Citation:

Ni Luh Putu Agustiari Sisca Dewi, Putu Yudy Wijaya, Mirah Ayu Putri Trarintya. "The Role of Competitive Advantage, Balinese Local Wisdom, and Entrepreneurship on Financial Performance of BUMDes in Bali Province" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 298-306, 2023.

Abstract:

Village Owned Enterprises (Badan Usaha Milik Desa - BUMDes) are legal entities created by villages and/or in partnership with villages to manage businesses, use assets, develop investment and productivity, provide services, and/or provide other types of businesses for the highest level of prosperity village community. Well-managed BUMDes will generate the most PADes possible, enabling the village to become independent. Entrepreneurial orientation is important for business success, and as competition also has an impact on how well businesses function, businesses must adapt to changing environmental conditions in order to stay competitive. While Catur Purusa Artha, a set of distinctive local values about the meaning of life for Balinese people, serves as the organisational culture in this study. 100 BUMDes were used as samples in this investigation. The data analysis technique makes use of the Partial Least Square (PLS) method and Structural Equation Modeling (SEM), with the computation process aided by the Smarts PLS software application programme. Based on the results of the study, it was found that: (1) Catur Purusa Artha Culture has a positive and significant effect on Competitive Advantage; (2) Catur Purusa Artha Culture has a positive and insignificant effect on Financial Performance at BUMDes; (3) Entrepreneurial Orientation has no significant positive effect on BUMDes Financial Performance; (4) Entrepreneurial Orientation has a positive and significant effect on Competitive Advantage in BUMDes; (5) Competitive Advantage has a positive and significant effect on Financial Performance at BUMDes; (6) Competitive Advantage fully mediates the influence of Entrepreneurial Orientation on Financial Performance in BUMDes; (7) Competitive Advantage fully mediates the influence of the Purusa Artha Catur Culture on Financial Performance in BUMDes.

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Keywords:

Competitive Advantages, Catur Purusa Artha Culture, Entrepreneurship Orientation, Financial Performance, BUMDes.