Implementation of Cooperative Principles as an Organization Culture and Effect on Financial Performance
Sugiyanto

Institut Manajemen Koperasi Indonesia (Ikopin)

Abstract

Cooperative as business entity have several objectives, that are member promotion and business efficiency, which is measured by financial performance, in average showed that financial performance is lower than the standards set by the Ministry of Cooperatives and SMEs, allegedly cooperative managers have not imple-mented yet cooperative principles in their managerial activities consistently as an organization culture. The purpose of this study is to examine the implementation of cooperative principles and the effect on cooperative financial performance. This research was conducted on 60 cooperatives sample size in West Java using quanti-tative descriptive method, and using multiple regression analysis. The results showed that cooperative princi-ples are not yet implement consistently and implementation of 7 cooperative principles partially does not ef-fect on the cooperatives financial performance, but simultaneously implementation of cooperative principles effects on the cooperative financial performance.

Keywords: Cooperative Principles, Organization Culture, Financial Performance

Topic: Financial Management and Accounting