Transforming Koperasi Merah Putih through Governance and Innovation: Strategic Insights from Swiss Cooperatives

Abstract

This study examines the influence of Good Cooperative Governance and Sustainability Strategic Orientation on Sustainable Cooperative Performance and Community Economic Resilience through Member Participation Capability and Cooperative Innovation Capability. Although the empirical data were collected only from Koperasi Merah Putih in Java, Indonesia, the study uses the success of Swiss cooperatives as a contextual learning perspective to strengthen the interpretation of cooperative governance, sustainability, innovation, member value creation, and community-based economic resilience. A quantitative approach was employed using structured questionnaires distributed to 120 top to middle management respondents of Koperasi Merah Putih in Java. The data were analyzed using SPSS through validity, reliability, multicollinearity, normality, multiple regression, t-test, F-test, and path regression logic. The results show that Good Cooperative Governance significantly affects Member Participation Capability and Cooperative Innovation Capability. Sustainability Strategic Orientation significantly affects Cooperative Innovation Capability but does not significantly affect Member Participation Capability. Member Participation Capability does not significantly affect Sustainable Cooperative Performance, while Cooperative Innovation Capability has a positive and significant effect on Sustainable Cooperative Performance. Furthermore, Sustainable Cooperative Performance significantly improves Community Economic Resilience. These findings indicate that the sustainability of Koperasi Merah Putih in Java is shaped more strongly by cooperative innovation capability than by member participation alone. The Swiss cooperative experience enriches the study by showing that cooperative success requires the integration of democratic governance, professional management, sustainability commitment, innovation capability, and direct member value creation. Therefore, the findings can be analytically generalized to cooperative contexts with similar governance, sustainability, innovation, and community resilience challenges. This study contributes to strategic management and cooperative sustainability literature by demonstrating that governance quality and sustainability-oriented strategy must be transformed into innovation-driven cooperative capabilities to create sustainable cooperative performance and stronger community economic resilience.