Measuring competitiveness of Village-Owned Enterprises in Indonesia

Abstract

The topic of competitiveness among Village-Owned Enterprises (BUM Desa) in Indonesia has received limited attention in academic discussions. This study aims to make a measurement of Village-Owned Enterprises (BUM Desa) in Indonesia. This research had been conducted an online survey, collecting primary quantitative data from 164 BUM Desa across the country. The research applies the Firm Competitiveness Index (FCI) framework to evaluate these enterprises within the national context, drawing on the resource-based view (RBV) theory, a widely accepted approach in strategic management. Findings indicate that about 40.2% of BUM Desa are moderately competitive, while a larger portion—45.7%—are categorized as having low or no competitiveness. To enhance their competitiveness, BUM Desa must focus on strengthening their capacity in areas such as management and marketing, securing capital (including through crowding mechanisms), building partnerships, and improving leadership.