An Assessment on Strategic Management Practices and Financial Performance of Selected Cooperatives in the 3rd District of Cotabato Province

Abstract

The study aimed to provide data about the socio-demographic profile of the cooperative board of directors and general managers, cooperative profile, level of adoption of strategic management practices of selected cooperatives, analysis of the financial performance from 2021-2023, effects of cooperatives‟ profile and strategic management practices to their financial performance, and comparison between strategic management practices and financial performance based on size.
It employed descriptive-causal research design with 22 cooperatives. This study used linear regression and Welch‟s ANOVA to analyze the data. The study showed that all of the cooperatives practiced strategic management activities. The data also revealed that all cooperatives experienced negative and low net profit margin in 2021 and had gradually improved as the pandemic subsided. In the aspect of debt-equity ratio, most of the cooperatives became conservative while others increased reliance on debt, some were less dependent on debts, and the rest were either balanced or at higher financial risk. In return on equity, the cooperatives were either excellent or consistent but low ratios, positively stable or inconsistent with lower returns and were stable but low or negative in ratio. In current ratio, the greater majority of cooperatives were liquid and few had extremely high ratios, indicating excessive cash reserves. The strategic management practices that significantly affect the financial performance are numbers of employees, task environment, and external environment. Meanwhile, the strategic management that significantly differ according to size were external environment and monitoring and audit.
The findings indicate that while all cooperatives consistently adopted strategic management practices, their financial performance reflected the disruptive impact of the pandemic, followed by gradual recovery as conditions improved. Variations in profitability, leverage, liquidity, and return on equity reveal differing financial strategies and risk profiles, with some cooperatives demonstrating resilience while others remained constrained by low or negative returns. Overall, specific strategic management factors – particularly workforce size, task and external environments, as well as monitoring and audit mechanisms – play a critical role in shaping financial outcomes and differentiating performance across cooperative size.