Linear regression for social and financial efficiency models
| Independent variables | Social efficiency | Financial efficiency | ||
|---|---|---|---|---|
| Coef. | Rob. SE. | Coef. | Rob. SE. | |
| Years since registration (AGE) | −0.0001 | 0.0008 | 0.0046** | 0.0023 |
| Squared Years registered (AGE_SQ) | 5.719e-07 | 6.69e-06 | −4.129 e-05** | 1.89e-05 |
| Piggery farming (PIGGERY)a | −6.586e-7 | 4.74e-07 | −4.145e-06*** | 7.08e-07 |
| Poultry farming (POULTRY)a | −1.829e-7 | 1.24e-07 | −1.525e-7 | 4.60e-07 |
| Cooperative size (COOPSIZEOP_1)b | −0.0033* | 0.0017 | −0.0101** | 0.0046 |
| Cooperative borrowings (COOPBORROW_2)b | −0.00156 | 0.0009 | 0.0014 | 0.0137 |
| Accounting and bookkeeping compliance (ACCBK_COMPL)a | 0.0047 | 0.0099 | −0.0109 | 0.0164 |
| Annual financial audit compliance (FINAUD_COMPL)a | −0.00136 | 0.0086 | 0.0352 | 0.0249 |
| VAT compliance (VAT_COMPL)a | 0.0053 | 0.0063 | −0.0508** | 0.0201 |
| Profit tax compliance (PROFIT_COMPL)b | −0.0038 | 0.0074 | 0.0430** | 0.0203 |
| Cooperative principles compliance (COOPPRINC_COMPL)a | −0.0021 | 0.0056 | −0.0039 | 0.0169 |
| _cons | 0.0137*** | 0.0047 | 0.1316*** | 0.0184 |
| Prob > F | 0.0012 | 0.0000 | ||
| R-squared | 0.0041 | 0.0469 | ||
| Observationsb | 385 | 387 | ||
Principal component analysis: Kaiser-Meyer-Olkin for membership dimensions
| Measure of sampling adequacy. | 0.762 | |
|---|---|---|
| Bartlett’s test of sphericity | Approx. Chi-square | 26512.374 |
| df | 435 | |
| Sig. | 0.000 | |
Principal component loading estimated scores for market access indicators – second round
| Component | PPC-1 | PPC-2 | PPC-3 | PPC-4 | PPC-5 | PPC-6 |
|---|---|---|---|---|---|---|
| Eigenvalues | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| % of variance | 12.50 | 12.50 | 12.50 | 12.50 | 12.50 | 12.50 |
| Cumulative % | 12.50 | 25.00 | 37.50 | 50.00 | 62.50 | 75.00 |
| Market access indicators | ||||||
| PC-2: Forestry1,2 | 0.7355 | |||||
| PC-4: Cropping1 | 0.6273 | |||||
| PC-5: Other activities1,2 | 0.8645 | |||||
| PC-3: Fruit, vegetable2 and livestock production2 | −0.4554 | −0.3903 | −0.3065 | |||
| PC-7: Cropping2 | 0.9002 | |||||
| PC-1: Fruit, vegetable1 and livestock production2 | 0.9341 | |||||
| PC-8: Formal market access | 0.9523 | |||||
| PC-6: Processing1,2 | 0.9331 |
ANOVA results for the K-means cluster analysis
| PC dimensions of market access | Cluster | Error | F | Sig. | ||
|---|---|---|---|---|---|---|
| Mean square | df | Mean square | df | |||
| Forestry1,2 and Cropping1 | 16.3371 | 5 | 0.8102 | 404 | 20.1647 | * |
| Other activities1,2 | 57.7742 | 5 | 0.2973 | 404 | 194.2980 | * |
| Cropping2 | 68.5028 | 5 | 0.1646 | 404 | 416.2533 | * |
| Fruit and vegetable1 and livestock2 | 45.7345 | 5 | 0.4464 | 404 | 102.4622 | * |
| Formal market access | 69.1460 | 5 | 0.1566 | 404 | 441.5217 | * |
| Processing1,2 | 3.4265 | 5 | 0.9700 | 404 | 3.5326 | * |
Input and output variables used in the DEA model to assess financial and social efficiency in the current year (in Rands)
| Specification | Indicators | Definition |
|---|---|---|
| Input variables | labour expensesa,b | annual wage expenses (Rand) |
| operating and financial expensesa,b | annual operating expenditure (Rand) | |
| Output variables | turnovera | annual turnover (Rand) |
| membershipb | number of registered members |
Principal component analysis: Total variance explained for membership dimensions
| Component | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
|---|---|---|---|---|---|---|---|---|---|
| Initial eigenvalues | total | 11.052 | 3.644 | 2.627 | 1.874 | 1.773 | 1.416 | 1.181 | 1.002 |
| % of variance | 36.840 | 12.147 | 8.756 | 6.248 | 5.910 | 4.722 | 3.936 | 3.341 | |
| cumulative % | 36.840 | 48.987 | 57.742 | 63.990 | 69.900 | 74.622 | 78.558 | 81.898 | |
| Extraction sums of squared | total | 11.052 | 3.644 | 2.627 | 1.874 | 1.773 | 1.416 | 1.181 | 1.002 |
| loadings | % of variance | 36.840 | 12.147 | 8.756 | 6.248 | 5.910 | 4.722 | 3.936 | 3.341 |
| cumulative % | 36.840 | 48.987 | 57.742 | 63.990 | 69.900 | 74.622 | 78.558 | 81.898 | |
| Rotation sums of squared | total | 10.551 | 3.807 | 2.574 | 1.969 | 1.859 | 1.380 | 1.230 | 1.199 |
| loadings | % of variance | 35.170 | 12.690 | 8.581 | 6.562 | 6.196 | 4.601 | 4.100 | 3.998 |
| cumulative % | 35.170 | 47.860 | 56.441 | 63.003 | 69.199 | 73.800 | 77.900 | 81.898 | |
| Female AGM | 0.988 | ||||||||
| Female last AGM | 0.984 | ||||||||
| Female active | 0.980 | ||||||||
| Youth active | 0.980 | ||||||||
| Youth registered | 0.978 | ||||||||
| Youth AGM | 0.977 | ||||||||
| Male AGM | 0.961 | ||||||||
| Male last AGM | 0.960 | ||||||||
| Male active | 0.958 | ||||||||
| Female registered | 0.931 | ||||||||
| Male registered | 0.916 | ||||||||
| Number of employees (FT.) | 0.982 | ||||||||
| Female employees (FT) | 0.968 | ||||||||
| Male Employees (FT) | 0.953 | ||||||||
| Youth employees (FT) | 0.904 | ||||||||
| Female comm# chair | −0.877 | ||||||||
| Male comm# chair | 0.834 | ||||||||
| Male manager | 0.653 | ||||||||
| Female manager | −0.652 | ||||||||
| Disabled AGM | 0.946 | ||||||||
| Disabled registered | 0.938 | ||||||||
| Male employees (PT) | 0.836 | ||||||||
| Female employees (PT) | 0.757 | ||||||||
| Male mgmt comm# | 0.510 | ||||||||
| Youth mgmt comm# | 0.739 | ||||||||
| Youth comm# chair | 0.620 | 0.486 | |||||||
| Youth employees (PT) | 0.414 | 0.451 | |||||||
| Youth manager | 0.887 | ||||||||
| Disabled employees (FT) | 0.696 | ||||||||
| Female mgmt comm# | 0.570 | ||||||||
Agricultural cooperatives' market access dimensions across clusters
| PC dimensions of market access | 1 | 2 | 4 | 5 |
|---|---|---|---|---|
| Forestry1,2 and cropping1 | 1.2202 | −0.1546 | −0.5034 | 0.6133 |
| Other activities1,2 | 0.7725 | 0.0053 | −0.1241 | −0.4495 |
| Cropping2 | −0.5449 | −0.1110 | −0.1356 | 2.8866 |
| Fruit and vegetable1 and livestock2 | 0.0230 | 0.0528 | 0.0373 | −0.0600 |
| Formal market access | −0.5004 | −0.1140 | 0.1741 | 0.0904 |
| Processing1,2 | −0.4660 | 1.5491 | −0.61603 | 0.2036 |
| Observations | 69 | 92 | 189 | 31 |
Multinomial logistic (MNL) regression estimates (coefficients only)
| Cluster 1 (Forestry and Cropping, Other activities) | Cluster 2 (Processing, Fruit & vegetable and livestock production) | Cluster 5 (Cropping) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Independent variables | Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 |
| Financial efficiency (FIN_EFF) | −1.055 | 25.23** | 25.06** | 0.151 | −3.688 | −3.747 | 0.259 | 6.775 | 7.725 |
| Social efficiency (SOC_EFF) | 15.95 | 310.1*** | 328.1*** | 16.65 | 33.32 | 25.85 | 17.50* | 263.1 | 268.1 |
| Years since registration (AGE) | 0.0645 | −0.156** | −0.152** | 0.0558 | 0.0371 | 0.0370 | 0.00230 | 0.0136 | 0.0139 |
| Squared years registered (AGE_SQ) | 5.23e-4 | 1.47e-3** | 1.44e-3** | 9.35e-5 | 6.02e-5 | 5.93e-5 | 3.31e-4 | 8.01e-5 | 7.61e-5 |
| Animals (ANIMALS)a | −1.055*** | −1.187*** | −1.185*** | −1.349*** | −1.365*** | −1.368*** | −1.153* | −1.199* | −1.215* |
| Cooperative size (COOPSIZEOP_1)b | 0.447* | 1.703*** | 1.707*** | 0.310 | 0.338 | 0.318 | 0.415 | 1.297* | 1.320* |
| Cooperative borrowings (COOPBORROW_2)b | 0.306** | 0.694*** | 0.690*** | 0.212 | 0.240 | 0.243 | 0.279 | 0.0600 | 0.0589 |
| Active members (NUM_ACT) | 0.0136 | 0.0138 | 0.00671 | 0.0353 | 0.0349 | 0.0368 | 0.0304 | 0.0300 | 0.0323 |
| AGM attendees (NUM_AGM) | 0.0112 | 0.0120 | 0.00838 | 0.0304 | 0.0300 | 0.0302 | 0.0237 | 0.0233 | 0.0245 |
| Management committee (NUM_MGTCOM) | 0.106 | −0.127* | −0.128* | −0.0974* | −0.101* | −0.103* | 0.0513 | 0.0247 | 0.0206 |
| Managers (NUM_MGR) | 0.386 | 0.355 | 0.345 | 0.877** | 0.911** | 0.934** | 0.168 | 0.257 | 0.231 |
| Full-time employees (EMP_FT) | 0.0100 | 0.0101 | 0.0107 | −0.0166* | 0.0157 | 0.0146 | 0.0196 | 0.0198 | 0.0186 |
| Part-time employees (EMP_PT) | 0.0168 | 0.0233 | 0.0227 | 0.00619 | 0.00821 | 0.00877 | 0.0786 | 0.0960 | 0.100 |
| Financial management training (FIN_MGT)a | −0.852* | −0.867* | −0.954* | 0.0183 | 0.0152 | 0.0298 | 0.723 | 0.700 | 0.700 |
| Corporate governance training (CORP_GOV)a | 0.546 | 0.563 | 0.545 | −0.949* | −0.918* | −0.933* | 0.581 | 0.580 | 0.605 |
| Marketing training (MRKTING)a | 0.530 | 0.670 | 0.620 | 0.352 | 0.326 | 0.330 | 0.708 | 0.611 | 0.634 |
| Accounting and bookkeeping (ACC_BKPNG)a | 0.299 | −1.447** | −1.313** | 0.237 | 0.200 | 0.145 | 0.187 | 0.694 | 0.790 |
| Social efficiency residual (SOC_RES) | −294.7** | −287.1** | −17.81 | −18.35 | −246.6 | −256.6 | |||
| Financial efficiency residual (FIN_RES) | −26.43** | −25.54** | 3.701 | 3.765 | −6.756 | −7.542 | |||
| Financial x social efficiency (FIN_SOC) | −82.10* | 0.910 | −5.561 | ||||||
| _cons | 0.523 | −6.420** | −6.396** | 0.276 | 0.0245 | 0.0282 | −2.197*** | −6.044 | −6.217 |
Definitions and summary statistics of the variables used in the analysis
| Variable definition | Mean | Std. Dev. | Min | Max |
|---|---|---|---|---|
| DEA input variables | ||||
| Annual expenditure (in ‘000 rands) | 171.00 | 654.00 | 35.00 | 7546 |
| Annual wages (in ‘000 rands) | 87.00 | 619.00 | 11.00 | 1.16e+4 |
| DEA output variables | ||||
| Annual turnover (in ‘000 rands) | 332.00 | 2 052.00 | 10.00 | 3.80e+04 |
| Number of registered members | 30 | 158 | 1 | 2 565 |
| Second-stage explanatory variables | ||||
| Financial efficiency (FIN_EFF)a | 0.1682 | 0.1521 | 0.0029 | 1 |
| Social efficiency (Registered members) (SOC_EFF)a | 0.0136 | 0.0755 | 0.0000 | 1 |
| Years since registration (AGE) | 9.2598 | 14.6029 | 1 | 118 |
| Animals (ANIMALS)b | 0.22047 | 0.4151 | 0 | 1 |
| Cooperative size (COOPSIZEOP_1)c | 0.0051 | 1.0320 | −1.0747 | 14.099 |
| Cooperative borrowings (COOPBORROW_2)c | 0.0103 | 1.0340 | −1.5502 | 14.4676 |
| Active members (NUM_ACT) | 25.6089 | 144.6761 | 0 | 2 565 |
| AGM attendees (NUM_AGM) | 23.3700 | 142.2927 | 0 | 2 565 |
| Management committee (NUM_MGTCOM) | 5.5302 | 2.7639 | 0 | 20 |
| Managers (NUM_MGR) | 0.75066 | 0.4332 | 0 | 1 |
| Full-time employees (EMP_FT) | 5.7192 | 27.5902 | 0 | 500 |
| Part-time employees (EMP_PT) | 2.8084 | 9.7903 | 0 | 150 |
| Financial management training (FIN_MGT)b | 0.2572 | 0.4377 | 0 | 1 |
| Corporate governance training (CORP_GOV)b | 0.1207 | 0.3263 | 0 | 1 |
| Marketing training (MRKTING)b | 0.1575 | 0.3647 | 0 | 1 |
| Accounting and bookkeeping (ACC_BKPNG)b | 0.5958 | 0.4914 | 0 | 1 |
Variables used to compute cooperative size dimensions (n = 381)
| Variable | Mean | Std. Dev. | Min | Max |
|---|---|---|---|---|
| Expenditure (EXPENYR) | 176.00 | 611.00 | 0.06 | 6,875.00 |
| Turnover (TURNYR) | 379.00 | 185.00 | 0.05 | 2,710,000.00 |
| Annual wages (WAGEYR) | 59.00 | 186.00 | 0.03 | 2,645.00 |
| Total owed to creditors (OWEDYR) | 6.00 | 458.00 | 0 | 650.00 |
| Outstanding Loans (banks) (LOANYR) | 8.00 | 587.00 | 0 | 650.00 |
Principal component loading estimated scores for market access indicators – first round
| Component | PC-1 | PC-2 | PC-3 | PC-4 | PC-5 | PC-6 | PC-7 | PC-8 |
|---|---|---|---|---|---|---|---|---|
| Eigenvalues | 1.92 | 1.62 | 1.52 | 1.38 | 1.33 | 1.14 | 1.11 | 1.00 |
| % of variance | 12.80 | 10.80 | 10.12 | 9.17 | 8.88 | 7.63 | 7.42 | 6.69 |
| Cumulative % | 12.80 | 23.60 | 33.72 | 42.89 | 51.77 | 59.40 | 66.82 | 73.51 |
| Market access indicators | ||||||||
| Fruit and vegetables1 | 0.8013 | −0.3867 | ||||||
| Livestock1 | −0.7503 | −0.3957 | ||||||
| Fruit and vegetables2 | −0.5907 | 0.4608 | −0.3115 | |||||
| Livestock2 | 0.4991 | 0.4852 | −0.3120 | |||||
| Forestry2 | 0.8610 | |||||||
| Forestry1 | 0.8568 | |||||||
| None specified2 | −0.9358 | |||||||
| Fisheries1 | −0.3553 | |||||||
| Crops1 | 0.9637 | |||||||
| Other1 | 0.8249 | |||||||
| Processing1 | 0.8272 | |||||||
| Processing2 | 0.5066 | 0.6051 | ||||||
| Crops2 | 0.9571 | |||||||
| Formal market access | 0.6850 | |||||||
| Other2 | 0.3892 | −0.3220 | 0.5688 |