Integration of Financial and Social Performance Survey of Cooperatives in West Java, Indonesia

Setiajatnika, Eka and Dasuki, Rima Elya and Hasyim, Muhamad Ardi Nupi (2020) Integration of Financial and Social Performance Survey of Cooperatives in West Java, Indonesia. International Journal of Innovation, Creativity and Change, 13. pp. 419-435. ISSN 2201-1323

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The first issue in this research is to conduct studies that relate to the sustainability of cooperatives. Based on data obtained, 35.6% of cooperatives in West Java are not active. The second issue is to study the cooperatives’ financial performance related to capital structure and credit risk, given the challenges of today's needs for readiness of cooperatives in the era of the ASEAN Economic Community in 2015, which is the ultimate goal of economic integration as envisioned in the ASEAN Vision 2020. The third issue in this topic is a review of the social performance as based on factual conditions of cooperative life in Indonesia: up until today there is a gap between the concept of universal cooperatives and their practice. The fourth issue in this research conducted a study on the scale of business that may affect the sustainability of cooperatives. Analysing integrated cooperative models would involve many factors, both quantitative and qualitative. This study took a sample of 76 cooperatives with the data observed for the variables related to capital structure, credit risk, social performance, financial performance and sustainability of cooperatives, with the multi regression simultan recursive model panel data method, over a period of 72 months in the province of West Java. Based on the results, data processing obtained an adjusted R-square value of 0.716201, or 71.62 percent indicating that the performance of the financial and social performance simultaneously gives effect to a sustainability of 71.62% for small-scale cooperatives in West Java. Based on test results, simultaneously and partially also showed that there was integration between financial performance and social performance to achieve sustainability. Empirical findings indicate that there is significant influence either simultaneously or partial capital structure and credit risk on financial performance in the Cooperative in West Java, as well as the integration between social performance and financial performance in achieving sustainability of cooperatives. These studies have found a relationship between cooperative financial sustainability and achievement of social objectives, so that they should be considered cost-efficient capital funding functions. The relationship between the financial aspect and social aspect in an organisation will not provide conflict in achieving goals.

Item Type: Article
Uncontrolled Keywords: Capital Structure, Credit Risk, Social Performance, Financial Performance, Sustainability of Cooperatives.
Subjects: JOURNAL
Depositing User: Ikopin Teknologi Informasi
Date Deposited: 04 Jun 2020 03:15
Last Modified: 28 Mar 2021 22:10

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