Management Model and the Success Factors of Village Owned Enterprises (VOEs) in Indonesia

Abstract

Purpose: This study aims to describe and analyze the development management model of Village-Owned Enterprises (VOEs) and identify and explain the determining factors for the success of VOEs in Indonesia. Design/Methodology/Approach: The study approach used qualitative methods, document studies, publications on VOEs performance, secondary data, field observations, and interviews with several sources. Findings: The study results explain three models found in the development of VOEs, namely an ambiguous model, a subjective approach, and a cultural management model. Practical Implications: The determinants of VOEs development are organizational factors in the form of human resources (HR), leadership, technology support, organizational culture, financial governance, institutional arrangement. Meanwhile, contextual factors (outside the organization) are government intervention, raw materials and production technology, accessibility, market opportunities, economic and socio-cultural conditions, demographics, physical environment, and policies. Originality/Value: Triangular prototype model of determinants of success of Village-Owned Enterprises (VOEs) Keywords: Management model, the determinant factor of success, village-owned enterprises.