A Structural Equation Model on the Business Performance of Cavendish Banana Cooperatives: An Explanatory Sequential Approach

A causal relationship study of strategic management practices, transactional leadership style and organizational culture to business performance of Cavendish banana cooperatives in the Philippines particularly in Region XI was conducted employing explanatory sequential mixed methods. The quantitative phase of the study was done through a survey administered to 407 respondents from various cooperatives around the region. The qualitative study was carried out through In-Depth Interview (IDI) and Focus Group Discussion (FGD) to 10 and seven participants, respectively. The best fit model was generated through Structural Equation Model (SEM) which reveals both strategic management practices and organizational culture having direct influence on business performance, the latter showing stronger influence than the former. Transactional leadership, another exogenous variable, showed only direct influence to both strategic management practices and organizational culture and none to business performance. However, its presence in the model is necessary in strengthening the influence of the other two exogenous variables on business performance. Thematic analysis of the qualitative data obtained through interview and FGD from some participants in the quantitative phase unveiled the essential themes confirming the best fit model. The nature of integration for this mixed methods study is connecting- confirmation