The Implementation of Good Corporate Governance and Its Impact on the Institutional Capacity of Village-Owned Enterprises

Herli Andani; Muhamad Husein Maruapey; Cecep Wahyudin

doi:10.59890/ijarss.v4i3.209

Authors

Herli Andani Univeristas Djuanda
Muhamad Husein Maruapey Universitas Djuanda
Cecep Wahyudin Universitas Djuanda

DOI:

https://doi.org/10.59890/ijarss.v4i3.209

Keywords:

BUMDes, Good Corporate Governance, Institutional

Abstract

The purpose of this study is to determine whether there is a significant effect between the implementation of good corporate governance and the institutional capacity of Village-Owned Enterprises in Cigombong Subdistrict using a quantitative approach and a causal or cause-and-effect associative method. This study used two main groups as the population, namely BUMDes managers and partners, with 74 respondents used as the research sample. SPSS 29 software was used in this study as a tool to assist in inferential data analysis. The findings indicate that the implementation of good corporate governance has a positive and significant effect on the institutional capacity of BUMDes in Cigombong District. This indicates that the better the principles of GCG are applied, the stronger the institutional capacity of BUMDes in carrying out its functions and roles in village business management. Therefore, improving the application of GCG principles is important in supporting institutional strengthening and the sustainability of BUMDes management.

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