Performance improvement strategies based on balanced scorecard for rural cooperative: the case of Indonesia

Abstract

This study is intended to identify the problems affecting the cooperative performance, and ultimately to formulate an applicable strategic plan to improve the cooperative performance. The results show that: (1) The cooperative performance is considered good from financial perspective, poor from customer's perspective, good from internal business processes perspective, and decent from learning and growth perspective. (2) The issues affecting the cooperative performance are: lack of employee's discipline due to the absence of attendance management system, large number of competitors, low capability of employees, declining number of members, many passive members, lack of members' loyalty, and untimely payment from partner companies for dairy sales. (3) The applicable strategies to improve the cooperative performance are: applying appropriate attendance management system, applying innovations in cooperative business, and improving employee productivity in generating income for village unit cooperative.