VARIABLES FOR DETERMINING SUSTAINABLE PERFORMANCE OF VILLAGE CREDIT INSTITUTIONS

The existence of the Village Credit Institutions in Bali, which is based on the Bali Level I Regional Regulation No 06 of 1986, has a noble aim in encouraging economic development and creating business opportunities for rural communities and participating in supporting government programs in poverty alleviation in Bali. However, the development to date in Gianyar Regency as much as 29% of Village Credit Institutions that have been established are not operating, are not healthy, and are not healthy. This condition must find a solution by conducting research on the determinants of Village Credit Institutions Sustainable Performance determinants.

LPD sustainable performance is not only determined by indicators of Village Credit Institutions soundness which are more valued from financial ratios, but also non-financial variables, so that this research gap is conducted by combining financial and non-financial variables as determinants of Village Credit Institutions Sustainable Performance. This study uses a combination of non-financial variables (Organizational Culture extracted from Balinese local wisdom, Purusa Artha Chess Culture, Market Orientation, Entrepreneurial Orientation) and financial variables (Funding Decisions and Financial Inclusion) as variables that determine the Village Credit Institutions Sustainable Performance.

The study population was all Village Credit Institutions operating in Gianyar Regency in 2018 consisting of 240 units. The number of samples is determined by the Slovin formula, and the samples are taken in proportional stratified random sampling based on the category of Village Credit Institutions health level. Data were analyzed using variance based or component based methods with Partial Least Square (PLS)