Enhancing Member Welfare in Savings and Loan Cooperatives: The Roles of Digitalization, Product Quality, and Financial Performance

Cooperatives in Indonesia should be the backbone of the economy.This study aims to test whether digitalization and product quality improve the welfare of savings and loan cooperatives (SLCs) members in Indonesia, with SLC's financial performance as a mediator.This explanatory research is intended to explain causal relationships between variables.The data used were primarily obtained through questionnaires filled out by respondents.The purposive sampling method was chosen as a sample selection technique.The number of respondents was 389 people.The respondents' domicile places are spread throughout Indonesia.Validity and reliability testing on data using SPSS.Inner model (goodness of the fit model and coefficient of determination) and hypothesis testing used WarpPLS.Validity testing results show that any question on which to measure a variable is valid.The reliability testing results show that every question to measure variables is reliable.The good-of-fit testing results show that the research model used is acceptable.The findings obtained in this study are as follows.Digitalization and product quality positively affect SLC's financial performance.Digitalization and product quality positively affect the welfare of SLC members.SLC's Financial performance positively influences the welfare of SLC members.Therefore, improving the welfare of SLC members can be done through digitalization and quality products, with SLC's financial performance as a mediator.The results of this research are expected to contribute to advancing cooperatives in Indonesia through the welfare of SLC members.The welfare of SLC has an impact on the welfare of society in general.