Indonesian Village Owned Enterprises Accounting Information System, Social Capital and Sustainability Economics Post-Covid-19 Pandemic

ABSTRACT: Indonesian Village Owned Enterprises set up by mandatory from the central government. Hence, to be able to survive in the long run, it needs to maximize its social capital from its village citizen. Village citizens are the main stakeholders, suppliers, as well as consumers of Village Owner Enterprises. During the Covid-19 pandemic, many villages citizen lost their job due to social restrictions related to the disease. As the unemployment rate is higher, this could be an endangered Village’s economic sustainability. Based on that problem, this research examines the Village Owned Enterprises’ Accounting Information System (AIS) and Social Capital in order to achieve the village’s economic sustainability during the Covid-19 Pandemic.

This study type is survey research. Quantitative data are gathered using the questionnaires on 122 Village Owned Enterprises Managers in Indonesia. Data was then analyzed using Partial Least Square statistical models.

The empirical analysis results show that AIS has effect on Social Capital and Sustainable Economics. Hence, Social Entrepreneurship as one form of Social Capital has positive effects on village sustainable economics. AIS effect on sustainable economics is partially mediated by Social Capital. This is consistent with Resources Based View (RBV) Theory and Stakeholder Theory. The more Village Owned Enterprises could develop and maintain social capital, the higher sustainability economics in the villages as their stakeholders.