Uncovering the Sustainability of Agricultural Cooperatives in East Kutai, Indonesia

Abstract

This research aims to investigate the causality between access to computers (AC), internet networks (IN), digital administration skills (DAS), and financial literacy (FL) on profits (PFT). This study’s objectivity compares agricultural cooperatives that adopt technology with adopt non-technology. Secondary data was explored to analyze the performance of active agricultural cooperatives which are partners of the East Kutai Regency government.Using panel data regression from eighteen sub-districts in East Kutai, it is proven that technology adopting agricultural cooperatives were more prominent than non-technology adopting agricultural cooperatives during 2017–2022. However, there is a harmony in the statistical findings from both observations (agricultural cooperatives that adopt technology and non-adopters of technology), where access to computers and financial literacy both have a significant effect on profits. Other analysis results show that internet networks and digital administration skills have an insignificant impact on profits. The study's implications provide valuable output for the future sustainability of agricultural cooperatives. The success of agricultural cooperatives depends greatly on the effectiveness of the application of technology. Through this research, it is hoped that it can provide open space for academic, managerial and policy-making development to restructure the agricultural cooperative system, especially optimizing internet networks and administrative skills.