The Role of Good Cooperative Governance in Mediating the Influence of Islamic Financial Literacy and Digitalization on the Performance of Islamic Cooperatives: Empirical Evidence from Bukittinggi City

Karmila Sari (Universitas Islam Negeri Syech M. Djamil Djambek Bukittinggi)
Baginda Parsaulian (Universitas Islam Negeri Syech M. Djamil Djambek Bukittinggi)

International Journal of Management Research and Economics
Vol. 4 No. 3 (2026): August : International Journal of Management Research and Economics

This study aims to analyze the influence of Islamic financial literacy and digitalization on the performance of Islamic cooperatives with Good Cooperative Governance (GCG) as a mediating variable. The study used a quantitative approach with a survey method on administrators, managers, and members of Islamic cooperatives in Bukittinggi City. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results showed that digitalization had a positive and significant effect on the performance of Islamic cooperatives, while Islamic financial literacy did not directly affect performance. However, Islamic financial literacy and digitalization were proven to have a positive effect on the implementation of Good Cooperative Governance. Furthermore, Good Cooperative Governance had a positive effect on the performance of Islamic cooperatives and mediated the influence of Islamic financial literacy and digitalization on the performance of Islamic cooperatives. These findings confirm that improving cooperative performance is not only determined by the ownership of resources in the form of knowledge and technology, but also by the quality of organizational governance that is able to optimize the utilization of these resources.