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Keywords: Empowerment of rural communities in development is an extensive record of sustainable village development.
Good governance This study examines the relationship between village community participation, good governance, and positive
Service performance perceptions supporting village government performance. Taking the background of one of the developing cate-
People participation
gories of villages in Indonesia, this research empirically proves the influence of good governance, positive percep-
Village development
tions, participation, and performance of village government. The study was conducted using a survey method of
the heads of families of the village community and the required population. Data from the reduction process and
resistance test are analyzed using structural equation modeling with help of Smart-PLS. Research results show
a connection influence between good governance against the positif perception of public village with a p-value
of 0.000. The effect of good governance is evident in influencing the performance village government with a
p-value of 0.011. Whereas connection was not good direct governance against performance proven through per-
ception positive with a p-value of 0.049. Furthermore, the relationship between direct good governance against
participation of the public was not supported in the study, so the participation of public as the liaison between
good governance and performance village government. Influence good governance against participation was sup-
ported through the perception of positive public to village government. Studies show the importance formation
of a positive perception public village from trust to a village government. With thereby empowerment, public
villages could improve.
Introduction [6] explain the theory of organization from a practical perspective seen
from abilities and knowledge in decision-making, include village orga-
Based on Constitution Village number 6 of 2014, the focus of de- nizational government. The constitution demand village government to
velopment in Indonesia is to increase rural growth going to village in- implement good governance in managing the village funding and man-
dependence [2,25]. This role is supported by various assistance pro- aging the end of government support in a manner positive performance
grams funding special for the village with the large amount. In 2021, of village government [4]. Good governance improves the village com-
the Indonesian government disbursed village program assistance of IDR petence device [28] and later upgrades the performance of village gov-
72 trillion, with the allocation of IDR 37.08 trillion for solid programs ernment.
creation villages, IDR 29.16 trillion for helping live cash villages and To manage the village’s potency and develop funding, government
helping villages safe covid-19 of IDR 5.76 trillion [20]. Failure man- needed the capacity and rules to active whole elements of public vil-
agement of village funds are reported in various regions because lack lage. Empowerment public in form participation active public will sup-
of performance in village government s [37]. Commitment to the gov- port the achievement of village independent sustainable [36]. Wijaya
ernment for bringing the village from poverty and marginalization, et al., [41] conclude the critical role of the public participation in the
among others, with optimization potency of village. With this pro- village development. Wijaya’s research emphsized the role of women as
gram, this role was shared with the village government and all the village activist. Public participation through empowerment is suite sys-
chain. tematic and involves various action formal and informal components in
Organizational theory forms a framework as a guideline for con- the village [39], which is important in the development of the village.
structing of organizations to implement policies [31]. Cukier et al., Participation in society is also proven influential and significant to the
∗
Corresponding author.
E-mail addresses: ernahandayani@ump.ac.id (E. Handayani), askar2005.55@gmail.com (A. Garad), amansuyadi@ump.ac.id (A. Suyadi).
https://doi.org/10.1016/j.wds.2023.100089
Received 29 July 2022; Received in revised form 14 June 2023; Accepted 26 June 2023
2772-655X/© 2023 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
E. Handayani, A. Garad, A. Suyadi et al. World Development Sustainability 3 (2023) 100089
Village government performance and public services A village government is an organization to serve public villages. Re-
ferring to the theory of organization Miner [31], an organization village
Responding to the direction of development based on the Association must be managed well to reach the aim. Good governance of the public
of Nations in the sustainable development goals (SDGs), village develop- sector consists of several principles, among others, refers to Osborne and
ment is directed at an economic self-sufficiency program by paying at- Gaebler [35]. Good governance focuses on strategic vision, democracy,
tention to the social and environmental aspects of the village (United Na- justice, transparency, power responsiveness, supremacy law, participa-
tion.org, 2021). Village development aims to realize sustainable village tion, equality, and accountability [30]. In Indonesia, good governance as
development in the Mandiri Village category. In the independent phase, the principles of organizational governance includes information open-
the village has access to essential services, adequate infrastructure, easy ness (transparency), accountability, responsibility/responsibility, inde-
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E. Handayani, A. Garad, A. Suyadi et al. World Development Sustainability 3 (2023) 100089
pendence, and fairness [21]. Law Number 14 of 2014 confirms that H6. Good Governance is significant to performance through the positive
village development management, including village financial manage- public village perception.
ment, must be carried out transparent, participatory, and disciplined
manner. H7. Good governance influences the performance of the village govern-
This study uses good governance indicators [21], which include prin- ment through perception and participation public village.
ciple transparency, accountability, and fairness. Transparency is the
openness of the village government to correct the public for obtaining Positive perception, participation and village government performance
proper, honest, and not discriminatory information about the mainte-
nance of village government with permanent notice provision regula- Public empowerment becomes urgent aspects in development vil-
tion legislation [1]. Transparency in the use of village finances is im- lages [3]. Empowering is to upgrade public villages’ capacity and ca-
plemented with village government openness in village development pability to exploit all potential and resources owned power. Priority
planning, use of funds for village works programs, and village govern- activity for empowerment of public village in Indonesia at the time is
ment accountability in the use of public finances. This mechanism can formation effort of economy of citizens/groups citizens, cooperatives,
involve the village community in planning the village budget and pub- institutions economy public village sustainable as possible upgrade in-
licly publishing reports on the use of village funds. come village and community. Economic business inhabitants focused
Good governance from the aspect of accountability is an essential on the formation and development product superior villages. The low
obligation for the village government to be accountable for carrying out public participation is still in developing stages [11,22]. Princes (2017)
its duties as a village organizer. Accountability in using village funds is reviewed the low participation public village of Sinsingon Barat, Indone-
implemented by using village funds according to programs agreed upon sia, in various expected shape to speed up the development village, in-
according to standards set by law. Finally, fairness is translated as fair- cluding 1) participation in the form of generous funding for the smooth
ness in services, the reach of village development, and the use of village running of the development program, 2) participation in idea, thought
funds without discriminating or prioritizing certain community sections for development village; and 3) participation in form energy/physical
[9]. Basri et al. [1] explain the principle of justice in research as fair (cooperation). The level of self-help participation became a culture of
treatment of village communities in terms of services and opportunities local Indonesian society that started thinning from time to time.
to maintain quality of life. Empowerment of public program for management of village funds
Good governance of good village government positively supports the that is going to village independent, must move active participation
performance of village government [4]. Good governance increases the from public village. In several studies, participation is built through pos-
competency of village officials [28], which then improves the perfor- itive individual perceptions [12,18,26]. Positive perception is built from
mance of the village government. Good governance with transparency, how individual public villages select, organize and interpret information
accountability and fairness concluded positive significance to the per- to create a complete description for the empowerment program village.
formance of villages government [1], however [19] also found another A new program will be supported positively if there is a perception
aspect necessary, namely the democratization of village government positive from an individual, and vice versa [17]. If support is positive,
by increasing the role of community participation in performance as empowering the public could be improved with the public participation
Yevmieshkina [42] and Basri et al., [1]. Good governance also affected in developing and implementing village programs. Public participation
positive perceptions [14], increasing community trust in village gover- in the study refers to Oakley [33] as involvement live society in a devel-
nance. Therefore, this study explores the critical role of good governance oped village that includes contribution thoughts, contributions, effort,
in village development with the following hypotheses: and contribution means. Therefore, this research formulated hypothesis
as follows:
H1. Good Governance has a significant effect on the participation of
public villages. H8. Participation in village’s society influential and significant to per-
formance of village government.
H2. Good Governance is significant to the positive public village per-
ception. H9. Positive perception of public village influential significant to public
village participation.
H3. Good Governance has a significant effect to the performance village
government. H10. Positive perception pf public village influential significant to per-
formance village government.
H4. Good Governance is significant to participation in public village
through positive perception. H11. Positive perception influential significant to the performance of
village government through participation village public.
H5. Good Governance is significant to the performance village govern-
ment through the participation public village. Following chart study as Fig. 2. Following this:
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E. Handayani, A. Garad, A. Suyadi et al. World Development Sustainability 3 (2023) 100089
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E. Handayani, A. Garad, A. Suyadi et al. World Development Sustainability 3 (2023) 100089
Table 3
Validity and Reliability Test.
Second step: model fit test Third step: test results and hypotheses
The results of the model fit test meet the overall model validation, The significance test was carried out by bootstrapping procedure on
where the R2 value obtained is 0.863, the Q2 value for blindfolding smartpls to see the p-value and T-value. Reference values according to
output is 0.630> 0 and the SMRS value of the algorithm output is Hair et al., [13] and Harrison (2017) is the p value < 0.05 and the T
0.083<0.10. [13,16]. Thus, data processing can be continued to the value > 1.96 for significant conclusions.
third stage, namely hypothesis testing. The statistical test results data are presented in Table 5. below:
The following Table 4 shows the results of the R2 , Q2 and SRMS test
results:
Table 4
R2 , Q2 and SRMR value.
Variable R2 Q2 SRMR
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E. Handayani, A. Garad, A. Suyadi et al. World Development Sustainability 3 (2023) 100089
Table 5
Result of T Value and P Value.
Source: Author.
∗
p-value<0.05 and the T value >1.96=sig.
Discussion perceptions are built from the statements of the manager and the vil-
lage government. Furthermore, community participation can be driven
Public organization governance must be more transparent, account- along with these activities.
able, responsible, and focused on a long growth period [34,40], includ- Participation of the public in the manner they live is more influenced
ing village government. Good governance supports the achievement of by the perception of positive individual Public to village government
the aim of developing a village, as theory organization Miners [31]. (𝛽=0.804). This translated into the perception of expediency, fairness,
Participation whole public village in the achievement of independence accuracy, and speed service perceived by each individual (hypothesis
village needs driven and good organized. Good governance creates a 9). So that the government’s performance of the village formed from a
public village trust meaning upgrade positive perception to the village participation society (hypothesis 8 is accepted) and from positive per-
government, so upgrade participation of public village for role active in ception then increased participation of public village (hypothesis 11 is
development village. The village community will have a high sense of accepted).
caring and belonging to the development of his village. Community participation is formed from positive perceptions (hy-
Studies give empirical proof that good governance in village govern- pothesis 2). Even though the village government has been managed in a
ment s is influential and significant to the perception of positive public good governance manner, it does not directly affect participation, thus
villages (𝛽=0.894), which means hypothesis 2 is accepted. Good gov- requiring mediation of the positive perceptions of the village commu-
ernance is proven in the study. It also supports the enhancement per- nity on the implementation of good governance (hypothesis 4). This
formance of village government s in a manner significant (𝛽=0.330) as finding is interesting because communication and outreach are essen-
hypothesis 3, but no proven support in a manner live participation pub- tial for village communities. Good governance performance needs to be
lic village. With this, hypothesis 1 is rejected. ‘Good governance shapes communicated to form a positive perception of the village community.
people’s perceptions of village community governance and improves The relationship between the village community and the village gov-
trust. Information on implementing good management must reach the ernment must continue to develop this positive perception, which can
village community through written reports or other information. Most be through village meetings involving the village community, village
of the village community needs to learn precisely how village funds government open houses, and regular outreach to the community with
are managed, how much, and what they are used for; some don’t even village activities both in writing and orally.
care about this. They must receive information that village funds are Positive perception of public village is a significant watch to grow
correctly handled by village officials, both in writing and conveyed in participation active society. This result supports a study by Liu et al.
village meetings. Furthermore, this forms a positive perception of the [26] on connection perception and participation. Connection third vari-
village community towards running the village government. able shaper performance of village government in a manner whole
In another party, through the positive perception of the village com- formed of government good governance village through positive per-
munity toward village governance, good governance is found to have ception and so on influence participation of public village (P-11).
an influential positive significance on participation (𝛽=0.719) and per- Good governance is shown with transparency of village government
formance (𝛽=0.263). Analysis of results prove that hypotheses 4 and 6 on the implementation process of village government, including the
are accepted. preparation of work programs using village funds. Next, the village gov-
Participation is not solely formed by good governance. This study ernment manages funds in an accountable and accountable manner. The
finds the role formation is not significant, and so is the role of medi- third element is fairness which is shown by service fairness without dis-
ation participation on performance. With thereby, hypothesis 5 is re- criminating against certain groups or parties. This element of justice is
jected. Good governance forms a perception of a positive village public also reflected in the preparation of work programs [10]. The develop-
to a village government. Perception positive the upgrade participation ment of the village of Sambirata starts from the planning stage and a
and so on upgrade performance village government (𝛽=0.049). Based on work program that is jointly arranged in a gradual meeting mechanism
the results, relationship between 4 variables above shows that hypoth- that listens to the community’s aspirations through the village consul-
esis 7 is accepted. In this study, the authors found that the community tative body and community elements. The village government listens
was willing to participate in the village programs and build a village to- to input from community elements, including religious leaders, farmer
gether without any strings attached because they understood the goals groups, youth groups, and women driving village activities. Access to the
they wanted to achieve together. In addition, they believe that the vil- implementation of village fund management does not reach the stage of
lage program is appropriately designed and implemented along with circulating reports on the use of funds to the community, but the vil-
good governance, for example, in the village-owned enterprise develop- lage provides open access to interested communities. Requests for data
ment program that involves community participation. Program activi- are well served at the village secretariat. This study’s results support Bu-
ties and reports on implementing activities must be presented clearly in diati et al. [4] and Maranda et al. [28], where good governance supports
village meetings involving the community. Positive understanding and improving village government performance.
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