Factors Influencing Cooperatives' Performance – A Case of Malaysian School Cooperative Movement

HRMARS - This study investigates the key internal factors influencing the performance of school cooperatives in Malaysia, particularly within the Federal Territory. The research, rooted in the Stakeholder Theory, examines how governance, leadership, and members’ participation influence both the operational outcomes of school cooperatives and their engagement with external stakeholders. It has been well understood that school cooperatives, while capable of nurturing entrepreneurial skills and democratic values among students, many still struggle with performance due to internal inefficiencies and weak stakeholder collaboration. A quantitative approach was employed, collecting data through structured online surveys targeting teachers and student board members of school cooperatives affiliated with a national cooperative federation in Malaysia. The results were analysed using descriptive statistics and multiple regression analysis. The findings confirmed that good governance, effective leadership, and active levels of member participation are found to enhance cooperative performance. Furthermore, the study finds that the involvement of external stakeholders (government bodies, parents, and cooperative associations) is not only an outcome of strong internal practices but also a contributing factor to performance itself. This research contributes new insights to the underexplored domain of school-based cooperatives in Malaysia. The results are of practical value for policymakers, cooperative leaders, and educators aiming to improve policies or governance models, leadership development, and stakeholder relationships within the cooperative ecosystem. By strengthening both internal mechanisms and external collaborations, school cooperatives can become resilient and impactful institutions supporting Malaysia’s broader educational and cooperative movements.