Determinants of Cooperative Development in Tigray, Ethiopia: The Case of Consumer Cooperatives in Mekelle

The predominant objective of this study was to investigate determinant factors affecting consumer cooperative development: The case of consumer cooperatives in Mekelle, Tigray. In response to the objective, a descriptive research design was employed by using a mixed research approach, which comprises both quantitative and qualitative methods. Both primary and secondary sources of data were used. A sample of 334 respondents was chosen using a random sampling technique. The data were analysed using SPSS. Pearson correlation and multiple linear regression model analysis were used. The study found that the intrinsic principles of cooperatives were not effectively practiced as they should have been, hence members lost a sense of ownership in their cooperatives. The governance system of consumer cooperatives—gender diversity and the board's academic qualifications had waned. The study found that cooperatives are led without policies and strategies, which would undoubtedly impede their development. Government interventions in managerial and decision-making processes limit the autonomy of cooperatives. The intrinsic principles of cooperative variables—user-owner, user benefit, user control, and the governance variables—board commitment, board communication, board gender diversity, board qualification, and government interventions proved to be statistically significant effects on the development of consumer cooperatives. This implies that effective use of these predictors enhances the development of consumer cooperatives in the study area. The study recommends that the government should develop a cooperative policy and strategy to boost cooperative development. The board's academic qualifications and gender diversity must be considered during general assembly meetings to achieve improved performance and governance in cooperatives. The government should refrain from intervening in the decision-making and managerial concerns of the cooperatives.