Do Capital and Business Volume Matter for Productivity of the Cooperatives in Indonesia?


  • M. Shabri Abd. Majid Dapartment of Islamic Economics, Faculty of Economics and Business, Universitas Syiah Kuala. Jl. Teuku Nyak Arief, Kopelma, Darussalam, Kota Banda Aceh, 23111, Provinsi Aceh, Indonesia. E-mail:
  • Azhari Azhari Program Study of Master of Management, Faculty of Economics and Business, Universitas Islam Kebangsaan Indonesia. Jl. Banda Aceh, Blang Bladeh, Jeumpa, Aceh, Indonesia, 24264. E-mail:
  • Faisal Faisal Dapartment of Management, Faculty of Economics and Business, Universitas Syiah Kuala. Jl. Teuku Nyak Arief, Kopelma, Darussalam, Kota Banda Aceh, 23111, Provinsi Aceh, Indonesia. E-mail:
  • Heru Fahlevi Department of Accounting, Faculty of Economics and Business, Universitas Syiah Kuala. Jl. Teuku Nyak Arief, Kopelma, Darussalam, Kota Banda Aceh, 23111, Provinsi Aceh, Indonesia. E-mail:



capital, business volume, cooperative productivity


This research explored and analyzed the determinants of productivity of the cooperatives in Indonesia. These determinants included own capital, external capital, and business volume. The aggregate data of cooperatives were at the provincial level across 33 provinces in Indonesia. The data were gathered from the report of the Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia (Ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia) over the 2010-2015 period. The data were analyzed using the panel regression technique. The result shows that own capital and business volume have a significant positive effect on the productivity of cooperatives. However, external capital has an insignificant effect on the productivity of cooperatives. To further improve their productivity, the cooperatives should increase the capital from internal sources as well as their business volume through more diversified business activities.


Plum Analytics

Author Biography

M. Shabri Abd. Majid, Dapartment of Islamic Economics, Faculty of Economics and Business, Universitas Syiah Kuala. Jl. Teuku Nyak Arief, Kopelma, Darussalam, Kota Banda Aceh, 23111, Provinsi Aceh, Indonesia. E-mail:

Dr. M. Shabri Abd. Majid, M.Ec is a senior lecturer at the Faculty of Economics, Syiah Kuala University. He received his Sarjana Ekonomi (SE) from Syiah Kuala University, Indonesia, in 1995. He completed his Master of Economics (MEc) and PhD in Financial Economics from the International Islamic University Malaysia (IIUM) in 1998 and 2005, respectively. He has served Kulliyyah of Economics and Managements Sciences (KENMS) IIUM as the Associate Professor for six years (2005-2011). He has been appointed as the Head of Islamic Economics Department, Faculty of Economics, Syiah Kuala University, Indonesia from 2014 to 2017. He also has served the Institute for Research and Community Services, Syiah Kuala University from 2016 to 2018. Currently, he is the Program Coordinator of Master in Economics. His research interests include financial economics, applied econometrics, Islamic economics, banking, and finance. He has published more than 60 articles in international refereed journals such as International Journal of Emerging Markets, Global Economic Review, Journal of Asia-Pacific Business, Studies in Economics and Finance, International Journal of Managerial Finance, Journal of Economic Cooperation and Development, Review of Islamic Economics, and JKAU: Islamic Economics. He has also presented his papers in various seminars locally and internationally. He is the Editor-in-Chief, Aceh International Journal of Social Sciences. He has serving several international journals as the editorial boards such as Gadjahmada International Journal of Business, etc.


Ahmad, D., Chani, M. I., & Afzal, M. (2018). Impact of formal credit on agricultural output: Empirical evidence from Pakistan. Sarhad Journal of Agriculture, 34(3), 640-648.

Amarasinghe, O., & Bavinck, M. (2017). Furthering the implementation of the small-scale fisheries guidelines: Strengthening fisheries cooperatives in Sri Lanka. In The Small-Scale Fisheries Guidelines (pp. 379-399). Springer

Arfan, M., Basri, H., Handayani, R., Shabri, M., Fahlevi, H., & Dianah, A. (2017). Determinants of cash holding of listed manufacturing companies in the Indonesian Stock Exchange. DLSU Business and Economics Review, 26(2), 1-12.

Aris, A. N., Marzuki, M. M., Othman, R., Rahman, S. A., & Ismail, N. H. (2018). Designing indicators for cooperative sustainability: The Malaysian perspective. Social Responsibility Journal, 14(1), 226-248.

Azhari, G., Syechalad, M. N., & Majid, M. S. A. (2017). The role of cooperative in the Indonesian economy. International Journal of Humanities and Social Science Invention, 6(10), 43-46.

Bennett, A. (2017). The influence of neoliberalization on the success and failure of fishing cooperatives in contemporary small-scale fishing communities: A case study from Yucatán, Mexico. Marine Policy, 80(June), 96-106.

Bhukuth, A., Roumane, A., & Terrany, B. (2018). Cooperative, human capital and poverty: A theoretical framework. Economics & Sociology, 11(2), 11-18.

Borda‐Rodriguez, A., Johnson, H., Shaw, L., & Vicari, S. (2016). What makes rural co‐operatives resilient in developing countries? Journal of International Development, 28(1), 89-111.

Chagwiza, C., Muradian, R., & Ruben, R. (2016). Cooperative membership and dairy performance among smallholders in Ethiopia. Food Policy, 59(February), 165-173.

Clark, T. S., & Linzer, D. A. (2015). Should I use fixed or random effects? Political Science Research and Methods, 3(2), 399-408.

Colombijn, F., & Morbidini, M. (2017). Pros and cons of the formation of waste-pickers’ cooperatives: A comparison between Brazil and Indonesia. Decision, 44(2), 91-101.

Davila, A., & Molina, C. (2017). From silent to salient stakeholders: A study of a coffee cooperative and the dynamic of social relationships. Business & Society, 56(8), 1195-1224.

Draheim, G. (1955). Die Genossenschaft als Unternehmungstyp. Vandenhoeck & Ruprecht.

Galappaththi, E. K., Kodithuwakku, S. S., & Galappaththi, I. M. (2016). Can environment management integrate into supply chain management? Information sharing via shrimp aquaculture cooperatives in northwestern Sri Lanka. Marine Policy, 68(June), 187-194.

Gujarati, D. (2014). Econometrics by example (2nd ed.). Red Globe Press.

Gweyi, M. O., & Karanja, J. (2014). Effect of financial leverage on financial performance of deposit taking savings and credit co-operative in Kenya. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 180-188.

Hamid, A., Majid, M. S. A., & Khairunnisah, L. (2017). An empirical re-examination of the Islamic banking performance in Indonesia. International Journal of Academic Research in Economics and Management Sciences, 6(2), 219-232.

Hasan, I., Azhari, A., & Majid, M. S. A. (2018). ¿ Cómo de eficientes y productivas son las cooperativas en Indonesia? Evidencia empírica del análisis envolvente de datos. REVESCO: Revista de Estudios Cooperativos, (128), 149-172.

Hilson, M. (2018). Co-operative internationalism in practice: The International Co-operative Alliance (ICA) before and after the First World War. In The International Co-operative Alliance and the consumer co-operative movement in northern Europe, c. 1860–1939. Manchester University Press.

International Cooperative Alliance. (2016). Co-operatives: Facts and prospects. Retrieved from https://www.

Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia. (2016). Jumlah koperasi, investasi, tenaga kerja, SHU, omset koperasi. Jakarta: Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia.

Kinya, D. N., Shavulimo, P. M., Chepkoech, L., & Langat, P. C. (2015). Effect of loan terms and conditions on loan volume granted by selected deposit taking SACCOs in Nyeri County, Kenya. Journal of Business and Management, 17(2), 81-94.

Kumar, V., Wankhede, K. G., & Gena, H. C. (2015). Role of cooperatives in improving livelihood of farmers on sustainable basis. American Journal of Educational Research, 3(10), 1258-1266.

Lang, F., Signore, S., & Gvetadze, S. (2016). The role of cooperative banks and smaller institutions for the financing of SMEs and small midcaps in Europe (No. 2016/36).

EIF Working Paper. Lewis, M. A. (2015). Econometrics of estimating causal effects: An overview for social work researchers. Research on Social Work Practice, 25(6), 681-687.

Liang, Q., Hendrikse, G., Huang, Z., & Xu, X. (2015). Governance structure of Chinese farmer cooperatives: Evidence from Zhejiang province. Agribusiness, 31(2), 198-214.

Lukman. (2011). Pengaruh jumlah modal sendiri dan jumlah modal luar terhadap Sisa Hasil Usaha melalui variabel volume usaha pada koperasi-koperasi di Kota Lhokseumawe. Jurnal Ekonomi dan Bisnis (EKONIS), 10(1), 1-11.

Ma, W., & Abdulai, A. (2016). Does cooperative membership improve household welfare? Evidence from apple farmers in China. Food Policy, 58(January), 94-102.

Majid, M., & Hamid, A. (2017). Assessing the productivity of insurance companies in Indonesia: A nonparametric approach. Journal of Applied Economic Sciences, 12(6), 1593-1605.

Martini, I. A. O., Lasmi, N. W., Jaya, N. K., & Sutrisni, N. K. E. (2017). Improving cooperative performance through human resource development efforts. International Journal of Social Sciences and Humanities, 1(3), 49-58.

Mathuva, D. (2016). Revenue diversification and financial performance of savings and credit co-operatives in Kenya. Journal of Co-operative Organization and Management, 4(1), 1-12.

Nag, A., & Sharma, R. K. (2017). Cooperatives banking in Himachal Pradesh–A study of HP state cooperative bank. International Journal of Innovative Knowledge Concepts, 5(11), 34-46.

Phon, D. A. R. Y., & Yamaji, E. I. J. I. (2016). Impact of smallholder agricultural cooperatives on market participation of vegetable farmers in Cambodia: A case study of Svay Rieng agro-products cooperative. International Journal of Environmental and Rural Development, 7(1), 167-172.

Puusa, A., Mönkkönen, K., & Varis, A. (2013). Mission lost? Dilemmatic dual nature of co-operatives. Journal of Co-operative Organization and Management, 1(1), 6-14.

Quilloy, K. P. (2015). Empowering small farmers through cooperative: The success story of Subasta integrated farmers multi-purpose cooperative. International Review of Management and Business Research, 4(1), 361-375.

Rayanti, D. (2016). Koperasi di RI terbesar di dunia, tapi sumbangan ke PDB hanya 1,7%. Retrieved from

Rehman, A., Chandio, A. A., Hussain, I., & Jingdong, L. (2017). Is credit the devil in the agriculture? The role of credit in Pakistan’s agricultural sector. The Journal of Finance and Data Science, 3(1-4), 38-44.

Renard, M. C. (2015). Fair trade for small farmer cooperatives in Latin America. In L. T. Raynolds & E. A. Bennett (Eds.), Handbook of research on Fair trade. Edward Elgar Publishing.

Republik Indonesia. (1992). Undang-Undang No. 25 Tahun 1992 Tentang Perkoperasian. Jakarta: Menteri/ Sekretaris Negara Republik Indonesia.

Riswan, R., Suyono, E., & Mafudi, M. (2017). Revitalization model for village unit cooperative in Indonesia. European Research Studies, 20(4A), 102-123.

Saputra, R. (2017). Analisis kinerja keuangan pada Koperasi Tirta Dharma perusahaan daerah air minum kota Pekanbaru. VALUTA, 3(2), 290-303.

Sathapatyanon, J., & Kuwornu, J. K. (2019). Assessment of the role of cooperative networks in the fruit supply chain in Thailand. International Journal of Value Chain Management, 10(1), 53-85.

Sathapatyanon, J., Kuwornu, J. K., Shivakoti, G. P., Soni, P., Anal, A. K., & Datta, A. (2018). The role of farmer organizations and networks in the rice supply chain in Thailand. Journal of Agribusiness in Developing and Emerging Economies, 8(3), 554-578.

Suhaimee, S., Halim, N. A., Zakaria, M. H., Nazmi, M. S., Rusli, R., & Dardak, R. A. (2015). Roles of cooperative movement as middlemen to increase the efficiency of agricultural marketing in Malaysia. Serdang: Malaysian Agricultural Research and Development Institute (MARDI).

Suputra, I. G., Susila, G. P. A. J., & Cipta, W. (2016). Pengaruh modal sendiri, total aset, dan volume usaha terhadap Sisa Hasil Usaha (SHU) pada koperasi simpan pinjam. E-Journal Bisma Universitas Pendidikan Ganesha Jurusan Manajemen, 4, 1-10.

Syamni, G., & Majid, M. S. A. (2016). Efficiency of saving and credit cooperative units in North Aceh, Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 5(2), 99-118.

Syamni, G., Rasyimah, R., Ratnasari, D., & Majid, M. S. A. (2018). Determination of return on assets of the foreign exchange banks in Indonesia. Binus Business Review, 9(3), 255-260.

Tefera, D. A., Bijman, J., & Slingerland, M. A. (2017). Agricultural co‐operatives in Ethiopia: Evolution, functions and impact. Journal of International Development, 29(4), 431-453.

Widiartin, P. I., Suwendra, I. W., & Yudiaatmaja, F. (2016). Pengaruh modal pinjaman dan volume usaha terhadap sisa hasil usaha. E-Journal Bisma Universitas Pendidikan Ganesha Jurusan Manajemen, 4, 1-8.

Xaba, T., Marwa, N., & Mathur-Helm, B. (2018). Efficiency and profitability analysis of agricultural cooperatives in Mpumalanga, South Africa. Journal of Economics and Behavioral Studies, 10(6), 1-10.

Yildiz, Ö., Rommel, J., Debor, S., Holstenkamp, L., Mey, F., Müller, J. R.,... & Rognli, J. (2015). Renewable energy cooperatives as gatekeepers or facilitators? Recent developments in Germany and a multidisciplinary research agenda. Energy Research & Social Science, 6(March), 59-73.



Abstract 856  .
PDF downloaded 536  .