Institutional Synergy in Fraud Prevention: The Interplay of Governance, Integrity, Technology, and Organisational Culture in Indonesia’s Public Sector
DOI:
https://doi.org/10.22452/IJIE.vol18no4.9Keywords:
Employee integrity, Public sector governance, Information technology, Organisation culture, Fraud preventionAbstract
This study examines the institutional dynamics underpinning fraud
prevention within Indonesia’s public sector, emphasising the interplay between
governance mechanisms, information technology, personnel integrity, and organisational
culture. Anchored in governance theory and institutional perspectives on organisational
culture, the research adopts a quantitative approach using survey data from 238
respondents across 19 Inspectorates General. Employing Smart-PLS and multiple linear
regression, the findings reveal that public sector governance and information technology
significantly enhance fraud prevention efforts. Notably, organisational culture plays a
dual role: it reinforces the influence of governance, yet paradoxically weakens the effects
of both technology and individual integrity. These results highlight the complex nature
of institutional interactions and suggest that cultural reform is critical for sustaining
anti-fraud initiatives. The study offers practical implications for the Financial and
Development Supervisory Agency (BPKP) in refining institutional frameworks and
technological infrastructures to bolster integrity systems. Furthermore, it introduces
seven novel indicators of fraud prevention, contributing to a more comprehensive
institutional framework for analyzing anti-fraud strategies in emerging economies.
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