Does Strategic Management Accounting, Local Wisdom Influence Village-Owned Enterprises Performance? An Applied Study in Indonesia

Evi Marlina; Siti Rodiah; Desti Mualfah; Sandra Audina

doi:10.32479/irmm.21458

Authors

Evi Marlina Economic and Bussines Faculty, Universtas Muhammadiyah Riau, Indonesia
Siti Rodiah Economic and Bussines Faculty, Universtas Muhammadiyah Riau, Indonesia
Desti Mualfah Economic and Bussines Faculty, Universtas Muhammadiyah Riau, Indonesia
Sandra Audina Economic and Bussines Faculty, Universtas Muhammadiyah Riau, Indonesia

DOI:

https://doi.org/10.32479/irmm.21458

Keywords:

Strategic Management Accounting, Local Wisdom, Village-Owned Enterprises, Performance, Indonesia

Abstract

The high role of village-owned enterprises (VOEs) in encouraging the improvement of the rural economy, so the demand to improve the performance of VOEs is a challenge for VOEs managers. This is due to limited resources and high levels of competition. This paper aims to test several factors that can encourage the improvement of the performance of VOEs, namely strategic management accounting (SMA), this is related to ensure the effectiveness and efficiency of organizational management. In addition, because the existence of VOEs in rural areas is considered local wisdom so that the existence of VOEs receives support from the local community. This study uses SEM-PLS to test the influence of SMA and local wisdom on the performance of VOEs. By using primary data obtained by distributing questionnaires to 276 VOEs spread across the province of Riau, Indonesia. The findings of the study show that SMA and local wisdom have a significant effect on the performance of VOEs.