The Role of Leadership and Collective Cultural Capital in Improving Financial Performance of Village Credit Institutions in Tabanan Regency

Ida Ayu Dinda Priyanka Maharani; Ade Ruly Sumartini

doi:10.38142/jogta.v5i1.2119

Authors

Ida Ayu Dinda Priyanka Maharani Universitas Warmadewa, Indonesia
Ade Ruly Sumartini Universitas Warmadewa, Indonesia

DOI:

https://doi.org/10.38142/jogta.v5i1.2119

Keywords:

Collective Cultural Capital, Financial Performance, Village Credit Institution, Local Economic Growth

Abstract

This study aims to examine the effect of leadership on financial performance and investigate the moderating role of collective cultural capital in the relationship between leadership and financial performance in Village Credit Institutions (Lembaga Perkreditan Desa/LPD) in Tabanan Regency. This research applies a quantitative approach using questionnaire-based data collection. The sample consisted of 40 LPDs selected through purposive sampling. Data were analyzed using Structural Equation Modeling (SEM) with a Partial Least Square (PLS) approach. The results indicate that leadership has a positive effect on LPD financial performance. Furthermore, collective cultural capital strengthens the relationship between leadership and financial performance. These findings highlight that LPD sustainability is influenced not only by managerial capabilities but also by social values, including trust, community ownership, and collective support from traditional village communities. This study suggests that strengthening leadership and collective cultural capital is essential for improving sustainable financial performance.

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