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Abstract

This study aims to investigate the interaction between integrated leadership and governance in strengthening the institutional capacity and resilience of Village-Owned Enterprises (BUM Desa). It addresses the academic gap where leadership and governance are rarely explored as an integrated framework for rural economic transformation. Using a qualitative case study approach, the research compares two contrasting models: BUM Desa Tirta Mandiri, which utilizes a hierarchical governance structure, and BUM Desa Puspa Jagad, which employs an egalitarian, community-based approach. Data were gathered through in-depth interviews with key stakeholders and a comprehensive analysis of internal policy documents. The results reveal that integrated governance models significantly dictate leadership approaches, directly influencing decision-making efficiency and community participation. While hierarchical models enhance operational speed in standardized business units, egalitarian models are superior in fostering innovation and community ownership. Effective implementation of integrated governance is found to enhance institutional capacity and socioeconomic welfare. To realize the full potential of BUM Desa, managers and policymakers should prioritize adaptive governance frameworks, continuous capacity building, and digital transformation. The study suggests that leadership styles must be aligned with specific governance structures to ensure long-term organizational success and resilience. This research offers a novel perspective by integrating leadership and governance concepts specifically within decentralized village enterprises. It introduces the concept of "Resilient Governance" for community-based organizations, providing a replicable model to encourage sustainable rural development globally.

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