The Distribution Levels and Factors Influencing Successful Development of VOE in Trenggalek Regency-Indonesia

Abstract

This research aims to identify the pattern of Village Owned Enterprise (VOE) in the Trenggalek Regency and analyze the factors affecting its success. The regency was selected as the model for other regions because it has East Java's most advanced VOE development. A quantitative approach was adopted using primary data consisting of VOE age, number of business units, number of workers, capital, turnover, profit, and VOE contribution to Village Own-source Revenue. The data was collected through questionnaires and interviews with the village government and VOE administrators. The pattern on the VOE development level was analyzed using Moran Index, while the influencing factors were determined through Geographical Weight Regression. The findings showed that the villages were grouped based on the VOE development level. The developed VOE was generally affected by age, number of business units, number of workers, turnover, profit, and contribution to Village Own-source Revenue. It was also discovered that business capital has a negative effect on the VOE success level, and a similar trend was recorded for labor in some areas. This study implies the importance of strengthening through supporting factors for the success of VOE and the formation of cooperation between villages to achieve developed VOE.