PUBLIC GOVERNANCE CAPACITY IN THE ACCOUNTABILITY OF VILLAGE-OWNED ENTERPRISE MANAGEMENT IN INDONESIA
DOI:
https://doi.org/10.23969/sampurasun.v5i2.1745Keywords:
Accountability, local wisdom, public governance capacity, stakeholders, Village-Owned EnterpriseAbstract
The Indonesian Government has encouraged the development of village-owned business as an alternative utilization of village transfer fund. The trust of the Indonesian government in the village government has been seen from the transfer of funds given to the village. This fund aims to develop their village. Building village-owned business should certainly be counterbalanced with a public accountability mechanism. This research aims at describing the capacity of public governance in the accountability system performed by public sector organization. This research also explores public capacity in supporting the accountability of BUMDes management from a cultural perspective. Village communities have distinct characteristics where not all systems can operate without local wisdom. This research employs both quantitative and qualitative approaches and use questionnaire and interview guide as its instruments. This research is conducted in Banyumas and takes 41 village business units and informants consisting of village business manager, village official and villager elements as the samples. The data and information are analyzed using quantitative descriptive analysis method with support of information analyzed using interactive analysis method. The research results show that public governance capacity in the accountability of village business management is still low. The opportunity of stakeholders’s involvement in public accountability system is not yet created by public organization. This is due to the strong patrenalistic culture among Indonesian society. The village community tends to give full trust and to the village government, especially the village head. This kind of patrenalistic culture opens opportunities for not optimal accountability horizontally. Consequently, the accountability only applies vertically. This research suggests improving the capacity of public governance in the accountability system of village-owned business management through optimizing stakeholders’ role in the accountability of Village-Owned Enterprise’s management. Keywords: Accountability, local wisdom, public governance capacity, stakeholders, Village-Owned Enterprise.Downloads
References
Bannink, D., & Ossewaarde, R. (2012). Decentralization: New Modes of Governance and Administrative Responsibility. Administration and Society, 44(5), 595–624. https://doi.org/10.1177/0095399711419096
Benijts, T. (2014). A Business Sustainability Model for Government Corporations. A Belgian Case Study. Business Strategy and the Environment. https://doi.org/10.1002/bse.1784
Bjärstig, T., & Sandström, C. (2017). Public-private partnerships in a Swedish rural context - A policy tool for the authorities to achieve sustainable rural development? Journal of Rural Studies. https://doi.org/10.1016/j.jrurstud.2016.11.009
Bruton, G. D., Peng, M. W., Ahlstrom, D., Stan, C., & Xu, K. (2015). State-owned Enterprises Around the WORLD as Hybrid Organizations. Academy of Management Perspectives. https://doi.org/10.5465/amp.2013.0069
Chen, W., Woods, A., & Singh, S. (2013). Organisational change and development of reformed Chinese township and village enterprises. Journal of Organizational Change Management. https://doi.org/10.1108/09534811311328399
Creswell, J. W. (2013). Qualitative Inquiry & Research Design: Choosing Among Five Approaches. In Sage Publications. https://doi.org/10.1111/1467-9299.00177
Dentchev, N. A., Haezendonck, E., & van Balen, M. (2017). The Role of Governments in the Business and Society Debate. Business and Society. https://doi.org/10.1177/0007650315586179
Diefenbach, T., & Sillince, J. A. A. (2011). Formal and informal hierarchy in different types of organization. Organization Studies. https://doi.org/10.1177/0170840611421254
Dubnick, M. J. (2017). Accountability and ethics: reconsidering the relationships. International Journal of Organization Theory & Behavior. https://doi.org/10.1108/ijotb-06-03-2003-b002
Eversole, R., Barraket, J., & Luke, B. (2014). Social enterprises in rural community development. Community Development Journal. https://doi.org/10.1093/cdj/bst030
Fanti, L., & Buccella, D. (2017). Privatisation or State Ownership When Labour Market is Unionised? Folia Oeconomica Stetinensia. https://doi.org/10.1515/foli-2016-0002
Geurtsen, A., Sprenger, P. J. M., & Schoormans, L. (2010). A conceptual accountability model for the social enterprise. EGPA conference, (September), 1–21.
Grimmelikhuijsen, S. G., & Feeney, M. K. (2017). Developing and Testing an Integrative Framework for Open Government Adoption in Local Governments. Public Administration Review. https://doi.org/10.1111/puar.12689
Guo, B. (2017). China’s Administrative Governance Reform in the Era of “New Normal.” Journal of Chinese Political Science, 22(3), 357–373. https://doi.org/10.1007/s11366-017-9483-x
Hudaya, M., Smark, C., Watts, T., & Silaen, P. (2015). The Use of Accountability Reports and the Accountability Forum: Evidence from an Indonesian Local Government. Australasian Accounting, Business and Finance Journal, 9(4), 57–70. https://doi.org/10.14453/aabfj.v9i4.5
Hwang, K., Jensen, L. S., Hult, K. M., Roberts, P. S., & Dull, M. M. (2013). The Impact of Accountability and Accountability Management on Performance at the Street Level. Public Administration and Public Affairs Laura.
Inoue, C. F. K. V., Lazzarini, S. G., & Musacchio, A. (2013). Leviathan as a minority shareholder: Firm-level implications of state equity purchases. Academy of Management Journal. https://doi.org/10.5465/amj.2012.0406
Lam, N. M. K. (2016). Business-government relationship in economic development. Asian Education and Development Studies. https://doi.org/10.1108/AEDS-08-2016-0067
Leroux, K. (2015). Paternalistic or Participatory Governance ? Examining Opportunities Social for Client Participation in Nonprofit. Public Administration Review, 69(3), 504–517.
Löffler, E., Parrado, S., Bovaird, T., Van Ryzin, G., Loeffler, E., Downe, J., … Rees et al, 2012. (2012). Emerging trends in public management and governance. International Review of Administrative Sciences. https://doi.org/10.1111/j.1540-6210.2007.00773.x
Malizia, P. (2016). Sailing: Organizational Change: Forms and Hibrydisms of Post-bureaucratic Organizations. The International Journal of Knowledge, Culture, and Change Management: Annual Review, 11(1), 93–104. https://doi.org/10.18848/1447-9524/cgp/v11i01/50085
Moingeon, B., Yunus, M., Moingeon, B., & Lehmann-ortega, L. (2015). Building Social Business Models : Lessons from the Grameen Experience Building Social Business Models : Lessons from the Grameen Experience. Long Range Planning, 43(2–3), 308–325. https://doi.org/10.1016/j.lrp.2009.12.005
Morçöl, G., & Wolf, J. F. (2010). Understanding Business Improvement Districts: A New Governance Framework. Public Administration Review. https://doi.org/10.1111/j.1540-6210.2010.02222.x
Murphy, M., & Skillen, P. (2018). Exposure to the Law: Accountability and Its Impact on Street-level Bureaucracy. Social Policy and Society, 17(1), 35–46. https://doi.org/10.1017/s1474746416000506
Najmaei, A., & Sadeghinejad, Z. (2016). Toward a theory of business models and business modeling in public entrepreneurship. Contemporary Issues in Entrepreneurship Research. https://doi.org/10.1108/S2040-724620160000006004
Petrovsky, N., James, O., & Boyne, G. A. (2015). New leaders’ managerial background and the performance of public organizations: The theory of publicness fit. Journal of Public Administration Research and Theory, 25(1), 217–236. https://doi.org/10.1093/jopart/muu008
Rhodes, C. (2016). Democratic Business Ethics: Volkswagen’s Emissions Scandal and the Disruption of Corporate Sovereignty. Organization Studies. https://doi.org/10.1177/0170840616641984
Rhodes, C., & Price, O. M. (2011). The post-bureaucratic parasite: Contrasting narratives of organizational change in local government. Management Learning, 42(3), 241–260. https://doi.org/10.1177/1350507610385765
Ringeling, A. (2015). How public is public administration? A constitutional approach of publicness. Teaching Public Administration, 33(3), 292–312. https://doi.org/10.1177/0144739415573268
Schillemans, T. (2010). Redundant Accountability: The joint impact of horizontal and vertical accountability on autonomous agencies. Public Administration Quarterly.
Schillemans, T. (2011). Does horizontal accountability work? Evaluating potential remedies for the accountability deficit of agencies. Administration and Society, 43(4), 387–416. https://doi.org/10.1177/0095399711412931
Setyoko, P. (2011). Akuntabilitas Administrasi Keuangan Program Alokasi Dana Desa (ADD). Jurnal Ilmu Administrasi Negara.
Smith, S. R. (2010). Hybridization and nonprofit organizations: The governance challenge. Policy and Society. https://doi.org/10.1016/j.polsoc.2010.06.003
Valentinov, V. L. (2011). Accountability and the Public Interest in the Nonprofit Sector: A Conceptual Framework. In SSRN. https://doi.org/10.1111/j.1468-0408.2010.00514.x
Vickers, J., & Yarrow, G. (2012). Economic Perspectives on Privatization. Journal of Economic Perspectives. https://doi.org/10.1257/jep.5.2.111
Villis, U., Strack, R., Bruysten, S., & Yunus, M. (2013). The Power of Social Business: Lessons from Corporate Engagements with Grameen. Boston Consulting Group.
Wang, S., & Yang, Y. (2010). Grassroots democracy and local governance: Evidence from rural China. Procedia - Social and Behavioral Sciences. https://doi.org/10.1016/j.sbspro.2010.05.069
Warner, M. E. (2010). The future of local government: Twenty-first-century challenges. Public Administration Review. https://doi.org/10.1111/j.1540-6210.2010.02257.x
Woodward, R., & Safavi, M. (2015). Private sector development. In Economic and Social Development of the Southern and Eastern Mediterranean Countries. https://doi.org/10.1007/978-3-319-11122-3_5
Xia, M. (2011). Social Capital and Rural Grassroots Governance in China. Journal of Current Chinese Affairs, 2, 135–163.
Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building social business models: Lessons from the grameen experience. Long Range Planning. https://doi.org/10.1016/j.lrp.2009.12.005
Zulkhibri, M. (2018). Rethinking the Catalytic Role of Private Sector for Inclusive Growth. Journal of Development Policy and Practice. https://doi.org/10.1177/2455133317737937
Downloads
Published
Issue
Section
License
Copyright Notice
Authors should not withdraw their submitted papers because the withdrawal wastes voluntary works devoted by an associate editor and reviewers. But, we accept the withdrawal of a submitted paper if authors have unavoidable reasons. In the event that a manuscript is to be withdrawn from submission to Sampurasun Journal, a letter must be sent to the editorial office requesting withdrawal by e-mail (sampurasunjournal@unpas.ac.id) with its scanned PDF file, before the notification of acceptance for publication.
The withdraw request letter must include the following information. Paper ID, Paper title, Authors names, Reason why the paper must be withdrawn, and Date and signatures of all the authors (or signature of the contact author).
If only the contact author signs the letter, he/she must obtain the agreement of the withdrawal from all the other authors and the letter must include the description that all the other authors agreed the withdrawal. The journal will not withdraw a manuscript from peer review until such a letter has been received. Authors must not assume their manuscript has been withdrawn until they have received appropriate notification from the editorial office. Withdrawal of a manuscript subsequent to acceptance for publication will only be granted in the most exceptional of circumstances.
After the paper is accepted for publication, the withdrawal is not permitted in principle. The authors must always pay the charge even if the withdrawal is permitted. Any request of withdrawal that does not follow the above procedure is treated as invalid. If illegal submission, e.g., plagiarized or duplicate submission, is found for a paper, the withdrawal of the paper will never be permitted and the authors will be punished based on the rule. It is not acceptable practice to withdraw a manuscript in the event of acceptance at another journal. This constitutes dual submission. The editorial office of the other journal will be notified of your actions. In such circumstances Sampurasun ISCH may chose to impose appropriate punitive action subject.
Withdrawal Penalty
Author is not allowed to withdraw submitted manuscripts, because the withdrawal is waste of valuable resources that editors and referees spent a great deal of time processing submitted manuscript, money and works invested by the publisher. If author still requests withdrawal of his/her manuscript when the manuscript is still in the peer-reviewing process, author will be punished with paying $200 per manuscript, as withdrawal penalty to the publisher. However, it is unethical to withdraw a submitted manuscript from one journal if accepted by another journal. The withdrawal of manuscript after the manuscript is accepted for publication, author will be punished by paying US$500 per manuscript. Withdrawal of manuscript is only allowed after withdrawal penalty has been fully paid to the Publisher. If author don't agree to pay the penalty, the author and his/her affiliation will be blacklisted for publication in this journal. Even, his/her previously published articles will be removed from our online system.