Enhancing board motivation for competitive performance of Thailand’s co-operatives

This study aims to answer the main questions “does the motivation of co-operative boards of directors affect co-operative performance in Thailand, and to what extent?", and "Which factors affect the motivation of a co-operative's board of directors?" The methods used for the study is the Structural Equation Modeling (SEM). Data used for the model estimation are collected primarily by questionnaire surveys from both Board of directors and the managers from the co-operatives in Thailand. Secondary data is the financial and non-financial indicators of the co-operatives, which were collected by Co-operative Auditing Department and Co-operative Promotion Department. The study result suggests that the motivation of co-operative boards of directors significantly affects co-operative performance. Factors that are found to affect board member motivation include board authority and function, board composition, board meeting quality, board members' skill, transparency in the evaluation and compensation setting process and financial compensation.