Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia

Although the number of Islamic co-operatives' memberships only amounted to 2.51 million people (11.19%) to the total membership of co-operatives in Indonesia nationwide, but it has shown a rising trend in its membership by 76.11% over the last decade (Ministry of Co-Operatives SMEs, 2019). The...

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Main Authors: M. Shabri Abd Majid, Faisal Faisal, Heru Fahlevi, Hafasnuddin Hafasnuddin
Format: Article
Language:English
Published: Universitas Negeri Semarang 2021-09-01
Series:JEJAK: Jurnal Ekonomi dan Kebijakan
Subjects:
Online Access:https://journal.unnes.ac.id/nju/index.php/jejak/article/view/31621
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author M. Shabri Abd Majid
Faisal Faisal
Heru Fahlevi
Hafasnuddin Hafasnuddin
author_facet M. Shabri Abd Majid
Faisal Faisal
Heru Fahlevi
Hafasnuddin Hafasnuddin
author_sort M. Shabri Abd Majid
collection DOAJ
description Although the number of Islamic co-operatives' memberships only amounted to 2.51 million people (11.19%) to the total membership of co-operatives in Indonesia nationwide, but it has shown a rising trend in its membership by 76.11% over the last decade (Ministry of Co-Operatives SMEs, 2019). These figures raise an essential research question: what drives the decision of Indonesian citizens to patronage Islamic co-operatives? Specifically, this study explores pertinent determinants of decision-making made by the members to select Islamic co-operatives in Aceh, Indonesia. A number of 280 members and non-members of Islamic co-operatives were selected as the sample of the study using a purposive sampling technique. Based on the logistic multiple regression technique, the study recorded that the members' decision-making in selecting Islamic co-operatives was mainly determined by their shari'ah compliance and characteristics' uniqueness. Meanwhile, physical facilities and services quality provided by the Islamic co-operatives have insignificant effects on the people's decision-making to become the memberships of Islamic co-operatives. This empirical evidence suggested that to attract more memberships, the Islamic co-operatives should improve their shari'ah compliance and characteristics' uniqueness.
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spelling doaj.art-1ff30818bb6b42b3a4e317bf0064dc732023-07-03T03:03:20ZengUniversitas Negeri SemarangJEJAK: Jurnal Ekonomi dan Kebijakan2460-51232021-09-0114229630310.15294/jejak.v14i2.3162111486Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, IndonesiaM. Shabri Abd Majid0Faisal Faisal1Heru Fahlevi2Hafasnuddin Hafasnuddin3Faculty of Economics and Business, Syiah Kuala UniversityUniversitas Syiah KualaUniversitas Syiah KualaUniversitas Syiah KualaAlthough the number of Islamic co-operatives' memberships only amounted to 2.51 million people (11.19%) to the total membership of co-operatives in Indonesia nationwide, but it has shown a rising trend in its membership by 76.11% over the last decade (Ministry of Co-Operatives SMEs, 2019). These figures raise an essential research question: what drives the decision of Indonesian citizens to patronage Islamic co-operatives? Specifically, this study explores pertinent determinants of decision-making made by the members to select Islamic co-operatives in Aceh, Indonesia. A number of 280 members and non-members of Islamic co-operatives were selected as the sample of the study using a purposive sampling technique. Based on the logistic multiple regression technique, the study recorded that the members' decision-making in selecting Islamic co-operatives was mainly determined by their shari'ah compliance and characteristics' uniqueness. Meanwhile, physical facilities and services quality provided by the Islamic co-operatives have insignificant effects on the people's decision-making to become the memberships of Islamic co-operatives. This empirical evidence suggested that to attract more memberships, the Islamic co-operatives should improve their shari'ah compliance and characteristics' uniqueness.https://journal.unnes.ac.id/nju/index.php/jejak/article/view/31621decision making, patronage behavior, islamic co-operative, shari’ah compliance, logistic regression.
spellingShingle M. Shabri Abd Majid
Faisal Faisal
Heru Fahlevi
Hafasnuddin Hafasnuddin
Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
JEJAK: Jurnal Ekonomi dan Kebijakan
decision making, patronage behavior, islamic co-operative, shari’ah compliance, logistic regression.
title Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
title_full Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
title_fullStr Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
title_full_unstemmed Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
title_short Decision Making and Patronage Behaviour in Islamic Co-operatives in Aceh, Indonesia
title_sort decision making and patronage behaviour in islamic co operatives in aceh indonesia
topic decision making, patronage behavior, islamic co-operative, shari’ah compliance, logistic regression.
url https://journal.unnes.ac.id/nju/index.php/jejak/article/view/31621
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AT faisalfaisal decisionmakingandpatronagebehaviourinislamiccooperativesinacehindonesia
AT herufahlevi decisionmakingandpatronagebehaviourinislamiccooperativesinacehindonesia
AT hafasnuddinhafasnuddin decisionmakingandpatronagebehaviourinislamiccooperativesinacehindonesia