HomeIAMURE International Journal of Multidisciplinary Researchvol. 6 no. 1 (2013)

The Application of Internal Control for the Women Cooperative Performance in East Java

Eni Wuryani

Discipline: Management



Internal control for the women cooperative performance is considered important. Internal control in such an organization should be done for increasing the performance. This study aimed to analyze the implementation of internal control in the cooperative. It utilized census data with the population consisting of 103 women cooperatives in Madiun Regency East Java, in 2012. The performance of the women cooperative was assessed, and the internal control variables were measured through their regulatory activities, including the organization field, business, capital, and financial supervisions. For the cooperative performance, it was measured based on the results of the 2012 performance appraisal concerning the financial and non-financial aspects. The performance appraisal includes aspects of organization, management, governance, management, productivity, and the benefits and their impacts. Using linear regression analysis, it was found that the internal control has a positive and significant effect on the performance. This indicates that the more the internal control is implemented, the better the cooperative performance. It is recommended that integrity and ethics should be emphasized. Internal control is supported by good control environment, competency in cooperatives, assignment, and responsibility. Besides, good communication and information system, as well as control activities and monitoring, are implemented by all members.