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Assessment of Factors Affecting Cooperatives’ Performance in Indonesia: The Case of Credit Union Cooperatives

Journal of Entrepreneurship, Business and Economics

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Title Assessment of Factors Affecting Cooperatives’ Performance in Indonesia: The Case of Credit Union Cooperatives
 
Creator Krisnawati, Nila
-, Alfiandri
 
Description The “Koperasi” (cooperative) has great potential for increasing Indonesia’s national economy and reduce unemployment. However, the performance of cooperatives is still considered weak. This study aims to identify the factors influencing the performance of cooperatives in Indonesia and the extent of their influence. It does this for the case of the Tangerang region in Indonesia. The study adopts descriptive analysis using partial least squares structural equation modelling (PLS-SEM), with the sample size of 35 cooperatives in South Tangerang. The independent variables are Internal Business Process (PPIB), Learning & Growth (PPP), Members perspective (PA), Financial perspective (PK) and dependent variable is Cooperative Performance (K). The results show that the model has an R-square value of 0.952 (95.2%) indicating that the ability of the independent variable to explain dependent variable cooperative performance is about 95.2% while the remaining 4.8% is explained by other independent variables not formulated in the research. The relationship of the financial perspective on the cooperative’s performance scored the highest path coefficient of 0.508, followed by member’s perspective and learning growth with 0.493 and 0.403. It indicates that financial ability plays a major role in improving the cooperatives’ performance while, and that the other two independent variables also have a significant impact on improving the cooperatives’ performance. However, the internal business process with a path of coefficient 0.138 has a weak relationship with performance.
Research paper
Keywords: Cooperative; Internal Business Process; Learning & Growth; Members perspective; Finance perspective; Cooperative Performance  
Reference to this paper should be made as follows: Krisnawati, N., & Alfiandri. (2019). Assessment of Factors Affecting Cooperatives’ Performance in Indonesia: The Case of Credit Union Cooperatives, Journal of Entrepreneurship, Business and Economics, 7(2), 80–105.
 
Publisher Scientificia
 
Date 2019-08-13
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://scientificia.com/index.php/JEBE/article/view/114
 
Source Journal of Entrepreneurship, Business and Economics; Vol 7 No 2 (2019); 80-105
2345-4695
 
Language eng
 
Relation http://scientificia.com/index.php/JEBE/article/view/114/100
 
Rights Copyright (c) 2019 Nila Krisnawati, Alfiandri -
http://creativecommons.org/licenses/by-nc/4.0