Community-owned enterprises must pursue economic performance while maintaining social legitimacy, yet leadership research has insufficiently explained how indigenous ethical frameworks can be integrated into servant leadership in culturally embedded organizations. This study examined changes in participants’ assessments of village-owned enterprises (BUMDesa) performance after a Tat Twam Asi–based servant leadership intervention and explored the participants' experiences of its relevance and application. An embedded mixed-method quasi-experimental design involved 60 participants from 15 BUMDesa in Buleleng Regency, Indonesia. Quantitative data were analyzed using descriptive statistics and the Wilcoxon Signed-Rank Test, while interviews with 15 participants were thematically analyzed. Participants reported significantly higher post-intervention performance assessments than in the pretest (M = 3.51 vs. 2.49; Z = −6.685, p < .001), alongside positive perceptions of the training’s clarity, relevance, applicability, and participatory process. Qualitative findings further indicated increased confidence, role understanding, and perceived organizational capacity. The study positioned Tat Twam Asi not merely as cultural context but as a normative resource for interpreting service, reciprocity, responsibility, and legitimate authority within servant leadership. The findings extend culturally grounded leadership scholarship and offer implications for community-based enterprises operating at the intersection of economic objectives, collective responsibility, and local systems of legitimacy.