Managerial Competencies and Financial Performance of Savings and Credit Cooperative Societies in Dhading

Abstract

This study investigates the relationship between managerial competencies and the financial performance of Savings and Credit Cooperative Societies (SACCOS) in the Dhading district, Nepal, motivated by rising concerns over poor management and closure of several cooperatives in the district. Adopting a cross-sectional survey design, data were collected from 37 board members and employees of six SACCOS through a structured Likert scale questionnaire assessing technical, conceptual, and interpersonal skills alongside financial performance. Spearman's rank correlation and ordinal regression analysis were employed to examine the influence of managerial competencies on financial outcomes. The findings reveal that SACCOS in the study area generally possess strong managerial skills and show relatively favorable financial performance. All three dimensions of managerial competencies exhibited strong, positive, and statistically significant correlations with financial performance. Regression analysis confirmed that including these competencies in the model substantially improved its explanatory power and overall fit. The study concludes that managerial competencies are crucial drivers of financial sustainability in SACCOS, highlighting the need for continued investment in skill development to strengthen cooperative governance and performance.