Building Sustainable Cooperatives Environmental Base: The Role of Social Capital and Technology Adoption in Different Regional Contexts

Objective: Cooperatives institutions are currently developing towards sustainable financial institutions, so that their performance is not only a financial problem but also how the institution runs is balanced with the sustainability of the environment and the surrounding community. The purpose of this study is to measure various factors of cooperative developers about their influence on sustainable cooperative development. Methodology: The design of this study was exploratory quantitative by taking active cooperatives in Central Java as a population. The sample size uses a minimum amount of 5 times the number of items in the study so that the sample obtained is 195 cooperatives. Data collection using questionnaires and analyzed with Structural Equation Model using WarpPLS tool. Findings: Sustainable cooperatives can develop to encourage sustainable development by implementing cooperative social capital. Technology does not have an influence on the development of sustainable cooperatives, so the sustainability of the environment and society can be developed by cooperatives is not related to the technology used. Theoretical and/or Methodological contributions: This research uses sustainability theory which results that cooperative institutions that are successful in implementing environmentally sustainable cooperatives must focus on internal rather than external factors. Research/Practical Implications: Cooperative institutions are advised to improve social capital, especially with fellow members, so that the goal of becoming a financial institution that supports sustainable development can be fulfilled because its internal factors have been strengthened.