The Impact of Implementation of a Joint Liability System on Member Behavior

Abstract


 
 
 This study analyzes the impact of the consistent implementation of a joint liability system in cooperative life. This research uses descriptive qualitative research methods using in- depth interview techniques which are then carried out by open coding to find patterns and theories related to the results of the interviews. As said by Miles & Huberman (1992: 19) there are three stages that must be done in analyzing qualitative research data, namely (1) data reduction; (2) exposure data (data display); and (3) drawing conclusions and verification (conclusion drawing / verifying). The results of the analysis of this study that have been carried out, explain that cooperative members who implement and obey the rules that exist in joint liability cooperatives unconsciously have an impact on their behavior changes, they have discipline and a high sense of solidarity towards other members.
 
 

Methods for studying group loans, join responsibility, and women's empowerment

“…Various loan implementations, including the practise of group loans, follow distinct patterns. The community as a whole lends money to credit institutions through group loans.The money is distributed according to the portion agreed by fellow members of the group that owns it [2] .…”

“…The implementation of Group Loans is one of the strategies for financial institutions to minimize the risk of bad payments on money lent to the community, considering that the person in charge of the use of funds and payments are made jointly by those who join the community groups [4] . Credit institutions provide convenience through Group Loans [5] , primarily to support productive activities for women [6] and to minimize the business risks of credit institutions [2] . Furthermore, Group Loans have a variety of effects on the community, notably on rural families [5] .…”