Effect of Cooperative Governance on business performance of agricultural Multipurpose Cooperative Unions in Oromia Regional State, Ethiopia

The purpose of this research was to analyze the effects of cooperative governance on business performance of the selected cooperative unions in Oromia. Co-relational research design was adopted and both qualitative and quantitative research methods were employed. Samples of 9 Cooperative unions were selected in Oromia regional state and from these selected cooperative unions 228 total sample size of the individual respondents were used for data collection. Data were collected from e both primary and secondary sources to achieve the objective of the study. Data were analyzed using multiple regression model. The study found that most of the cooperative governance indicators had a significant positive effect on business performance of agricultural multipurpose cooperatives union measured in profit margin and credit growth rate in the study area. But the equity and inclusiveness, legitimacy and transparency of board of directors had negative effect on the business activities of the cooperative union. Therefore, special attention should be provided to the implementation of cooperative good governance pillars for ensuring efficient business performances of cooperative union in the Oromia region.