Analysis of Human Capital Mediation Requirement with Financial Management Practices for Coffee Cooperatives Sustainability in Ethiopia

Abstract

The primary focus of the study was on how human capital mediates organisational performance and financial management practices in Ethiopian coffee cooperatives. The researchers used a cross-sectional study using multistage sampling. KMO was used as a test for having enough data. Total variance was used to assess the overall effect of the regression. To assess if the observable variables could properly explain the latent determinants, confirmatory factor analysis was applied. The model fitness and mediation analysis were both tested using SEM. The KMO value of.906 was larger than 0.5 and the statistical cutoff for the Bartlett's test was lower than 0.05, according to the study, indicating that there was a meaningful association based on the data. The researchers found that the CMIN/DF was below 3.0, which suggests model was d in fitness indices. The Tucker Lewis Index (TLI) is used to compare the model under test. The performance of coffee cooperatives has increased by almost 75% as a result of human capital mediation. The performance of coffee cooperatives and financial management practices are now somewhat mediated.