Does leadership matter in managing the village-owned enterprise?

Abstract

The establishment of the village-owned enterprise (Badan Usaha Milik Desa – \nBUMDes), as stipulated in Law No. 6/2014 on Village, is an effort to increase economic \ngrowth, together with the equitable distribution of assets to the village community. It is \nexpected to be a pillar of economic activity in the village that serves as an institution that \nremains committed to village characteristics. However, the existence of BUMDes has not \nfully produced satisfactory results in terms of continuation of the programs and \nprofitability. Therefore, this qualitative study aims to determine the factors that influence \nthe village head’s leadership. Using Northouse’s (2013) concept, this study finds that both \ntask and relationship behaviour are very important factors to achieve success in managing \nBUMDes in Indonesia.

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