BEYOND NON-PERFORMING FINANCE: AN INTEGRATED ADAPTIVE MANAGEMENT MODEL FOR VENTURE DEBT COMPANIES

Abstract

Non-performing finance (NPF) remains a strategic concern for non-bank financial institutions, particularly venture capital companies that combine developmental financing, investment logic, and credit-risk exposure. This study develops an integrated adaptive management model for managing problematic financing in a venture debt company. Using a qualitative case study at PT PNM Venture Capital, the research collected data through in-depth interviews with seven informants from strategic, managerial, and operational levels, focus group discussion, observation, and document review. Data were analyzed using the Miles and Huberman interactive model through data reduction, data display, conclusion drawing, and verification. The findings show that NPF is shaped by the interaction of internal organizational factors, debtor-related factors, and external environmental shocks. Continuous post-disbursement monitoring emerged as the most decisive mechanism because it connects early risk detection with timely strategic intervention. The study also finds that effective NPF management requires cross-functional decision making, early warning systems, risk-based restructuring, strategic leadership, and organizational learning. The main contribution is the Integrated Adaptive NonPerforming Finance Management (IANPFM) Model, which shifts NPF management from a reactive remedial activity toward a preventive, collaborative, and learning-based strategic governance system for venture debt companies.