Identifying governance contextual dimensions in Indonesia regional government-owned enterprises

Authors

DOI:

https://doi.org/10.15587/1729-4061.2025.318560

Keywords:

contextual dimension, corporate governance, regional government-owned enterprise, multi-case studies

Abstract

This research explores governance implementation in commercial organizations owned by regional governments in Indonesia. This is driven by the shortcomings in governance implementation observed in some regional government-owned enterprises in Indonesia. In addition, it is also rooted in the limited availability of publication on governance practices in such kind of companies. This study aims to identify contextual dimensions or specific characteristics faced by the management of regional government-owned enterprises when implementing governance. This study utilized a qualitative research method, with case studies of two regional companies in South Sulawesi. Four thematic attributes, that consist of commitment, structuring and functioning board, control environment, disclosures and accountability used as a reference. The research employed a two-stage data analysis approach, within case analysis and cross-case analysis. This study concludes that there are nine main critical success factors for implementing governance in regional-owned enterprises, namely a clear legal framework, the existence of a compliance unit, the selection mechanism for selecting the board of directors, the role and function of top management, performance management, professional development programs, control mechanisms, risk management, and information disclosure mechanism. The interplay between these elements is crucial for fostering a culture of good governance and achieving sustainable development within regional government-owned companies. The factors are not isolated but reinforce each other, emphasizing the need for a holistic approach to governance. Various other factors that may emerge in governance implementation practices require further exploration in the future

Author Biographies

Muhammad Ridwan Arif, Politeknik Negeri Ujung Pandang

Doctor Management (Strategic Management), Associate Professor

Department of Accounting

Aza Alina Md. Kassim, Management and Science University

Doctor Management, Associate Professor

Department of Accounting

Sirajuddin Omsa, Politeknik Negeri Ujung Pandang

Doctor Management (Strategic Management), Associate Professor

Department of Accounting

Dien Triana, Politeknik Negeri Ujung Pandang

Doctor Management, Assistant Professor

Department of Accounting

Annisa Annisa, Politeknik Negeri Ujung Pandang

Bachelor of Management Accounting

Department of Accounting

Angel Fifian Danduru, Politeknik Negeri Ujung Pandang

Bachelor of Management Accounting

Department of Accounting

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Identifying governance contextual dimensions in Indonesia regional government-owned enterprises

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Published

2025-02-28

How to Cite

Arif, M. R., Md. Kassim, A. A., Omsa, S., Triana, D., Annisa, A., & Danduru, A. F. (2025). Identifying governance contextual dimensions in Indonesia regional government-owned enterprises. Eastern-European Journal of Enterprise Technologies, 1(13 (133), 78–88. https://doi.org/10.15587/1729-4061.2025.318560

Issue

Vol. 1 No. 13 (133) (2025): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

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Copyright (c) 2025 Muhammad Ridwan Arif, Aza Alina Md. Kassim, Sirajuddin Omsa, Dien Triana, Annisa Annisa, Angel Fifian Danduru

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