Good governance practice for better performance of Credit Union Cooperatives : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Governance is a mechanism used to monitor and ensure the effective control of an organisation. Good governance ensures that shareholders’ and stakeholders’ interests are well-balanced since that helps the business to operate efficiently and sustainably. Good governance has recently become a crucial issue because poor governance leads to the failure of many organisations both financially and socially. Thailand has experienced failure to implement good governance, especially in the cooperative sector, e.g., Klongchan Credit Union Cooperative is currently facing scandals of poor governance such as corruption and lack of members’ governance awareness. Understanding governance practice on credit union cooperatives (CUCs) performance and member awareness is important for policymakers to resolve and prevent the problems of poor governance. This study explores the level of good governance awareness among Thai CUC members, the impact of governance practice on performance and the factors hindering good governance practice in Thai CUCs. Data were obtained from 36 selected Thai CUCs. A questionnaire survey is used to discover the level of good governance awareness and the factors that hinder good governance from the members’ perspective. The annual reports and financial statements of the selected CUCs from 2014-2017 are used to examine the impact of governance practice on CUC performance. Thai CUC members have high levels of governance awareness. Members of different CUC types and sizes have different levels of governance awareness. Many factors (e.g., individual members’ characteristics, experience, and perceptions) influence CUC members’ awareness of governance issues. Members’ characteristics (e.g., gender, age, marital status, income, occupation, and education level) have mixed impacts on each governance principle and mechanism. Length of membership, knowledge, attitude, and perceptions towards CUCs are significant in governance awareness. The impact of governance practices on financial and social performance of Thai CUC vary. For members’ governance practices, the percentage of members at the annual general meeting impacts Thai CUC financial performance. For the board of directors’ governance practices, board size, gender percentages on the board, the chairperson’s education level and the number of sub-committees are significant in Thai CUC performance. For governance practices related to the management team and Thai CUC characteristics, a strategic plan, manager’s education level, size and age of the CUCs affect Thai CUC performance. To enhance the financial and social performance of Thai CUCs via improvements to governance practices, policymakers need to be aware of these impacts. With respect to factors that hinder good governance practices of Thai CUCs, the findings suggest that a lack of morality, transparency, participation, and responsibility and accountability are key obstacles. Thus, policymakers must create policies to eliminate these obstacles and educate Thai CUC stakeholders. Governance practices should emphasise controlling and monitoring over long periods to ensure consistency. CUCs must learn to be flexible and adapt to the current environment because no one size fits all for good CUC governance