Effect of Village Fund Financial Management on Financial Performance: Mediating Role of Community Participation
DOI:
https://doi.org/10.58812/wsis.v4i04.2803Keywords:
Village Fund Financial Management, Financial Performance, Community Participation.Abstract
Village fund management is a crucial factor in determining village financial performance, but empirical findings related to this relationship still show inconsistent results, particularly regarding the role of community participation. This study aims to analyze the effect of Village Fund financial management on village financial performance by considering the mediating role of community participation. The study uses a quantitative approach with an explanatory research design and was conducted in 19 villages in Taniwel Subdistrict, West Seram Regency. Primary data were collected through structured questionnaires administered to village officials directly involved in village financial management and analyzed using Partial Least Squares (PLS)-based Structural Equation Modeling (SEM). The results show that Village Fund financial management has a positive and significant effect on village financial performance. In addition, transparent and accountable financial management has been shown to significantly increase community participation. Community participation also has a positive effect on village financial performance and acts as a mediating variable that strengthens the influence of financial management on village financial performance. These findings confirm that improving village financial performance requires synergy between the quality of financial management and active community involvement, especially in the context of villages in Taniwel Subdistrict.
References
[1] B. D. Handayani, I. Ismiyati, and D. P. Astuti, “Environment Concern Through Digitalization of Village Financial Reporting and Accountability of Village Fund Management: Can it Accelerate the Achievement of Village Sustainable Development Goals (SDGs)?,” in IOP Conference Series: Earth and Environmental Science, 2023. doi: 10.1088/1755-1315/1248/1/012030.
[2] N. Syamsul, N. Nurlailah, and N. Nurhadi, “From transparency to accountability: Determinants of village financial governance,” Multidiscip. Sci. J., vol. 8, no. 9, 2026, doi: 10.31893/multiscience.2026575.
[3] R. Purnamasari, A. I. Hasanudin, R. Zulfikar, and H. Yazid, “Do internal control and information systems drive sustainable rural development in Indonesia?,” J. Open Innov. Technol. Mark. Complex., vol. 10, no. 1, 2024, doi: 10.1016/j.joitmc.2024.100242.
[4] A. Indrijawati, Darmawati, F. Anwar, Fatmawati, and Samsinar, “Accountability for village financial management: Clarity of budget targets and competency of village financial management officials,” Asian Dev. Policy Rev., vol. 12, no. 3, pp. 281 – 303, 2024, doi: 10.55493/5008.v12i3.5170.
[5] N. Yap, M. Nugroho, and N. Rachmiyati, “Evaluating village financial governance in top tourism destinations,” Edelweiss Appl. Sci. Technol., vol. 8, no. 6, pp. 2971 – 2991, 2024, doi: 10.55214/25768484.v8i6.2638.
[6] S. Ardiputra, M. Milyan, Z. Akhmad, M. Sulthan, and M. A. Ardiputra, “Optimizing budget policy in village fund allocation (ADD): a governance and public administration perspective on rural development,” Front. Polit. Sci., vol. 7, 2025, doi: 10.3389/fpos.2025.1581806.
[7] A. Hariyanto, B. Juanda, E. Rustiadi, and S. Mulatsih, “The Effect of Village Income on Village Expenditure: A Case Study of Belitung Regency,” Int. J. Sustain. Dev. Plan., vol. 19, no. 1, pp. 131 – 138, 2024, doi: 10.18280/ijsdp.190111.
[8] W. Nor, H. Sofyani, M. Yuliastina, and M. Hudaya, “Optimizing intellectual capital for good governance implementation in village government to enhance performance and reduce corruption,” Cogent Bus. Manag., vol. 12, no. 1, 2025, doi: 10.1080/23311975.2025.2574549.
[9] L. K. Merawati, I. D. M. Endiana, and N. M. Sunarsih, “Good Governance and Trust in Village Fund: The Role of Accountability and Community Participation; [DOBRO UPRAVLJANJE I POVJERENJE U UPRAVLJANJE SEOSKIM FONDOVIMA: ULOGA ODGOVORNOSTI I SUDJELOVANJA GRAĐANA],” Croat. Comp. Public Adm., vol. 25, no. 4, pp. 651 – 675, 2026, doi: 10.31297/hkju.25.4.4.
[10] H. R. Widjaja, M. Ridwan, B. M. Eppang, S. L, M. R. Abidin, and Q. S. A. Ali, “COMMUNITY-CENTRIC APPROACHES TO TOURISM DEVELOPMENT AND PLANNING,” Plan. Malaysia, vol. 23, no. 5, 2025, doi: 10.21837/pm.v23i38.1846.
[11] J. S. Aji, D. E. Rahmawati, O. Anggraini, L. Safitri, and N. Astuti, “Utilization of Village Funds and Community Participation in Tourism Develpoment in Malangjiwan Village, Kebonarum Sub-District, Klaten District,” in IOP Conference Series: Earth and Environmental Science, 2025. doi: 10.1088/1755-1315/1566/1/012016.
[12] R. N. Girsang, Haryadi, Afrizal, and S. Rahayu, “Information Systems and Human Resource Capacity in Strengthening Budget Discipline and Participatory Governance: Evidence from Indonesia’s Village Funds,” J. Logist. Informatics Serv. Sci., vol. 12, no. 8, pp. 172 – 187, 2025, doi: 10.33168/JLISS.2025.0810.
[13] Haeril, N. Brasit, I. Nursyamsi, and Jusni, “The Impact of Village Fund Management, Cash-Intensive Work, and Community Participation on The Rate of Village Economic Growth Through The Development of village-Owned Enterprises (BUMDes) in Bone Regency,” Int. J. Account. Econ. Stud., vol. 12, no. 4, pp. 412 – 420, 2025, doi: 10.14419/3amrp448.
[14] R. F. Nurita, Y. E. Nahuddin, and N. Sabrina, “Model of Strengthening The Constitutional Rights of The Community Through Village Fund Supervisory Groups as An Effort to Prevent Corruption,” Int. J. Account. Econ. Stud., vol. 12, no. 5, pp. 164 – 171, 2025, doi: 10.14419/rzmace84.
[15] A. Sulistyowati, D. Riskanita, and J. Andriani, “Pengaruh Penyajian Laporan Keuangan Dan Aksesibilitas Laporan Keuangan Terhadap Akuntabilitas Pengelolaan Keuangan Daerah,” Mandiri J. Akunt. dan Keuang., vol. 2, no. 1, pp. 17–30, 2024, doi: 10.59086/jak.v2i1.256.
[16] Y. Kurniawan and A. Yamin, “Analisis Dampak Regulasi, Komitmen Organisasi, dan Pengelolaan Keuangan Desa terhadap Kinerja Pemerintah Desa di Kecamatan Maluk Kabupaten Sumbawa Barat (KSB),” JIIP - J. Ilm. Ilmu Pendidik., vol. 8, no. 5, pp. 4948–4961, 2025, doi: 10.54371/jiip.v8i5.7880.
[17] J. Torfing and T. Ø. Bentzen, “Does stewardship theory provide a viable alternative to control-fixated performance management?,” Adm. Sci., vol. 10, no. 4, 2020, doi: 10.3390/admsci10040086.
[18] R. S. Hidayat, “Analisis Pengaruh Pelaksanaan Good Governance, Sistem Informasi Akuntansi dan Kinerja Keuangan terhadap Akuntabilitas Pengelolaan Keuangan Desa Kecamatan Lenek,” Akunt. Dan Keuang. Publik, vol. 1, no. 1, pp. 32–39, 2025.
[19] M. K. A. Sagala and S. Siregar, “Pengelolaan Keuangan, Sistem Informasi Akuntansi dan Transparansi Kinerja Keuangan Pada BUMDes,” E-Jurnal Akunt., vol. 33, no. 6, p. 1613, 2023, doi: 10.24843/eja.2023.v33.i06.p015.
[20] K. G. Tumangger, M. Salman, and N. K. Lubus, “Pengaruh Transparansi, Akuntabilitas Dan Peran Perangkat Desa Terhadap Pengelolaan Keuangan Desa Di Kecamatan Tinada,” J. Mahasiawa Akunt. Samudra, vol. 6, pp. 293–308, 2025.
[21] J. F. Hair et al., “Executing and interpreting applications of PLS-SEM: Updates for family business researchers,” J. Fam. Bus. Strateg., vol. 12, no. 3, 2021, doi: 10.1016/j.jfbs.2020.100392.
[22] S. Kono and M. Sato, “The potentials of partial least squares structural equation modeling (PLS-SEM) in leisure research,” J. Leis. Res., vol. 54, no. 3, pp. 309 – 329, 2023, doi: 10.1080/00222216.2022.2066492.
[23] J. Hair and A. Alamer, “Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example,” Res. Methods Appl. Linguist., vol. 1, no. 3, 2022, doi: 10.1016/j.rmal.2022.100027.
[24] Z. M. Ghazali and W. Yaacob, “Integrated PLS-SEM-Latent Growth Curve Model: A New Conditional Time Invariant Method for Analysing Panel Survey Data,” MethodsX, vol. 15, 2025, doi: 10.1016/j.mex.2025.103635.
[25] P.-W. Lei and H. Zhao, A tutorial on structural equation modeling. 2022. doi: 10.1016/B978-0-12-818630-5.10017-X.
[26] E. R. Yanti, Wiralestari, and W. Tiswiyanti, “Pengaruh Transparansi, akuntabilitas, dan Partisipasi Masyarakat Terhadap Pengelolaan Keuangan Desa ( Studi Kasus Pada Desa Di Kecamatan,” J. Manaj. Terap. dan Keuang., vol. 12, no. 01, pp. 53–64, 2023.
[27] Z. Abidin, R. Yuliani, and L. Safrida, “The Influence of Apparatus Competence, Organizational Commitment, Community Participation, Budget Target Clarity, and Utilization of Information Technology on Village Fund Management in Paringin District, Balangan Regency,” Int. J. Soc. Sci. Educ. Res. Stud., vol. 05, no. 07, pp. 666–675, 2025, doi: 10.55677/ijssers/v05i07y2025-01.
[28] M. A. Arfiansyah, “Pengaruh Kapasitas Aparatur Desa Terhadap Akuntabilitas Pengelolaan Dana Desa Dengan Sistem Keuangan Desa Sebagai Variabel Mediasi Di Kecamatan Tellulimpoe Kabupaten Sinjai,” J. Stud. Islam dan Sos., vol. 3, no. 2, pp. 16–29, 2022, doi: 10.52103/jaf.v3i2.930.
[29] A. W. Rizqi, “Pengaruh Transparansi, Akuntabilitas, Dan Kepemimpinan Terhadap Pengelolaan Dana Desa Dengan Partisipasi Masyarakat Sebagai Variabel Mediasi,” J. Account. Bus. Educ., vol. 3, no. M, pp. 253–260, 2025.
[30] K. I. Pribadi, S. E. B. Santoso, N. Dirgantari, and A. I. Hartikasari, “Pengaruh Komitmen Organisasi, Transparansi, Pemanfaatan Teknologi Informasi Terhadap Akuntabilitas Pengelolaan Dana Desa Dengan Partisipasi Masyarakat Sebagai Varibel Moderasi,” J. Akunt. dan Keuang., vol. 13, no. 1, pp. 39–52, 2025, doi: 10.29103/jak.v13i1.18193.
[31] R. Tehupuring, Suhadarliyah, and D. Amelia, “Pengaruh Alokasi Dana Desa Dan Potensi Desa Terhadap Manajemen Keuangan Desa,” Analisis, vol. 13, no. 1, pp. 135–145, 2023, doi: 10.37478/als.v13i1.2503.
[32] S. M. Tiarno and G. S. Budiwitjaksono, “Pengaruh Kompetensi Sumber Daya Manusia, Sistem Pengendalian Intern Pemerintah (Spip), Dan Penggunaan Siskeudes Terhadap Akuntabilitas Pengelolaan Dana Desa,” J. Ilm. Manajemen, Ekon. Akunt., vol. 7, no. 2, pp. 1596–1608, 2023, doi: 10.31955/mea.v7i2.3015.
[33] N. A. Nislandi and Munari, “PENGARUH KOMPETENSI PEMERINTAH DESA, TRANSPARANSI, DAN SISTEM PENGENDALIAN INTERNAL TERHADAP AKUNTABILITAS PENGELOLAAN DANA DESA DI SIDOARJO,” J. Equilib., vol. 9, no. 1, pp. 1–16, 2019.
[34] L. Felisitas, W. Mitan, and F. De Romario, “Pengaruh Sistem Keuangan Desa (SISKEUDES) Terhadap Kinerja Pemerintah Desa Di Kecamatan Doreng,” J. Mutiara Ilmu Akunt., vol. 1, no. 4, pp. 276–291, 2023, doi: 10.55606/jumia.v1i4.2051.
[35] M. Sarstedt, C. M. Ringle, and J. F. Hair, Partial Least Squares Structural Equation Modeling. 2021. doi: 10.1007/978-3-319-57413-4_15.
[36] D. G. Christiawan, A. Novandalina, and A. D. Setiyaningsih, “Faktor-Faktor Yang Mempengaruhi Akuntabilitas Pengelolaan Dana Desa Dengan Partisipasi Masyarakat Sebagai Variabel Mediasi,” SOLUSI J. Ilm. Bid. Ilmu Ekon., vol. 21, no. 1, pp. 93–104, 2023, doi: 10.26623/slsi.v21i1.6295.
[37] H. Rukmana, W. B. Utami, and Darmanto, “Pengaruh Penggunaan Dana Desa, Akuntabilitas, Dan Transparansi Pengelolaan Keuangan Desa Terhadap Kesejahteraan Masyarakat Di Nagari Pasilihan,” J. Ilm. Keuang. Akunt. Bisnis, vol. 15, no. 2Laila, H. (2021). Pengaruh Penggunaan Dana Desa, Akuntabilitas, Dan Transparansi Pengelolaan Keuangan Desa Terhadap Kesejahteraan Masyarakat Di Nagari Pasilihan. Skripsi. Institut Agama Islam Negeri (IAIN) Bukittinggi, 15(2), 1–23., pp. 1–23, 2021, doi: https://doi.org/10.53088/jikab.v2i2.43 ISSN:
[38] A. Purwanto and Y. Sudargini, “Partial Least Squares Structural Squation Modeling (PLS-SEM) Analysis for Social and Management Research : A Literature Review,” J. Ind. Eng. Manag. Res., vol. 2, no. 4, pp. 114–123, 2021, [Online]. Available: http://www.jiemar.org
[39] J. J. F. Hair, G. T. M. Hult, C. M. Ringle, and M. Sarstedt, A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 3rd ed, 3rd ed. CA: Sage.: Thousand Oaks, 2022.
[40] D. Nursin, Syamsuddin, and Nirwana, “Pengaruh Kualitas SDM, Pemanfaatan Teknologi Informasi, Sistem Pengendalian Intern terhadap Pengelolaan Keuangan Dana Desa dengan Kecerdasan Spiritual Sebagai Variabel Moderasi,” Own. Ris. J. Akunt., vol. 7, no. 1, pp. 77–101, 2022, doi: 10.33395/owner.v7i1.1359.
[41] P. R. Wahyuni and E. D. Sigalingging, “PENGARUH DESA DESENTRALISASI KEUANGAN TERHADAP KINERJA KEUANGAN DAN IMPLIKASINYA PADA AKUNTABILITAS MANAJEMEN KEUANGAN DESA,” Mt. Hope Manag. Int. J., pp. 68–82, 1956.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Martha Racwel Patty
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com