Enhancing Member Welfare in Cooperatives: The Mediating Effect of Business Development

Authors

  • Intan Mala Sari Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia
  • Sulaeman Rahman Nidar Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia
  • Rita Komaladewi Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia

DOI:

https://doi.org/10.22219/jrak.v15i4.41780

Keywords:

Cooperative Financing, Mentoring, Training, Business Development, Member Welfare

Abstract

Purpose: This study aims to analyze the influence of cooperative financing, mentoring, and training on business development and member welfare at Kopontren Al Ittifaq. The analysis further investigates the mediating effect of business development on member welfare in relation to cooperative financing, mentoring, and training.

Methodology/approach: This study employs a quantitative approach. The research population consists of 670 farmer members of Kopontren Al Ittifaq, with a sample of 190 respondents selected through purposive sampling. Data analysis techniques utilize Smart-PLS 4.0 software.

Findings: The analysis shows that cooperative financing, mentoring, and training have a positive and significant impact on member welfare. Cooperative financing and training also have a positive effect on business development, but mentoring is insignificant. Business development has been shown to mediate the effect of cooperative financing and training on member welfare.

Practical implications: This research benefits science by providing new insights into the impact of cooperative financing, mentoring, and training on member welfare. It can also inform cooperatives' design of effective programs to improve member welfare and encourage sustainable business development.

Originality/value: The update in this research offers a novel integrative model using a structural equation approach to examine the collective influence of cooperative financing, mentoring, and training on business development (as a mediator) and member welfare within Indonesian religious-based cooperatives, contributing empirical evidence to the global discourse on cooperative resilience and the achievement of SDGs.

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Published

2025-11-06