Published date: Jul 24 2023

Journal Title: KnE Social Sciences

Issue title: Third Economic, Law, Education and Humanities International Conference (3rd ELEHIC)

Pages: 129–145

DOI: 10.18502/kss.v8i13.13750

Yesi Mutia Basriyesimutia@gmail.comFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Taufeni TaufikNone@none.comFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Hariadi YasniFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Rosalina Indah PutriNone@none.comFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Nabila Zahra Indra,None@none.comFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Nia RahmadaniFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Meirva AslinNone@none.comFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Tayuddin AmriFaculty of Economics and Business, Department of Accounting, Bina Widya KM Campus. 12.5, Simpang Baru, Tampan District, Pekanbaru City, Riau 28293, Indonesia

Development in rural areas has become the focus of governments in many countries. This study aims to analyze the effect of institutional pressure and strategic orientation on financial performance. This study also examines social performance as a mediating variable. The research was conducted at village institutions, namely Village-Owned Enterprises in four regions in Riau Province, Indonesia. A total of 239 Village-Owned Enterprises were studied with 526 respondents, namely VOE managers. Questionnaires were distributed directly and via the internet. Questionnaires were sent via WhatsApp to the VOE manager. Structural analysis of the equation model with Warp PLs shows that all hypotheses are supported. Institutional pressure and strategic orientation affect financial performance, and social performance is a mediator variable

Keywords: institutional pressure, strategic orientation, social performance, financial performance

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