Conceptual Paper of the Role of Performance Mediation on Social Capital Relations and Sustainability Livelihood in the Sharia Maqasid Framework

This research focuses on the role of Village-Owned Enterprises (BUMDES) in community’s welfare. Problems that occur in BUMDES in Indonesia cause the organization to be in a state of “suspended animation” and the goal of improving the economy of rural people is far from expectations. The implementation of good corporate governance and strong social capital are predicted to improve the performance of BUMDES so that maqasid sharia can be achieved. The maqasid can be achieved if the community can sustain its livelihoods. This study aims to analyze the role of performance mediation on Good Corporate Governance and social capital on Sustainability Livelihood within the framework of Maqasid sharia. This research is a quantitative research. The population is a village in Banyumas Regency, Central Java, Indonesia that already has BUMDES with business units that have been running. The method used is purposive random sampling with primary data collected through questionnaires. This research is still in the form of a conceptual paper so further research is still needed on the role of performance in mediating the influence of good corporate governance and social capital on sustainability livelihood so that the role of BUMDES in the welfare of the surrounding community is more optimal according to the purpose of its formation.