Perception of Prosocial Behavior in Accountability of Village Fund Management in Indonesia: the Moderating Role of Internal Control and Leadership
DOI:
https://doi.org/10.26668/businessreview/2023.v8i4.1481Keywords:
Accountability, Prosocial Behaviour, Internal Control, Leadership, IndonesiaAbstract
Purpose: This paper will talk about how the village's money is handled and how to help other people. During this investigation, topics like accountability and leadership in managing village finances, as well as internal control, will be broken down and looked at in depth. An investigation was done in the Indonesian villages out in the countryside.
Theoretical framework: the paper discusses hypotheses related to prosocial behavior which has an impact on accountability in village government in Indonesia with a moderating effect on internal control and leadership.
Design/methodology/approach: Random selection was used to select Indonesian village officials who took part in this study. There are a total of 689 village officials who participated as respondents to this study.
Findings: The results of this study show that prosocial behavior and accountability can be controlled by leadership traits and internal control mechanisms. According to what the researchers found, these factors need to be used to change the other types of responsibility variables. Internal control has a strong and negative effect on both helping others and being accountable for how village money is spent. On the other hand, leadership has a strong and positive effect on both of these criteria. Internal control also has a big and important effect on who is responsible for how village money is spent. Strong leadership can make a big difference in both of these areas.
Research, Practical & Social implications: The implication is, by looking at the prosocial behavior that occurs within village officials, the government is expected to compile implementing regulations and policies as technical guidelines as a reference for improving internal control and also leadership so as to further increase accountability.
Originality/value: This study is among the first to test empirically the full moderating effect of leadership and internal control on the relationship between prosocial behavior and accountability in managing village funds in Indonesia.
Downloads
References
Abdullah, M. I., Sudirman, Masdar, R., Din, M., & Firman, M. F. (2022). Antecedents of the Accountability in Indonesian Local Government Financial Reporting. International Journal of Professional Business Review, 7(5), 1–14. https://doi.org/10.26668/businessreview/2022.v7i5.e709
Afifi, Z., Mulyanto, M., & Nugroho, D. H. (2021). The Effect of Internal Control System and Village Fund management Accountability. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(3), 2425–2429.
Agung Nur Probohudono, I. S. R. (2019). Impact Of Village Financial Implementation On Village Financial Management Accountability. Jurnal Ekonomi, 24(1), 111. https://doi.org/10.24912/je.v24i1.479
Akhmetshin, E. M., Vasilev, V. L., Mironov, D. S., Zatsarinnaya, Е. I., Romanova, M. V., & Yumashev, A. V. (2018). Internal control system in enterprise management: Analysis and interaction matrices. European Research Studies Journal, 21(2), 728–740.
Akparep, J. Y., Jengre, E., & Mogre, A. A. (2019). The Influence of Leadership Style on Organizational Performance at TumaKavi Development Association, Tamale, Northern Region of Ghana. Open Journal of Leadership, 08(01), 1–22. https://doi.org/10.4236/ojl.2019.81001
Alam, M. M., Said, J., & Azizal, M. bin A. A. (2019). Role of Integrity System, Internal Control System, and Leadership Practices on the Accountability Practices in the Public Sectors of Malaysia. Social Responsibilty Journal, 15(3).
Arifa, I. N. (2019). Community Participation and Government Role in Using Village Funds in Dlingo Village. Policy & Governance Review, 3(2), 171. https://doi.org/10.30589/pgr.v3i2.129
Ash-Shidiqqi, E. A., & Wibisono, H. (2018). Corruption and Village: Accountability of Village Fund Management on Preventing Corruption (Problems and Challenges). Journal of Indonesian Legal Studies, 3(2), 195–212. https://doi.org/10.15294/jils.v3i02.27524
Brewer, M.B. and Brown, R. . (1998). The Handbook of Social Psychology. McGraw-Hill, New York.
Dewi, N. K. A. J. P., & Gayatri, G. (2019). Faktor-Faktor Yang Berpengaruh Pada Akuntabilitas Pengelolaan Dana Desa. E-Jurnal Akuntansi, 26, 1269. https://doi.org/10.24843/eja.2019.v26.i02.p16
Diansari, R. E., Othman, J. B., & Musah, A. A. (2022). Factors affecting accountability village fund management. Linguistics and Culture Review, 6(May), 879–892. https://doi.org/10.21744/lingcure.v6ns1.2186
Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 16(1), 49–64. https://doi.org/10.1177/031289629101600103
Dway Ismail, M. A., Manfi Kathim, A. B., & Musa Al-Kanani, M. C. (2023). Corporate Governance and Its Impact on the Efficiency of Internal Control on Non-Profit Government Institutions: an Exploratory Study. Journal of Profess. Bus. Review. |Miami, 1–21.
Ernawati, D. P. (2022). Examining Factors Affecting the Accountability of the Performance of Regional Apparatus Organizations. ATESTASI : Jurnal Ilmiah Akuntansi, 5(1), 77–93. https://doi.org/10.33096/atestasi.v5i1.1112
Eton, M., Mwosi, F., & Ogwel, B. P. (2022). Are internal controls important in financial accountability? (Evidence from Lira District Local Government, Uganda). International Journal of Financial, Accounting, and Management, 3(4), 359–372. https://doi.org/10.35912/ijfam.v3i4.810
Ewest, T. (2017). Prosocial leadership: Understanding the development of prosocial behavior within leaders and their organizational settings. Prosocial Leadership: Understanding the Development of Prosocial Behavior Within Leaders and Their Organizational Settings, 1–220. https://doi.org/10.1057/978-1-137-57808-2
Fadhal, M., Lubis, Z., Zulkifli, Z., Ismail, R., Sitorus, H., & Tobing, R. L. (2021). Village Fund Management: Pattern of Community Participation for Village Development. International Journal of Multicultural and Multireligious Understanding, 8(3), 65. https://doi.org/10.18415/ijmmu.v8i3.2377
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks CA: Sage Publications.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.e.
Harmadi, S. H. B., Suchaini, U., & Adji, A. (2020). Village Development: Spatial Effect vs The Performance of the Village Government? February, 38. http://tnp2k.go.id/download/93404WP52ENGFinal2606.pdf
Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, D. J., Hair, J. F., Hult, G. T. M., & Calantone, R. J. (2014). Common Beliefs and Reality About PLS: Comments on Rönkkö and Evermann (2013). Organizational Research Methods, 17(2), 182–209. https://doi.org/10.1177/1094428114526928
Indriasih, D., & Sulistyowati, W. A. (2022). The Role of Commitment, Competence, Internal Control system, Transparency and Accessibility in Predicting the Accountability of Village Fund Management. The Indonesian Accounting Review, 12(1), 73. https://doi.org/10.14414/tiar.v12i1.2650
Keay, A. (2017). Stewardship theory: is board accountability necessary? International Journal of Law and Management, 59(6), 1292–1314. https://doi.org/DOI 10.1108/IJLMA-11-2016-0118
Khotimah, C., Bawono, I. R., & Mustafa, R. M. (2021). Determinants Analysis For The Quality Of Village Financial Statements. Jurnal Reviu Akuntansi Dan Keuangan, 11(1), 185–203. https://doi.org/10.22219/jrak.v11i1.15164
Mahayani, N. L. A. (2017). Prosocial Behavior dan Persepsi Akuntabilitas Pengelolaan Dana Desa Dalam Konteks Budaya Tri Hita Karana. Jurnal Ilmiah Akuntansi Dan Bisnis, 129. https://doi.org/10.24843/jiab.2017.v12.i02.p07
Patton, J. M. (1992). Accountability and Governmental Financial Reporting. Financial Accountability and Management, 8(3), 165–180. https://doi.org/10.1111/j.1468-0408.1992.tb00436.x
Rakhmawati, H., & Wahyuni, N. D. (2022). Influence of Accountability of Village Fund Allocation Management and Community Participation on Village Development. August, 208–215.
Rault, J.-L. (2019). Be kind to others: Prosocial behaviours and their implications for animal welfare. Applied Animal Behaviour Science, 210, 113–123. https://doi.org/https://doi.org/10.1016/j.applanim.2018.10.015
Schandl, A., & Foster, P. L. (2019). COSO Internal Control - Integrated Framework: An Implementation Guide for the Healthcare Industry. COSO - Committee of Sponsoring Organizations of the Treadway Commission, January, 5. https://www.coso.org/Documents/COSO-CROWE-COSO-Internal-Control-Integrated-Framework.pdf
Sian, S. (2021). Supreme emergencies and public accountability : The case of procurement in the UK during the Covid19 pandemic.
Silva, E. B. (2016). Habitus: Beyond sociology. Sociological Review, 64(1), 73–92. https://doi.org/10.1111/1467-954X.12345
Siriwardhane, P., & Taylor, D. (2017). Perceived accountability for local government infrastructure assets: the influence of stakeholders. Pacific Accounting Review, 29(4), 551–572. https://doi.org/10.1108/PAR-11-2016-0110
Sofyani, H., Pratolo, S., & Saleh, Z. (2022). Do accountability and transparency promote community trust? Evidence from village government in Indonesia. Journal of Accounting & Organizational Change, 18(3), 397–418. https://doi.org/10.1108/JAOC-06-2020-0070
Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of Leader Effectiveness in Organization and Knowledge Sharing Behavior on Employees and Organization. SAGE Open, 10(1). https://doi.org/10.1177/2158244020914634
Suhartono, S., Mahyani, A., Afifah, W., Sartika, D. P., & Tatamara, R. (2020). Implementation of Law Number 6 of 2014 Concerning Village for Budgeting Plan in Sidoarjo Regency. 121(6), 204–209. https://doi.org/10.2991/aebmr.k.200226.042
Surya Prayogo, I., & Setiany, E. (2020). The Influence of Government Transparency, Implementation of the Government Accounting Standards and Internal Control System on Quality of Financial Statement (A Survey Conducted in the Village Administration Bandung Regency, Indonesia). Scholars Bulletin, 6(7), 174–181. https://doi.org/10.36348/sb.2020.v06i07.001
Torfing, J., & Bentzen, T. Ø. (2020). Does stewardship theory provide a viable alternative to control-fixated performance management? Administrative Sciences, 10(4). https://doi.org/10.3390/admsci10040086
Wadi, I., Furkan, L. M., & Rifa’i, A. (2020). Pengaruh Norma Subyektif, Kinerja Aparatur, Kejelasan Sasaran Anggaran, Prosocial Behavior Terhadap Transparasi Dan Akuntabilitas. E-Jurnal Akuntansi, 30, 101–114.
Wider, W., Lim, M. X., Wong, L. S., Chan, C. K., & Maidin, S. S. (2022). Should I Help? Prosocial Behaviour during the COVID-19 Pandemic. International Journal of Environmental Research and Public Health, 19(23). https://doi.org/10.3390/ijerph192316084
Downloads
Published
Versions
- 2023-05-10 (3)
- 2023-04-04 (1)
How to Cite
Issue
Section
License
Copyright (c) 2023 Rani Eka Diansari, Adiza Alhassan Musah, Jaizah Binti Othman
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html