Published date: Jan 24 2024

Journal Title: KnE Social Sciences

Issue title: The 6th International Research Conference on Economics and Business (6th IRCEB)

Pages: 440–454

DOI: 10.18502/kss.v9i4.15092

Nila CahayatiDepartment of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Ahmad Fawaiq Suwananahmad.suwanan.fe@um.ac.idDepartment of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Mochamad Dandy Hadi SaputraDepartment of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Village-owned enterprises are an institutional form, which embodies the participation of rural communities in the economy based on profit and mutual cooperation that is expected to be able to encourage village independence in economy. This definition will encourage how the institutional projections change and how adaptation is needed both from within the institution or from outside the institution. The dynamics in village-owned enterprises have various challenges to resolve the main problem regarding the quality of human resources and infrastructures. This article explains how the dynamics of institutional change and various forms of revitalization and growth of village-owned enterprises use the theory of institutional change approach. The study has found that village-owned enterprises in East Java have become a forum for managing every socioeconomic element into a single unit that produces economic value to improve the welfare of rural communities. Innovation and adaptation as well as human development have become the main drivers of village-owned enterprises sustainability and resilience in digitalized era.

Keywords: village-owned enterprises, institutional change, revitalization, welfare

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