Analysis of the investors’ motivation for social investment to the enterprises owned by the village
Economic Annals-XXI: Volume 198, Issue (7-8), Pages: 45-50
Citation information:
Siskawati, E., Suwito, Yuminarti, U., & Witono, B. (2022). Analysis of the investors’ motivation for social investment to the enterprises owned by the village. Economic Annals-XXI, 198(7-8), 45-50. doi: https://doi.org/10.21003/ea.V198-06
Eka Siskawati
MA (Accounting Science),
Accounting Department,
Padang State Polytechnic (Politeknik Negeri Padang)
Jl. Kampus, Limau Manis, Kec. Pauh, Kota Padang,
Sumatera Barat, 25164, Indonesia (Corresponding author)
ekasiskawati@gmail.com
ORCID ID: https://orcid.org/0000-0003-1956-8803
Suwito
PhD (Accounting),
Accounting Department,
Khairun University (Universitas Khairun)
Jl. Kampus Unkhair, Gambesi Str., Ternate city,
Maluku Utara province, 97719, Indonesia
Suwito.s3.pdia@gmail.com
ORCID ID: https://orcid.org/0000-0003-0452-0874
Umi Yuminarti
PhD (Economics),
Faculty of Agriculture,
Papua University (Universitas Papua)
Jl. Gn. Salju, Amban, Kec. Manokwari Bar.,
Kabupaten Manokwari, Papua Bar, 98314, Indonesia
u.yuminarti@unipa.ac.id
ORCID ID: https://orcid.org/0000-0001-6181-3177
Banu Witono
PhD (Accounting),
Accounting Department,
Muhammadiyah Surakarta University (Universitas Muhammadiyah Surakarta)
Jl. A. Yani, Mendungan, Pabelan, Kec. Kartasura,
Kabupaten Sukoharjo, Jawa Tengah, 57169, Indonesia
banu.dhilla@gmail.com
ORCID ID: https://orcid.org/0000-0002-1762-769X
Analysis of the investors’ motivation for social investment to the enterprises owned by the village
Abstract. Village-owned enterprises are expected to become a pillar of national development in Indonesia driven by rural communities. Village-owned enterprises are village businesses managed by the village government to strengthen the village economy. Village-owned enterprises cannot operate without investors who provide matching funds. This study aims to determine the motivation of investors in investing and how they behave in making investment decisions in village-owned enterprises. The research method used is qualitative. This study involved two village-owned enterprise investors and members of the village government in the clear water village of West Sumatra province. Data collection was carried out through in-depth interviews and direct observation of the informants from village officials in 2021. Data analysis used a phenomenological approach. The results showed that the private investment made by investors from the village government was motivated by reasons of power and policy. Social benefits and individual benefits drive investment motivation. Social benefits are obtained from several business activities that can reduce social problems in the community. The impact of this research is the reduction of unproductive land and environmental damage issues.
Keywords: Social Benefit; Individual Benefit; Social Enterprise; Social Investment; Village-Owned Enterprise
JEL Classіfіcatіon: R1; R11; R51; R58
Acknowledgements and Funding: The authors did not use any external funding.
Contribution: The authors have an equal role in conducting this study.
Data Availability Statement: All data will be provided upon request.
DOI: https://doi.org/10.21003/ea.V198-06
References
- Andersson, L. (2018). Operationalising social investment: from policy dimensions to ideal-types. Journal of International and Comparative Social Policy, 34(2), 109-125.
https://doi.org/10.1080/21699763.2018.1465446 - Badaruddin, B., Kariono, K., Ermansyah, E., & Sudarwati, L. (2020). Village community empowerment through village owned enterprise based on social capital in North Sumatera. Asia Pacific Journal of Social Work and Development, 31(3), 163-175.
https://doi.org/10.1080/02185385.2020.1765855 - Baranauskiene, J., & Alekneviciene, V. (2019). Comprehensive measurement of social benefits generated by public investment projects. Montenegrin Journal of Economics, 15(4), 195-210.
https://doi.org/10.14254/1800-5845/2019.15-4.15 - Barbosa, B., & Fonseca, I. (2019). A phenomenological approach to the collaborative consumer. Journal of Consumer Marketing, 36(6), 705-714.
https://doi.org/10.1108/JCM-11-2017-2468 - Bull, M., & Ridley-Duff, R. (2019). Towards an Appreciation of Ethics in Social Enterprise Business Models. Journal of Business Ethics, 159, 619-634.
https://doi.org/10.1007/s10551-018-3794-5 - Chatzitheodorou, K., Skouloudis, A., Evangelinos, K., & Nikolaou, I. (2019). Exploring socially responsible investment perspectives: A literature mapping and an investor classification. Sustainable Production and Consumption, 19, 117-129.
https://doi.org/10.1016/j.spc.2019.03.006 - Gao, C., Qu, D., & Yang, Y. (2019). Optimal design of bioenergy supply chains considering social benefits: A case study in Northeast China. Processes, 7(7), 437.
https://doi.org/10.3390/pr7070437 - Ge, J., Xu, H., & Pellegrini, M. M. (2019). The effect of value co-creation on social enterprise growth: Moderating mechanism of environment dynamics. Sustainability, 11(1), 250.
https://doi.org/10.3390/su11010250 - Häusermann, S. (2018). The multidimensional politics of social investment in conservative welfare regimes: family policy reform between social transfers and social investment. Journal of European Public Policy, 25(6), 862-877.
https://doi.org/10.1080/13501763.2017.1401106 - Hemerijck, A. (2018). Social investment as a policy paradigm. Journal of European Public Policy, 25(6), 810-827.
https://doi.org/10.1080/13501763.2017.1401111 - Ketprapakorn, N., & Kantabutra, S. (2019). Sustainable social enterprise model: Relationships and consequences. Sustainability, 11(14), 3772.
https://doi.org/10.3390/su11143772 - Lyon, F., & Owen, R. (2019). Financing social enterprises and the demand for social investment. Strategic Change, 28(1), 47-57.
https://doi.org/10.1002/jsc.2245 - Mustafa, M. Z. Bin, Nordin, M. N. Bin, & Abdul Razzaq, A. R. Bin. (2020). Structural equation modelling using AMOS: Confirmatory factor analysis for taskload of special education integration program teachers. Universal Journal of Educational Research, 8(1), 127-133.
https://doi.org/10.13189/ujer.2020.080115 - Nicholls, A., & Teasdale, S. (2019). Dynamic persistence in UK policy making: the evolution of social investment ideas and policy instruments. Public Management Review, 23(6), 802-817.
https://doi.org/10.1080/14719037.2019.1699948 - Pavlenko, I., Tverdova, I., Shibaykin, V., & Marakova, A. (2018). Business mechanism of innovation-driven development of the agricultural market infrastructure. Economic Annals-XXI, 169(1-2), 57-61.
https://doi.org/10.21003/ea.V169-11 - Peña-Miguel, N., & De La Peña, J. I. (2018). New accounting information system: An application for a basic social benefit in Spain. Revista de Contabilidad, 21(1), 28-37.
https://doi.org/10.1016/j.rcsar.2017.07.002 - Raza, S. A., Qazi, W., Umer, B., & Khan, K. A. (2020). Influence of social networking sites on life satisfaction among university students: a mediating role of social benefit and social overload. Health Education, 120(2), 141-164.
https://doi.org/10.1108/HE-07-2019-0034 - Razak, M. R. R., & Sofyan, B. (2020). Role of village-owned enterprises in farming community empowerment. International Journal of Advanced Science and Technology, 29(6 Special Issue), 684-691.
https://doi.org/10.31219/osf.io/5ycva - Steiner, A., & Teasdale, S. (2019). Unlocking the potential of rural social enterprise. Journal of Rural Studies, 70, 144-154.
https://doi.org/10.1016/j.jrurstud.2017.12.021 - Winarsi, S., & Moechthar, O. (2020). Implementation of The Law Principles of Good Corporate Governance in Indonesian Village-Owned Enterprise (BUMDes). Yuridika, 35(3), 635.
https://doi.org/10.20473/ydk.v35i3.21637
Received 2.04.2022
Received in revised form 22.05.2022
Accepted 28.05.2022
Available online 20.08.2022