An Integration of BSC and AHP for creating VOE’s Barriers of Entry Strategy

https://doi.org/10.35912/ahrmr.v4i2.1757
Published: Sep 13, 2024

Abstract:

Purpose: The aim of this study is to create social constructs related to Village-owned Enterprise (VOE) performance measurement tools and establish a hierarchy of strategy formulation using the Analytical Hierarchy Process (AHP).

Research Methodology: The methods used in this research were interviews, observations, and literature reviews to gain overall information to achieve the research goals. The purposively chosen sample was PH Village and PL VOE in Yogyakarta Province. Based on the data obtained, a BSC simulation was conducted, followed by strategic analysis using AHP.

Results: This study established a social construct of VOE’s performance measurement model based on the social enterprise BSC introduced by Bull (2007) and Somers (2005). A simulation was conducted by measuring the performance of the PL VOE. A total score of 96,49% was obtained for the PL performance measurement result. In addition, a strategy to create barriers to entry was established in this study. The analysis showed that the product differentiation strategy had the highest score (0,66394). To obtain the strategy, the village head, as a village vision creator, must create vision (0,47037) focusing on how to satisfy the PL’s consumers (0,35131).

Limitations: The limitation of the research is the lack of an observable sample since not all the villages and VOEs have the required data for research purposes.

Contribution: The benefit of this study is that it focuses on the Yogyakarta Provincial Village Community Empowerment Service. This research can be used to formulate strategic policies for the Yogyakarta Provincial government to improve VOE performance, mainly in terms of barriers to entry creation.

Novelty: This study contributes to the strategic management of social enterprises in Indonesia, particularly VOE. The use of social BSC and AHP in one article to measure the performance of VOE and to create barriers to entry strategies is still scarce in Indonesia.

Keywords:
1. Village-owned Enterprise
2. Social Enterprise
3. Social Enterprise Balanced Scorecard
4. Barrier to entry
5. Analytical Hierarchy Process
Authors:
1 . Roby Syaiful Ubed
Polytechnic of State Finance STAN, Ministry of Finance Indonesia
2 . Taufik Raharjo
Polytechnic of State Finance STAN, Ministry of Finance Indonesia
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Ubed, R. S., & Raharjo, T. (2024). An Integration of BSC and AHP for creating VOE’s Barriers of Entry Strategy. Annals of Human Resource Management Research, 4(2), 97–109. https://doi.org/10.35912/ahrmr.v4i2.1757
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Issue & Section
Vol. 4 No. 2 (2024): September
Articles
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  2. Aprillia, A. R., Cahyono, D., & Nastiti, A. S. (2021). Systematic Literature Review (SLR): Keberhasilan dan Kegagalan Kinerja Badan Usaha Milik Desa (BUMDES). Jurnal Akuntansi Terapan Dan Bisnis, 1(1), 35-44.
  3. Bull, M. (2007). “Balance”: the development of a social enterprise business performance analysis tool. Social Enterprise Journal, 3(1), 49-66.
  4. Dana, I. G., & Suci, N. M. (2021). Analisis Faktor-Faktor yang Menjelaskan Penurunan Penjualan Produk BUMdes di Kabupaten Karangasem. Jurnal Ilmiah Akuntansi dan Humanika, 11(3), 396-402.
  5. Del Giudice, M., Garcia-Perez, A., Scuotto, V., & Orlando, B. (2019). Are social enterprises technological innovative? A quantitative analysis on social entrepreneurs in emerging countries. Technological Forecasting and Social Change, 148, 119704.
  6. Dewi, K. C., & Kurniawan, P. S. (2018). Analisis Efektifitas Sistem Informasi Akuntansi Dalam Meningkatkan Transparansi Pengelolaan Keuangan Badan Usaha Milik Desa (Studi Pada Badan Usaha Milik Desa Mandala Giri Amertha Desa Tajun). JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 9(3).
  7. Djatmiko, A., & Cahyadi, B. (2020). Sebagai Optimalisasi Eksistensi Bumdes Dan Pelaku Umkm Di Era New Normal Fakultas Sosial dan Humaniora. Prodi PPKn, Prodi Ekonomi, 8, 96-106.
  8. Eton, M., Fabian, M., & Benard, P. O. (2022). Are internal controls important in financial accountability?(Evidence from Lira District Local Government, Uganda).
  9. Hapsari, A. N. S., Utami, I., & Kean, Y. W. (2020). Accountability in governance: will and can traditional villageowned enterprises achieve it. Indones Account Rev, 10(2), 1-8.
  10. Harefa, H. Y. (2021). The Establishment of Optimized Management of The Economic Potential of Regional Communities Through BUMDes and UMKM. International Journal of Regional Innovation, 1(3), 16-22.
  11. Irawati, D., & Martanti, D. E. (2018). Transparansi pengelolaan laporan keuangan bumdes terhadap pelaporan aset desa (Studi fenomenologi pada BUMDes Desa Karangbendo Kec Ponggok Kab Blitar). UNEJ e-Proceeding, 41-51.
  12. Kaplan, R. S., & Norton, D. P. (2000). Having trouble with your strategy? Then map it. Focusing Your Organization on Strategy—with the Balanced Scorecard, 49(5), 167-176.
  13. Kuo, N.-C., Wood, A., & Williams, K. (2021). Actualizing hope and joy in K-12 Curricula through Daisaku Ikeda’s human education. Journal of Social, Humanity, and Education, 2(1), 19-34.
  14. Kusumawati, F. R. (2020). Profitability determinants of five-star hotels in Yogyakarta. Annals of Management and Organization Research, 2(1), 41-52.
  15. Lee, A. H., Chen, W.-C., & Chang, C.-J. (2008). A fuzzy AHP and BSC approach for evaluating performance of IT department in the manufacturing industry in Taiwan. Expert Systems with Applications, 34(1), 96-107.
  16. Lee, Y. T., & Moon, J. Y. (2008). An exploratory study on the balanced scorecard model of social enterprise. Asian Journal on Quality, 9(2), 11-30.
  17. Mitiku, M. A., & Nega, F. E. (2021). Upshot of supply chain assimilation and competitive advantage on organizational performance in Ethiopia, Hawassa Industrial Park. Annals of Management and Organization Research, 2(4), 237-252.
  18. Nugroho, M. R. (2018). Penerapan pola sinergitas antara bumdes dan umkm dalam menggerakkan potensi desa di Kecamatan Saptosari. Prosiding Sembadha, 1, 28-37.
  19. Posi, S. H., & Putra, S. P. A. M. (2021). Pengaruh tingkat pendidikan, pemahaman akuntansi Dan pelatihan penyusunan laporan keuangan Terhadap pelaporan keuangan BUMDes Berdasarkan sak etap. JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 12(2), 463-469.
  20. Pramita, Y. D. (2018). Analisis Pemahaman Permendesa No. 4 Tahun 2015 Dan Pemanfaatan Sistem Informasi Pada Akuntabilitas Pengelolaan Bumdes. Jurnal Analisis Bisnis Ekonomi, 16(1), 1-8.
  21. Santos, F., Pache, A.-C., & Birkholz, C. (2015). Making hybrids work: Aligning business models and organizational design for social enterprises. California management review, 57(3), 36-58.
  22. Sepulveda, L. (2015). Social enterprise–a new phenomenon in the field of economic and social welfare? Social Policy & Administration, 49(7), 842-861.
  23. Sofia, I. P. (2017). Konstruksi Model Kewirausahaan Sosial (Social Entrepreneurship) sebagai gagasan inovasi sosial bagi pembangunan perekonomian. WIDYAKALA JOURNAL: JOURNAL OF PEMBANGUNAN JAYA UNIVERSITY, 2(1), 2-23.
  24. Somers, A. B. (2005). Shaping the balanced scorecard for use in UK social enterprises. Social Enterprise Journal, 1(1), 43-56.
  25. Storey, D. J. (1994). Understanding The Small Business Sector. London: Routledge.
  26. Sweetman, D., Badiee, M., & Creswell, J. W. (2010). Use of the transformative framework in mixed methods studies. Qualitative inquiry, 16(6), 441-454.
  27. Syafri, W., Prabowo, H., Nur, S. A., & Muafi, M. (2021). The impact of workplace green behavior and green innovation on green performance of SMEs: a case study in Indonesia. Journal of Asian Finance, Economics and Business, 8(5), 0365-0374.
  28. Upadhyay, A. Y. A. (2012). Balanced Scorecard–fostering learning organizations towards achieving strategic results: a case study of an oil PSU in India. Development and Learning in Organizations: An International Journal, 26(4), 13-16.
  29. Utami, I., Hapsari, A., & Kean, Y. (2020). Synergy of local wisdom values and governmental programs in cultural village social enterprises. Int. J. Eng. Res. Technol, 13, 4585-4590.
  30. Wibowo, K. A. (2015). Waqf for empowerment, management model of social waqf and productive waqf in Indonesia. Paper presented at the MUKTAMAR WAQF IQLIMI II 2015 UNIVERSITI SAINS ISLAM MALAYSIA (USIM).
  31. Widyastuti, S., & Ambarwati, S. (2020). Increasing the Rural Economy of Village Owned Enterprises BUMDes Antajaya Bogor. Paper presented at the 6th Annual International Conference on Management Research (AICMaR 2019).