This study develops a good corporate governance model suitable for implementation in village-owned enterprises, by identifying and analysing factors contributing to agency problems found in these places as a result of their unique business characteristics. Furthermore, this study seeks to explore the intellectual capital phenomenon using a qualitative perspective to discover why and how village-owned enterprises manage their intellectual capital. This study was conducted using the grounded theory method. This study contributes to the literature on good governance and intellectual capital and provides a clear picture of corporate governance model development in village-owned enterprises. Most previous literature focuses on the implementation of corporate government model in listed companies which are different from village-owned enterprises.