Co-operative Entrepreneurs and Agribusiness Development, A Study Towards the Development of Agribusiness Co-operatives in Indonesia
SUMMARY This study aims to examine the extent to which entrepreneurial characters of co-operative leaders is related to the success of agribusiness co-operatives, so that the findings can be used to form strategies for developing agribusiness co-operatives. This general objective can be achieved t...
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This study aims to examine the extent to which entrepreneurial characters of co-operative leaders is related to the success of agribusiness co-operatives, so that the findings can be used to form strategies for developing agribusiness co-operatives. This general objective can be achieved through some of the following operational objectives, namely to: (1) analyze factors that influence the development of co-operatives to determine success levels of agribusiness co-operatives in Indonesia; (2) identify characteristics of co-operative entrepreneurs in successful agribusiness co-operatives; (3) evaluate the effectiveness of co-operative education and training (CET) programs in Indonesia; and (4) formulate strategies for developing co-operative entrepreneurs and agribusiness co-operatives in Indonesia.
The research was conducted in thirty dairy co-operatives in the Provinces of West Java and East Java. The determination of dairy co-operatives as the object of study was done deliberately, because dairy co-operatives in Indonesia are established in one of two ways, either in the form of a KUD which is established by government policy (top-down approach) or in the form of a Non-KUD, which is established naturally by dairy farmers (bottom-up approach). Analyses were conducted on the performance of co-operatives in 2000, and on the growth of co-operative businesses over five years (1996-2000). The data collected were analyzed in terms of the business and organizational aspects of co-operatives. Research respondents included co-operative boards of directors (BOD), managers, employees, and members and non-members of co-operatives, coming to a total of 420 respondents.
Two indices were made, one each for business and organizational variables. After this was done, both of these indexes were plotted to form quadrants, in which the thirty dairy co-operatives distributed themselves into four typologies. The best co-operatives were those in the typology of Quadrant-I, which had relatively better performance in both business and organizational aspects than those in the other typologies. There were ten co-operatives in Quadrant-1, four co-operatives in Quadrant-II, and ten and six co-operatives in Quadrant-III and IV, respectively. Additionally, the two indices were then processed into a single index called the Dairy Co-operative Development Index, which sorted the thirty sample co-operatives from best-to-worst performance.
The performance of co-operative leaders was analyzed by comparing their performance among quadrants. A statistical test was used to determine whether the character of co-operative leaders was significantly different among quadrants, particularly between Quadrant-I and the other Quadrants. This study shows that co-operative leaders in Quadrant-I have traits frequently recognized as entrepreneurial traits, namely the highest score for internal locus of control and the need for achievement, an ideal graph form of social motives, as well as a moderate risk-taking attitude.
To examine the third operational objective, the study observed the implementation of CET programs in Indonesia. The primary data was obtained from 58 co-operative lecturers from 32 universities throughout Indonesia and 206 students who were taking co-operative studies at four sampled universities. In addition to this, expert interviews were conducted with eight co-operative experts, using the Analytical Hierarchy Process (AHP) method. The result showed that the implementation of CET programs in Indonesia was still not effective in supporting the development of co-operatives. In addition, a review of the implementation of co-operative education at universities showed that co-operative education was still not capable of motivating students to contribute to the development of co-operatives.
The strategy proposed for developing CE consists of developing its three pillars, namely: (1) building understanding and confidence in co-operatives, (2) developing business and technological knowledge and skills, and (3) developing altruistic leadership skills. Meanwhile, the strategy for developing agribusiness co-operatives prioritizes the development of the existing agribusiness co-operatives, which is formulated while referring to the typology of co-operatives and Co-operative Development Index.|