VOE Management Strategies: Uncovering Best Practices for Village Economic Empowerment

Abstract

This study examines the key success factors of Village-Owned Enterprises (VOEs) in Indonesia using a phenomenological qualitative approach across three rural contexts: Sidomulyo, Sugih Waras and Brubuh. VOEs function as community-based institutions that integrate economic gain with social welfare. The findings suggest that adaptive capacity, stakeholder collaboration and local innovation are essential for maintaining VOE performance. In Sidomulyo, managerial resilience was evident in the utilisation of personal capital to overcome financial constraints. In Sugih Waras, participatory training strengthened organisational capacity. Meanwhile, Brubuh exhibited adaptive strategies through digital promotion and facility improvement to revitalise rural tourism during the pandemic.

Collaborative governance among village leaders, managers and community members fosters ownership, legitimacy and sustainable outcomes. Innovative ventures, including tourism development, equipment rental and local flower processing, demonstrate VOEs’ ability to convert community resources into economic and social value. The study positions VOEs as catalysts for inclusive rural transformation and as transferable models for community-driven enterprises across developing regions. Nonetheless, its limited scope and qualitative nature suggest the need for broader mixed-methods research. Strengthened policy support through continuous training, innovation incentives and digital literacy is recommended to enhance VOE resilience and long-term sustainability.