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Title: Accountability in social enterprises: the role of institutional pressure and social performance

Authors: Yesi Mutia Basri; Hariadi Yasni; Poppy Nurmayanti M.; Novita Indrawati

Addresses: Department of Accounting, Faculty of Economics and Business, University of Riau, Pekanbaru, Indonesia ' Department of Accounting, Faculty of Economics and Business, University of Riau, Pekanbaru, Indonesia ' Department of Accounting, Faculty of Economics and Business, University of Riau, Pekanbaru, Indonesia ' Department of Accounting, Faculty of Economics and Business, University of Riau, Pekanbaru, Indonesia

Abstract: A social organisation with multiple goals, such as pursuing a social mission and seeking profit, faces the risk of losing the concept of social mission. This study aims to investigate how accountability affects the performance of social organisations. It also investigates social performance as a mediator, and the moderating effect of institutional pressure on the relationship between accountability and social performance. The population in this study included social village owned enterprises (VOE) from four districts in Indonesia. This study involved 451 participants who filled out a questionnaire. The findings show that accountability is crucial to improve social and financial performance. Social performance can mediate the relationship between accountability and financial performance. Meanwhile, institutional pressure also reduces the accountability and financial performance of VOE. This research provides feedback to policymakers for formulating regulations to improve VOE performance.

Keywords: accountability; institutional pressure; social performance; financial performance.

DOI: 10.1504/IJBEX.2023.133579

International Journal of Business Excellence, 2023 Vol.31 No.1, pp.155 - 175

Received: 07 Mar 2023
Accepted: 03 Jul 2023
Published online: 21 Sep 2023 *