Distribution and Management Effectiveness of Village Funds in Improving the Village Community Empowerment and Welfare

Fitriyana; M. Shabri Abd. Majid; Ridwan Nurdin

doi:10.47310/iarjbm.2022.v03i01.005

Fitriyana Student of Magister Management, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia
M. Shabri Abd. Majid Faculty of Economics and Business Universitas Syiah Kuala, Indonesia
Ridwan Nurdin Faculty of Economics and Business Universitas Syiah Kuala, Indonesia

DOI: https://doi.org/10.47310/iarjbm.2022.v03i01.005

Keywords: village funds effectiveness, distribution of village funds, management of village funds, community empowerment, community welfare.

Abstract

This study aims to analyze the effectiveness of village fund distribution and management on the welfare of the village community by increasing empowerment as a mediator. The population in this study was all villages in Pidie Regency, accumulation of 730 villages. The sampling method used was Cluster/Area random sampling, with the sampling technique carried out using the Stratified proportional random sampling technique based on the village category. The sample taken is 258 respondents. The Structural Equation Model (SEM) model is used to analyze the effectiveness of village fund distribution and management through mediating role of community empowerment. The results showed that village fund distribution and management effectively affect the community's welfare, and community empowerment acts as a mediating variable and effectively improves the village community's wellbeing.