Conceptual Model of the Influence of Value Chains and Livelihood Assets on the Performance of Coconut Product Processing Cooperatives in North Maluku Province, Indonesia

Abstract

This study formulates a model of the influence of value chain and livelihood asset variables on the operational performance of coconut product processing cooperatives in North Maluku Province. Sample determination was conducted using a purposive sampling technique. The samples used in this study include cooperative managers and production units. The analytical method employed is structural equation model (SEM) analysis with the SmartPLS approach. The research findings indicate that the model for improving the operational performance of cooperatives through the value chain and livelihood asset approach in North Maluku Province indicates that these two variables have a significant impact on cooperatives’ operational performance. Value chain variables such as outbound logistics, service, infrastructure, and technology development are strongly correlated with cooperatives’ operational performance. Likewise, livelihood asset variables, such as natural, financial, social, and entrepreneurial capital, also have a significant impact on cooperatives’ operational performance. Higher value chains and livelihood assets have a more significant impact on cooperatives’ operational performance. This indicates that both the value chain and livelihood assets play an important role in improving cooperatives’ operational performance. Therefore, enhancing the value chain and livelihood assets can significantly improve cooperatives’ operational performance.