Operational Efficiency of Credit Union Cooperatives in Surin Province

Abstract

This study aims to examine the efficiency and factors influencing the operational efficiency of 32 credit union cooperatives in Surin Province. Secondary data were collected from related documents and reports provided by cooperative regulatory agencies. The Data Envelopment Analysis (DEA) model, under the assumption of Variable Returns to Scale (VRS), was applied to evaluate the operational efficiency. Additionally, factors influencing operational efficiency were analyzed using the Tobit Regression model. The findings indicate that credit union cooperatives in Surin Province exhibit high operational efficiency, with an average score of 0.8133. Regarding returns to scale, 53.13% operate at Constant Returns to Scale (CRS), 28.13% at Increasing Returns to Scale (IRS), and 18.75% at Decreasing Returns to Scale (DRS). Factors significantly influencing efficiency include management experience (Z₂), frequency of meetings (Z₃), debt ratio (Z₅), and loan value per member (Z₆). Credit union cooperatives should focus on enhancing management skills and experience through training and knowledge exchange activities. They should also increase the frequency of meetings with clear objectives to strengthen strategic decision-making and problem-solving capabilities. These measures will help enhance the cooperatives' operational efficiency sustainably, benefiting members in the long term.