“…In general, these cooperatives are still poorly administered, and overburdened with internal issues, such as limited capitalization (Wangmo, 2015), less competitive management (Siriwan, Ramabut, Thitikalaya, & Pongwiritthon, 2013), unsupportive *Address correspondence to this author at the Department of Management, Universitas Islam Negeri Maulana Malik Ibrahim Malang, Malang, Indonesia; Tel: +62341558881; Fax: +62341558881; E-mail: salim.alaydrus@manajemen.uin-malang.ac.id organizational culture (Fernández & Camacho, 2016), and being difficult to have an access to market, information technology, and institutional support (Sinaga, 2013). External issue is mostly coming from strategic factors, such as the market share that remains untouchable, and the yet unexploited sources of economic activities (Prawirokusumo, 2001).…”