Journal of Business and entrepreneurial

July - September Vol. 8 - 3 - 2024

http://journalbusinesses.com/index.php/revista

e-ISSN: 2576-0971

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Receipt: 29 December 2023

Approval: 22 March 2024

Page 23-37

Management strengthening strategies for transport

cooperatives: a case study in Riobamba

Estrategias de fortalecimiento de la gestión de las

cooperativas de transporte: un estudio de caso en

Riobamba

Luz Miriam Avila Pesántez

Andrea Carolina Chicaiza Cartagena

ABSTRACT

Transport cooperatives face administrative

challenges that affect their efficiency and

competitiveness. This study focuses on the

Interprovincial Transport Cooperative

"Transvencedores" of Riobamba, Ecuador, with the

objective of designing an administrative strengthening

plan to improve its management and service. The

research, with a qualitative and descriptive approach,

used surveys and interviews with 25 staff members

and 384 users, applying tools such as the SWOT

matrix and the internal (EFI) and external factor

evaluation (EFE) matrices to identify strengths,

weaknesses, opportunities and threats. The results

revealed significant administrative problems, such as

the lack of process automation, poor internal

communication and the absence of a clear

organizational philosophy. It was concluded that the

cooperative requires ongoing staff training strategies,

implementation of new technologies to control

activities, and improved internal communication.

* Licenciada en Ciencias de la Educación Enseñanza Media en la

especialización de Matemática Y Física. Magister en Desarrollo de

la Inteligencia y Educación en La Universidad Nacional de

Chimborazo Docente Escuela Superior Politécnica de

Chimborazo.

miriam.avila@espoch.edu.ec

https://orcid.org/0000-0001-9421-287X

* Estudiante de la Facultad de Administración de Empresas de la

Escuela Superior Politécnica de Chimborazo.

carolina.chicaiza@espoch.edu

https://orcid.org/0009-0006-6641-9527

e-ISSN: 2576-0971. July - September Vol. 8 - 3 - 2024 . http://journalbusinesses.com/index.php/revista

These measures are essential to improve operational

efficiency and customer satisfaction, positioning the

cooperative as a leader in interprovincial

transportation in Riobamba.

Keywords: Transportation cooperatives,

administrative strengthening, organizational

management, SWOT analysis

RESUMEN

Las cooperativas de transporte se enfrentan a retos

administrativos que afectan a su eficiencia y

competitividad. Este estudio se centra en la

Cooperativa Interprovincial de Transporte

"Transvencedores" de Riobamba, Ecuador, con el

objetivo de diseñar un plan de fortalecimiento

administrativo para mejorar su gestión y servicio. La

investigación, con un enfoque cualitativo y

descriptivo, utilizó encuestas y entrevistas a 25

funcionarios y 384 usuarios, aplicando herramientas

como la matriz FODA y las matrices de evaluación

de factores internos (EFI) y externos (EFE) para

identificar fortalezas, debilidades, oportunidades y

amenazas. Los resultados revelaron importantes

problemas administrativos, como la falta de

automatización de los procesos, la escasa

comunicación interna y la ausencia de una filosofía

organizativa clara. Se concluyó que la cooperativa

requiere estrategias de formación continua del

personal, la implantación de nuevas tecnologías para

controlar las actividades y la mejora de la

comunicación interna. Estas medidas son esenciales

para mejorar la eficiencia operativa y la satisfacción

del cliente, posicionando a la cooperativa como líder

en el transporte interprovincial en Riobamba.

Palabras clave: Cooperativas de transporte,

fortalecimiento administrativo, gestión

organizacional, análisis FODA

INTRODUCTION

Transportation is an essential element for mobility and economic development in any

region (Escalona, 2020). In Ecuador, transport cooperatives play a crucial role in

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interprovincial connectivity, facilitating the movement of people for various activities

such as trade, work, tourism and leisure (Maza-Avila and Agámez-Arias, 2012). However,

these cooperatives face numerous administrative challenges that affect their efficiency

and competitiveness in an increasingly demanding market (Tapia, 2020). Globalization

and technological progress offer significant opportunities, but also impose new demands

and complexities in the organizational management of these entities (Barrutia Barreto,

2023).

In addition, several studies highlight the importance of internal communication. Fluid and

effective communication is essential to align all members with the cooperative's

objectives and ensure that they understand the board's decisions. Implementing modern

communication systems, such as digital platforms and regular meetings, facilitates the

distribution of information and fosters an environment of collaboration and transparency

(Prietto Villalobos & Revilla Valle, 2024).

Another crucial aspect is the continuous training of personnel. The idea of investing in

training and professional development programs for their employees and partners

should be contemplated by managers. These trainings should include administrative

management, customer service, technology management and road safety (Lara, Fierro,

& Zárate, 2020). A well-trained staff not only improves service quality, but also increases

motivation and commitment to the cooperative. This is reflected in improved

operational efficiency and customer satisfaction (Vidaurre Sandoval & Navarro Buendia,

2023).

Modernization of management systems is another key factor identified by several

authors. The automation of administrative processes, such as route management, fleet

control and accounting management, can reduce errors, improve efficiency and provide

real-time data for decision making (Ramírez Roldán, 2019). The adoption of advanced

technologies, such as GPS systems and business management software, can significantly

transform the daily operations of the cooperative, allowing for more efficient and

effective management (Zapata Cortés, Arango Serna, & Adarme Jaimes, 2010).

In addition, developing a clear organizational philosophy is vital for management

strengthening. Clearly defining and communicating the cooperative's mission, vision, and

values can guide strategic decisions, strengthen corporate culture, and improve internal

cohesion. A well-established organizational philosophy shared among all members is

crucial to guide the cooperative's actions toward achieving its long-term objectives

(García López & Díaz González Borja, 2023).

Likewise, strengthening the relationship with users is another outstanding strategy,

conducting periodic customer satisfaction surveys, implementing loyalty programs and

ensuring high quality customer service are essential to understand and satisfy users'

needs. Continuous feedback from users allows the cooperative to adjust and improve

its services, which is fundamental to maintaining competitiveness in the market (Vera,

Arriagada, Hernández, & Munizaga, 2023).

e-ISSN: 2576-0971. July - September Vol. 8 - 3 - 2024 . http://journalbusinesses.com/index.php/revista

The Interprovincial Transport Cooperative "Transvencedores", located in Riobamba,

Ecuador, is one of the many cooperatives facing these challenges. With more than 45

years of experience in the field of interprovincial transportation, the cooperative offers

its users the availability to travel to different places on rotating schedules with

comfortable units, with customer satisfaction as its main objective. However, despite its

history and recognition, the cooperative has significant administrative problems that

hinder its growth and the achievement of its organizational objectives.

Among the problems identified are the lack of process automation, poor internal

communication and the absence of a clear organizational philosophy. These problems

not only affect the cooperative's operational efficiency, but also negatively influence

customer satisfaction and the organization's competitiveness. Lack of automation of

administrative processes leads to operational inefficiencies, while poor internal

communication can result in a lack of cohesion and coordination among employees. In

addition, the absence of a clear organizational philosophy can lead to a lack of direction

and shared purpose among cooperative members.

The main objective of this study is to design an administrative strengthening plan for the

"Transvencedores" Cooperative in order to optimize its resources and improve its

efficiency and effectiveness. This plan aims to address the administrative problems

identified through the implementation of specific strategies, such as continuous training

for personnel, the adoption of new technologies for activity control, and the

improvement of internal communication. It is expected that these measures will

contribute to improving the internal management of the cooperative, thereby increasing

its competitiveness and its ability to offer a high quality service to its users.

Therefore, the importance of this study lies in its potential to provide a clear and

structured roadmap for the administrative improvement of the cooperative. By

addressing current weaknesses and taking advantage of identified opportunities, the

"Transvencedores" Cooperative will be able to position itself as a leader in

interprovincial transport in Riobamba, offering more efficient and satisfactory services

to its users. This study can also serve as a model for other transport cooperatives in

Ecuador and the region, facing similar challenges and seeking to improve their

administrative and operational management.

MATERIALS AND METHODS

The methodology used in this study adopted a qualitative and descriptive approach

(Valle, Manrique, & Revilla, 2022), aimed at understanding and improving the

management of the Interprovincial Transportation Cooperative "Transvencedores" in

Riobamba. The methodological process was developed in several phases. The research

design was structured under a qualitative and descriptive approach, selected because it

allowed an in-depth exploration of the perceptions and experiences of the members of

the cooperative and its users, providing a detailed understanding of the administrative

problems and areas in need of improvement.

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The study population included all members of the administrative and operational

personnel of the "Transvencedores" Cooperative, as well as users of the transportation

service. A purposive sample of 25 staff members and 384 users of the cooperative was

selected. This sample was chosen to obtain a broad and diverse representation of

internal and external perspectives on the operation of the cooperative. Two main

techniques were used for data collection: surveys and interviews. The surveys were

administered to both cooperative staff and users. The survey questions were designed

to identify strengths, weaknesses, opportunities and threats (SWOT analysis) related to

the management and service of the cooperative. The interviews were conducted with a

selection of key members of the administrative staff, providing greater depth and context

to the data obtained through the surveys.

The main instrument used was a structured questionnaire, designed specifically for this

study. The questionnaire included both open and closed questions, covering various

areas of the cooperative's administration, such as internal communication, process

automation and customer satisfaction. In addition, semi-structured interview guides

were used for the interviews with administrative personnel, allowing for in-depth

exploration of the key issues identified in the surveys. Data collection was conducted in

two stages. In the first stage, surveys were distributed to cooperative staff and service

users. The staff surveys were conducted in person, while the user surveys were

distributed both at the cooperative's service points and through electronic media. In the

second stage, semi-structured interviews were conducted with key members of the

administrative staff. The interviews were conducted at the cooperative's offices, and each

session lasted approximately one hour.

Data collected through surveys and interviews were analyzed using qualitative and

quantitative analysis techniques. Survey responses were tabulated and statistically

analyzed to identify trends and patterns. Qualitative data obtained from the interviews

were transcribed and analyzed using the content analysis method, identifying recurring

and significant themes that provided a deeper understanding of administrative problems

and possible solutions. Tools such as the SWOT matrix and the internal (EFI) and

external factor evaluation (EFE) matrices were used for data analysis. These tools made

it possible to identify and evaluate the cooperative's strengths, weaknesses,

opportunities and threats, providing a solid basis for the development of the

administrative strengthening plan.

RESULTS

In order to start implementing the plan, a situational analysis of the cooperative was

carried out using various evaluation tools, including the Internal Factors Evaluation

Matrix, the External Factors Evaluation Matrix and the SWOT Matrix. The results

obtained and their analysis are presented below.

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Table 1: Internal Factors Evaluation Matrix

FACTORS

WEIGHT

RATING

T WEIGHTED

Strengths

F1. Presence of physical offices

0.07

0.21

F2. Operational personnel with valid enabling

documents

0.06

0.19

F3. Staff willingness to change and improve

0.06

0.25

F4. Semi-modern units

0.06

0.19

F5. Efficient accounting management

0.07

0.25

F6. Internal savings generated by members'

contributions

0.06

0.19

Weaknesses

D1. Poor internal communication

0.06

0.13

D2. Low publicity of the cooperative

0.06

D3. Minimal teamwork

0.06

D4. No automation in the processes

0.07

0.14

D5. Lack of a philosophy in the cooperative

0.06

D6. Obsolete activity management and control

system.

0.07

0.14

TOTAL

1.00

1.87

Table 1 shows the internal factors evaluation matrix with a score of 1.87, indicating that

the cooperative is weak internally. It is suggested that the cooperative focus on

strengthening the weaknesses that retard its growth, such as improving internal

communication, publicity, teamwork and automation of administrative processes.

Table 2: External Factors Evaluation Matrix

Factors

Weight

Rating

T-weighted

Opportunities

O1. External financing for renovation of units

0.05

0.22

O2. Increase in the number of users demanding the service

0.06

0.25

O3. Development of new technologies for activity control

0.05

0.22

O4. Training agreements

0.07

0.21

O5. Development of control methods for the route

0.05

0.22

Threats

A1. Increase in fuel prices

0.07

A2. Increase in informal transportation

0.06

0.14

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A3. Delay in local economic development

0.05

0.10

A4. Increase in the cost of maintenance and spare parts for the units.

0.07

0.14

A5. Increase in social insecurity

0.06

0.12

TOTAL

1.00

1.45

The result of the External Factors Evaluation

Matrix shown in Table 2 was 1.45, indicating that the organization has significant

opportunities to maintain and grow. The opportunities include external financing for the

renovation of units, the increase in the number of users demanding the service, and the

development of new technologies for controlling activities. However, threats such as

rising fuel prices and informal transportation must be adequately managed.

Table 3: SWOT Matrix

Strengths

Weaknesses

Opportunities

Threats

Presence of physical

offices.

1. Poor internal

communication.

1. External

financing for unit

renovation.

1. Increase in the

price of fuel.

2. Operational and

administrative

personnel with valid

documentation.

2. Poor publicity of

the cooperative.

2. Increase in the

number of users

demanding the

service.

Increase in informal

transportation.

3. Staff willing to

make changes and

improvements.

3. Minimal

teamwork.

3. Development

of new

technologies for

the control of

activities.

3. Delay in local

economic

development.

4. Semi-modern

units.

4. No automation

of processes.

4. Training

agreements.

4. Increase in the

cost of maintenance

and spare parts for

the units.

5. Efficient

accounting

management.

5. Lack of a

philosophy in the

cooperative.

5. Development

of control

methods for the

route.

5. Increase in social

insecurity.

6. Internal savings

generated by

members.

6. Obsolete

activity

management and

control system.

6. Dissatisfaction on

the part of users with

respect to the

attitude of drivers

and assistants.

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Table 3 shows the SWOT matrix, which highlighted several internal strengths of the

cooperative, such as the presence of physical offices, trained personnel, semi-modern

units, and efficient accounting administration. However, significant weaknesses were also

identified, such as poor internal communication, poor publicity, and lack of automation

in processes. External opportunities, such as financing for unit renovation and the

development of new technologies, present a competitive advantage. Threats, including

rising fuel prices and informal transportation, must be managed to avoid negative

impacts.

Following the methodology, two types of surveys were carried out: the first was applied

to a specific sample of 25 people who constitute the internal personnel of the company;

the second was applied to 384 clients. The results obtained from the surveys indicate

that the company does not have clearly established administrative processes, clear

objectives, or an administrative structure such as a functions manual, organization chart,

among other elements that are essential for good business management, which leads to

shortcomings and poor positioning in the market. Therefore, these shortcomings are

directly reflected in the satisfaction of internal and external customers, significantly

influencing the development of the cooperative, since they are a key factor in maintaining

a competitive advantage and achieving an excellent quality of service.

Survey tabulation and analysis

Below are the tables and graphs that correspond to the information collected in the

surveys made to the Cooperative's personnel and customers. Each table of information

was made with its respective graph to observe the tendency of the answers obtained in

order to draw the right conclusions after analyzing the results.

Survey applied to the personnel of the Interprovincial Transportation

Cooperative "Trans Vencedores" (Cooperativa de Transportes

Interprovincial "Trans Vencedores").

Table 3: Functions performed in the cooperative

ALTERNATIVE

FREQUENCY

PERCENTAGE

Driver

52%

Controller

20%

Administrative

28%

Total

100%

Source: Survey applied

Table 3 shows that the highest percentage, corresponding to 52% of the respondents,

are drivers of the cooperated vehicles, 20% are drivers and 28% belong to the company's

administrative personnel.

Table 4: Vision and mission implemented

ALTERNATIVE

FREQUENCY

PERCENTAGE

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YES

84%

16%

Total

100%

Source: Survey applied

Table 4 explores that 84% of the respondents are aware of the implementation of

mission and vision in the cooperative, while the remaining 16% are not aware of these

elements, which evidences poor communication and socialization within the

organization.

Table 5: Rating of administrative management

Alternative

Frequency

Percentage

Excellent

Very Good

48%

Good

36%

Malo

16%

Total

100%

Source: Survey applied

Table 5 shows that 48% of the respondents consider that the administrative management

of the last two years has been very good, while 36% rate it as good and 16% as bad,

indicating an overall positive perception but with areas for improvement.

Table 6: Presentation of report on goals reached

ALTERNATIVE

FREQUENCY

PERCENTAGE

Always

Almost always

40%

Sometimes

28%

Never

Total

100%

Source: Survey applied

Table 6 shows that 40% of respondents believe that the report of goals achieved is

almost always shared, while 28% believe that it is sometimes shared and 24% indicate

that the report is always shared. Eight percent believe that a goal report is never shared,

suggesting areas for improvement in internal communication.

Table 7: Communication between managers and members of the cooperative

ALTERNATIVE

FREQUENCY

PERCENTAGE

Always

36%

Almost always

44%

Sometimes

20%

Never

Total

100%

Source: Survey applied

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Table 7 shows that 44% of the respondents consider that the decisions made by the

board are almost always communicated to all members of the cooperative, while 36%

answered that they are always shared and 20% that they are sometimes made known,

suggesting a mostly effective communication, but with areas for improvement.

Table 8: Internal communication

ALTERNATIVE

FREQUENCY

PERCENTAGE

Excellent

Very Good

28%

Good

60%

Mala

Total

100%

Source: Survey applied

Table 8 explores that 60% of the respondents consider that internal communication in

the cooperative is good, 28% that it is very good, while 8% think it is bad and 4% rate it

as excellent. This suggests that the majority of employees feel that internal

communication could be improved.

Table 9: Staff opinion

Alternative

Frequency

Percentage

Yes

84%

16%

Total

100%

Source: Survey applied

Table 9 shows that 84% of respondents believe that staff opinions are taken into account

by the cooperative's management, while 16% do not. This suggests that, although mostly

positive, the inclusion of staff opinions could be improved.

Table 10: opinion of remuneration

Alternative

Frequency

Percentage

Excellent

Very good

48%

Good

52%

Regular

Total

100%

Source: Survey applied

Table 10 shows that 52% of respondents consider that the remuneration received is

good, while 48% rate it as very good, indicating a general satisfaction in this area.

Table 11: Training to members and workers

Alternative

Frequency

Percentage

Always

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Almost always

32%

Sometimes

64%

Never

Total

100%

Source: Survey applied

Table 11 determines that 64% of the respondents consider that trainings are sometimes

conducted, 32% that they are almost always conducted and 4% that they are never

conducted, suggesting that there is room for improvement in the frequency of trainings.

Table 12: Quality of Service

Alternative

Frequency

Percentage

Excellent

Very Good

52%

Good

48%

Malo

Total

100%

Source: Survey applied

Table 12 shows that 52% of the respondents consider the service offered by the

cooperative to be very good, while 48% consider it to be good, indicating an overall

positive perception of the service.

Survey applied to users and potential users of the Transport Cooperative

"Trans Vencedores".

Table 13: Gender of Users

Alternative

Frequency

Percentage

Male

188

49%

Female

196

51%

Total

384

100%

Source: Survey applied

Table 13 shows that 49% of the surveyed users are male, while 51% are female, indicating

a slight female predominance among users.

Table 14: Age of users

Alternative

Frequency

Percentage

18 - 25

120

31.3%

25 - 32

149

38.8%

32 - 39

17.4%

39 - 46 and up

12.5%

Total

384

100%

Source: Survey applied

Table 14 explores that 38.8% of users are in the age range of 25 to 32 years, followed

by 31.3% between 18 to 25 years, indicating that the majority of users are young adults.

Table 15: Frequency of service use

Alternative

Frequency

Percentage

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Always

25%

Almost always

174

45.3%

Sometimes

114

29.7%

Total

384

100%

Source: Survey applied

Table 15 shows that 45.3% of the users use the service almost always, while 25% always

use it, indicating a high frequency of use of the transportation service.

Table 16: Quality of service

Alternative

Frequency

Percentage

Excellent

102

26.6%

Good

205

53.4%

Regular

16.9%

Malo

3.1%

Total

384

100%

Source: Survey applied

Table 16 shows that 53.4% of users consider the service to be good, while 26.6% rate it

as excellent, indicating a positive perception of the quality of service.

Table 17: Attention of drivers and assistants

Alternative

Frequency

Percentage

Excellent

25.5%

Good

212

55.2%

Regular

16.7%

Malo

2.6%

Total

384

100%

Source: Survey applied

Table 17 shows that 55.2% of users consider the service provided by drivers and

assistants to be good, while 25.5% rate it as excellent, indicating a mostly positive

perception of the service received.

Table 18: Service deficiencies

Alternative

Frequency

Percentage

Slow service

136

35.4%

Unit cleaning

100

26%

Unreliable

14.6%

Others

24%

Total

384

100%

Source: Survey applied

Table 18 shows that 35.4% of users consider that the service is slow, 26% that the

cleanliness of the units is poor, and 14.6% that the units are unsafe, indicating key areas

for service improvement.

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Table 19: There should be improvements in the service

Alternative

Frequency

Percentage

Yes

309

80.5%

18.5%

Total

384

100%

Source: Survey applied

Table 19 shows that 80.5% of users believe that the cooperative should improve the

quality of the services it offers, while 19.5% believe that the service is excellent,

suggesting a general perception of a need for improvement.

Table 20: Unit comfort

Alternative

Frequency

Percentage

Excellent

22.9%

Good

220

57.3%

Regular

16.1%

Malo

3.6%

Total

384

100%

Source: Survey applied

Table 20 shows that 57.3% of users consider the comfort of the units to be good, while

22.9% rate it as excellent, indicating a mostly positive perception, but with room for

improvement.

CONCLUSIONS

The Cooperative has significant weaknesses in internal communication, publicity,

teamwork and process automation. The lack of a clear organizational philosophy and an

obsolete management and activity control system also represent important challenges

that affect operational efficiency and staff and client satisfaction. Among the strengths

highlighted are the presence of physical offices, operational staff with documents in

order, staff readiness for changes and improvements, semi-modern units, and efficient

accounting management. These strengths provide a solid foundation on which to build

administrative improvements.

There are significant opportunities for the cooperative, such as external financing for the

renovation of units, the increase in the number of users demanding the service, the

development of new technologies for controlling activities, and training agreements.

These opportunities can be used to boost growth and improve the cooperative's

competitiveness. However, the cooperative faces important threats such as the increase

in fuel prices, the increase in informal transportation, the delay in local economic

development, the increase in the cost of maintenance and spare parts for the units, and

e-ISSN: 2576-0971. July - September Vol. 8 - 3 - 2024 . http://journalbusinesses.com/index.php/revista

the growing social insecurity. These threats must be managed strategically to mitigate

their negative impact on the organization.

Most staff feel that internal communication and feedback could be improved. Although

remuneration is viewed positively, training is not perceived as frequent, indicating the

need for a more robust and regular training program. On the other hand, users have a

mostly positive perception of the service offered by the cooperative, although a

significant portion considers that there are areas that need improvement, especially in

the speed of service and the cleanliness of the units. The service provided by drivers and

attendants is well valued, but there is always room for improvement in the quality of

service.

It is essential to design and implement a management strengthening plan that addresses

identified weaknesses, capitalizes on strengths and opportunities, and mitigates threats.

This plan should include strategies to improve internal communication, increase the

frequency and quality of training, modernize management and activity control systems,

and develop a clear and shared organizational philosophy. In summary, the Cooperativa

de Transporte Interprovincial "Transvencedores" has significant potential to improve its

operational efficiency and user satisfaction through a strategic approach to

administration and organizational management. The implementation of an administrative

strengthening plan based on the findings of this study will allow the cooperative to

consolidate its position in the market and offer a high quality service, benefiting both its

employees and its users.

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