Building cooperative stability: Strategic responses to financial digitalization in East Java
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Published:
Sep 30, 2026
Keywords:
Cooperative stability, Financial digitalization, Strategic responses
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Articles
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Abstract
This study examines the impact of financial digitization on cooperative stability in East Java and identifies strategic responses to strengthen cooperatives during digital transformation. A mixed-method approach was applied to four medium- to large-scale cooperatives involving 60 informants, including members, administrators, regulators, digital startup actors, and academics. Quantitative data were analyzed using multiple linear regression to assess the effects of cyber readiness, member trust, resource constraints, and government support on cooperative stability, while qualitative interviews were used to contextualize the statistical findings. The results show that only cyber readiness has a significant negative effect on cooperative stability, whereas member trust, resource constraints, and government support are not statistically significant. These findings indicate that digital transformation may introduce operational vulnerabilities when cybersecurity capabilities are not sufficiently developed. Strategically, the study recommends phased digital adoption, stronger institutional capacity, and fintech-based partnerships to improve cooperative resilience. Theoretically, this study extends the RBV–VRIO perspective by conceptualizing cooperative stability as an integrated outcome of operational continuity, member confidence, governance effectiveness, and adaptive capacity. Its novelty lies in showing that a valuable digital capability such as cybersecurity readiness may simultaneously create vulnerabilities when it is not effectively organized and institutionalized.
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How to Cite
Mulyaningtyas, M., Wardana, D., & Adnan, N. (2026). Building cooperative stability: Strategic responses to financial digitalization in East Java. Indonesia Accounting Research Journal, 14(1), 53–63. Retrieved from https://journals.iarn.or.id/index.php/Accounting/article/view/662
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Verma, S., Shome, S., & Hassan, M. K. (2023). FinTech in small and medium enterprises (SMEs): A review and future research agenda. European Management Journal, 41(6), 950–971. https://doi.org/10.1016/j.emj.2023.07.003
Zheng, Y., Mei, L., & Chen, W. (2024). Does government policy matter in the digital transformation of farmers’ cooperatives?—A tripartite evolutionary game analysis. Frontiers in Sustainable Food Systems, 8. https://doi.org/10.3389/fsufs.2024.1398319
Zhou, N., & Sun, R. (2024). Coping with the storm: The role of fintech in SME survival. International Review of Financial Analysis, 93, 103157. https://doi.org/10.1016/j.irfa.2024.103157
Affandi, Y., Ridhwan, M. M., Trinugroho, I., & Hermawan Adiwibowo, D. (2024). Digital adoption, business performance, and financial literacy in ultra-micro, micro, and small enterprises in Indonesia. Research in International Business and Finance, 70, 102376. https://doi.org/10.1016/j.ribaf.2024.102376
Barney, J. B. (2021). The Emergence of Resource-Based Theory: A Personal Journey. Journal of Management, 47(7), 1663–1676. https://doi.org/10.1177/01492063211015272
Bartolacci, F., Cardoni, A., Łasak, P., & Sadkowski, W. (2022). An analytical framework for strategic alliance formation between a cooperative bank and a fintech start-up: An Italian case study. Journal of Entrepreneurship, Management and Innovation, 18(4), 115–156. https://doi.org/10.7341/20221844
Billiet, A., Dufays, F., Friedel, S., & Staessens, M. (2021). The resilience of the cooperative model: How do cooperatives deal with the
Chen, S., & Shen, T. (2023). Resource constraints and firm innovation: When less is more? Chinese Journal of Population, Resources and Environment, 21(3), 172–180. https://doi.org/10.1016/j.cjpre.2023.09.006
Copestake, A., Estefania-Flores, J., & Furceri, D. (2024). Digitalization and resilience. Research Policy, 53(3), 104948. https://doi.org/10.1016/j.respol.2023.104948
Dafri, W., & Al-Qaruty, R. (2023). Challenges and opportunities to enhance digital financial transformation in crisis management. Social Sciences & Humanities Open, 8(1), 100662. https://doi.org/10.1016/j.ssaho.2023.100662
D’Oria, L., Crook, T. R., Ketchen, D. J., Sirmon, D. G., & Wright, M. (2021). The Evolution of Resource-Based Inquiry: A Review and Meta-Analytic Integration of the Strategic Resources–Actions–Performance Pathway. Journal of Management, 47(6), 1383–1429. https://doi.org/10.1177/0149206321994182
Fiordelisi, F., Grimaldi, S., Lopez, J. S., Mazzilis, M. C., & Ricci, O. (2023). The Beauty of Being Involved: The Case of Cooperative Banks. British Journal of Management, 34(4), 2290–2311. https://doi.org/10.1111/1467-8551.12698
Hamdani, D. (2023). Analisis Pengembangan Digitalisasi Koperasi Dalam Upaya Meningkatkan Partisipasi Anggota (Vol. 14, Number 3). https://doi.org/https://doi.org/10.32670/coopetition.v14i3.3848
Irawan, I., Fadhlihi, A., Diwasya, I. R., & Astuti, S. (2026). Financial Literacy, Government Support, and Fintech Adoption as Drivers of SME Sustainability Performance. Academia Open, 11(1). https://doi.org/10.21070/acopen.11.2026.13046
Kallmuenzer, A., Mikhaylov, A., Chelaru, M., & Czakon, W. (2025). Adoption and performance outcome of digitalization in small and medium-sized enterprises. Review of Managerial Science, 19(7), 2011–2038. https://doi.org/10.1007/s11846-024-00744-2
Khurana, I., Dutta, D. K., & Singh Ghura, A. (2022). SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem. Journal of Business Research, 150, 623–641. https://doi.org/10.1016/j.jbusres.2022.06.048
Lou, Y., Zhu, Q., & Liang, C. (2025). Financial technology and firm operational resilience: The roles of supply chain resilience and marketing capability. International Review of Economics & Finance, 104, 104744. https://doi.org/10.1016/j.iref.2025.104744
Mediaty, M., Maryanti, M., Arifin, A. H., Mas’ud, A. A., & Dinar, D. (2025). Enhancing digital financial inclusion: Adoption factors of digital accounting among MSMEs in Indonesia. International Journal of Innovative Research and Scientific Studies, 8(3), 1423–1434. https://doi.org/10.53894/ijirss.v8i3.6818
Miswanto, M., & Kusumasari, L. (2024). Enhancing Member Welfare in Savings and Loan Cooperatives: The Roles of Digitalization, Product Quality, and Financial Performance. Journal of System and Management Sciences, 14(3), 203–255. https://doi.org/10.33168/JSMS.2024.0313
Mulya, Setyardi Pratika, Pravitasari, Andrea Emma, Putra, Andi Syah, Rosandi, Vely Brian, Wulandari, Siti, Wahid, Muhammad, Wihana, Dadang, Fahrizal, & Mohammad. (2026). Integrating SWOT-QCA for determining subregion strategy in the economic sector. Evaluation and Program Planning, 115, 102750. https://doi.org/10.1016/j.evalprogplan.2025.102750
Nurul Fadhilah, & Darmawati. (2023). Transformasi Digital: Meningkatkan Kinerja Keuangan Koperasi Syariah. Syarikat: Jurnal Rumpun Ekonomi Syariah, 6(2), 532–544. https://doi.org/10.25299/syarikat.2023.vol6(2).13185
Saeedikiya, M., Salunke, S., & Kowalkiewicz, M. (2024). Toward a dynamic capability perspective of digital transformation in SMEs: A study of the mobility sector. Journal of Cleaner Production, 439, 140718. https://doi.org/10.1016/j.jclepro.2024.140718
Sharma, S. K., Ilavarasan, P. V., & Karanasios, S. (2024). Small businesses and FinTech: a systematic review and future directions. Electronic Commerce Research, 24(1), 535–575. https://doi.org/10.1007/s10660-023-09705-5
Siddik, A. B., Rahman, M. N., & Yong, L. (2023). Do fintech adoption and financial literacy improve corporate sustainability performance? The mediating role of access to finance. Journal of Cleaner Production, 421, 137658. https://doi.org/10.1016/j.jclepro.2023.137658
Soluk, J., Decker-Lange, C., & Hack, A. (2023). Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs. Technological Forecasting and Social Change, 191, 122490. https://doi.org/10.1016/j.techfore.2023.122490
Suciati, R., Utami, K., & Jaya, B. P. M. (2021). Analisa SWOT Strategi Digitalisasi pada Era New Normal untuk Pertumbuhan Ekonomi di Sumatera, Indonesia. Jurnal Ilmiah Aset, 23(1), 63–83. https://doi.org/10.37470/1.23.1.178
Ulrich-Diener, F., Dvouletý, O., & Špaček, M. (2025). The future of banking: What are the actual barriers to bank digitalization? BRQ Business Research Quarterly, 28(2), 491–513. https://doi.org/10.1177/23409444231211597
Verma, S., Shome, S., & Hassan, M. K. (2023). FinTech in small and medium enterprises (SMEs): A review and future research agenda. European Management Journal, 41(6), 950–971. https://doi.org/10.1016/j.emj.2023.07.003
Zheng, Y., Mei, L., & Chen, W. (2024). Does government policy matter in the digital transformation of farmers’ cooperatives?—A tripartite evolutionary game analysis. Frontiers in Sustainable Food Systems, 8. https://doi.org/10.3389/fsufs.2024.1398319
Zhou, N., & Sun, R. (2024). Coping with the storm: The role of fintech in SME survival. International Review of Financial Analysis, 93, 103157. https://doi.org/10.1016/j.irfa.2024.103157
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