Articlediamond2023

IMPROVING COMPANY PERFORMANCE IN RURAL AREAS: INSTITUTIONAL THEORY APPROACH

Yesi Mutia Basri · Taufeni Taufik · Hariadi Yasni · Rosalina Indah Putri · Nabila Zahra Indra · Nia Rahmadani +2 more

3 citations0/0 files storedKnE Social Sciences

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Local Governance and Development Corporate Governance and Financial Management Regional Development and Management Studies

Abstract

Development in rural areas has become the focus of governments in many countries. This study aims to analyze the effect of institutional pressure and strategic orientation on financial performance. This study also examines social performance as a mediating variable. The research was conducted at village institutions, namely Village-Owned Enterprises in four regions in Riau Province, Indonesia. A total of 239 Village-Owned Enterprises were studied with 526 respondents, namely VOE managers. Questionnaires were distributed directly and via the internet. Questionnaires were sent via WhatsApp to the VOE manager. Structural analysis of the equation model with Warp PLs shows that all hypotheses are supported. Institutional pressure and strategic orientation affect financial performance, and social performance is a mediator variable Keywords: institutional pressure, strategic orientation, social performance, financial performance

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1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1998Institutions and Organizations 1998Market Orientation and Organizational Performance: Is Innovation a Missing Link?1997Strategic Orientation of the Firm and New Product Performance 2008Green and competitive? An empirical test of the mediating role of environmental innovation strategy 2003Business performance and dimensions of strategic orientation 2014A framework for sustainable performance assessment of supply chain management practices

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