Associations of Membership, Debt, and Equity with Cooperative Volume in Malaysia, the Philippines, and Indonesia

Yanto Sidik Pratiknyo; Wilson Bangun; Zainur Hidayah; Roni Kambara

doi:10.61255/jeemba.v4i5.1919

Authors

Yanto Sidik Pratiknyo Universitas Terbuka, Indonesia
Wilson Bangun Universitas Maranatha, Indonesia
Zainur Hidayah Universitas Terbuka, Indonesia
Roni Kambara Universitas Sultan Agung Tirtayasa, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1919

Keywords:

cooperatives, membership, debt, equity, business volume

Abstract

Purpose - This study examines whether cooperative membership, debt, and equity are associated with cooperative business volume in Malaysia, the Philippines, and Indonesia, and whether the pattern differs across the three national cooperative systems.

Design/methodology/approach - A quantitative comparative correlational design used secondary administrative data from 64 regional units: 14 in Malaysia, 16 in the Philippines, and 34 in Indonesia. Members, debt, equity, and volume were transformed using natural logarithms, and separate log-linear multiple regression models were estimated in SPSS version 25 at a 5% significance level.

Finding/Results - In Malaysia, only equity was significant (B = .983, p = .011). In the Philippines, debt (B = .529, p = .004) and equity (B = .431, p = .009) were significant. In Indonesia, membership (B = .327, p = .013), debt (B = .206, p = .016), and equity (B = .508, p < .001) were significant.

Originality/Value - The comparison shows that equity is the most consistent correlate of cooperative volume, while the relevance of membership and debt varies by country. The study provides a country-sensitive application of a log-linear production-oriented framework to cooperative performance and cautions against assuming one development model across ASEAN settings.

Abstract views: 17 ,

PDF downloads: 5

Downloads

Download data is not yet available.

References

Ahado, S., Hejkrlík, J., Enkhtur, A., Tseren, T., & Ratinger, T. (2021). Does cooperative membership impact the yield and efficiency of smallholder farmers? Evidence from potato farmers in Mongolia. China Agricultural Economic Review, 13(4), 736–755. https://doi.org/10.1108/CAER-01-2021-0013

Ayouba, K. (2025). Does agricultural cooperative membership improve farm productive performance? A meta-regression analysis. Agricultural Economics, 56(1), 45–72. https://doi.org/10.1111/agec.12862

Belay, D., & Wondimu, A. (2024). Measuring individual social capital in cooperatives in West Shoa, Ethiopia. Annals of Public and Cooperative Economics, 95(2), 573–594. https://doi.org/10.1111/apce.12422

Bernardi, A., Berranger, C., Mannella, A., Monni, S., & Realini, A. (2022). Sustainable but not spontaneous: Co-operatives and the solidarity funds in Italy. Sustainability, 14(8), 4516. https://doi.org/10.3390/su14084516

Bianchi, M., & Vieta, M. (2020). Co-operatives, territories and social capital: Reconsidering a theoretical framework. International Journal of Social Economics, 47(12), 1599–1617. https://doi.org/10.1108/IJSE-03-2020-0135

Cai, D., Tong, P., Wei, X., & Hu, Q. (2022). Does participation in aquaculture cooperatives increase farmers’ profit and output? Fishes, 7(4), 164. https://doi.org/10.3390/fishes7040164

Chawviang, A., & Kiattisin, S. (2022). Sustainable development: Smart co-operative management framework. Sustainability, 14(6), 3641. https://doi.org/10.3390/su14063641

Chollet, P., Enjolras, G., Pavez, I., & Saïsset, L.-A. (2026). The sustainability performance of agricultural cooperatives: A systematic literature review. Annals of Public and Cooperative Economics, 97, 321–367. https://doi.org/10.1111/apce.70013

Co-operative statistics. (n.d.). Perangkaan Koperasi Malaysia.

Cobb, C. W., & Douglas, P. H. (1928). A theory of production. The American Economic Review, 18(1), 139–165.

Cooperative Development Authority. (n.d.). Annual cooperative report 2023.

D’Amato, A., Festa, G., Dhir, A., & Rossi, M. (2021). Cooperatives’ performance relative to investor-owned firms: A non-distorted approach for the wine sector. British Food Journal, 124(13), 35–52. https://doi.org/10.1108/BFJ-03-2021-0275

Hando, H., Senapathy, M., & Bojago, E. (2022). Determinants of member participation in activities of multipurpose primary cooperatives: The case of Kindo Koysha District, Southern Ethiopia. Advances in Agriculture, 2022, 3569016. https://doi.org/10.1155/2022/3569016

Hu, Z., Zhang, Q. F., & Donaldson, J. (2023). Why do farmers’ cooperatives fail in a market economy? Rediscovering Chayanov with the Chinese experience. The Journal of Peasant Studies, 50(7), 2611–2641. https://doi.org/10.1080/03066150.2022.2104159

Jia, S., & Xu, X. (2021). Community-level social capital and agricultural cooperatives: Evidence from Hebei, China. Agribusiness, 37, 804–817. https://doi.org/10.1002/agr.21703

Kusmiati, E., Masyita, D., Febrian, E., & Cahyandito, M. F. (2023). A study on the determinants of successful performance of Indonesian cooperatives. International Journal of Social Economics, 50(9), 1285–1301. https://doi.org/10.1108/IJSE-02-2022-0078

Lin, B., Wang, X., Jin, S., Yang, W., & Li, H. (2022). Impacts of cooperative membership on rice productivity: Evidence from China. World Development, 150, 105669. https://doi.org/10.1016/j.worlddev.2021.105669

Löffel, U., & Gmür, M. (2024). Entrepreneurial cooperatives: The impact of entrepreneurial orientation on economic and social performance. Journal of Co-operative Organization and Management, 12(1), 100234. https://doi.org/10.1016/j.jcom.2024.100234

Ma, W. (2023). Yield effects of agricultural cooperative membership in developing countries: A meta-analysis. Annals of Public and Cooperative Economics, 94(3), 761–780. https://doi.org/10.1111/apce.12411

Ma, W., Zheng, H., Zhu, Y., & Qi, J. (2022). Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis. Annals of Public and Cooperative Economics, 93(1), 5–27. https://doi.org/10.1111/apce.12326

Miller, S., & Mullally, C. (2022). Investigating the inclusive-performance tradeoff in agricultural cooperatives: Evidence from Nepal. World Development, 159, 106017. https://doi.org/10.1016/j.worlddev.2022.106017

Ministry of Cooperatives and SMEs of the Republic of Indonesia. (n.d.). Laporan data koperasi per 31 Desember 2021.

Miroro, O. O., Anyona, D. N., Nyamongo, I., Bukachi, S. A., Chemuliti, J., Waweru, K., & Kiganane, L. (2023). Determinants of smallholder farmers’ membership in co-operative societies: Evidence from rural Kenya. International Journal of Social Economics, 50(2), 165–179. https://doi.org/10.1108/IJSE-03-2022-0165

Molla, A., Abebe, A., & Assefa, D. (2024). Determinants of dairy cooperative membership among smallholder farmers in North-Western Ethiopia. Cogent Food & Agriculture, 10(1), 2289717. https://doi.org/10.1080/23311932.2023.2289717

Muryani, E., Gunawan, A., & Halim Yustiyawan, R. (2022). The impact of member participation and innovation ability on the performance of the Cooperatives of Women’s Kartini in Driyorejo District, Gresik Regency. Journal of Technology Management & Innovation, 17(3), 52–58. https://doi.org/10.4067/S0718-27242022000300052

Nayak, R. K. (2022). Performance of Odisha State Co-operative Bank: An ARDL approach. Arthaniti: Journal of Economic Theory and Practice, 21(1), 7–26. https://doi.org/10.1177/0976747920941769

Ndung’u, E. G., & Mutinda, J. (2020). Corporate growth strategies and performance of selected savings and credit cooperative societies in Nairobi City County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 2(2), 19–30. https://doi.org/10.35942/jbmed.v2i2.112

Neupane, H., Paudel, K. P., Adhikari, M., & He, Q. (2022). Impact of cooperative membership on production efficiency of smallholder goat farmers in Nepal. Annals of Public and Cooperative Economics, 93(2), 337–356. https://doi.org/10.1111/apce.12371

Otache, I., Echukwu, I. J., Umar, K., Yunusa, A., & Audu, S. (2022). Internal factors affecting the performance of employee-based savings and credit cooperatives: Evidence from Nigeria. Journal of Enterprising Communities: People and Places in the Global Economy, 17(6), 1154–1170. https://doi.org/10.1108/JEC-03-2022-0046

Özgül, S., Koçar, G., & Eryaşar, A. (2020). The progress, challenges, and opportunities of renewable energy cooperatives in Turkey. Energy for Sustainable Development, 59, 107–119. https://doi.org/10.1016/j.esd.2020.09.005

Saz-Gil, I., Bretos, I., & Díaz-Foncea, M. (2021). Cooperatives and social capital: A narrative literature review and directions for future research. Sustainability, 13(2), 534. https://doi.org/10.3390/su13020534

Sebhatu, K. T., Gezahegn, T. W., Berhanu, T., Maertens, M., Van Passel, S., & D’Haese, M. (2021). Exploring variability across cooperatives: Economic performance of agricultural cooperatives in northern Ethiopia. International Food and Agribusiness Management Review, 24(3), 397–419. https://doi.org/10.22434/IFAMR2019.0215

Segovia-Vargas, M. J., Miranda-García, I. M., & Oquendo-Torres, F. A. (2023). Sustainable finance: The role of savings and credit cooperatives in Ecuador. Annals of Public and Cooperative Economics, 94(3), 951–980. https://doi.org/10.1111/apce.12428

Toiba, H., Rahman, M. S., Hartono, R., & Retnoningsih, D. (2024). Improving dairy farmers’ welfare in Indonesia: Does cooperative membership matter? Annals of Public and Cooperative Economics, 95(4), 1003–1019. https://doi.org/10.1111/apce.12471

Towo, N. N. (2023). Financial leverage and financial performance of savings and credit co-operative societies in Tanzania. International Journal of Rural Management, 19(2), 214–233. https://doi.org/10.1177/09730052221077846

Wang, J., & Wang, Y. (2024). Economic performance of rural collective-owned cooperatives: Determinants and influence mechanism. Annals of Public and Cooperative Economics, 95(3), 629–653. https://doi.org/10.1111/apce.12454

Yuhertiana, I., Zakaria, M., Suhartini, D., & Sukiswo, H. W. (2022). Cooperative resilience during the pandemic: Indonesia and Malaysia evidence. Sustainability, 14(10), 5839. https://doi.org/10.3390/su14105839

Zhang, C.-H., Benjamin, W. A., & Wang, M. (2021). The contribution of cooperative irrigation scheme to poverty reduction in Tanzania. Journal of Integrative Agriculture, 20(4), 953–963. https://doi.org/10.1016/S2095-3119(21)63634-1