Abstract
This research purposes is to analyze cooperative’s strategy to improve its competitiveness based on information technology utilization. This research employs a quantitative descriptive approach, analysis on cooperative competitiveness with Policy Analysis Matrix (PAM) in consideration of input and output. Cooperative’s business development strategy employs an analytic hierarchy process (AHP). The analysis is conducted on active cooperatives with open data system (ODS) in Central Java Province. 64.82% of all cooperatives have utilized information technology in their business operation and 35.18% of all cooperatives have not utilized information technology in their business operation; Result of the Policy Analysis Matrix (PAM) using the Domestic Resources Cost Ratio (DRC) = 0.240 This Condition shows that the cooperatives business is efficient and has comparative advatage. Private Cost Ratio (PCR) = 0.229, means the cooperative has been able to use its domestic use the actual price and has competitive advantage. Cooperative has comparative advantage and competitive advantage competitiveness. The results of AHP analysis with five development criteria show that the information technology criterion is the most prioritized criterion with weight value of 0.365; the capital criterion’s weight value is 0.218; the human resource criterion’s weight value is 0.195; the network criterion’s weight value is 0.164, and the marketing criterion’s weight value is 0.058. The cooperative competitiveness standard does not include export variable, thus further research needs to be conducted with different measuring tool from that of this research.
Highlights
A Cooperative is a medium to develop economic democracy and collect potential development through society members, and perform economic activities to raise its members welfare. Ropke (2000) explains that cooperatives in developing countries generally do not have opportunity to grow gradually and enhance their efficiency to equalize to private competitors and other governmental economic institutions
The results of descriptive analysis shows descriptively that, in regard to utilization of information technology variable, many cooperatives have operated their business based on information technology (IT) or many of them have used the open data system (ODS), as given below
Comparative advantage shows that a cooperative has efficiently used its domestic resources, and competitive advantage shows that a cooperative is able to use its domestic resources at existing actual price throughout its business operation without government policy
Summary
A Cooperative is a medium to develop economic democracy and collect potential development through society members, and perform economic activities to raise its members welfare. Ropke (2000) explains that cooperatives in developing countries generally do not have opportunity to grow gradually and enhance their efficiency to equalize to private competitors and other governmental economic institutions. (Central Java Province Cooperative and SME Agency, 2017) Based on this fact, we may state that the number of cooperatives in Central Java Province increases, but not in balance and not in line with their quality, efficiency and competitiveness. We may state that the number of cooperatives in Central Java Province increases, but not in balance and not in line with their quality, efficiency and competitiveness In this global/free trade era, some researches show that cooperative competitiveness is low and inefficient. The reason of cooperative’s low competitiveness is that most of cooperative’s human resources (HRs) in Central Java Province have not utilized information technology well and optimally This indicates that cooperatives in Central Java have low competitiveness and inefficiently operate their business and non-optimally utilize technology
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