This study attempts to find the effect of governance and member participation on households’ consumption and welfare, a study in KOPWAN I the city of Kediri. The analysis uses Structural Equation Model (SEM) based on Partial Least Square (PLS). The sample of 493 respondent were drawn from the KOPWAN members; using purposive sampling method. The result shows the significant effect of co-op governance on member participation; member participation significantly affects households’ economic growth and households’ economic growth in turn increase their welfare.
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