ఇంటర్నేషనల్ జర్నల్ ఆఫ్ ఎంటర్‌ప్రెన్యూర్‌షిప్

1939-4675

నైరూప్య

Does the management control system have an effect on the financial performance of village-owned enterprises (BUMDes) ?

Udin Suadma, Anita Ardiyanti, Tata Rustandi, Dirvi Surya Abbas

 In Banten Province, the presence of dormant Village-Owned Enterprises (BUMDes) has an influence on BUMDes' ability to build the community's economy and explore local potential. The goal of this study was to see how the management control system affected financial performance. This study takes an explanatory and descriptive approach, employing data analysis techniques such as the Partial Least Squares Structural Equation Model (PLS-SEM). The following criteria were used to collect data from 80 BUMDes as a sample: (1) registered BUMDes, (2) active BUMDes, and (3) active BUMDes having a capital of Rp. 30,000,000. Return on Investment (ROI) of BUMDes is used to measure success in this study. Management Control Systems have a positive influence on financial performance, according to research findings. The findings of the management control system assessment show a positive influence on financial performance, with t count=2.764 and p-value=0.000 0.05 which indicates that the Ha data is not sufficient to accept Ho and the data supports then Ho is rejected. Management control system efforts that have an impact on financial performance include budgeting for all functional sections, establishing new program concepts, and developing finances. All functioning parts must adhere to the stated standards and conduct assessments and approvals.

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