The Role of Agricultural Cooperative Management in Increasing the Economic Income of Farmers in Batu City

Wulan Puji Lestari; Yohanes Sandro  Ahang; Cahyo Sasmito

doi:10.29407/nusamba.v11i1.27652

Authors

Wulan Puji Lestari Universitas Tribhuwana Tunggadewi Malang
Yohanes Sandro Ahang Universitas Doktor Husni Ingratubun Papua
Cahyo Sasmito Universitas Tribhuwana Tunggadewi Malang

DOI:

https://doi.org/10.29407/nusamba.v11i1.27652

Keywords:

Cooperative Management, Agricultural Cooperatives, Farmer Income, Horticulture, Agritourism

Abstract

Research aim: To analyze the role of management functions in agricultural cooperatives (planning, organizing, implementing, and supervising) in increasing the economic income of farmers in Batu City.
Design/Methods/Approach: This research uses quantitative method with an explanatory survey approach involving 120 farmer members of the cooperative in Batu City. Data were analyzed using multiple linear regression after undergoing a series of classical assumption tests.

Research Findings: The cooperative management function simultaneously has a significant impact on farmers' income (F=82.164; R²=0.742). Partially, the implementation function is the most dominant variable (β=489.560), followed by the planning function (β=312.450) and the supervision function (β=223.890), while the organizing function does not show a significant impact. Cooperative member farmers were recorded to have an income 66.8% higher (Rp 4,820,000/month) compared to non-member farmers.

Theoretical Contribution/Originality: Enriches the literature on the effectiveness of agricultural cooperative management in the context of agrotourism and horticulture, and identifies the implementation function as the strongest determinant of farmers' income increase. These findings differ from previous studies that generally emphasize the planning function as the dominant factor.
Practical Implications: Cooperative managers need to prioritize the optimization of implementation and planning functions in organizational management. The local government is recommended to provide management assistance and strengthen the institutional capacity of cooperatives sustainably.

Research Limitations: The limited scope to the City of Batu, a model that can explain 74.2% of income variation, the use of a cross-sectional design that cannot capture long-term changes, and measurements based on respondents' perceptions, which may contain subjective bias.

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