A REVIEW OF PERFORMANCE MEASUREMENT INDICATORS IN CO-OPERATIVES

Abstract

The performance measurement is important to assess the well-being of a cooperative. In addition, it provides evidence in supporting the principal-agent relationship. A co-operative with a good performance is asserted to pursue the interest of a principal rather than the agent own personal interest. A review of previous literature for the period of 2006- 2017 inclusive reveals that financial measures are being employed in most of the studies, with financial ratios are found to be greatly preferred. As the establishment of a co-operative is two-prongs; namely to serve the members, and to maximise profit, a standardised performance measurement of a co-operative that addressed these objectives needs to be developed.