The Contribution of Financial Literation and Human Capital In Improving The Performance of Village-Owned Business Agencies
Main Article Content
Abstract
The purpose of this study is to examine the relationship between financial literacy and human capital on the performance of Village-Owned Enterprise. Village-Owned Enterprise has an important role in building the economy in the village. However, the condition that occurs is that there are still many conditions of rural community human resources, especially Village-Owned Enterprise officials, who do not have good management skills and financial literacy in managing Village-Owned Enterprise. This research uses explanatory research, research sites are in Sigi and Poso Regencies. The population of this research is the management of Village-Owned Enterprise in Sigi and Poso Regencies, amounting to around 300 people representing each village in Sigi and Poso Regencies. Based on the results of the questionnaire distribution, a sample of 75 Village-Owned Enterprise administrators in Sigi and Poso districts was obtained. Financial literacy in Sigi village and even more so in Poso district is still far from perfect, because Village-Owned Enterprise administrators in SIGI and Poso in general are unable to use village participation funds accountably. This is due to the weak capacity of Village-Owned Enterprise administrators in managing Village-Owned Enterprise planning, implementation and financial reporting. The results of this study prove that the human capital of Village-Owned Enterprise administrators has an effect on Village-Owned Enterprise performance. This indicates that the community, including Village-Owned Enterprise administrators, has the potential to innovate so that it will have an impact on Village-Owned Enterprise performance.
Article Details
References
Abdul-Halim, H., Ahmad, N. H., Geare, A., & Thurasamy, R. (2019). Innovation Culture in SMEs: The Importance of Organizational Culture, Organizational Learning and Market Orientation. Entrepreneurship Research Journal, 9(3), 1–14. https://doi.org/10.1515/erj-2017-0014
Agostini, L., & Nosella, A. (2017). Enhancing radical innovation performance through intellectual capital components. Journal of Intellectual Capital, 18(4), 789-806.
Agyei, S. K., Adam, A. M., & Agyemang, O. S. (2019). Financial Literacy, Cultural Dominance, and Financial Well-Being of SME Owners in Ghana. Poverty and Public Policy, 11(3), 222–237. https://doi.org/10.1002/pop4.254
Cariola, A., Fasano, F., La Rocca, M., & Skatova, E. (2020). Environmental sustainability policies and the value of debt in EU SMEs: Empirical evidence from the energy sector. Journal of Cleaner Production, 275. https://doi.org/10.1016/j.jclepro.2020.123133
Cosenz, F., & Bivona, E. (2020). Fostering growth patterns of SMEs through business model innovation. A tailored dynamic business modelling approach. Journal of Business Research, February, 1–12. https://doi.org/10.1016/j.jbusres.2020.03.003
Dabić, M., Lažnjak, J., Smallbone, D., & Švarc, J. (2018). Intellectual capital, organisational climate, innovation culture, and SME performance: Evidence from Croatia. Journal of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-04-2018-0117
De Marco, C. E., Martelli, I., & Di Minin, A. (2020). European SMEs’ engagement in open innovation When the important thing is to win and not just to participate, what should innovation policy do? Technological Forecasting and Social Change, 152(December 2019), 119843. https://doi.org/10.1016/j.techfore.2019.119843
Djuwita, D., & Yusuf, A. A. (2018). Tingkat Literasi Keuangan Syariah Di Kalangan UMKM Dan Dampaknya Terhadap Perkembangan Usaha. Al-Amwal : Jurnal Ekonomi Dan Perbankan Syari’ah, 10(1), 105. https://doi.org/10.24235/amwal.v10i1.2837
Ejdys, J. (2014). Future Oriented Strategy for SMEs. Procedia - Social and Behavioral Sciences, 156(April), 8–12. https://doi.org/10.1016/j.sbspro.2014.11.110
Florido, J. S. V., Adame, M. G., & Tagle, M. A. O. (2015). Financial Strategies, the Professional Development of Employers and Performance of sme’s (AGUASCALIENTES Case). Procedia - Social and Behavioral Sciences, 174, 768–775. https://doi.org/10.1016/j.sbspro.2015.01.613
Gonzalez-Loureiro, M., Sousa, M. J., & Pinto, H. (2017). Culture and innovation in SMEs: the intellectual structure of research for further inquiry. European Planning Studies, 25(11), 1908–1931. https://doi.org/10.1080/09654313.2017.1290052
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2006). Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Science, 52(11), 1661–1674. https://doi.org/10.1287/mnsc.1060.0576
Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81(December 2016), 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
Mabula, J. B., & Ping, H. D. (2018). Use of technology and SME managers’ financial literacy in developing economies. ACM International Conference Proceeding Series, 9(6), 145–152. https://doi.org/10.1145/3241748.3241765
Montequín, V. R., Fernández, F. O., Cabal, V. A., & Gutierrez, N. R. (2006). An integrated framework for intellectual capital measurement and knowledge management implementation in small and medium-sized enterprises. Journal of Information Science, 32(6), 525–538. https://doi.org/10.1177/0165551506067127
Novi Yushita Amanita. (2017). Pentingnya Literasi Keuangan Bagi Pengelolaan Keuangan Pribadi. Jurnal Nominal, VI, 15.
Owusu, J., Ismail, M. Bin, Osman, M. H. B. M., & Kuan, G. (2019). Financial literacy as a moderator linking financial resource availability and SME growth in Ghana. Investment Management and Financial Innovations, 16(1), 154–166. https://doi.org/10.21511/imfi.16(1).2019.12
Ramadan, B. M., Dahiyat, S. E., Bontis, N., & Al-dalahmeh, M. A. (2017). Intellectual capital, knowledge management and social capital within the ICT sector in Jordan. Journal of Intellectual Capital, 18(2), 437–462. https://doi.org/10.1108/JIC-06-2016-0067
Rodrigues, H. S., Dorrego, P. F., & Jardon, C. M. F. (2011). The main intellectual capital components that are relevant to the product, process and management firm innovativeness. International Journal of Transitions and Innovation Systems, 1(3), 271. https://doi.org/10.1504/ijtis.2011.042661
Santoro, G., Mazzoleni, A., Quaglia, R., & Solima, L. (2019). Does age matter? The impact of SMEs age on the relationship between knowledge sourcing strategy and internationalization. Journal of Business Research, May, 1–9. https://doi.org/10.1016/j.jbusres.2019.05.021
Sugiarti, E. N., Diana, N., & Mawardi, M. C. (2019). Peran Fintech Dalam Meningkatkan Literasi Keuangan Pada Usaha Mikro Kecil Menengah Di Malang. E-Jra, 8(4), 90–104.
Ye, J., & Kulathunga, K. M. M. C. B. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability (Switzerland), 11(10), 1–21. https://doi.org/10.3390/su11102990