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The Role of Cooperatives in Rural Economic Development: Challenges and Opportunities"
Bahru Ulum universitas islam lamongan Indonesia , Mohammad Yaskun Universitas Islam Lamongan Indonesia , Evi Fitrotun Universitas Islam Lamongan Indonesia , Abdul Ghofur Universitas Islam Lamongan Indonesia
Research Aim:
To analyze the role of cooperatives in rural economic development using Structural Equation Modeling (SEM), focusing on factors like human resources, management, capital access, and market access.

Design/Method/Approach:
This study uses SEM to examine relationships between key factors influencing cooperatives' success. Data was gathered from rural cooperatives in Indonesia through surveys, exploring how internal and external factors affect cooperative performance.

Research Findings:
· Human Resources: Strong skills and training are crucial for cooperative success.
- Cooperative Management: Effective management improves decision-making and resource use.
- Access to Capital: Adequate funding is essential for growth and product improvement.
- Market Access: Better market access leads to higher income for members.
Theoretical Contribution/Originality:
The study contributes by providing an SEM model that identifies key factors affecting cooperative performance in rural areas, offering new insights into their role in rural economic development.

Practical/Policy Implications:
Policy: Focus on improving access to capital and markets through partnerships and financial inclusion programs. Practical: Cooperatives should invest in member training and digital platforms to expand market reach.

Research Limitations: Geographic: Limited to rural areas in Indonesia. Cross-sectional: Data only provides a snapshot, not long-term trends. Measurement Bias: Relies on self-reported data from cooperative members.
Pages: 342-348

Published: 2026-04-29

DOI: https://doi.org/10.29407/2qbdr051

Views: 337 Downloads: 55

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