The Performance Enhancement Model for Coconut Processed Products Cooperatives through the Value Chain and Livelihood Assets Approach in North Maluku Province, Indonesia

Abstract

Objective: This research aims to formulate a model of value chain and livelihood assets in an effort to enhance the performance of cooperatives focusing on processed coconut products in the North Maluku Province. Coconut (Cocos nucifera) is a fruit plant with a crucial role on a global scale, providing a food source for millions of people, especially in tropical and subtropical regions. Due to the numerous benefitsit yields, the coconut is often referred to as the "tree of life" or the "rescuer tree   Method: A total of 206 samples were used in this study, and the analysis was conducted using the Structural Equation Modeling (SEM) method. The determination of the research location is purposive, primarily in the largest coconut-producing areas in North Maluku. The selection of the research location is based on the consideration that this region is one of the largest coconut producers in Indonesia and has the presence of cooperatives in the coconut plantation sector. North Maluku Province produces coconut products in several regencies, including North Halmahera Regency, South Halmahera Regency, West Halmahera Regency, Central Halmahera Regency, Morotai Island Regency, Sula Regency, Taliabu Regency, and North Maluku Regency.   Results: The research results indicate that primary activities, social capital, physical capital, entrepreneurship, and political capital have a positive and significant influence on the value chain and livelihood assets. On the other hand, support activities, human capital, natural capital, and financial capital do not have a significant impact on either the value chain or livelihood assets. The value chain and livelihood assets significantly contribute to the performance of the cooperative.   Conclusions: factors such as support activities, human capital, natural capital, and financial capital do not have a significant influence on the value chain or livelihood assets. These results can serve as a foundation for policymakers and stakeholders to develop more effective strategies and programs to enhance the value chain, livelihood assets, and cooperative performance in the North Maluku Province.