Analyzing Determinants of Village-Owned Enterprises (BUM Desa) Competitiveness Based on Resource-Based View Theory

Abstract

The issue of competitiveness among Village-Owned Enterprises (BUM Desa) in Indonesia has remained underexplored in scholarly literature. This study seeks to establish a measurement framework for assessing the competitiveness of BUM Desa at the national level. Utilizing an online survey, this research gathered quantitative primary data from 164 BUM Desa across various regions in Indonesia. The objective of this paper is to analyze the key determinants of BUM Desa competitiveness which is conceptually supported by the Resource-Based View (RBV)—a prominent theory in strategic management that emphasizes internal capabilities as key drivers of competitive advantage. The research method is Principal Component Analysis (PCA) and a multiple regression analysis to identify the independent variables that explain variations BUM Desa competitiveness. The results reveal that the determinants of BUM Desa competitiveness based on Resource-Based View Theory include scarcity, product feasibility, global competition, and Age of BUM Desa. These findings support the concept that competitiveness is significantly influenced by the availability and ability to manage internal resources. They also emphasize the importance of resource sufficiency as a prerequisite for implementing effective and sustainable business strategies.

Keywords: (Competititveness, enterprises, village, resource-based view)