Financial Dynamics of Cooperatives of the Popular and Solidarity Economy of Ecuador: An Analysis Using the Tucker3 Model and Projection with Multidimensional Neutrosophic Regression

Abstract

This study relies on the Tucker3 model as a factorization model of multivariate analyses since the goal is to evaluate the financial dependency structure of Ecuador's cooperative sector of the Popular and Solidarity Economy (PSE) between 2016–2023. A population sample of 25 cooperatives belonging to segment 1 was analyzed in terms of their behavior across seven significant financial variables for eight consecutive years, factoring into a 25×7×8 tensor. Relative to variances in behavior, the ultimate benefits of some entities become clear as high profitability and sound liquidity trends emerge over time; yet for others, high delinquency and non-growth levels emerge. The purpose of the tensor decomposition is to acknowledge significant associative patterns over time across entities and variables assessed at this level, leading to three clear temporal moments: growth, crisis and recovery. In addition, this study contributes a second method to the literature by applying Multidimensional Neutrosophic Regression to also assess the financial dependency relationships based on ambiguity, contradiction and uncertainty. This enables the financially relevant coefficients, determined by Multidimensional Neutrophilic Regression to be assessed with truth, falsity and uncertainty degrees simultaneously, allowing for better results interpretation to more nuanced assessments of cooperative performance under unstable conditions. Ultimately, the results advocate for differentiated lines of intervention and more accurate crisis warning systems, with findings applicable to regulatory, managerial and academic settings where improvements of the stable, strategic application of this cooperative sector are needed.