High Discretion Slack: Penentu Keberhasilan Kinerja Organisasi Badan Usaha Miliki Desa (Bumdesa)
DOI:
https://doi.org/10.30587/jcaa.v3i1.7854Keywords:
high discretion slack; performance; Village-owned enterprises (BUM Desa); resources; BUM Desa management; community participationAbstract
This research focuses on high discretion slack in achieving good organizational performance in Village-Owned Enterprises (BUM Desa). The type of data used in this research is primary data obtained from interviews with informants. This research will be conducted with a descriptive qualitative approach with a single case study on BUM Desa in Jombang district. The results showed that in BUM Desa there are unbound resources in the form of cash, working capital that can be utilized by managers in improving BUM Desa performance. However, these resources are not directly able to determine the success of BUM Desa performance. These unbound resources require the ability of managers, in this case human resources, to utilize these resources. The results of this study also show the limited ability of human resources in the village to drive BUM Desa, in addition to the low level of community participation in assisting BUM Desa management makes BUM Desa difficult to develop, even though the resources owned are high. Thus, human resource capability and village community participation are important factors to be used as benchmarks in maximizing resource utilization for the successful performance of BUM Desa.
References
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Bourgeois, L. J. (1981). On the Measurement of Organizational Slack. Academy of Management Review, 6(1), 29–39. https://doi.org/10.5465/amr.1981.4287985
Cheah, J., Amran, A., & Yahya, S. (2019). Internal oriented resources and social enterprises performances. Journal of Cleaner Production, 211, 607–619.
Cheng, J. L. C., & Kesner, I. F. (1997). Organizational slack and response to environmental shifts: The impact of resource allocation patterns. Journal of Management, 23(1), 1–18. https://doi.org/10.1177/014920639702300101
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Faedlulloh, D. (2018). BUMDes dan Kepemilikan Warga: Membangun Skema Organisasi Partisipatoris. Journal of Governance, 3(1), 1–17. https://doi.org/10.31506/jog.v3i1.3035
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George, G. (2005). Slack resources and the performance of privately held firms. Academy of Management Journal, 48(4), 661–676. https://doi.org/10.5465/AMJ.2005.17843944
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Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
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Kim, B. N., Lee, N. S., Wi, J. H., & Lee, J. K. (2017). The effects of slack resources on firm performance and innovation in the Korean pharmaceutical industry. Asian Journal of Technology Innovation, 25(3), 387–406. https://doi.org/10.1080/19761597.2018.1434007
Liu, G., Takeda, S., & Ko, W. W. (2014). Strategic Orientation and Social Enterprise Performance. Nonprofit and Voluntary Sector Quarterly, 43(3), 480–501. https://doi.org/10.1177/0899764012468629
Marlin, D., & Geiger, S. W. (2015). A reexamination of the organizational slack and innovation relationship. Journal of Business Research, 68(12), 2683–2690. https://doi.org/10.1016/j.jbusres.2015.03.047
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Nohria, N., & Gulati, R. (1996). Is Slack Good or Bad for Innovation ? Academy of Management Journal, 39(5), 1245–1264.
Nurjanah, S., Mukhzarudfa, & Yudi. (2020). THE IMPLEMENTATION OF GOVERNANCE AND FINANCIAL PERFORMANCE FOR VILLAGE-OWNED ENTERPRISES (BUMDESA) IN MERANGIN DISTRICT. Jurnal Akuntansi Dan Keuangan, 5(4), 243–257.
Pradesa, H. A., & Agustina, I. (2020). Implementasi Konsep Tanggung Jawab Sosial sebagai Upaya Meningkatkan Efektivitas Pengelolaan BUMDes. Jurnal Manajemen Dan Kewirausahaan, 8(2), 159–168. https://doi.org/10.26905/jmdk.v8i2.4768
Sharfman, M. P., Wolf, G., Chase, R. B., & Tansik, D. A. (1988). Antecedents of Organizational Slack. Academy of Management Review, 13(4), 601–614. https://doi.org/10.5465/amr.1988.4307484
Sumual, E. W., & Wahyuni, E. T. (2021). Village-Owned Enterprise (BUMDes) Business Unit Determination Model with Social Enterprise Concept in West Java. Redwhite Press PP - Jakarta. https://doi.org/https://doi.org/10.32698/ICRED.0493
Tan, J., & Peng, M. W. (2003). Organizational slack and firm performance during economic transitions: two studies from an emerging economy. Strategic Management Journal, 24(13), 1249–1263. https://doi.org/10.1002/smj.351
Troilo, G., De Luca, L. M., & Atuahene-Gima, K. (2014). More innovation with less? A strategic contingency view of slack resources, information search, and radical innovation. Journal of Product Innovation Management, 31(2), 259–277. https://doi.org/10.1111/jpim.12094
Vanacker, T., Collewaert, V., & Paeleman, I. (2013). The relationship between slack resources and the performance of entrepreneurial firms: The role of venture capital and angel investors. Journal of Management Studies, 50(6), 1070–1096. https://doi.org/10.1111/joms.12026
Wadongo, B. I., Edwin, O., & Oscar, K. O. (2010). Managerial roles and choice of performance measures in the kenyan five-star hotels using a cross-sectional correlational design. Managing Leisure, 15(1–2), 17–31. https://doi.org/10.1080/13606710903447980
Widiastuti, H., Putra, W. M., Utami, E. R., & Suryanto, R. (2019). Menakar tata kelola badan usaha milik desa di Indonesia. Jurnal Ekonomi Dan Bisnis, 22(2), 257–288. https://doi.org/10.24914/jeb.v22i2.2410
Wiersma, E. (2017). How and when do firms translate slack into better performance? British Accounting Review, 49(5), 445–459. https://doi.org/10.1016/j.bar.2017.05.007
Atkinson, A. A., Kaplan, R. S., Maemura, E. M., & Young, S. M. (2012). Management Accounting: Information for Decision Making and Strategy Execution (6th ed.). Pearson Education.
Ball, A. (2016). Social Enterprise Governance. Journal of Business Law, 18(4), 919.
Bao, G., Zhang, W., Xiao, Z., & Hine, D. (2020). Slack resources and growth performance: The mediating roles of product and process innovation capabilities. Asian Journal of Technology Innovation, 28(1), 60–76. https://doi.org/10.1080/19761597.2019.1700383
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. In Journal of Management (Vol. 17, Issue 1, pp. 99–120). https://doi.org/10.1177/014920639101700108
Bourgeois, L. J. (1981). On the Measurement of Organizational Slack. Academy of Management Review, 6(1), 29–39. https://doi.org/10.5465/amr.1981.4287985
Cheah, J., Amran, A., & Yahya, S. (2019). Internal oriented resources and social enterprises performances. Journal of Cleaner Production, 211, 607–619.
Cheng, J. L. C., & Kesner, I. F. (1997). Organizational slack and response to environmental shifts: The impact of resource allocation patterns. Journal of Management, 23(1), 1–18. https://doi.org/10.1177/014920639702300101
Cyert, R. M., & March, J. G. (1964). A Behavioral Theory of the Firm. Econometrica, 32(3), 461. https://doi.org/10.2307/1913056
Defourny, J., & Nyssens, M. (2010). Social enterprise in Europe: At the crossroads of market, public policies and third sector. Policy and Society, 29(3), 231–242. https://doi.org/10.1016/j.polsoc.2010.07.002
Fadol, Y., Barhem, B., & Elbanna, S. (2015). The mediating role of the extensiveness of strategic planning on the relationship between slack resources and organizational performance. Management Decision, 53(5), 1023–1044. https://doi.org/10.1108/MD-09-2014-0563
Faedlulloh, D. (2018). BUMDes dan Kepemilikan Warga: Membangun Skema Organisasi Partisipatoris. Journal of Governance, 3(1), 1–17. https://doi.org/10.31506/jog.v3i1.3035
Fama, E. F. (1980). Agency Problems and the Theory of the Firm Agency Problems and the Theory of the Firm. Journal of Political Economy, 88(2), 288–307.
George, G. (2005). Slack resources and the performance of privately held firms. Academy of Management Journal, 48(4), 661–676. https://doi.org/10.5465/AMJ.2005.17843944
Guo, J., Zhou, B., Zhang, H., Hu, C., & Song, M. (2018). Does strategic planning help firms translate slack resources into better performance? Journal of Management and Organization, May, 1–13. https://doi.org/10.1017/jmo.2017.84
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kaplan, R. S., & Norton, D. P. (2007). Using the balanced scorecard as a strategic management system. Harvard Business Review, 85(7–8).
Kim, B. N., Lee, N. S., Wi, J. H., & Lee, J. K. (2017). The effects of slack resources on firm performance and innovation in the Korean pharmaceutical industry. Asian Journal of Technology Innovation, 25(3), 387–406. https://doi.org/10.1080/19761597.2018.1434007
Liu, G., Takeda, S., & Ko, W. W. (2014). Strategic Orientation and Social Enterprise Performance. Nonprofit and Voluntary Sector Quarterly, 43(3), 480–501. https://doi.org/10.1177/0899764012468629
Marlin, D., & Geiger, S. W. (2015). A reexamination of the organizational slack and innovation relationship. Journal of Business Research, 68(12), 2683–2690. https://doi.org/10.1016/j.jbusres.2015.03.047
Nafidah, L. N., Thahjadi, B., & Soewarno, N. (2020). The Pseudo-Culture: Financial Management Risk In Village Government. Opcion, 36(26), 2759–2791. https://doi.org/10.1017/CBO9781107415324.004
Nicolás, C.-L., & Cerdán, Á. L. M. (2011). Strategic knowledge management, innovation and performance. International Journal of Information Management, 31(6), 502–509. https://doi.org/10.1016/j.ijinfomgt.2011.02.003
Nohria, N., & Gulati, R. (1996). Is Slack Good or Bad for Innovation ? Academy of Management Journal, 39(5), 1245–1264.
Nurjanah, S., Mukhzarudfa, & Yudi. (2020). THE IMPLEMENTATION OF GOVERNANCE AND FINANCIAL PERFORMANCE FOR VILLAGE-OWNED ENTERPRISES (BUMDESA) IN MERANGIN DISTRICT. Jurnal Akuntansi Dan Keuangan, 5(4), 243–257.
Pradesa, H. A., & Agustina, I. (2020). Implementasi Konsep Tanggung Jawab Sosial sebagai Upaya Meningkatkan Efektivitas Pengelolaan BUMDes. Jurnal Manajemen Dan Kewirausahaan, 8(2), 159–168. https://doi.org/10.26905/jmdk.v8i2.4768
Sharfman, M. P., Wolf, G., Chase, R. B., & Tansik, D. A. (1988). Antecedents of Organizational Slack. Academy of Management Review, 13(4), 601–614. https://doi.org/10.5465/amr.1988.4307484
Sumual, E. W., & Wahyuni, E. T. (2021). Village-Owned Enterprise (BUMDes) Business Unit Determination Model with Social Enterprise Concept in West Java. Redwhite Press PP - Jakarta. https://doi.org/https://doi.org/10.32698/ICRED.0493
Tan, J., & Peng, M. W. (2003). Organizational slack and firm performance during economic transitions: two studies from an emerging economy. Strategic Management Journal, 24(13), 1249–1263. https://doi.org/10.1002/smj.351
Troilo, G., De Luca, L. M., & Atuahene-Gima, K. (2014). More innovation with less? A strategic contingency view of slack resources, information search, and radical innovation. Journal of Product Innovation Management, 31(2), 259–277. https://doi.org/10.1111/jpim.12094
Vanacker, T., Collewaert, V., & Paeleman, I. (2013). The relationship between slack resources and the performance of entrepreneurial firms: The role of venture capital and angel investors. Journal of Management Studies, 50(6), 1070–1096. https://doi.org/10.1111/joms.12026
Wadongo, B. I., Edwin, O., & Oscar, K. O. (2010). Managerial roles and choice of performance measures in the kenyan five-star hotels using a cross-sectional correlational design. Managing Leisure, 15(1–2), 17–31. https://doi.org/10.1080/13606710903447980
Widiastuti, H., Putra, W. M., Utami, E. R., & Suryanto, R. (2019). Menakar tata kelola badan usaha milik desa di Indonesia. Jurnal Ekonomi Dan Bisnis, 22(2), 257–288. https://doi.org/10.24914/jeb.v22i2.2410
Wiersma, E. (2017). How and when do firms translate slack into better performance? British Accounting Review, 49(5), 445–459. https://doi.org/10.1016/j.bar.2017.05.007
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Published
2024-06-30
How to Cite
Nafidah, L. N., & Hidayati, L. W. (2024). High Discretion Slack: Penentu Keberhasilan Kinerja Organisasi Badan Usaha Miliki Desa (Bumdesa). Journal of Culture Accounting and Auditing, 3(1), 143–151. https://doi.org/10.30587/jcaa.v3i1.7854
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