Is Coffee Cooperatives Performance decided by the Human Capital Proficiency in Ethiopia?

Abstract

Advancement in revenue generation and growth for a nation is thought to be based on its human capital. As a fastest developing market and fourth largest exporter of coffee Ethiopia is relied on coffee cooperatives as well as its human capital. In a number of empirical researches, the impact of effective utilization of human capital on coffee cooperatives performances taken into account. The existing literature, especially when using the SEM model, has largely stressed on the impact of optimization of coffee cooperatives performance in human capital context and Ethiopia coffee markets. This work employs the generalized EFA, CFA, and SEM methodologies. The empirical findings in this research cooperatively establish the association among human capital expertise and coffee cooperatives performance in Ethiopia. In addition, the data in this study disproves the usual belief that human capital accumulation in coffee cooperatives has decreased. It was founded by SEM, when the human capital grows by one standard deviation while the other independent variables remain constant; the coffee cooperative performance often increases by a 70.3%. Therefore study recommended for the policy makers to emphases more on human capital development to enhance the coffee cooperatives performance.