EKO-REGIONAL JURNAL PENGEMBANGAN EKONOMI WILAYAH
Vol 15, No 1 (2020)

Red, Yellow, Or Green: Which Colors Are Your Co-Operatives?

Novita Puspasari (Faculty of Economics and Business, Universitas Jenderal Soedirman)
Meutia Karunia Dewi (Faculty of Economics and Business Universitas Jenderal Soedirman)
Tiladela Luhita (Faculty of Economics and Business Universitas Jenderal Soedirman)



Article Info

Publish Date
26 Feb 2020

Abstract

Co-operative is a socio-economic institution which is the most appropriate for Indonesian economic system. Indonesia has the largest number of co-operatives in the world, however, they have not contributed optimally for the Indonesian economy. Co-operative trainings held by the government failed to improve co-operative’s quality, since those trainings were not based on co-operative’s real needs. This study aims to identify and map areas of action for future development of the co-operatives. Using modified Development Ladder Assessment (DLA) as a tool, 74 co-operatives in Central Java, Indonesia,  were measured. Four dimensions were assessed using DLA: 1) vision, 2) governance and member engagement, 3) management capacity and business development, and 4) financial management.  Total score for each dimension determines whether co-operative is in red, yellow or green areas. Red means poor, yellow means moderate, and green means excellent. Most of the co-operatives are poor in the first (vision) and the third (management capacity and business development) dimensions. The Co-operatives were also found to have moderate governance and member engagement (the second dimension). Finally, the result show that financial management (the fourth dimension) has been well-implemented. Implication of this study is that co-operatives are suggested to get appropriate trainings based on their color areas. 

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Journal Info

Abbrev

eko-regional

Publisher

Subject

Economics, Econometrics & Finance

Description

EKO-REGIONAL Jurnal Pembangunan Ekonomi Wilayah (Journal of Regional Economic Development) is a scientific journal containing research results on regional economics, tourism economics, geographical economics, natural resource economics, SMEs development, and local economic development. The journal ...