Strategic management in cooperative development : case study of Mbozi, Morogoro and Songea - Namtumbo cooperative unions in Tanzania

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Sokoine University of Agriculture


This study was conducted in Mbozi, Morogoro and Songea Namutumbo cooperative unions. The study areas were selected on the basis of the ailing performance of their respective cooperative unions. The problem which this study strove to address was that after the International Monetary Fund having introduced structural adjustment programs came trade liberalization which allowed many key players in agriculture, where cooperative unions used to operate. Cooperative unions failed to compete under such competitive business environment, the issue at stake was to assess the extent to which strategic management influences the performance of the studied cases. The overall objective of this study was to assess the contribution of strategic management in the management of cooperative unions in Tanzania. The justification of the study is premised on the need for transforming agriculture by putting farmer members and cooperative unions at the centre of economic development for the betterment of the rural poor. A sample of 795 respondents was selected out of the population of 2375, random sampling technique was used to select sampling units thus obtaining 808, 692 and 875 farmer members from each union, thereafter proportional reallocation was computed from each union hence obtaining 270 farmer members from MBOCU, 232 from MOFACL) and 293 farmer members from SONAMCU. Purposive sampling technique was applied in interviews. Both primary and secondary data collection methods were used, the former involved questionnaires. The latter involved reviewing performance reports and reading news papers. Descriptive statistics was applied in the analysis of quantitative data where frequencies, percentages and chi-square were used to analyse results. Content analysis was applied on qualitative data based on verbal discussion and observation. The results of the study indicated that the use of strategic management in the study lacked. Strategic leadership failed to take participatory approach to influence the studied cases. Productivity across the studied cases dwindled due to competition. The study recommends that for competitive viability cooperative unions iii should have corporate plans. Strategic leadership among others should manage the strategic management process. For productivity improvement policy makers and top managers of cooperative unions should ensure that agricultural inputs were available and affordable.




Cooperative Union, Strategic leadership, Mbozi, Morogoro, Namtumbo-Songea