Factors that influence the implementation of corporate governance practices in agricultural cooperatives in Ngozi province, Burundi

Abstract Corporate governance serves as a vital pillar for ensuring the sustainability and effective operation of agricultural cooperatives, particularly in developing countries like Burundi. This study focused on identifying the factors that influence the adoption of corporate governance practices (CGPs) in agricultural cooperatives withing Ngozi province. Data were collected from 307 respondents using a multistage sampling approach, and the analysis was conducted through the multivariate probit (MVP) regression model. The findings revealed that governance factors, including frequency of meetings (β = 0.46, significant at 5%), leaders’ understanding of tasks (β = 0.54, significant at 1%), involvement in decision-making (β = 0.35, significant at 10%), and leaders’ understanding of cooperative principles (β = 0.42, significant at 5%) had the most significant influence on CGPs. Institutional factors, such as access to information (β = 0.52, significant at 5%) also played a critical role. Socio-economic factors, including gender (β = -0.27, significant at 10%) and education (β = -0.21, significant at 1%), showed mixed effects on CGPs with gender negatively influencing transparency and fairness, while education positively influenced participation but negatively affected responsibility. As recommendation, the study underscores the importance of reinforcing governance structure through training programs focusing on building leadership capacity, promoting participatory decision-making. Moreover, improving access to critical information to all members by diversifying channels of communication is primordial to enhance the adoption of CGPs. In addition, addressing socio-economic disparities, such as gender inequality, is essential for fostering fair and sustainable governance practices withing agricultural cooperatives.