Effect of capacity building on organizational performance of multipurpose cooperative societies in Osun State of Nigeria

Abstract

Cooperative organization is a business model that has some significant potential towards economic development of Nigeria. Some of these potentials include employment generation poverty reduction; enhance gross domestic product (GDP); as well as rural development. But, before cooperative could be able to play these roles they need capacity building that will enhance their performance effectively. As such the study examined the effect of capacity building on the organizational performance of multipurpose cooperatives in Osun central federal senatorial district of Osun state, Nigeria. Data were obtained from 529 purposively selected management committee members across the study area. Data obtained were analyzed and evidence from the study revealed that, capacity building activities were well established among the cooperatives across the study area (Osun central district). The finding also revealed that the opinion of the respondents unanimously agreed to the indicators used in measuring the performance of their cooperative, and this was affirmed by the hypothesis two (H₀₂). Also, there was strong evidence from the study that capacity building has a strong effect on the performance of the cooperative and this finding correlate with the results of other studies. Therefore, in order to strengthen the capacity building in cooperative for effective and efficient performance of their organization, the following recommendations are made; there is need for re-orientation and sensitization of members and the employees of the cooperative so as to enhance their knowledge on the importance and benefit of capacity building. Also, the cooperative should try as much as they could to integrate and diversify their investment. Finally, the government should assist by making cooperative extension services compulsory and accessible to all cooperatives.

Keywords: Capacity building; Organizational Performance and multipurpose cooperative society