<![CDATA[Village Credit Institutions (LPD) are a specific form of microfinance in Bali only, not in other areas in Indonesia. This study aims to analyze the role of ethical leadership in strengthening levers of control and internal control systems on LPD performance. This research used 330 respondents from 35 LPD in Denpasar, Bali, consisting of the chairman, secretary, treasurer, head of the credit section, head of the fund section, head of the general section, and employees. Data were collected by distributing a questionnaire, conducting interviews, and analyzed using structural equation modeling with PLS application. As a result, Levers of control have a positive influence on LPD performance. Internal control systems have a positive influence on LPD performance. Ethical leadership strengthens the influence of the internal control system on performance. On the other hand, ethical leadership weakens the influence levers of control on LPD performance. This study emphasizes the implication that leaders of the organization need to be assessed before being promoted to the position. Training of leadership and socialization of control might be important for developing the organization.]]>
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