Governance, Satisfaction, and Engagement as Key Drivers of Membership Retention

Abstract

In the context of increasing competition from banks and technology-driven financial institutions, cooperatives face growing challenges in sustaining long-term membership. This study examined the extent to which governance, member satisfaction, and member engagement serve as key drivers of membership retention in a cooperative in one of the cities in Bukidnon, Philippines. Despite existing studies, limited empirical evidence explains how these factors collectively influence membership retention in local cooperative settings. Anchored on the SERVPERF Model and Social Exchange Theory, the research employed a descriptive-correlational design. Data were collected from cooperative members selected through simple random sampling. A structured researcher-developed questionnaire based on SERVPERF dimensions and governance and engagement constructs was used. The instrument underwent content validation, reliability testing (Cronbach’s alpha), and construct validation through exploratory and confirmatory factor analyses. Descriptive statistics were used to determine the levels of governance, member satisfaction, member engagement, and membership retention, while Canonical Correlation Analysis and Multiple Linear Regression were applied to examine their relationships and predictive influence. Results revealed that all major variables and their respective dimensions were assessed at generally high levels. Significant multivariate relationships were established between governance and retention, satisfaction and retention, and engagement and retention. Member engagement emerged as the strongest predictor of membership retention, followed by member satisfaction and governance. The study concludes that transparent governance, high service performance, and sustained member engagement collectively reinforce loyalty and advocacy, thereby strengthening cooperative competitiveness, institutional resilience, and long-term sustainability. Future research may explore these variables across different cooperative settings and consider additional factors, such as digital service adoption and organizational culture, to enhance the understanding of membership retention.