Social Capital and the Sustainability of KUD Business in Donggala District, Indonesia


  • Muhtar Lutfi Faculty of Economics and Business, Tadulako University, Palu, Indonesia
  • Eko Jokolelono Faculty of Economics and Business, Tadulako University, Palu, Indonesia
  • Armin Muis Faculty of Economics and Business, Tadulako University, Palu, Indonesia
  • Yunus Sading Faculty of Economics and Business, Tadulako University, Palu, Indonesia



Social Capital, Co-Production, Sustainability of KUD Business


This study aims to identify the social capital, co-production, and sustainability of KUD (Village Unit Cooperatives) business. It used descriptive research design using primary data obtained from KUD administrators and KUD members through the focus group discussion (FGD). It used FGD because in general KUD activities stopped after being affected by the natural disasters on September 28, 2018, and during the Covid 19 pandemic so that most of the KUD administrators and members were inactive and difficult to find. The findings of this study showed that (1) some KUD businesses have decreased the number of active KUD members, reduced income and SHU (net income) of KUD members due to the natural disasters that damage property and livelihoods of community members, especially members of KUD; (2) The active participation of KUD members has significantly decreased; (3) Only half of the number of KUDs are still running their activities; and (4) Overal, the social capital, co-production, and sustainability variables of KUD business are low.


Download data is not yet available.


Adler, P. S., & Kwon, S.-W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1), 17–40.

Alkire, S., Bebbington, A., Esmail, T., Ostrom, E., Polski, M., Ryan, A., … Dongier., P. (2001). Community-driven development. In PRSP Source Book. Washington, D.C: World Bank.

Badan Pusat Statistik. (2016). Perkembangan Koperasi di Kabupaten Donggala.

Burt, R. S. (2001). Closure as social capital. Social Capital: Theory and Research, 31–55.

Chloupkova, J., Svendsen, G. L. H., & Svendsen, G. T. (2003). Building and destroying social capital: The case of cooperative movements in Denmark and Poland. Agriculture and Human Values, 20(3), 241–252.

Coleman, J. S. (1988). Social Capital in the Creation of Human Capital. American Journal of Sociology, 94, S95–S120.

Coleman, J. S. (1990). Foundations of Social Theory. Harvard University Press.

Devi, L. R. (2006). Ikatan Solidaritas, Keberdayaan dan Ketahanan Usaha Kelompok Etnis Pedagang Tekstil Pasar Klewer Surakarta. Universitas Negeri Semarang, Semarang.

Djohan, R. (2008). Lead to Getherness. Jakarta: Fund Asia Education.

Etgar, M. (2008). A descriptive model of the consumer co-production process. Journal of the Academy of Marketing Science, 36(1), 97–108.

Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity (Vol. 99). New York: Free press New York. Retrieved from

Fukuyama, F. (2000). Social capital and civil society.

Hikmat, H. (2001). Strategi pemberdayaan masyarakat. Bandung: Humaniora Utama Press.

Lambert, D. M., & García-Dastugue, S. J. (2006). Cross-functional Business processes for the implementation. The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions, 150.

Mees, H., Alexander, M., Gralepois, M., Matczak, P., & Mees, H. (2018). Typologies of citizen co-production in flood risk governance. Environmental Science & Policy, 89, 330–339.

Miguel, E. A., Gertler, P., & Levine, D. I. (2003). Did Industrialization Destroy Social Capital in Indonesia? CENTER FOR INTERNATIONAL AND DEVELOPMENTECONOMICS RESEARCH, (C03-131), 1–51.

Mills, P. K., Chase, R. B., & Margulies, N. (1983). Motivating the client/employee system as a service production strategy. Academy of Management Review, 8(2), 301–310.

Moelyono, M. (2007). Peran Modal Sosial dalam Memoderasi Pengaruh Jaringan Usaha dan Pembelajaran Organisasi Terhadap Kinerja UKM Sektor Manufaktur di Kota Palu. Universitas Negeri Malang.

Moelyono, M. (2010). Menggerakkan Ekonomi Kreatif Antara Tuntutan dan Kebutuhan. Jakarta: RajaGrafindo Persada.

Ostrom, E. (1996). Crossing the great divide: Coproduction, synergy, and development. World Development, 24(6), 1073–1087.

Polk, M. (2015). Transdisciplinary co-production: Designing and testing a transdisciplinary research framework for societal problem solving. Futures, 65, 110–122.

Putnam, R. (1993). The prosperous community: Social capital and public life. The American Prospect, 13(Spring), Vol. 4. Available online: http://www. prospect. org/print/vol/13 (accessed 7 April 2003).

Putnam, R. D. (2011). Bowling Alone: America’s Declining Social Capital. In The City Reader (pp. 166–174). Routledge.

Robison, L. J., Siles, M. E., & Schmid, A. A. (2002). Social capital and poverty reduction: Toward a mature paradigm (p. 45) [Working or Discussion Paper]. Department ofAgricultural EconomicsMICHIGAN STATEUNIVERSITYEast Lansing, MI48824-1039. Retrieved from Department ofAgricultural EconomicsMICHIGAN STATEUNIVERSITYEast Lansing, MI48824-1039 website:

Tsai, W., & Ghoshal, S. (1998). Social Capital and Value Creation: The Role of Intrafirm Networks. Academy of Management Journal, 41(4), 464–476.

Wiedmann, T. O., Lenzen, M., & Barrett, J. R. (2009). Companies on the Scale. Journal of Industrial Ecology, 13(3), 361–383.

World Bank. (1998). The Initiative on Defining, Monitoring and Measuring Social Capital: Overview and Program Description. Social Capital Initiative Working Paper No. 1.




How to Cite

Lutfi, M., Jokolelono, E. ., Muis, A. ., & Sading, Y. (2021). Social Capital and the Sustainability of KUD Business in Donggala District, Indonesia. Journal of Asian Multicultural Research for Economy and Management Study, 2(4), 11-24.