Integrated member participation moderates the effect of transactional leadership and the business environment on the performance of oil palm cooperatives in Indragiri Hulu, Riau

This study adopts a resource-based theory perspective to empirically examine the moderating role of integrated member participation in the effect of transactional leadership and the business environment on the performance of oil palm cooperatives in Indragiri Hulu. The study involved 108 administrators from oil palm cooperatives in Indragiri Hulu, Riau, Indonesia. Data were analyzed using Structural Equation Modeling (SEM) PLS. The study advocates for integrated member participation as a strategic approach to enhancing cooperative performance. Results indicate that transactional leadership and the business environment significantly affect the performance of oil palm cooperatives, with integrated member participation serving as a moderator in this relationship. These results contribute to the resources-based theory by emphasizing the importance of developing cooperative competencies to navigate internal and external changes, thereby enhancing cooperative performance.