Cooperative Organization Innovation In Facing The Digital Economy Competition
Keywords:
Organizational Innovation, Cooperatives, Digital Transformation, Digital Economy.Abstract
The digital economy has intensified competition, requiring cooperatives to adopt organizational innovation to remain sustainable. This study aims to examine forms of organizational innovation, their role in improving operational effectiveness and service quality, and the challenges of digital transformation in cooperatives. A qualitative descriptive-exploratory approach was employed. Data were collected through in-depth interviews and document analysis at the Primary Cooperative of the Sukabumi City Police Resort, involving six purposively selected informants. The data were analyzed using an interactive analysis model. The findings reveal that the cooperative implements multidimensional organizational innovation, including social, managerial, and digital innovations. Digital innovation, particularly the development of an application-based cooperative management information system (SIMACOP), enhances efficiency, transparency, and member satisfaction. However, limited digital literacy and data management complexity remain significant challenges. This study concludes that organizational innovation aligned with cooperative values is a critical strategy for strengthening competitiveness and ensuring the sustainability of cooperatives in the digital economy era.
Downloads
References
Battilana, J., & Lee, M. (2014). Advancing research on hybrid organizing: Insights from the study of social enterprises. Academy of Management Annals, 8(1), 397–441. https://doi.org/10.5465/19416520.2014.893615
Birchall, J. (2018). The governance of large cooperative businesses. Cooperative College.
Borzaga, C., & Galera, G. (2016). Innovating the provision of welfare services through collective action: The case of Italian social cooperatives. International Review of Sociology, 26(1), 31–47. https://doi.org/10.1080/03906701.2016.1148336
Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555–590. https://doi.org/10.2307/256406
Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
Hidayat, R., & Prabowo, T. (2023). Digitalization of cooperatives and cooperative competitiveness in the digital economy era. Indonesian Journal of Economics and Business, 38(2), 215–229.
International Co-operative Alliance. (2015). Guidance notes to the cooperative principles. ICA.
Kenney, M., & Zysman, J. (2016). The rise of the platform economy. Issues in Science and Technology, 32(3), 61–69.
Kraus, S., Palmer, C., Kailer, N., Kallinger, F.L., & Spitzer, J. (2019). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 45, 354–367. https://doi.org/10.1016/j.ijinfomgt.2018.11.002
Rahmawati, N., Setiawan, B., & Lestari, E. (2021). Digital literacy of cooperative members and its challenges in digital transformation. Journal of Economics and Finance, 5(1), 45–58.
Sari, PN, & Nugroho, A. (2022). The effect of digitalization of cooperative systems on administrative efficiency and financial transparency. Journal of Accounting and Finance, 19(2), 134–146.
Tapscott, D. (2015). The digital economy: Rethinking promise and peril in the age of networked intelligence. McGraw-Hill.
Teece, D.J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Tilson, D., Lyytinen, K., & Sørensen, C. (2010). Digital infrastructures: The missing IS research agenda. Information Systems Research, 21(4), 748–759. https://doi.org/10.1287/isre.1100.0318
Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J.Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Suhartono, S., & Widodo, T. (2020). Cooperative principles and their implications for the management of cooperative organizations in Indonesia. Journal of Cooperative Economics, 11(2), 85–96.
Crossan, M. M., Lane, H. W., & White, R. E. (1999). An organizational learning framework: From intuition to institutions. Academy of Management Review, 24(3), 522–537. https://doi.org/10.5465/amr.1999.2202135
Battisti, M., & Deakins, D. (2017). The relationship between dynamic capabilities, the firm's resource base and performance in a post-disaster environment. International Small Business Journal, 35(1), 78–98. https://doi.org/10.1177/0266242615611471
Pratama, BA, & Irawan, F. (2020). The development of the digital economy and its challenges for business actors in Indonesia. Indonesian Journal of Economics and Development, 20(1), 1–15.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Fahda Nur Qaidah Qaidah (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
