ประจำปี-พ.ศ.-2558.pdf
• Fields, D. (2015). Contesting the financialization of urban space: Community organizations and the struggle to preserve affordable rental housing in New York City. Journal of Urban Affairs, 37(2), 144–165. https://doi.org/10.1111/juaf.12098
• Fienberg, S. (1971). Randomization and social affairs: The 1970 Draft Lottery. Science, 171 (3968), 255–261. https://doi.org/10.1126/science.171.3968.255
• Fithriana, N., Eka, F., & Sasmito, C. (2023). The influence of village funds on community empowerment in tourism villages. Jurnal Inovasi Ilmu Sosial Dan Politik, 5(1), 1–13. https://doi.org/10.33474/jisop.v5i1.19206
• Freitas, A. da C., & Costa, H. da. (2022). Enhancing community welfare: Analysis of village fund management in the socio-economic sector. Law and Economics, 16(1), 15–29. https://doi.org/10.35335/laweco.v16i1.49
• Gilroy, H., Symes, L., & McFarlane, J. (2015). Economic solvency in the context of violence against women: a concept analysis. Health & Social Care in the Community, 23(2), 97–106. https://doi.org/10.1111/hsc.12103
• Goldman, E., Sun, Z., & Zhou, X. (2016). The effect of management design on the portfolio concentration and performance of mutual funds. Financial Analysts Journal, 72(4), 49–61. https://doi.org/10.2469/faj.v72.n4.9
• Gross, J., & Böhm, R. (2020). Voluntary restrictions on self-reliance increase cooperation and mitigate wealth inequality. Proceedings of the National Academy of Sciences of the United States of America, 117(46), 29202–29211. https://doi.org/10.1073/pnas.2013744117
• Gross, J., Veistola, S., De Dreu, C., & Van Dijk, E. (2020). Self-reliance crowds out group cooperation and increases wealth inequality. Nature Communications, 11, Article 5161. https://doi.org/10.1038/s41467-020-18896-6
• Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Pearson Education International.
• Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modelling: Guidelines for determining model fit. Electronic Journal of Business Research Methods, 6(1), 53–60. https://doi.org/10.21427/D7CF7R
• Hutsalenko, L. (2019). Kontrolʹ v systemi upravlinnia [Control in the management system]. Bukhhaltersʹkyi oblik i finansy [Accounting and Finance], 1(83), 5–10. https://doi.org/10.33146/2307-9878-2019-1(83)-5-10
• Ilmi, M., & Mustofa, M. (2020). Determinants of village fund management in improving village development and economy. Sriwijaya International Journal of Dynamic Economics and Business, 4(1), 31–42. https://doi.org/10.29259/sijdeb.v4i1.31 42
• Irfan, M., Alaloul, W. S., Ghufran, M., Yaseen, G., Thaheem, M. J., Qureshi, A. H., & Bilal, M. (2024). Analyzing the impact of organizational culture on social sustainability: A perspective of the construction industry. Environment, Development and Sustainability, 26(1), 1103–1133. https://doi.org/10.1007/s10668-022-02751-3
• Ivanyuta, P., Pirozhok, S., & Boiko, V. (2022). The characteristic of planning as development on its business-processes the company. Problems of Innovation and Investment Development, 29, Article 9. https://doi.org/10.33813/2224-1213.29.2022.9
• Kulsum, U., & Bratamanggala, R. (2024). Exploratory review of factors that influence village financial management. Journal of World Science, 3(6), 667–674. https://doi.org/10.58344/jws.v3i6.628
• Kumar, N., Raghunathan, K., Arrieta, A., Jilani, A., & Pandey, S. (2021). The power of the collective empowers women: Evidence from self-help groups in India. World Development, 146, 1–18. https://doi.org/10.1016/J.WORLDDEV.2021.105579
• Kushandajani, K. (2024). The role of leadership and local capital on village fund management. International Journal of Social Science and Human Research, 7(3), 1497–1505. https://doi.org/10.47191/ijsshr/v7-i03-01
• Luengalongkot, P. (2023). The community development operation model of Ban Nam Sai Community, Thung Benja Sub-district, Tha Mai District, Chanthaburi Province. Community and Social Development Journal, 24(3), 125–139. https://doi.org/10.57260/rcmrj.2023.264522.
• Makovoz, O., & Ishchenko, V. (2024). Motyvatsiini komponenty upravlinnia personalom na pidpryiemstvakh [Motivation components of personnel management at enterprises]. Ekonomichnyĭ visnyk Natsionalʹnoho hirnychoho universytetu [Economic Bulletin of the National Mining University], 1(85), 99–106. https://doi.org/10.33271/ebdut/85.099
• Maneerat, S., & Chansom, N. (2023). Naothang kan chatkan kongthun muban khong prachachon nai Changwat Suphan Buri [Guidelines for managing people’s village funds in Suphan Buri Province]. Journal of Social Science Academic Network, 5(3), 66–80. https://so03.tci-thaijo.org/index.php/prn/article/view/272790
• Masella, M.-A., & Godard, B. (2024). The contribution of empowerment to bioethics in the obstetric care context. International Journal of Feminist Approaches to Bioethics, 17(1), 85–102. https://doi.org/10.3138/ijfab-2023-0015
• McCall, J., & Hoyman, M. (2021). Community Development Financial Institution (CDFI) program evaluation: A luxury but not a necessity? Community Development, (54), 91–121. https://doi.org/10.1080/15575330.2021.1976807
• Morduch, J. (1999). The microfinance promise. Journal of Economic Literature, 37(4), 1569–1614. https://doi.org/10.1257/jel.37.4.1569
• Narayan, D. (Ed.). (2002, June). Empowerment and poverty reduction: A sourcebook. World Bank. https://hdl.handle.net/10986/15239
• Nasution, M., Rusli, Z., Heriyanto, M., Syahza, A., Zulkarnaini, M., M., Mashur, D., & Ananda, F. (2025). Bibliometric analysis of rural economic development: Convergence between sustainable agriculture, digital technology, and community engagement for village self-reliance. International Journal of Sustainable Development and Planning, 20(1), 245–262. https://doi.org/10.18280/ijsdp.200123
• National Village and Urban Community Fund Branch 11. (2023). Ekkasan chut thot ong khwamru [Knowledge documentation series]. https://drive.google.com/file/d/11ajdA9zkeXJnXvP640YMyZtnaObParxW/view?usp=sharing
• Noinam, K., Wuttimethi, Y., & Wongkitroongruang, C. (2014). Khwam khemkhaeng khong sathaban kanngoen chumchon Pak Kred Ruamchai 2 Changwat Nonthaburi [The strength of the community financial institution, Pak Kred Ruamjai 2, Nonthaburi Province]. Journal of Modern Management, 12(1), 74–89. https://so04.tci-thaijo.org/index.php/stou-sms-pr/article/view/21257
• North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.
• Office of the Attorney General. (2017). Khumu kan sang mattrathan kan borihan chatkan phuea kan fuenfu lae phatthana sakkayaphap kongthun muban lae chumchon mueang [Handbook for establishing management standards for the rehabilitation and development of village and urban community funds]. Printing Department, Veterans Affairs Organization under the Royal Patronage. https://inspectorkm.rta.mi.th/ilc60/images/Manage_community/Other_2-13.pdf
• Olsen, T. D. (2017). Rethinking collective action: The co-evolution of the state and institutional entrepreneurs in emerging economies. Organization Studies, 38(1), 31–52. https://doi.org/10.1177/0170840616670440
• Ostrom, E. (1990). Governing the commons: The evolution of institutions for collective action. Cambridge University Press.
• Pan, H., Kwak, Y., & Deal, B. (2022). Participatory development of planning support systems to improve empowerment and localization. Journal of Urban Technology, 29(2), 33–54. https://doi.org/10.1080/10630732.2022.2031431
• Phutwanpen, T., & Yenyuek, S. (2023). Pattai thi song phon to khwam samret nai kan borihan kongthun muban lae chumchon mueang: Korani suksa Tambon Bang Duea Changwat Pathum Thani [Factors influencing the success of village and urban community fund management: A case study of Bang Duea Subdistrict, Pathum Thani Province]. Journal of Integrated Innovation Management, 3(2), 56–68. https://so12.tci-thaijo.org/index.php/IIDMJ/article/view/661
• Popko, O., & Golovash, B. (2020). Kontrolʹ yak chastyna systemy upravlinnia vnutrishnʹofirmovykh protsesiv [Control as part of the management system of internal processes]. Shliakhy pidvyshchennia efektyvnosti budivnytstva [Ways to Improve Construction Efficiency], 46, 155–162. https://doi.org/10.32347/2707-501x.2020.46.155-162
• Pretty, J. (2003). Social capital and the collective management of resources. Science, 302(5652), 1912–1914. https://doi.org/10.1126/science.1090847
• Putnam, R. D. (2000). Bowling alone: The collapse and revival of American Community. Simon & Schuster.
• Reginaldis, M. M., Supriyono, B., Setyowati, E., & Amin, F. (2024). Implementation of village fund allocation policy to realize village self-reliance. Revista de Gestão Social e Ambiental (RGSA), 18(5), Article e06651. https://doi.org/10.24857/rgsa.v18n5-131
• Sambas, M., & Saputro, G. E. (2024). Village fund management on the improvement of community economy. International Journal of Humanities Education and Social Sciences, 3(6), 2962–2968. https://doi.org/10.55227/ijhess.v3i6.981
• Schellenberg, G., Lu, C., Schimmele, C., & Hou, F. (2018). The correlates of self-assessed community belonging in Canada: Social capital, neighbourhood characteristics, and rootedness. Social Indicators Research, 140(2), 597–618. https://doi.org/10.1007/s11205-017-1783-1
• Schoeneborn, D., Kuhn, T., & Kärreman, D. (2018). The Communicative Constitution of Organization, Organizing, and Organizationality. Organization Studies, 40(4), 475–496. https://doi.org/10.1177/0170840618782284
• Segeda, I., & Onopriienko, K. (2021). Menedzhment yak integralʹna skladova restorannoho biznesu [Management as an integral component of the restaurant business]. Komunalʹne hospodarstvo mist [Municipal Economy of Cities], 5(165), 43–49. https://khg.kname.edu.ua/index.php/khg/article/view/5854
• Sen, A. (1999). Development as freedom. Oxford University Press.
• Sunu, M. K. K., & Utama, M. S. (2019). Pengaruh dana desa terhadap tingkat kemiskinan dan kesejahteraan masyarakat di kabupaten/kota provinsi Bali [The effect of village funds on poverty levels and community welfare in districts/cities of Bali Province]. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 8(8), 843–872. https://doi.org/10.24843/EEB.2019.v08.i08.p04
• Tisdell, C., & Ahmad, S. (2018). Microfinance: Economics and ethics. International Journal of Ethics and Systems, 34(3), 372–392. https://doi.org/10.1108/IJOES-02-2018-0028
• Van Rooyen, C., Stewart, R., & De Wet, T. (2012). The impact of microfinance in Sub-Saharan Africa. World Development, 40(11), 2249–2262. https://doi.org/10.1016/j.worlddev.2012.03.012
• Windusara, P. (2024). The influence of the use of village funds on village development and empowerment of the Kedonganan traditional village community. Jurnal Ilmu Sosial dan Pendidikan (JISIP), 8(3), 1638–1651. https://doi.org/10.58258/jisip.v8i3.7080
• Yusuf, S., Umanailo, M. C. B., Putri, R. N., Ely, D. Q. M., & Darma, D. (2019). Village institution relations in the utilization of village funds in Namlea District. International Journal of Scientific & Technology Research, 8(8), 1837–1842. https://www.ijstr.org/final-print/aug2019/-Village-Institution-Relations-In-The-Utilization-Of-Village-Funds-In-Namlea-District.pdf
