A study on the determinants of successful performance of Indonesian cooperatives

Abstract

Purpose

The purpose of this study is to look at the factors that influence the success of Indonesian cooperatives.

Design/methodology/approach

This study employs a two-stage quantitative approach. Exploratory factor analysis (EFA) is used to determine the factors in the first step. The next step is to conduct a multivariate regression analysis to determine the impact of these factors on the cooperative success variable in Indonesia.

Findings

The components produced include Member Participation, Membership, Cooperative Governance Structure, Board of co-ops, Vertical Integration, Collective Action and Transaction Cost, according to the EFA results. A further study utilizing multiple regression techniques reveals that four elements, namely Member Participation, Board of Coops, Vertical Integration and Collective Action, have a major impact on the performance of Indonesian cooperatives.

Research limitations/implications

Generalizations are impossible because of the small sample size and restricted responders. More studies are required, using a broader range of respondents and approaches.

Practical implications

The results of the study contributed both to the stakeholders of cooperatives and to the development of cooperative science specifically in the context of Indonesian cooperatives. Cooperative stakeholders in Indonesia must realize that members are owners and customers of their cooperative. This awareness must continue to be echoed by cooperatives to its members in various ways, so that commitment arises to members to be willing to participate and cooperate. Awareness of members to participate and cooperate ultimately affects the sustainability of cooperative businesses and impacts improving members' welfare beds.

Originality/value

The study's novelty lies in a more comprehensive model of Indonesian cooperative success.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2022-0078.

Citation

Kusmiati, E., Masyita, D., Febrian, E. and Cahyandito, M.F. (2023), "A study on the determinants of successful performance of Indonesian cooperatives", International Journal of Social Economics, Vol. 50 No. 9, pp. 1285-1301. https://doi.org/10.1108/IJSE-02-2022-0078