Employing Structural Equation Modeling to Examine the Determinants of Work Motivation and Performance Management in BUMDES: In Search of Key Driver Factors in Promoting Sustainable Rural Development Strategies

Abstract

This study aimed to analyze the influence of local politics, village facilitators, recruitment of administrators, training and education, and organizational culture on work motivation and management performance. The study was conducted in Wajo Regency, South Sulawesi Province, Indonesia, utilizing primary data collected from 250 participants, including administrators of village-owned enterprises (BUMDES), community leaders, and representatives from the private sector. The data were analyzed using structural equation modeling (SEM) with the LISREL program. The results indicated that the latent variables of local politics, village facilitator, recruitment of administrators, training and education, and organizational culture had a positive and significant impact on work motivation and management performance. These findings are valuable key indicators and provide essential insights for promoting and driving the BUMDES as a pillar of rural development strategies. Based on these findings, it is recommended that the local government revitalize the local political system, reorient the organizational culture of the BUMDES toward a modern business-oriented culture suited to rural conditions, and enhance the training and education of village facilitators to improve their motivation and performance. This recommendation will empower the BUMDES to promote rural economic improvement and sustainable rural development by enhancing work motivation and management performance.

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