JANUARTI, Indira (2019) Investigating the determinants of partnership and community development programs: Indonesia perspectives. Cogent Business & Management, 6. pp. 1-11. ISSN 2331-1975

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Abstract

The purpose of this study is to provide evidence on the relationship between firm visibility and partnership and community development progrnms. The Partnership and Community Developme·nt (PCID) prcqrom was designed by govern• ment to enhance the capabilities of small businesses and improve social conditions in Indonesia. Through the PCD program, companies con optimize and create
a synergy between their activities and stakeholders to achieve community welfare. A sample was selected from the Ministry of Stote-Owned Enterprises' website in
2017. The annual and sustainability reports of all State-owned Enteprises were examined to measure the performance of PCD programs. The financial data were sourced from the Bloomberg d tnbose. Firm visibility was measured by profitability, firm size and capital intensity. Tfiis study provides evidence on the relationship between profltoblllty, firm size, capital intensity and the leve, of engagement in the PCD program. This finding suggests that the visibility of SOEs is a significant drivinq
force for participation in social responsibility acti1vities through the PCD program.
This study augments accounting and business literature by exploring the role of government as the primary stakeholder in encourcqinq the uptake of PCD. This findin suggests that the stakeholder pressure on SOEs in irnprovinq IPCD programs seems can be explained by stakeholder theory This study is one of a few studies to investigate the lrnpoct of firm vjsibilirty on partnership and community development programs in o developing country.

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