GOVERNANCE, RISK, AND COMPLIANCE (GRC) IN STARTUP COMPANY: A CASE STUDY OF TANIHUB IN INDONESIA
Abstract
This study examines the strategic role of Governance, Risk, and Compliance (GRC) in ensuring the sustainability of startups in Indonesia through a case study of PT TaniHub Indonesia. Despite its substantial funding, and a strong mission to empower farmers through digital platforms, TaniHub experienced severe operational and financial failure. This research argues that the company's collapse was driven primarily by structural weaknesses. The study adopts a qualitative approach using a Systematic Literature Review (SLR) combined with NVivo-assisted thematic analysis, drawing on 41 data sources including peer-reviewed journal articles, official reports, books, and news publications. The analysis is guided by the OCEG GRC Capability Model, which conceptualizes GRC through four dimensions: Learn, Align, Perform, and Review. The findings reveal systemic deficiencies across all four dimensions: TaniHub failed to institutionalize risk learning in strategic decision-making, showed misalignment between aggressive growth strategies and governance readiness, pursued innovation without adequate risk controls, and lacked structured review mechanisms for continuous improvement. The study reinforces that GRC should be understood as a strategic enabler rather than a procedural constraint, particularly in high-risk, trust-dependent sectors such as agritech and fintech.
Keywords: Governance, Risk, and Compliance; Startup; Sustainability; TaniHubFull Text:
PDFReferences
Adebayo Adeyinka Victor, Mubarak A Moronkunbi, Oyetunde Christian Oyedeji, Popoola Olusegun Victor, & Shodunke Ajani Samuel. (2024). The Role of IT Governance Risk and Compliance (IT GRC) in Modern Organizations. International Journal of Latest Technology in Engineering Management & Applied Science, 13(6), 44–50. https://doi.org/10.51583/IJLTEMAS.2024.130607
Adinata, A. S. (2024). The Evaluation Of Integrated Governance, Risk, And Compliance (Grc) Implementation To Enhance Enterprise Risk Management (ERM): A CASE STUDY [Selinus University]. ttps://uniselinus.education/sites/default/files/2025-03/Ahmed%20Sekti%20Adinata.pdf
Admond Lee. (2024, July 21). How TaniHub went from farm-to-table to farm-to-failure (a $82.5M mistake). The Runway Ventures.
Agung Pratama, M., Muktiyo, W., & Sutrisno, J. (2020). Collaboration between Sociocultural Values and Digital Startups: Applying Indonesian Sociocultural Theories to an Accelerator Program. International Journal of Innovation, Creativity and Change. Www.Ijicc.Net, 13, 2020. www.ijicc.net
Akhtar, M. N., & Ab. Aziz, K. (2025). Understanding the Dynamics of Startup Success: A Systematic Literature Review. Paper Asia, 41(1), 283–291. https://doi.org/10.59953/paperasia.v41i1b.332
Akter, B. (2020). Failure Factors of Platform Start-ups: A Systematic Literature Review. Nordic Journal of Media Management Issue, 1(3), 433–459. https://doi.org/10.5278/njmm.2597-0445.6090
Ali, S., Green, P., & Robb, A. (2015). Information technology investment governance: What is it and does it matter? International Journal of Accounting Information Systems, 18, 1–25. https://doi.org/10.1016/j.accinf.2015.04.002
Amanda, S., Laksono, A., Nurafni, N., & Sinaga, O. (2025). Model Bisnis Start-Up Berbasis Teknologi Digital Dalam Industri Kreatif Seni. Realisasi : Ilmu Pendidikan, Seni Rupa Dan Desain, 2(2), 40–47. https://doi.org/https://doi.org/10.62383/realisasi.v2i2.575
Anwar, M. K. (2024). Tanihub Terancam Bangkrut: Apa yang Salah dari Strategi Agritech Ini? Beritatekno.Id. https://www.beritatekno.id/startup/47575973/tanihub-terancam-bangkrut-apa-yang-salah-dari-strategi-agritech-ini
Avdiaj, B., Berisha, G., & Krasniqi, B. (2025). Exploring the Dynamics of Startup Failure and Its Destructive Impact in Emerging Economies: Insights from the Kosovo Startup Ecosystem. In Destructive Entrepreneurship in Emerging Markets (pp. 117–143). Springer Nature Singapore. https://doi.org/10.1007/978-981-96-0112-7_8
Bachtiar. (2023). Indonesia’s technology startups: Voices from the ecosystem. https://doi.org/10.22617/TCS230176-2
Badan Pusat Statistik. (2015). statistik-indonesia-2015.
Bernardus, D., Arisa, M. F., Sufa, S. A., & Suparwata, D. O. (2024). Supporting Start-ups in Indonesia: Examining Government Policies, Incubator Business, and Sustainable Structure for Entrepreneurial Ecosystems and Capital. International Journal of Business, Law, and Education, 5(1), 236–259. https://doi.org/10.56442/ijble.v5i1.372
Boell, S. K., & Cecez-Kecmanovic, D. (2015). On being ‘Systematic’ in Literature Reviews in IS. Journal of Information Technology, 30(2), 161–173. https://doi.org/10.1057/jit.2014.26
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Cahyono, P., Ramadhani, A. D., Rochmawati, I., Febriyanty, P., & Khoirul Mas’ud, A. (n.d.). Leadership and ESG-Based Innovation (Environmental, Social, Governance): Implications for SME Performance in the START-UP Environment. Journal of Contemporary Administration and Management. https://doi.org/10.61100/adman.v2i3.202
Cahyono, P., Ramadhani, A. D., Rochmawati, I., Febriyanty, P., & Khoirul Mas’ud, A. (2024). Leadership and ESG-Based Innovation (Environmental, Social, Governance): Implications for SME Performance in the START-UP Environment. Journal of Contemporary Administration and Management, 2. https://doi.org/10.61100/adman.v2i3.202
Cantamessa, M., Gatteschi, V., Perboli, G., & Rosano, M. (2018). Startups’ roads to failure. Sustainability (Switzerland), 10(7). https://doi.org/10.3390/su10072346
CB Insights. (2015). The Top 20 Reasons Startups Fail.
Choi, H.-J. (2023). Exploring Startup Failures: An Empirical Study of Failure Factors Using the ERIS Model and the AHP. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 20(통제권98호), 231–241.
Corbin, J., & Strauss, A. (2008). Basics of Qualitative Research (3rd ed.): Techniques and Procedures for Developing Grounded Theory. SAGE Publications, Inc. https://doi.org/10.4135/9781452230153
D’Andrea, F. A. M. C., Santos, D. A. G. dos, Costa, C. V. P., & Zen, A. C. (2023). Why startups fail in emerging entrepreneurial ecosystems? REGEPE Entrepreneurship and Small Business Journal. https://doi.org/10.14211/regepe.esbj.e2055
Deena, P., & Gupta, M. (2021). A Study on Factors that contribute to the failure of startups. International Journal of Aquatic Science, 12, 2021.
Dewi, I. R. (2023). Kredit Macet 70%, TaniHub Dulu Disebut Jokowi Kini Menyerah. CNBC Indonesia. https://www.cnbcindonesia.com/tech/20230609110601-37-444486/kredit-macet-70-tanihub-dulu-disebut-jokowi-kini-menyerah
Dinata, R. O., & Nurbaiti, A. (2022). Start-Up and Fraud Shenanigans: Case Study on Start-Ups Affiliated with Public Companies. Asia Pacific Fraud Journal, 7(1), 1. https://doi.org/10.21532/apfjournal.v7i1.247
Ermawati, S., & Lestari, P. (2022). PENGARUH STARTUP SEBAGAI DIGITALISASI BAGI EKONOMI KREATIF DI INDONESIA. 2(5). https://transpublika.co.id/ojs/index.php/Transekonomika
Evans, G. P. (2014). Managing Risks with an End-to-End Process View Adopting a process-based approach to risk management. BPTrends Article. www.bptrends.com
Farbadi, M. P., Sianturi, M. S., Yadita, D., Nugraha, R., Desi, D., & Tarina, Y. (2025). Analisis Dampak dan Regulasi Fintech Lending: Studi Kasus Pada Skandal Tanifund di Indonesia. Media Hukum Indonesia, 2(6), 275–283. https://doi.org/10.5281/zenodo.15513755
Hastuti, J., & Tinggi Ilmu Administrasi Pelita Nusantara, S. (2025). Digital Business Model Development Strategy in the Era of Digital Transformation: A Case Study on Technology Startups. JOURNAL INFORMATIC, EDUCATION AND MANAGEMENT (JIEM), 7(1), 12–20. https://doi.org/10.61992/jiem.v7i1.109
Jayani, D. H. (2019). Inilah Potensi Ekonomi Digital Indonesia 2015-2025. https://databoks.katadata.co.id/ekonomi-makro/statistik/795e5cc9887bceb/inilah-potensi-ekonomi-digital-indonesia-2015-2025
Jo, H., Hsu, A., Llanos-Popolizio, R., & Vergara-Vega, J. (2021). Corporate Governance and Financial Fraud of Wirecard. European Journal of Business and Management Research, 6(2), 96–106. https://doi.org/10.24018/ejbmr.2021.6.2.708
Kalyanasundaram, G. (2018). Why Do Startups Fail? A Case Study Based Empirical Analysis in Bangalore. Asian Journal of Innovation and Policy, 7, 79–102. https://doi.org/10.7545/ajip.2018.7.1.079
Kitchenham, B., Pearl Brereton, O., Budgen, D., Turner, M., Bailey, J., & Linkman, S. (2009). Systematic literature reviews in software engineering – A systematic literature review. Information and Software Technology, 51(1), 7–15. https://doi.org/10.1016/j.infsof.2008.09.009
Kusumaningtyas, A., Bolo, E., Chua, S., Wiratama, M., & Lathifah Tirdasari, N. (2021). Why Start-ups Fail: Cases, Challenges, and Solutions. Conference Towards ASEAN Chairmanship 2023.
Laksmana, I. N. H., & Permana, I. P. H. (2023). Legal Challenges for Digital Startup Development in Indonesia. Journal of Digital Law and Policy, 2(2), 71–80. https://doi.org/10.58982/jdlp.v2i2.312
Lame, G. (2019). Systematic Literature Reviews: An Introduction. Proceedings of the Design Society: International Conference on Engineering Design, 1(1), 1633–1642. https://doi.org/10.1017/dsi.2019.169
Limna, P. (2023). The impact of NVivo in qualitative research: Perspectives from graduate students. Journal of Applied Learning & Teaching, 6(2). https://doi.org/10.37074/jalt.2023.6.2.17
Mahesh. (2024). The Role of ESG in E-Commerce Start-ups SMEs: For Sustainable Inclusive Economy. ShodhVarta, 3(01).
Maital, S., & Barzani, E. (2021). Why Startups Fail: A Survey of Empirical Studies.
Maulana Firmansyah, A., & Umais Al Ayyubi, W. (2024). Economic Bubbles and Startup Lifecycle: Case Study of Tanihub’s Rise and Fall. Blantika: Multidisciplinary Journal, 3(2). https://doi.org/10.57096/blantika.v3i2.285
Mikle, L. (2020). Startups and reasons for their failure. SHS Web of Conferences, 83, 01046. https://doi.org/10.1051/shsconf/20208301046
Mohammad, S., Jafari, A., Aghamir, Z., & Ali, M. (2022). Turning the Risks Leading to Failure into Success in Startups (Case study: Startups Located in Tehran and Qom Universities). Journal of Economics and Administrative Sciences, 5(2). www.jeasweb.org
Nadia, F., Lestari, R., & Firmanda, H. (2024). Tanggung Jawab Para Pihak Dalam Perjanjian Penyaluran Fasilitas Pinjaman Pada PT. Tanifund Madani Indonesia. Jurnal Ilmiah Wahana Pendidikan, 10(18).
Nguyen, T. A. (2024). Understanding Startup Failure: The Impact of Founders’ Personality and Experiences on the Decision to Cease Operations. Lappeenranta–Lahti University of Technology LUT.
Nirmal Ravi Kumar, K., Ramesh Babu, T., & Deshmukh, S. S. (2024). Nurturing Growth: Agri-Startup Landscape in India and the Challenges Ahead. In Research on World Agricultural Economy (Vol. 5, Issue 2, pp. 131–149). Nan Yang Academy of Sciences Pte. Ltd. https://doi.org/10.36956/rwae.v5i2.1073
OCEG. (2016). A Maturity Model for Integrated GRC Licensed for noncommercial personal use. www.oceg.org.
OCEG. (2023). GRC Capability Model v3.5. www.oceg.org/terms-of-use/advanced-license-permissions/
Oehmichen, J. (2018). East meets west—Corporate governance in Asian emerging markets: A literature review and research agenda. International Business Review, 27(2), 465–480. https://doi.org/10.1016/j.ibusrev.2017.09.013
Öndas, V. (2021). A Study on High-tech Startup Failure Antecedents, Outcome and Context. JAMK University of Applied Sciences.
Papazafeiropoulou, A., & Spanaki, K. (2016). Understanding governance, risk and compliance information systems (GRC IS): The experts view. Information Systems Frontiers, 18(6), 1251–1263. https://doi.org/10.1007/s10796-015-9572-3
Pollman, E. (2023). Startup Failure. http://ssrn.com/abstract_id=4535089https://ecgi.global/content/working-papers
Potter, J., Halbisky, D., Lavison, C., Boschamns Kris, Shah, P., Shymanski, H., & Reid, A. (2023). Assessment of policies, programmes and regulations relating to MSME and start-up development in Abu Dhabi. https://doi.org/10.1787/9b92546e-en
Racz, N., Weippl, E., & Seufert, A. (2010). A Frame of Reference for Research of Integrated Governance, Risk & Compliance (GRC). https://www.researchgate.net/publication/221521336_A_Frame_of_Reference_for_Research_of_Integrated_Governance_Risk_and_Complianc
Rita, M. R., Kristanto, A. B., Nugrahanti, Y. W., & Usmanij, P. (2022). Funding and Performance Pattern Matrix in the Startup Phase: A Study of Startup MSMEs in Indonesia. In Artisan Entrepreneurship (pp. 127–160). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80262-077-120221012
Rohendi, A., Asriani, A., & Kharisma, D. B. (2023a). Regulation for startups in Indonesia: Problems and recommendations. Cogent Business & Management, 10(3). https://doi.org/10.1080/23311975.2023.2276993
Rohendi, A., Asriani, A., & Kharisma, D. B. (2023b). Regulation for startups in Indonesia: Problems and recommendations. Cogent Business and Management, 10(3). https://doi.org/10.1080/23311975.2023.2276993
Saini, N. (2022). Reasons Behind The Failure of Startups. SIAM UNIVERSITY.
Sanjaya, M. R., & Koesrindartoto, D. P. (2024). Evaluating Current Stage of Equity Crowdfunding Adoption in Indonesia: An Exploratory Study. Finance, Accounting and Business Analysis (FABA), 5(2), 173–187.
Santisteban, J., Morales, V., Bayona, S., & Morales, J. (2023). Failure of Tech Startups: A Systematic Literature Review. Lecture Notes in Networks and Systems, 678 LNNS, 111–126. https://doi.org/10.1007/978-3-031-30592-4_9
Sanz-Prieto, I., de-la-fuente-Valentín, L., & Ríos-Aguilar, S. (2021). Technical due diligence as a methodology for assessing risks in start-up ecosystems: An advanced approach. Information Processing & Management, 58(5), 102617. https://doi.org/10.1016/j.ipm.2021.102617
Sindhuja, J., Kusuma, ; A, Wahi, ; Harshita, Naga, G., Sai, S., Krishna, B., & Gelli, M. (2024). Understanding Startup Failures: Challenges and Pathways to Success. International Journal of Innovative Science and Research Technology, 9. https://doi.org/10.5281/zenodo.14558061
Singh, S., Rajan, R., Nandi, S., & Kalita, B. (2024). Blossoming Agripreneurs: Cultivating Startup Success in Agriculture. In The Agripreneurs path: Navigating Success in Business World (pp. 196–216). Elite Publishing House. https://www.researchgate.net/publication/385420626
Sudaryana, S. H., Wirjodirdjo, B., Windharto, A., & Ulumuddin, I. (2023). Systematic Literature Review: A Comparative Study of Tech-Startup Success Factors Between Developing and Advance Economies. Proceedings of the Second Australian International Conference on Industrial Engineering and Operations Management.
Suresh, D., Choudhury, A., Zhang, Y., Zhao, Z., & Shaw, R. (2024). The Role of Data-Driven Agritech Startups—The Case of India and Japan. In Sustainability (Switzerland) (Vol. 16, Issue 11). Multidisciplinary Digital Publishing Institute (MDPI). https://doi.org/10.3390/su16114504
Sylvia Febrina Laucereno. (2022, June 26). Detikfinance(sylvia).
Szathmári, E., Varga, Z., Molnár, A., Németh, G., Szabó, Z. P., & Kiss, O. E. (2024). Why do startups fail? A core competency deficit model. Frontiers in Psychology, 15. https://doi.org/10.3389/fpsyg.2024.1299135
Trautman, L. J., Koretz, L., McNeil, C., & Yordy, E. D. (2022). Ethical Challenge at Theranos. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4040181
Triebel, C., Schikora, C., Graske, R., & Sopper, S. (2018). Failure in Startup Companies: Why Failure Is a Part of Founding. In Management for Professionals: Vol. Part F622 (pp. 121–140). Springer Nature. https://doi.org/10.1007/978-3-319-72757-8_9
Vadivel, K., Banu, E. P., Karthick, M. V, Prabhakaran, J., Banu, M. P., & Senthil Kumar, U. S. (2023). Systematic Literature Review on GRC-A Study on Best Practices and Implementation Strategy in GRC (Vol. 16, Issue 4). https://www.researchgate.net/publication/381488401
Wimal, K., & Ajendra, S. (2023). A phenomenological exploration of technology start-up failure in Sri Lanka. Journal of Entrepreneurship, Management and Innovation, 19(3), 47–86. https://doi.org/10.7341/20231932
DOI: https://doi.org/10.31326/tabr.v7i1.2871
Refbacks
- There are currently no refbacks.
View My Stats