The Influence of Good Corporate Governance, Social Capital, and Organizational Culture on the Financial Performance of Village Credit Institutions in Bali
Abstract
This study examines the influence of Good Corporate Governance (GCG), social capital, and organizational culture on the financial performance of Village Credit Institutions (LPDs) in Bali. Data were collected from 100 LPDs selected using proportional sampling and analyzed using Structural Equation Modeling (SEM) with Partial Least Square (PLS). The findings reveal that GCG, social capital, and organizational culture significantly and positively affect financial performance. Effective GCG enhances stakeholder trust, social capital fosters collaboration with local communities, and strong organizational culture improves operational efficiency. The study concludes that integrating GCG, social capital, and organizational culture is crucial for ensuring the sustainability and competitiveness of LPDs. Practical implications include the need for training, supportive regulations, and strategies aligned with local wisdom, such as Tri Hita Karana.
Keywords: Good Corporate Governance; Social Capital; Organizational Culture; Financial Performance; LPD.
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References
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Mahrani, M., & Soewarno, N. 2018. The Effect Of Good Corporate Governance Mechanism And Corporate Social Responsibility On Financial Performance With Earnings Management As Mediating Variabel. Asian Journal of Accounting Research, 3(1), 41–60.
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Muslih, M., & Halliawan, P. 2021. Organizational Culture And Corporate Governance As A Performance Driver Of Indonesia State-Owned Enterprises (SOE). South East Asia Journal of Contemporary Business, Economics and Law, 24(1), 48–57.
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Sugiyono, 2008. Metode Penelitian Bisnis, Penerbit Alfabeta, Bandung.
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Tulcanaza-Prieto, A. B., Aguilar-Rodríguez, I. E., & Artieda, C. 2021). Organizational culture and corporate performance in the ecuadorian environment. Administrative Sciences, 11(4).
Yadap, M. P., Venkata, V.P.R.P., & Pradhan, R. S. (2018). Impact of financial, social and human capital on entrepreneurial succes. International Journal of Small Business and Entrepreneurdhip Research, 6(4). 1-28
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Ulum, I. 2017. Intellectual Capital (Model Pengukuran, Framework Pengungkapan, dan Kinerja Organisasi) (3rd ed.). Malang: UMM Press.
Zhao, H., Teng, H., & Wu, Q. 2018. The Effect Of Corporate Culture On Firm Performance: Evidence From China. China Journal of Accounting Research, 11(1), 1–19.
Abdulrahim, M. O., Sukoharsono, E. G., Saraswati, E., & Subekti, I. 2020. Investigating the Impact of Organizational Culture and Corporate Governance on Sustainability Performance with Strategic Posture as Mediating Variabel. The International Journal of Business & Management, 8(7).
A Chariri dan Imam Ghozali. 2007. Teori Akuntansi. Semarang: Badan Penerbit Universitas Diponegoro.
Akintimehin, O. O., Eniola, A. A., Alabi, O. J., Eluyela, D. F., Okere, W., & Ozordi, E. 2019. Social capital and its effect on business performance in the Nigeria informal sector. Heliyon. Vol 5. No 7. pp.2024.
Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. S. 2020. The Impact of Corporate Governance on Financial Performance of Indian and GCC Listed Firms: An Empirical Investigation. Research in International Business and Finance, 51(September 2018.
Aslam, E., & Haron, R. 2020. Does corporate governance affect the performance of Islamic banks? New insight into Islamic countries. Corporate Governance (Bingley), 20(6), 1073–1090.
Brigham dan Houston, 2011. Dasar-Dasar Manajemen Keuangan, Buku 2 Edisi 11, Alih Bahasa Ali Akbar Yulianto. Penerbit Salemba Ampat Jakarta.
Buallay, A., Hamdan, A., & Zureigat, Q. 2017. Corporate Governance And Firm Performance: Evidence From Saudi Arabia. Australasian Accounting, Business and Finance Journal, 11(1), 78–98.
Chen, M.C. S.J. Cheng. dan Y. Hwang. 2020. An Empirical Investigation of Relationship between Intellectual Capital and Firms’ Market Value and Financial Performance. Journal of Intellectual Capital. Vol. 6, No. 2, hlm:159-176.
Dar, I. A., & Mishra, M. 2020. Dimensional Impact of Social Capital on Financial Performance of SMEs. The Journal of Entrepreneurship, 29(1), 38-52.
Darmadi dan Ratna Sari, 2022. Pengaruh Kompensasi, Budaya Organisasi dan Motivasi Terhadap Kinerja Pegawai Perusahaaan Daerah Air Minum Tirta Kerta Raharja Kabupaten Tangerang. Scientific Journal of Reflection: Economic, Accounting, Management and Business. Vol.5 No.1.
Darmadi, D., & Sari, N. 2022. Budaya Organisasi dan Dampaknya Terhadap Kinerja Keuangan di Perusahaan BUMN.
Dwija Putri, I. G. A. M. A., Ulupui, I. G. K. ., & Wirawati, N. G. P. 2017. Pengaruh Good Corporate Governance dan Budaya Tri Hita Karana Pada Kinerja Bank 127 Perkreditan Rakyat. Jurnal Ilmiah Akuntansi Dan Bisnis, 17.
Edgeman, R., Eskildsen, J., & Neely, A., 2015. Translating Triple Top Line Strategy into Triple Bottom Line Performance. Measuring Business Excellence, 19(1), 1-15. https://
Effendi, M. A. 2016. The Power of Good Corporate Governance: teori dan Implementasi. Jakarta Selatan: Salemba Empat Cetakan Ketiga.
Forum for Corporate Governance in Indonesia. 2001. Seri Tata Kelola (Corporate Governance) Jilid II. http://fcgi.or.id
Felício, J. A., Couto, E., & Caiado, J. 2014. Human capital, social capital and organizational performance. Management Decision, 52(2), 350–364.
Frishca, Ni Putu Ardiani, Lindrawati, Adi Susanto, 2022. Pengaruh Mekanisme Good Corporate Governance Terhadap Pengungkapan Sustainability Report Pada Perusahaan yang Terdaftar di Bursa Efek Indonesia. Jurnal Riset Akuntansi, JRAMB. Vol. 8, No.1
Ghozali, I. (2020) 25 Grand Theory: 25 teori besar ilmu manajemen, akuntansi, dan bisnis (untuk landasan teori skripsi, tesis, dan disertasi). Semarang: Yoga Pratama.
Hadi, A., & Swandari, F. 2019. Good Corporate Governance (GCG) dan Kinerja di Perusahaan Milik Pemerintah Daerah. Prosiding Senama 2019 Seminar Nasional Manajemen dan Call for Paper. 28–33. http://repository.upnjatim.ac.id/310/
Hofstede, G. 2001. Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81-99.
Jogiyanto Hartono, 2017. Teori Portofolio dan Analisis Investasi, Edisi Ketuju BPFE. Jogyakarta.
Kadir, Mohd Ali Bahari Abdul and Suhaimi Mhd Sarif, 2016. Social Entrepreneurship, Social Entrepreneur and Social Enterprise: A Review of Concepts, Definitions and Development in Malaysia. Journal of Emerging Economies and Islamic Research, www.jeeir.com. Vol. 4 No.2
Khalique, Muhammad, Nick Bontis and Jamal Abdul Nassir bin Shaari, 2018. Intellectual capital and organisational performance in Malaysia knowledge-intensive SMEs. Int. J. Learning and Intellectual Capital, Vol. 15, No. 1, 2018
Kim, M., Yin, X., & Lee, G. 2020. The effect of CSR on corporate image, 53 customer citizenship behaviors, and customers’ long-term relationship orientation International Journal of Hospitality Management, 88(October 2019), 102520. https://doi.org/10.1016/j.ijhm.2020.102520.
Lee, R., & Jones, O. (2015). Entrepreneurial social capital research: resolving the structure and agency dualism. International Journal of Entrepreneurial Behavior & Research, 21(3), 338–363.
Mahrani, M., & Soewarno, N. 2018. The Effect Of Good Corporate Governance Mechanism And Corporate Social Responsibility On Financial Performance With Earnings Management As Mediating Variabel. Asian Journal of Accounting Research, 3(1), 41–60.
Marampa, Adriana, & Khananda Rr. Woeri, Vive & Anggraeni, Ade, I. 2019. The Effect of Organizational Culture on Organizational Performance. International Conference on Rural Development and Enterpreneurship, 5(1), 36–54.
Mantra Ida Bagus, 1984. Potensi Bali Dalam Mendukung Pembangunan Desa, Aksara Bali.
Meflinda, A., Mahyarni, M., Indrayani, H., & Wulandari, H. 2018. The effect of social capital and knowledge sharing to the small medium enterprise’s performance and sustainability strategies. International Journal of Law and Management.
Muslih, M., & Halliawan, P. 2021. Organizational Culture And Corporate Governance As A Performance Driver Of Indonesia State-Owned Enterprises (SOE). South East Asia Journal of Contemporary Business, Economics and Law, 24(1), 48–57.
Putnam, Robert D .1995. Bowling Alone: America’s Declining Social Capital. Journal of Democracy. Januari 1995: 65 – 78.
Robiyanto, Adhi Rahadi Putra1, Andreas Lako., 2021. The effect of corporate governance and intellectual capital toward financial performance and firm value of socially responsible firms.
Robbins, Stephen P. Timothy A. Judge, 2013. Organization Behavior, 16 th Edition. San Diego State University.
Rifuddin, & Jamaluddin, A. K. 2020. Analisis Implementasi Prinsip-Prinsip Good Corperate Governance (Ccg) Terhadap Persepsi Masyarakat Dan Kinerja Keuangan Pada Perusahaan Daerah Air Minum (Pdam) Kota Palopo. Journal of Institution And Sharia Finance, 3(1), 21–50.
Silimany Hamid Ghazi H., Suresh Ramamakrishnan, Asim Ali Chaudhry and Ayman Hassan Bazhair. 2021. Impact of Corporate Governance and Financial Sustainability on Shareholder Value. Etudios de Economia Aplicada. Volumen:39-4 // ISSN: 1133-3197
Stříteská, M. K., & Sein, Y. Y. 2021. Performance driven culture in the public sector: The case of nordic countries. Administrative Sciences, 11(1).
Sugiyono, 2008. Metode Penelitian Bisnis, Penerbit Alfabeta, Bandung.
Trarintya, Mirah Ayu Putri, Ni Luh Putu Wiagustini, LG Sri Artini & I Wayan Ramantha. 2021. Intelectual Capital on Cultural Sustainability Practices in Microfinance at Bali. Academy of Strategic Management Journal, Volume 20, Special Issue 4.
Tulcanaza-Prieto, A. B., Aguilar-Rodríguez, I. E., & Artieda, C. 2021). Organizational culture and corporate performance in the ecuadorian environment. Administrative Sciences, 11(4).
Yadap, M. P., Venkata, V.P.R.P., & Pradhan, R. S. (2018). Impact of financial, social and human capital on entrepreneurial succes. International Journal of Small Business and Entrepreneurdhip Research, 6(4). 1-28
Yuliantari, P. P. I., Budiasih, I. G. A. N., Ratnadi, N. M. D., & Putra, I. N. W. A. 2020. Tri Hita Karana As a Moderating Variabel of Good Corporate Governance and Crossed Credits in Financial Performance of Rural Credit Institution of Gianyar District, Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 97(1), 56–65
Ulum, I. 2017. Intellectual Capital (Model Pengukuran, Framework Pengungkapan, dan Kinerja Organisasi) (3rd ed.). Malang: UMM Press.
Zhao, H., Teng, H., & Wu, Q. 2018. The Effect Of Corporate Culture On Firm Performance: Evidence From China. China Journal of Accounting Research, 11(1), 1–19.
Published
2025-03-11
How to Cite
SUSILA, I Nyoman Dharma; SETIJANINGSIH, Herlin Tundjung.
The Influence of Good Corporate Governance, Social Capital, and Organizational Culture on the Financial Performance of Village Credit Institutions in Bali.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 3, mar. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/122546>. Date accessed: 26 apr. 2025.
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