Navigating dual logics: A framework for integrating financial performance and social impacts in Indonesian village-owned enterprises (BUMDES)

Desti Fitriani ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 3, 3492-3500

Abstract: This study investigates performance measurement challenges in hybrid organizations, focusing on Village-Owned Enterprises (BUMDES) in Indonesia. As hybrid entities, BUMDES balance dual objectives: achieving financial sustainability and delivering social impact. However, tensions arise from resource allocation constraints and diverse stakeholder expectations. The research aims to develop an integrated framework that evaluates economic, social, and environmental outcomes comprehensively. Using qualitative methods, including focus group discussions, direct observations, and document analysis, the study examines 20 BUMDES across West Java and West Nusa Tenggara provinces. Findings reveal the inherent complexity of reconciling profit-oriented and community-focused goals, particularly when resource limitations and a lack of standardized metrics exist. Stakeholders express the need for multidimensional indicators encompassing profitability, job creation, community welfare, and environmental contributions. Proposed strategies, such as segregating revenue streams and fostering participatory governance, align stakeholder priorities and reduce conflicts. This study contributes to hybrid organizational theory by offering actionable insights and a performance framework tailored to BUMDES’ dual missions. It highlights implications for policymakers and practitioners seeking to support hybrid organizations in addressing socio-economic challenges sustainably.

Keywords: Financial performance; Hybrid organizations; Performance measurement; Social impacts; Village-owned enterprises (BUMDES). (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijirss.com/index.php/ijirss/article/view/7279/1531 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:3:p:3492-3500:id:7279

Access Statistics for this article

International Journal of Innovative Research and Scientific Studies is currently edited by Natalie Jean

More articles in International Journal of Innovative Research and Scientific Studies from Innovative Research Publishing
Bibliographic data for series maintained by Natalie Jean ().