Open AccessRed, Yellow, Or Green: Which Colors Are Your Co-Operatives?
Author(s) -
Novita Puspasari,
Meutia Dewi,
Tiladela Luhita
Publication year - 2020
Publication title -
eko-regional
Language(s) - English
Resource type - Journals
eISSN - 2620-8849
pISSN - 1907-6827
DOI - 10.20884/1.erjpe.2020.15.1.1535
Subject(s) - indonesian , dimension (graph theory) , corporate governance , control (management) , business , indonesian government , quality (philosophy) , government (linguistics) , action (physics) , shareholder , java , institution , accounting , management control system , management , operations management , economics , finance , computer science , sociology , social science , mathematics , philosophy , linguistics , physics , epistemology , quantum mechanics , pure mathematics , programming language
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.