Management Competence, Administrative Readiness and Public Sector Support for the Operational Readiness of the Merah Putih Cooperative through Process Efficiency in Luwu Regency

Abstract

Cooperatives have a strategic role in improving community welfare, therefore the government initiated the Red and White Cooperative to strengthen the people's economy at the village level. However, the operational performance of cooperatives often faces various complex challenges such as a lack of management competency, limited administrative readiness, and suboptimal public sector support, which collectively can hinder the operational readiness of the cooperative. This study aims to analyze the influence of management competency, administrative readiness, and public sector support on the operational readiness of the Red and White Cooperative in Luwu Regency with process efficiency. The population in this study were employees and administrators at the Red and White Cooperative in Luwu Regency. The sampling technique in this study used saturated samples where the entire population was used as respondents, resulting in a total of 70 respondents. The main research instrument in collecting data was a questionnaire that had been tested for instrument validity and reliability. The collected data will be analyzed descriptively and verifiably using Structural Equation Modeling (SEM) with the help of SmartPLS software..The results of the study indicate that management readiness, administrative readiness, and public sector support have a significant positive effect on efficiency. Efficiency has a significant positive effect on operational readiness. Management readiness, administrative readiness, and public sector support have an insignificant positive effect on operational readiness. However, management readiness, administrative readiness, and public sector support indirectly have a significant positive effect on operational readiness through efficiency. By focusing on efficiency as a mediator, the Merah Putih Cooperative in Luwu Regency can achieve its strategic goals of improving community welfare and strengthening the village economy in accordance with the ideals of this national program.