Analysis of social factors effects on Rural Production Cooperatives’ success Case Study: Boyer-Ahmad County

Extended Abstract
Introduction
Rural Production Cooperatives (RPCs) are one of different cooperative types that
play a crucial role in the rural people’s lives. The aim of this research was to analyze
social factors effects on RPCs’ success. Thus, a descriptive research based on
comparative view was used in this study. Research population consisted of the
members of Boyer-Ahmad County RPCs (N=1809) that about 317 ones of them
were selected as research sample based on random sampling table and stratified
sampling technique. Data collecting tool was a researcher developed questionnaire
that its validity was verified using Factor Analysis technique and its reliability was
also verified using Cronbach’s Alpha internal consistency scales. The KMO scores
(from 0.513 to 0.834) and Alpha Coefficient Scores (from 0.536 to 0.91) show
proper optimality of the prepared questionnaire. Moreover, Fuzzy Sets Theory was
used to quantify qualitative data, which were measured by a 7 options spectrum.
Finally, some statistical analysis techniques such as Pearson Correlation Coefficient,
Analysis of Variances, and Path Analysis were used to analyze data. The results 
showed that Boyer-Ahmad RPCs have not been very successful in reaching predetermined
goals (score 0.389 in a range from .012 to .975). Of course, Kakan RPCs
has a statistically significant difference in reaching the supposed goals comparing
other RPCs. The Path Analysis Coefficients showed that members’ knowledge, their
attitudes towards team work, responsibility of directors, RPC’s relationships with
related organizations, and members’ participation in RPC’s affairs have the most of
total effect on RPC’s Success (0.439, 0.253, 0.224, 0.194, and 0.172 respectively).
Introduction
Almost half the world's population lives in rural areas of developing countries, while
the majority of them are small farmers and their livelihood is through agriculture.
With regard to low efficiency of their activities due to some reasons i.e. lack of
using new technical knowledge and machines, cooperation and team work is very
useful to enhance their efficiency and to improve their economic status. Thus, today
one of the most important strategies of different countries either developing or
developed is to establish cooperatives in agricultural production system. Rural
Production Cooperatives (RPCs) is one example of such cooperatives. Thus, the aim
of this study was to analyze social factors influencing these cooperatives success in
Boyer-Ahmad County, Southwestern of Iran. Also, the objectives of this study were:
- To measure RPCs success in meeting predetermined goals;
- Comparison of different RPCs based on their level of success;
- To explain factors influencing these cooperatives success in the study area.
Methodology
A survey research method was used in this study. Research population consisted of
the members of RPCs in Boyer-Ahmad County (N=1809) that about 317 ones of
them were selected as research sample based on random sample size table and also
were studied based on stratified random sampling technique. A pre-structured
questionnaire was designed including 9 parts of different questions with Likert type
spectrum responses. Furthermore, the Fuzzy Sets Theory was used to quantify
qualitative data. Face validity technique was used using subject matter specialists' 
opinions to ensure the validity of the questionnaire. Also, to a pilot study was
conducted to test the reliability of the research tool. The calculated Cronbach's
Alpha (0.54- 0.91) showed the acceptable reliance of the supposed questionnaire.
Moreover, to evaluate the validity of the research concepts, construct validity
technique was used using factor analysis procedure. The results of KMO test (0.513
– 0.834) showed a proper construct validity of the questionnaire.
Findings
One of the goals of this study was to measure Boyer-Ahmad County RPCs' success
in meeting predetermined goals. RPCs goals were characterized in four main groups:
1. Providing agricultural inputs and production factors;
2. Providing infra-structural services;
3. Extension- education services;
4. After production services.
Research findings showed that the average success rate of RPCs in meeting
predetermined goals was in moderate to low range (0.389 in a range from 0.012 to
0.975). Furthermore, RPCs were more successful in providing inputs and production
factors, although there is no significant difference between their success rate in
meeting the above four main goals. Nevertheless, the supposed cooperatives are still
far from the ideal situation. To identify determinants of the success of RPCs,
Structural Equation Modeling was used using AMOSver.20 Software. Eight
variables (i.e. social capital, trust, communication, awareness towards principles of
cooperation, members' attitudes towards cooperation and team work, responsibility,
performance and participation) entered the model, while all variables were
significantly correlated with RPCs success. Overall, these dependent variables had
the ability to explain about 83% of RPCs success variance. Direct and indirect
effects of independent variables on dependent variable were also analyzed. The
results showed that "awareness towards principles of cooperation" has the greatest
effect on RPCs success (total effect=0.439), after that, other affect variables are
"members' attitudes towards cooperation and team work", responsibility,
participation, trust, performance and social capital respectively. 
Conclusion
Results of this study showed that the supposed cooperatives were not so successful
in meeting predetermined goals. Also, among a lot of variables, only eight variables
named awareness towards principles of cooperation, members' attitudes towards
cooperation and team work, communication, responsibility, participation, trust,
performance and social capital had significant effects on RPCs success. This results
showed that policy makers and planners should pay more attention to these
variables, especially how to strengthen them.