The influence of business strategy, leadership style, and effectiveness of internal control system on implementation of good government governance and its implication on organizational performance

Abstract

This research conducted testing on the influence of business strategy, leadership style, and internal control system (IC) on implementation of Good Government Governance (GGG) and its implication on organizational performance of Social Security Administrator for Health (known as BPJS Kesehatan). Data analysis was performed using a descriptive method, assisted by a statistical tool Structural Equation Modeling (SEM)-Lisrel. The data was tabulated from distributed and returned questionnaires from 325 deputy offices, branch offices, and service offices. The results showed that business strategy, leadership style, and the effectiveness of IC influenced the implementation of Good Government Governance. The result also provides evidence that leadership style had a positive significant influence on performance. Conversely, the business strategy and effectiveness of IC did not have a positive significant influence on BPJS performance.