Measuring Efficiency of Operational Performance of Cooperatives Which Borrow Money from the Cooperative Development Funds
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Abstract
The objective of this study is to evaluate the operational performance efficiency of cooperatives which borrow money from the Cooperative Development Funds. A sample group of 50 cooperatives was selected for analysis by using the Data Envelopment Analysis (DEA) method with the calculation of factors of production (Input orientation) and analysis of the factors of production (Output orientation). Data about the volume of cooperative’s borrowing and the interest rate are collected from the Cooperative Development Fund, 2019, and the data of the operational performance of cooperatives in which borrowed money from the Cooperative Development Funds are collected from the Cooperative Auditing Department. There are variable factors of production (Input factor), including the amount of the loan. interest rate and the factors of production (Output factor) are including the business volume, income and net profit (loss) for evaluating the operational efficiency of cooperatives under the condition of assumption (CRS) and variable yields (VRS).
The study found that, most of cooperatives have the operational performance lower than the optimum level. There are only 5 cooperatives have an efficiency and also have an appropriate production scale. Excess production and missing productivity (Input Slacks and Output Slacks) of the cooperative. After consideration, it was found that the excess factors of production occurred with the amount of the loan. For the shortage of output will occur with business volume, income, and net profit (loss), cooperatives should increase the cooperative’s business by investigate demand of the cooperative’s member to increase the business volume. Therefore, if the cooperative can take the above factors take into consideration to improve and develop the efficiency of their cooperatives. It will be able to reflect the operational performance efficient of the cooperatives which borrowed money from the Cooperative Development Funds.
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