Factors Affecting The Members Participation On Cooperative In North Sumatera

Abstract

This research discuss about a variety of factors that might affect increased participation of members in cooperative. As the owners and users, the role of a member is decisive importance in business development of cooperatives. The importance of improving the participation of members as a solution in improving the performance of cooperatives, which is still low so far is need to be explored. The study was held in several municipalities and regencies in North Sumatera, by involving a hundred respondents. First, tested reliability and validity of an instrument, next test the assumption classical, includes of normality, multicollinearity, and heteroscedasticity. Next, the data is analyzed using Pearson correlation test and multiple linear regressions. The results showed that there is a significant correlation between all the independent variables with the participation of member, with the respective correlation level of r1 = 0.509, r2 = 0.672, r3 = 0.606, r4 = 0.713, r5 = 0.626, r6 = 0.709, and r7 = 0.660. The regression equation model is obtained as follows: Y = 0.859 + 0.089 X1 +0.122 X2 + 0.060 X3 + 0.199 X4 +0.138 X5 +0.096 X6 + 0.097 X7, and coefficient determinant R2 = 0.749. The research get a concept model for development participation members, where the factor is significantly affected by service quality (X4), motivation non material (X1), infrastructure (X5), motivation material (X2), management capability of the Board (X6), and education and training (X7), while perception member (X3) is not significant effected. This research concluded that the participation of the members of the cooperative can be enhanced by improving the quality of service to members, involve members in various activities, providing adequate facilities and infrastructure and enhance the capabilities of Board in managing, as well as provide a useful education and training.