The Role of Social Network, Social Norms and Trust Towards Board Active Participation Behavior in Cooperative Governance

Abstract

Objective: The purpose of this paper is to determine the relationship between social factors i.e. : Social network, social norms and trust, and its relationship with board members active participation behavior (BAPB) in cooperative governance. Methodology: A questionnaire survey was administered to 500 board members from cooperatives throughout Peninsular Malaysia.  The hypotheses path was tested by conducting coefficient regression analysis and Structural Equation Modeling (SEM) Results:. The research found a positive correlation between social network and social norms with BAPB. However, there is no relationship between trust and BAPB. Implications: This research presents a conceptually yet empirically supported framework to describe the role of social network, social norms and trust for an in-depth understanding on board processes. The study particularly looks into the importance of social factors and its impact towards BAPB, from the perspective of social capital development. This paper gives valuable reference to administrator of cooperative organization for a formulation of a comprehensive human capital strategic plan for cooperatives.