Abstract
This study examines how business model alignment influences regional economic development through the performance of a regional public enterprise in Indonesia. It addresses a gap in the economic development literature by examining business model alignment as a strategic mechanism for improving local economic value creation. Using a qualitative case study approach, the study focuses on a selected regional public enterprise in Kabupaten Tolitoli, Central Sulawesi. Data were collected from 10 purposively selected key informants and official institutional documents through semi-structured interviews and document analysis. The analysis combined thematic analysis, SWOT analysis, Business Model Canvas and financial simulation to assess the alignment among institutional mandates, organizational capabilities, operational strategies and market orientation. The findings reveal that misalignment among institutional mandates, managerial practices and market orientation constrains the enterprise’s ability to generate economic value. Limited managerial autonomy and strong administrative control further weaken operational responsiveness and the integration of local value chains. The proposed business model demonstrates how stronger alignment among local resources, downstream processing activities and market orientation can support value creation and regional economic development. The study contributes to the literature by positioning business model alignment as an important mechanism for strengthening the economic role of regional public enterprises and provides practical implications for improving governance, strategic coherence and economic performance.
Keywords: Business Model Alignment, Indonesia, Local Economic Value, Public Enterprises, Regional Economic Development.