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

M. Shabri Abd. Majid; Azhari Azhari; Faisal Faisal; Heru Fahlevi

doi:10.21512/bbr.v11i1.5918

Authors

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: mshabri@unsyiah.ac.id
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: azharikuliah@gmail.com
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: faisalekm@unsyiah.ac.id
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: hfahlevi@unsyiah.ac.id

DOI:

https://doi.org/10.21512/bbr.v11i1.5918

Keywords:

capital, business volume, cooperative productivity

Abstract

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.

Dimensions

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: mshabri@unsyiah.ac.id

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.

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