Symbiosis Mutualism Village Credit Institutions and Business Strategies in Bali Indonesia

  • I Gusti Ayu Ketut Giantari, I Gusti Ngurah Jaya Agung Widagda K, Ni Nyoman Kerti Yasa, Made Setini, Munadjat Wardoyo


The Village Credit Institution (LPD) is very important for traditional villages in Bali, established to improve the economy of rural communities. LPD helps provide capital for small and medium entrepreneurs. LPD also competes with other. Various strategies can be applied to win the competition such as innovation, differentiation, and partnership. The study describes the implementation of the business strategy and its consideration of the performance of LPD in the District at the Village Credit Institution in Bali Indonesia with 122 participants. The entire population was taken as respondents. However, only 73 questionnaires were sampled (60% response rate). The analysis technique used is SEM based on PLS. Research shows that the innovation strategy, differentiation strategy, and partnership strategy greatly effect on LPD business performance in Indonesia. The results of the study imply that LPD managers are expected to provide innovative services, increase competence and to enhance partnerships with stakeholders.