Instrument Validation for Measuring Socio-Economic Upliftment through Dairy Cooperatives: Insights from a Pilot Study in Gujarat

Abstract

The dairy cooperative movement has historically contributed to rural development by fostering inclusive economic growth, improving household livelihoods, and enhancing community social status. This pilot study aims to develop and validate a structured survey instrument for assessing the socio-economic impacts of dairy cooperative participation. The study examines the perceptions of dairy farmers regarding the contribution of cooperative membership to their social and economic upliftment. The instrument is designed to capture perceptions across multiple dimensions, including income generation, standard of living, education, access to healthcare, livelihood enhancement, asset accumulation, and women empowerment. A sample of 100 respondents was selected using a non-probability convenience sampling technique from regions actively engaged in dairy cooperative activities. The study employed rigorous statistical procedures to assess the reliability and validity of the measurement tool. Internal consistency was evaluated using Cronbach’s alpha, with results indicating high levels of reliability across all constructs. Convergent validity was assessed through Average Variance Extracted (AVE) and Composite Reliability (CR), both of which met the recommended thresholds, indicating that the items within each construct appropriately represent the underlying theoretical concepts. Discriminant validity was tested using the Fornell-Larcker criterion, confirming that each construct is empirically distinct from others in the model. The findings validate the robustness of the measurement instrument and confirm its suitability for deployment in a full-scale study. Additionally, the data reflect a strong positive perception among respondents regarding the socio-economic benefits of cooperative membership, particularly in relation to standard of living and women empowerment. This study provides a sound methodological basis for further empirical research and contributes to the broader discourse on the developmental potential of dairy cooperatives in rural contexts.