THE DETERMINANT OF EFFECTIVE MANAGEMENT IN VILLAGE-OWNED ENTERPRISES

Abstract

Village-Owned Enterprises (BUMDes) are one of the economic institutions established and managed by the village government which aims to empower and develop the village economy. There are hundreds of BUMDes in each district. However, of the hundreds of BUMDes, only a few have contributed to the development of their respective villages. The sub-optimal performance of BUMDes is shown by revenues tending to decrease from year to year. This is because managers do not develop and innovate their businesses. So the aim of this research is to test and analyze the determinants of effective management in BUMDes. This research has the urgency to encourage the creation of effective BUMDes management so that it can provide benefits to communities in all villages in Indonesia. This research was carried out at BUMDes Pagedangan. The results of this research show that there is a significant influence of creative innovation on halal certificates, an insignificant influence of financial accountability on halal certificates, a significant influence of halal certificates on the effectiveness of BUMDes management, an insignificant influence of creative innovation on the effectiveness of BUMDes management, an insignificant influence of financial accountability on management effectiveness BUMDes, halal cannot mediate the influence of creative innovation on the effectiveness of BUMDes management, and halal certificates cannot mediate the influence of financial accountability on the effectiveness of BUMDes management.