Analysis Of Member Participation, Local Social Capital, And The Role Of Government On The Welfare Of Cooperative Members: Comparative Study Between KSU Banjar Adat And KSU Conventional In Gianyar Regency

Abstract

The populist economic system is the economic system adopted by the Indonesian state.Cooperatives are identical to the people's economic system, so they are expected to be able to make a real contribution to people's economic empowerment.The purpose of this study was to prove and analyze the effect of member participation, local social capital, and the role of government on the performance of cooperatives;to prove and analyze the effect of member participation, local social capital, and the role of government on the welfare of cooperative members;to prove and analyze the effect of cooperative performance on the welfare of cooperative members; to prove and analyze whether the performance of cooperatives mediates the effect of member participation, social capital, and the role of the government on the welfare of cooperative members at KSU Banjar Adat and KSU Conventional in Gianyar Regency;and to analyze the comparison of the influence of local social capital on the performance of cooperatives and the welfare of cooperative members at KSU Banjar Adat and KSU Conventional in Gianyar Regency.The number of samples in this study were 86 units of Banjar Adat cooperatives and conventional cooperatives, with structural equation modeling analysis tools based on Partial Least Square (PLS).The results showed that: (1) The performance of KSU Banjar Adat and KSU Conventional in Gianyar Regency is influenced by the level of member participation, local social capital, and the role of the government; (2) Member participation and local social capital have a direct effect on the welfare of members both at KSU Banjar Adat and KSU Conventional in Gianyar Regency.The role of government affects the welfare of cooperative members indirectly;(3) The level of welfare of members of KSU Banjar Adat and KSU
Conventional in Gianyar Regency is influenced by cooperative performance which is reflected by work behavior such as cooperation, discipline, and individual member relationships;(4) Cooperative performance partially mediates the effect of member participation and local social capital on member welfare.Cooperative performance is known to fully mediate the influence of the government's role on the welfare of members of KSU Banjar Adat and KSU Conventional in Gianyar Regency; and (5) local social capital at KSU Banjar Adat in Gianyar Regency is stronger than local social capital at KSU Conventional.