Analysis of Joint Liability Groups’ Performance Using Social Cohesion Approach to Sharia Savings and Loans Cooperatives in Indonesia
- DOI
- 10.2991/978-2-38476-046-6_19How to use a DOI?
- Keywords
- joint liability groups; social cohesion; Sharia Savings and Loans Cooperatives; moral hazards; PLS-SEM
- Abstract
This study intentions to discover whether social cohesion significantly affects the performance of joint liability (tanggung renteng or TR) groups in sharia savings and loans cooperatives in Indonesia. The social cohesion dimension in this research includes peer selection and monitoring, peer sanctions, and social ties. Meanwhile, the TR group performance dimension is analyzed based on its ability to overcome moral hazards. This investigation adopts the quantitative method design. Focusing on the population of sharia savings and loan cooperatives, particularly in Java, surveys are distributed to their members to collect data. The data were evaluated quantitatively using PLS-SEM. The results show that peer selection and monitoring, and social ties have no impact on moral hazard behavior that measures TR group performance. In fact, social ties have a strong influence on the process of peer screening and monitoring. On the other hand, peer sanctions significantly positively impact moral hazard behavior. It is because the members of the observed TR groups cannot apply sanctions decisively and then trigger free-riding and strategic defaults in the group. There have not been many studies on TR groups in Indonesia that involve the social cohesion dimension in sharia-based cooperatives. This research can provide more in-depth knowledge about how the performance of TR groups in Indonesia is influenced by the level of social cohesion owned by sharia cooperative members.
- Copyright
- © 2023 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Amelia Pratiwi AU - Nurma Yulita PY - 2023 DA - 2023/05/02 TI - Analysis of Joint Liability Groups’ Performance Using Social Cohesion Approach to Sharia Savings and Loans Cooperatives in Indonesia BT - Proceedings of the 3rd Universitas Lampung International Conference on Social Sciences (ULICoSS 2022) PB - Atlantis Press SP - 190 EP - 203 SN - 2352-5398 UR - https://doi.org/10.2991/978-2-38476-046-6_19 DO - 10.2991/978-2-38476-046-6_19 ID - Pratiwi2023 ER -