An Integrated Model of Internal and External Factors Affecting
Cooperative Management Board Performance towards Cooperative
Performance
Yudi Supiyanto
Universitas PGRI Ronggolawe (UNIROW) Tuban
Keywords: Integrated Model, Management Board Performance, Cooperative Performance.
Abstract: The present article reports on the results of a study designed to investigate the influence model of Managerial
ability, Organizational Commitment, Job Satisfaction and Job Challenge on Management Board and
Organization Performance at Koperasi Pegawai Republik Indonesia (KPRI). The approach used is a
correlation design. The population is cooperative institution called boards of KPRI throughout East Java. The
data are analyzed by the Structural Equation Model. The results of this study are: 1) Variable Managerial
ability, Organizational Commitment, and Job Challenges are all positive and significant impact on
Management Board Performance. While of Job Satisfaction does not influence on Management Board
Performance. 2) Both variable Managerial Ability and Organizational Commitment, have positive and
significant effect on Organizational Performance of KPRI. While Job Satisfaction and Challenge of the work
does not influence on Management Board Performance, 3). Variable Management Board Performance has
positive effect and a significant on Organizational Performance.
1 INTRODUCTION
In this era of globalization, whereas cooperatives are
working and competing in the free market, on the
other hand it raises new problems, especially in terms
of competition. Cooperative is one of the important
mechanisms to enter the market and this raises a new
problem. The problems that arise and the various
dimensions faced by cooperatives above are to be
based on human cooperative resources, not only on
quantity but rather on quality. Cooperative
performance problems have been widely investigated
by researchers and experts of cooperatives or SMEs.
The performance of cooperatives is influenced by
many factors, both external and internal. The external
ones include competition, the situation of economic
conditions, government policy, and market network.
Internal issues include management, ideology,
finance, performance and human resources and
organizational behavior factors (Nasution, 2008;
Kamenaung, 2004; Nirbito, 2003).
Management ability is an important individual
characteristic in behavior of individual work. Nurthal
(2001) said that the management capacity is
identically with managerial abilities such as the
personnel characteristics, intelligence (competence)
and motivation. Research of Tasrifin (2012) found
empirical fact that: Managerial ability have positive
and significant influence to BDS-P / KKMB
Consultant performance in East Java, it means the
higher the managerial ability of a consultant, the
higher the performance, the lower the ability of
Managerial a consultant, the lower the performance.
According to Meyer et al. (1997) that commitment
is not only related to the level of employee turnover,
but also related to the level of employee’s willingness
to sacrifice for the company. Therefore, the need of
high trust and organizational support of employees
becomes an important thing for every member of the
organization (Boswell, 2003).
Some studies found that there are many facts that
job satisfaction influence on personnel performance
and cooperative performance. However, the level of
satisfaction of each personnel varies depending on the
values applicable in each individual employee.
According to Robbins (2011) job satisfaction is
defined as a general attitude towards a person's work
that shows the difference between the number of
784
Supiyanto, Y.
An Integrated Model of Internal and External Factors Affecting Cooperative Management Board Performance towards Cooperative Performance.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 784-790
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
awards earned by the worker and the amount they
believe they should receive. It is said that work
satisfaction leads to improved performance so that
satisfied workers will be more productive. But from
various studies found the evidence that organizations
that have more satisfied employees tend to be more
effective than organizations that have less satisfied
employees. Gibson, et al. (1995) explained that
organizational performance depends on the
performance of employees, or in other words the
performance of employees will give a contribution to
organizational performance.
The work challenge variable is the next variable
that is expected to have an effect on the performance.
The work challenge is defined as the extent to which
work is challenging and exciting (Meyer and Allen,
1988). The concept of work challenge which is one of
the forms of work characteristics has an important
role in improving the performance of personnel which
will further improve the performance of the
organization. The studies of Singh et al. (2011)
further found empirical evidence that the challenges
of retailers work positively affect the company's
performance.
According to Rusdarti (2009) cited in this study
the performance capability of the board is the aspect
of ability that determines the success of the
organization. Thus formal education, education and
training, relevant experience and knowledge have
been seen as some of the variables of ability that can
influence personal behavior in completing work
programs.
This study takes object in East Java where in the
national level in the case of cooperatives become an
example for the other province especially if it is seen
from quantity side of cooperative in East Java is the
most in Indonesia that is 29,150 pieces with details
25,154 active and 3,996 not active (Fatah, 2013). But
in terms of quality still have to get attention and
correction either among movement of cooperative
itself or from government as coach. This is related to
the number of inactive cooperatives, including the
existence of an inactive KPRI that is 111 units, the
cooperative which is threatened to disperse due to
management problems, human resources problems
(HR) in the cooperative regarding professionalism
and morale cooperative management as well as the
problem of technology utilization.
Based on the problems of study can be
formulated:
Does managerial ability affect the performance
of Cooperative Employees of the Republic of
Indonesia (KPRI) management board in East
Java?
Does organizational commitment affect the
performance of Cooperative Employees of the
Republic of Indonesia (KPRI) management
board in East Java?
Does job satisfaction affect the performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) management board in East
Java?
Does the work challenge affect the performance
of Cooperative Employees of the Republic of
Indonesia (KPRI) management board in East
Java?
Does managerial ability affect the
organizational performance of Cooperative
Employees of the Republic of Indonesia (KPRI)
in East Java?
Does organizational commitment affect the
organizational performance of Cooperative
Employees of the Republic of Indonesia (KPRI)
in East Java?
Does job satisfaction affect the performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) organization in East Java?
Does the work challenge affect the performance
of Cooperative Employees of the Republic of
Indonesia (KPRI) organization in East Java?
Does the performance of the board affect the
performance of the organization Cooperative
Employees of the Republic of Indonesia (KPRI)
in East Java?
2 METHODS
Related with the problems, there are six variables to
be studied. These six variables are classified into
three parts, independent variables (independent
variable / exogenous variable) X which consists of
four variables namely: Managerial Ability (X1),
Organizational Commitment (X2), Job Satisfaction
(X3) and Job Challenge (X4) , The variable between
(intervening variable) Z namely Management Board
Performance (Z) and dependent variable
(Endogenous Variable) Y one variable that is:
Organization Performance (Y).The conceptual
framework of research can be seen in the figure 1:
An Integrated Model of Internal and External Factors Affecting Cooperative Management Board Performance towards Cooperative
Performance
785
Figure 1: Conceptual research framework.
Based on the background of the study, the
problems of the study and the literature review and
conceptual framework that has been formulated, the
hypothesis proposed in this study is:
Managerial Ability has a significant effect on
the Management Board Performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java.
Organizational Commitment has a significant
effect on the Management Board Performance
of Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java.
Job Satisfaction has a significant effect on the
Board Performance of Cooperative Employees
of the Republic of Indonesia (KPRI) in East
Java.
Job Challenge has a significant effect on the
Management Board Performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java.
Managerial Performance has a significant effect
on the Organizational Performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java.
Organizational Commitment has a significant
effect on the Organizational Performance of
Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java.
Job Satisfaction has a significant effect on the
Organizational Performance of Cooperative
Employees of the Republic of Indonesia (KPRI)
in East Java.
Job Challenge has a significant effect on the
Organizational Performance of Cooperative
Employees of the Republic of Indonesia (KPRI)
in East Java.
Management Board Performance has a
significant effect on the Organizational
Performance of Cooperative Employees of the
Republic of Indonesia (KPRI) in East Java.
This study aims to examine the influence model
of Managerial ability (X1), Organizational
Commitment (X2), Job Satisfaction (X3) and Job
Challenge (X4) on Board Performance (Z) (as
intermediate variables) and Organization
Performance (Y). Therefore, the approach used is a
quantitative approach with design or correlation
design. It is as Arikunto (1995) noted that
correlational research does not only shows
interrelationships, it can also expresses causal
relationships. The essence of the correlation analysis
is not only to measure the strength of this relationship
but also if there is a strong relationship between the
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
786
variables then with further analysis can be known the
causal relationships that exist.
The population is a cooperative institution called
the Cooperative Employees of the Republic of
Indonesia (KPRI) in East Java as many as 1.777
pieces of legal entities/ institutions. Based on to be
used is a combination of techniques Purposive,
Proportional and Random Sampling., it will get a
sample of 182 KPRI and who became respondent in
this study is each Chairman of the KPRI so that the
number of respondents obtained by 182x 1 person =
182 people.
The technique of taking data is by using
questionnaire. Questionnaires were used to collect the
overall data from these study variables. Then the
answer scale used in the questionnaire is using Likert
Scale. The Likert scale measures the attitude of
opinion and perception of a person or group of social
phenomena (Sekaran, 2000; Suprapto, 2004,
Sugiono, 2009). In the Likert scale uses the numbers
1 to 5 where the number 1 indicates the lowest score
while the number 5 indicates the highest score. To test
the hypothesis that has been formulated in this study,
the method of inferential data analysis is Structural
Equation Model / SEM (Solimun, 2006; Supranto,
2004; Waluyo, 2011).
3 RESULTS AND DISCUSSION
The calculation of the goodness values of fit indexes
which are produced by the modification model can be
seen in Table 1:
Table 1: Value of goodness of fit and cut off value
modification model.
Criteria
Model
Critical
Explanation
Test Result
Value
Probability of
X
2
Chi square
0,000
0,05
Not Fit
Cmin/DF
2,053
2 or 2 –
Fit
3
RMSEA
0,076
0,08
Fit
GFI
0,823
0,90
Marginal
AGFI
0,777
0,90
Not Fit
TLI
0,903
0,90
Fit
CFI
0,917
0,90
Fit
Modified model results show most of the
goodness of fit criteria of the good (fit) index so that
testing can proceed. This is in line with the opinion of
Solimun (2006) that if we find one or two the
goodness criteria of fit is fit /good, thus it can be said
that the model is good.
To determine whether or not the influence of
exogenous variables on endogenous variables and
endogenous variables on endogenous variables, these
following provisions are used:
The first parameter is to compare CR
arithmetic> 1.96 or -CR count <-1.96 then there
are exogenous variables influence on
endogenous variables or endogenous variables
influence on endogenous variables and vice
versa.
Or it can also be seen from the level of
significant α = 0.05. If the significance value is
≤0.05 then there are exogenous variables
influences on endogenous variables and vice
versa.
The parameter of partial existence influence can
be known based on CR value (Critical Ratio) as
shown in table 2.
Table 2: Regression weight causality test result.
Causality
Relation
Std.
Estimate
SE
CR
Managerial
Ability Board
Performance
0.179
0.060
2.173
Organizational
Commitment
Board
Performance
0.218
0.044
2.657
Job Satisfaction
Board
Performance
0.152
0.077
1.764
Job Challenge
Board
Performance
0.279
0.055
3.253
Managerial
Ability
Organization
Performance
0.340
0.059
5.163
Organizational
Commitment
Organization
Performance
0.375
0.044
5.672
Job Satisfaction
Organization
Performance
0.015
0.074
0.220
Job Challenge
Organization
Performance
0.123
0.053
1.820
An Integrated Model of Internal and External Factors Affecting Cooperative Management Board Performance towards Cooperative
Performance
787
Board
Performance
Organization
Performance
0.236
0.094
3.065
0.002
Based on Table 2, it can be explained the findings
of the study results:
3.1 The Influence of Managerial
Ability to the Board Performance
The result of parameter estimation of managerial
ability to board performance based on its indicator
shows significant result with CR 2.173 value, this
value is greater than 1.96. Moreover, the level of
significance 0.030 (p≤0.05) was obtained. So the first
hypothesis that explains the managerial ability
significantly influences the performance of KPRI
boards in East Java proved true. The results of this
study support the research of Tasrifin (2012) which
showed that the managerial ability has a positive and
significant effect on the performance of consultant of
BDS-KKMB Consultant Performance in East Java.
3.2 The Influence of Organizational
Commitment to the Board
Performance
The result of organizational variable parameter
estimation to management performance based on its
indicators shows significant result with CR 2.657
value, this value is greater than 1.96. Besides, the
significance level was 0.008 (p≤0.05). So the second
hypothesis that explains that organizational
commitment has a significant influence to the
performance of KPRI management in East Java is
also proven true.
3.3 The Influence of Job Satisfaction to
Board Performance
The result of the parameter estimation of job
satisfaction variable to the board performance based
on the indicators shows the result which has no effect
to CR value 1.764, this value is smaller than 1.96.
Besides, the significance level is 0.078 (p>0.05).
Thus the third hypothesis that explains that job
satisfaction has a significant influence to the
performance of KPRI management in East Java is not
proven.
3.4 The Influence of Job Challenges to
the Board Performance
Job Challenges have a significant influence to the
performance of KPRI management in East Java. The
result of estimation of job challenge variable
parameters on the performance of the management
based on the indicators showed significant result with
CR value 3.253, this value is greater than 1.96. In
addition, the significance level of 0.001 (p≤ 0.05) was
obtained. Thus the fourth hypothesis that explains the
job challenges has a significant influence to the
performance of KPRI management in East Java, also
proven true.
3.5 The Influence of Managerial
Capacity to Organizational
Performance
The result of parameter estimation of managerial
capacity to organizational performance based on its
indicator shows significant result with CR value
5.163, this value is greater than 1.96. Besides, the
significance level of 0.000 (p≤0,05) was obtained.
Thus the fifth hypothesis which explains that the
managerial capacity significantly influence the
performance of KPRI organization in East Java, also
proven its truth.
3.6 The Influence of Organizational
Commitment to Organizational
Performance
The result of estimation of organizational
commitment variable to organizational performance
based on its indicator shows significant result with
CR value 5.672, this value is greater than 1.96.
Besides, the significance level of 0.000 (p≤0.05) was
obtained. Thus the sixth hypothesis explains that
organizational commitment has a significant
influence to the performance of KPRI organization in
East Java, also proven its truth.
3.7 The Influence of Job Satisfaction to
Organization Performance
The result of parameter estimation of job satisfaction
variable on organizational performance based on the
indicators shows the result which has no influence to
CR value 0.220, this value is smaller than 1.96.
Besides that, the level of significance is 0.826 (p>
0.05). Thus the seventh hypothesis that explains that
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
788
job satisfaction has a significant influence to the
performance of KPRI organization in East Java is not
proven.
3.8 The Influence of Job Challenges to
Organizational Performance
The result of estimation of variable of job challenge
variable to organizational performance based on its
indicator also shows the result which have no
influence to CR value 1.820, this value is smaller than
1.96. Besides that, the level of significance is 0.069
(p> 0.05). Thus the eighth hypothesis which explains
that the job challenge has a significant influence to
the performance of KPRI organization in East Java is
not proven.
3.9 The Influence of Board
Performance to Organization
Performance
The result of parameter estimation of management
performance variable to organizational performance
based on its indicator shows significant result with
CR value 3.065, this value is greater than 1.96.
Besides, the significance level of 0.002 (p≤0.05) was
obtained. Thus the ninth hypothesis which explains
that the board performance has a significant influence
to the performance of KPRI organization in East Java,
also proved true.
4 CONCLUSIONS
Based on the results of analysis and testing of
hypotheses that have been done, as well as the
objectives to be achieved from the study, it can be
concluded: managerial ability has a positive and
significant influence to KPRI management
performance in East Java, organizational
commitment has a positive and significant influence
to the performance of KPRI management in East
Java, job satisfaction does not influence the
performance of KPRI management in East Java, job
Challenges have a positive and significant influence
to the performance of KPRI management in East
Java, managerial ability have positive and significant
influence to KPRI organization performance in East
Java, organizational commitment has positive and
significant influence to KPRI organizational
performance in East Java, job satisfaction also does
not influence the performance of KPRI organization
in East Java, the job challenge does not influence to
the performance of the KPRI organization in East
Java, the management performance has a positive and
significant influence to the performance of KPRI
organization in East Java.
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