Factors Affecting the Ability of Asset Management in Regional Development Organizations in the Government of North Sumatra

Abstract

The purpose of this study was to obtain empirical evidence and to analyze the influence of the variables on the quality of human resources, regulatory compliance, internal control systems, and communication on the ability to manage regional assets and whether leadership commitment can moderate the relationship between the variables of quality of human resources, regulatory compliance, internal control system, and communication with regional asset management capabilities. The research design used is causal associative. The population in this study are employees who manage Regional Owned Assets in each OPD of the North Sumatra Provincial Government. This study determined the sample by purposive sampling with a total sample of 98. Data were analyzed using the Structure Equation Model (SEM) method with the help of the Smart PLS program. The results of this study prove that the quality of human resources, regulatory compliance, internal control systems, and communication has a positive and significant effect on the ability to manage regional assets. Furthermore, leadership commitment cannot moderate the relationship between the quality of human resources, regulatory compliance, and internal control system to the ability to manage regional assets. Leaders' commitment can moderate the relationship between Communication and the Ability to Manage Regionally Owned Assets. Keywords: Regional Asset Management Capability, Quality of human resources, Regulatory Compliance, Internal Control System, Communication, Leadership Commitment.