Impact of Nagari Financial Management on the Performance of Sustainable Development in West Sumatra Province


Rural financial management (RFM), Sustainable development performance (SRDPs), Nagari, West Sumatra.


This research attempts to examine the impact of Nagari financial management on the province of West Sumatra's sustainable development performance. Simultaneously, the originality of this study resides in the discovery of a model for measuring sustainable Nagari development performance that focuses on the effect of channeling funds to villages originating from a variety of sources, including the Regency/Provincial APBD and APBN, as well as Nagari's original income and other sources that have never been explored before. Discovered research on this topic. Quantitative approaches based on Structural Equation Models (SEM) and Partial Least Square (PLS) applications are also fresh to this study. In addition, the unit of analysis is the Nagari, and the research area is a previously unstudied region, namely West Sumatra Province. The sample for this study consists of 182 villages from the province of West Sumatra, which were selected using a stratified random selection method. There were 364 responses from each village, consisting of the Nagari Wali and Nagari Secretary. This study was done for three months, from January to March 2021. The study instrument consists of a closed questionnaire with a Likert scale ranging from 1 to 5. The analytical tool employed is Structural Equation Modeling-Partial Least Square (SEM-PLS), and hypothesis testing is performed using the bootstrap resampling approach (bootstrapping), which permits the use of freely dispersed data and does not assume a normal distribution. The findings demonstrated that Nagari's financial management substantially impacted the performance of sustainable village development.