Does organizational level capabilities is important to sustainability performance? A case study on Village Owned Enterprises in Indonesia

D Junita(1), R N Sari(2*), R Zenita(3), Kamaliah(4)
  • (1) Department of Accounting, Faculty of Economics and Business, Universitas Riau, Indonesia
  • (2) Department of Accounting, Faculty of Economics and Business, Universitas Riau, Indonesia
  • (3) Department of Accounting, Faculty of Economics and Business, Universitas Riau, Indonesia
  • (4) Department of Accounting, Faculty of Economics and Business, Universitas Riau, Indonesia
  • (*) Corresponding Author

Abstract

This study aims to examine the effect of organizational level capabilities (organizational capabilities, marketing capabilities and technical capabilities) on sustainability performance. Data was obtained through questionnaires distributed to 121 directors of Village Owned Enterprises. Data was analyzed by using structural equation model-partial least square (SEM-PLS). Results showed that organizational capability has a significant effect on sustainability performance. The findings also indicate that marketing capabilities and technical capabilities also have a positive effect on sustainability performance. This study suggest that the optimalization of organizational capabilities are important to ensure the existence of the organization in the business.

Keywords

Village owned enterprises, organizational level capabilities, sustainability performance

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DOI : https://doi.org/10.32698/GCS-PSSHERS379

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