Financial discipline and its role in the growth and development of cooperatives

Financial discipline is a fundamental factor in the success and growth of companies, especially cooperatives, and has drawn considerable attention from researchers. It refers to the effective management of resources, controlling costs, and complying with tax laws and regulations. These basic principles significantly impact the growth and development of cooperatives. The main goal of this research is to examine the effect of financial discipline on various aspects of growth and development in cooperatives. This study is classified as applied research based on its objective and descriptive-correlational based on its method. Data were collected through a questionnaire targeting managers and financial leaders of cooperatives, yielding 339 standardized responses through Morgan's table. To test the hypotheses, factor analysis and structural equations modeling were employed using SPSS and LISREL software. The results indicated that financial discipline has a positive and significant impact on the growth and development dimensions of cooperatives. With solid financial discipline, cooperatives can effectively manage their financial resources, optimize investment opportunities, and ensure financial sustainability. Ultimately, these factors contribute to business growth and development. Thus, financial discipline enhances the financial and economic efficiency of cooperatives, aiding them in achieving their growth and development goals.