Governance and Performance in Village-Owned Enterprises: The Contingent Role of Accounting Information Systems

Abstract

Research aims:

This study examines the effects of accountability and transparency on the performance of Village-Owned Enterprises (BUMDes) and evaluates the moderating role of Accounting Information Systems (AIS) in these relationships.

Design/Methodology/Approach:
A quantitative survey was conducted involving 121 BUMDes in Siak Regency. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS. The analysis included assessment of the measurement model, structural model, and moderation effects.

Research findings:

The results indicate that transparency has a positive and significant effect on BUMDes performance, whereas accountability does not show a significant effect. AIS strengthens the relationship between accountability and performance but weakens the relationship between transparency and performance. These findings suggest that AIS plays a dual role as both an enabling and a transforming mechanism within governance practices.

Theoretical contribution/Originality:

This study contributes to the literature by applying Stewardship Theory to explain governance–performance relationships and by positioning AIS not only as a supporting mechanism but also as a factor that can alter the effectiveness of governance practices. The findings offer a nuanced perspective on the non-linear interaction between governance and technology in community-based organizations.

Practical/Policy implications:

The findings highlight the importance of strengthening transparency practices and improving AIS implementation in managing BUMDes. Managers and local governments should enhance the integration between governance mechanisms and information systems to achieve sustainable performance improvements.

Research limitations/Implications:

This study is limited to a single regional context and relies on perception-based data; therefore, caution is required when generalizing the results. Future research is encouraged to extend the geographical scope and incorporate additional relevant variables.