The Effect of Social Capital, Entrepreneurship Orientation, And Good Governance on The Performance of Village Owned Business Entities

Abstract

Village-owned enterprises are one of the efforts to develop the village economy. Village-owned enterprises were established on the basis of village needs and potentials as an effort to improve community welfare. Therefore, it is very important to be able to ensure the success of village-owned enterprises in order to achieve superior performance. This study aims to prove and examine the factors that influence the performance of village-owned enterprises. The factors tested in this study are social capital, entrepreneurial orientation, and good governance. This research is quantitative research. The source of data used in this study is primary data and data collection is carried out directly using a questionnaire which is measured using a Likert scale. Data was collected using a questionnaire distributed to the director of village-owned enterprises, secretary or treasurer of village-owned enterprises, and supervisors of village-owned enterprises in Bengkalis Regency, Riau Province. A total of 261 responses were received from 87 village-owned enterprises and analyzed using multiple linear regression processed with the help of the SPSS version 23 program. The results of this study indicate that social capital affects the performance of village-owned enterprises, entrepreneurial orientation affects the performance of private-owned enterprises. village, and good governance affect the performance of village-owned enterprises.