Whistleblowing and Organizational Factors to Improve LPD Fraud Prevention Capabilities During the Covid-19 Pandemic

Ni Made Wulan Sari Sanjaya

doi:10.21831/economia.v18i1.40403

Whistleblowing and Organizational Factors to Improve LPD Fraud Prevention Capabilities During the Covid-19 Pandemic

Ni Made Wulan Sari Sanjaya, Sekolah Tinggi Ilmu Ekonomi Satya Dharma, Indonesia

10.21831/economia.v18i1.40403

Abstract

Abstract

This research aimed to determine the effects of whistleblowing and organizational factors in improving the Village Credit Institutions (LPD) fraud prevention capability (FPC). The mapping of organizational behavior was elaborated, including culture, commitment, and whistleblowing, to improve the mapping of fraud prevention in LPD Buleleng Regency. The sample included 52 LPD leaders analyzed using the SEM based on variance, specifically the General Structured Component Analysis (GSCA). The hypothesis test showed that organizational culture (OCu) significantly influenced whistleblowing intention (WI), while organizational commitment (OCo) had an insignificant influence. Furthermore, OCu insignificantly influenced FPC, while OCO and WI had a significant influence.

Keywords: Whistleblowing, Organizational Factor, Fraud Prevention Capability, LPD

Whistleblowing dan Faktor Organisasi untuk Meningkatkan Kapabilitas Pencegahan Kecurangan LPD Selama Pandemi COVID-19

Abstrak

Penelitian ini bertujuan untuk mengetahui pengaruh whistleblowing dan faktor organisasi untuk meningkatkan kapabilitas pencegahan kecurangan LPD. Tujuan spesifik dari penelitian ini adalah mengelaborasi pemetaan perilaku organisasi yang merupakan budaya organisasi, komitmen organisasi dan niat whistleblowing untuk meningkatkan pemetaan pencegahan kecurangan di LPD Kabupaten Buleleng. Jumlah LPD yang akan dijadikan sample yaitu sebanyak 52 LPD. Responden penelitian ini adalah seluruh ketua lembaga perkreditan desa (LPD) di Kabupaten Buleleng. Teknik analisis data yang digunakan dalam penelitian ini adalah SEM berbasis varian yaitu General Structured Component Analysis (GSCA). Hasil pengujian hipotesis menunjukkan bahwa Budaya organisasi berpengaruh signifikan terhadap niat whistleblowing. Komitmen organisasi tidak berpengaruh signifikan terhadap niat whistleblowing. Budaya organisasi tidak berpengaruh signifikan terhadap kapabilitas pencegahan fraud. Komitmen organisasi berpengaruh signifikan terhadap kapabilitas pencegahan fraud. Niat whistleblowing berpengaruh signifikan terhadap kapabilitas pencegahan fraud.

Kata kunci: Whistleblowing, Faktor Organisasi, Kapabilitas Pencegahan Kecurangan, LPD

Keywords

Whistleblowing, Organizational Factor, Fraud Prevention Capability, LPD

Full Text:

PDF

References

Albrecht, W., & Albrecht, O. (2011). Fraud Examination. 4th Edition (4th ed.). South-Western College. California.

Alleyne, P., Charles-Soverall, W., Broome, T., & Pierce, A. (2017). Perceptions, predictors, and consequences of whistleblowing among accounting employees in Barbados. Meditari Accountancy Research, 25(2), 241–267. https://doi.org/10.1108/MEDAR-09-2016-0080

Alleyne, P., Hudaib, M., & Haniffa, R. (2018). The Moderating Role of Perceived Organisational Support in Breaking the Silence of Public Accountants. Journal of Business Ethics, 147(3), 509–527. https://doi.org/10.1007/s10551-015-2946-0

Bariyima, D. K. (2012). Auditor internaling and performance of government enterprises: a nigeria study. Double Blind Peer Reviewed International Research Journal, 12(6), 1–17.

Curtis, S., & Wright, D. (2001). Retaining employees – the fast track to commitment. Management Research News, 24(8–9), 59–64. https://doi.org/10.1108/01409170110782964

Daft, R. L. (2015). The leadership experience (6th ed.) (6th ed.). Australia: Cengage Learning.

Dworkin, T. M., & Baucus, M. S. (1998). Internal vs. external whistleblowers: A comparison of whistleblowing processes. Journal of Business Ethics, 17(1281–1298).

Dyck, Alexander, Morse, Adair, dan Zingales, L. (2010). Who blows the whistle on corporate fraud? The Journal of Finance, 6, 2213–2273. https://doi.org/10.1111/j.1540-6261.2010.01614.x

Elias. (2008). Auditing Student Professional Commitment and Anticipatory Socialization and Their Relationship to Whistleblowing. Managerial Auditing Journal, 23(3), 283–294. https://doi.org/10.1108/02686900810857721

Ghorbanpour, Z., Dehnavi, H. D., & Heyrani, F. (2014). Investigating The Effect of Organization Commitment on Performance of Auditors in The Community of Certified Accountants. Interdisciplinary Journal of Contemporary Research in Business, 5(10), 199–209. https://journal-archieves36.webs.com/199-209feb14.pdf

Ghozali, I. (2011). Structural Equation Modeling Metode Alternatif dengan Partial Least Square Edisi Kedua (Badan Penerbit Universitas Diponegoro. Yogyakarta (ed.); Edisi kedu). Badan Penerbit Universitas Diponegoro. Yogyakarta.

Graham, J. W. (1986). Principled Organizational Dissent: A Theoretical Essay. Research in Organizational Behavior. 8, 1–52.

Hall, J. (2013). Fraud Prevention and Early Detection.

Hanif, R. A., & Odiatma, F. (2017). Pengaruh personal cost reporting, status wrong doer dan tingkat keseriusan kesalahan terhadap whistleblowing intention. Jurnal Akuntansi Keuangan Dan Bisnis, 1(1), 11–20.

Hwang, D., Staley, B., Chen, Y. T., & Lan, J. S. (2008). Confucian Culture and Whistleblowing by Professional Accountants : An Exploratory Study. Managerial Auditing Journal, 23(25), 504–526. https://doi.org/10.1108/02686900810875316

Irvandly Pratana Libramawan. (2014). PENGARUH PENERAPAN WHISTLEBLOWING SYSTEM TERHADAP PENCEGAHAN KECURANGAN (Studi Survey pada PT Coca-Cola Amatil Indonesia SO Bandung).

Kowtha, N. Rao, Landau, Jacqueline, Chia, H. B. (2001). The culture of voice : exploring the relationship between employee voice and organizational culture. In Academy Of Management Conference. https://scholarbank.nus.edu.sg/handle/10635/140386

KPMG Forensic. (2008). Integrity Survey 2008–2009.

Kreshastuti, D. K., & Prastiwi, A. (2014). ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI WHISTLEBLOWING (Studi Empiris pada Kantor Akuntan Publik di Semarang). Diponegoro Journal of Accounting, 3(2), 1–15.

Lewis, D. (2008). Ten years of public interest disclosure legislation in the UK: Are whistleblowers adequately protected? Journal of Business Ethics, 82(2), 497–507. https://doi.org/10.1007/s10551-008-9899-5

Loyens, K. (2013). Towards a Custom-Made Whistleblowing Policy. Using Grid-Group Cultural Theory to Match Policy Measures to Different Styles of Peer Reporting. Journal of Business Ethics, 114(2), 239–249. https://doi.org/10.1007/s10551-012-1344-0

MacNab, B., Brislin, R., Worthley, R., Galperin, B. L., Jenner, S., Lituchy, T. R., MacLean, J., Aguilera, G. M., Ravlin, E., Tiessen, J. H., Bess, D., & Turcotte, M. F. (2007). Culture and ethics management: Whistle-blowing and internal reporting within a NAFTA country context. International Journal of Cross Cultural Management, 7(1), 5–28. https://doi.org/10.1177/1470595807075167

Mesmer-Magnus, J. R., & Viswesvaran, C. (2005). Whistleblowing in Organisations : An Examination of Correlates of Whistleblowing Intentions, Actions, and Retaliation. Journal of Business Ethics, 277–297. https://doi.org/10.1007/s10551-005-0849-1

Nayır, D. Z., Rehg, M. T., & Asa, Y. (2018). Influence of Ethical Position on Whistleblowing Behaviour: Do Preferred Channels in Private and Public Sectors Differ? Journal of Business Ethics, 149(1), 147–167. https://doi.org/10.1007/s10551-016-3035-8

Osinsky, P., & Mueller, C. W. (2004). Professional Commitment of Russian Provincial Specialists. Work and Occupations, 31(2), 193–224. https://doi.org/10.1177/0730888404263899

Park, H., Blenkinsopp, J., Oktem, M. K., & Omurgonulsen, U. (2008). Cultural orientation and attitudes toward different forms of whistleblowing: A comparison of South Korea, Turkey, and the UK Journal of Business Ethics, 82, 929–939. https://doi.org/10.1007/s10551-007-9603-1

Patel, C. (2003). No Some cross-cultural evidence on whistleblowing as an internal control mechanism. Journal of International Accounting Research, 2(1), 69–96. https://doi.org/10.2308/jiar.2003.2.1.69

Schwartz, M. S. (2013). Developing and sustaining an ethical corporate culture: The core elements. Business Horizons, 56(1), 39–50. https://doi.org/10.1016/j.bushor.2012.09.002

Shiva, M. S. A., & Suar, D. (2010). Leadership, Lmx, Commitment and Ngo Effectiveness: Transformational Leadership, Leader-Member Exchange, Organizational Commitment, Organizational Effectiveness and Programme Outcomes in Non-Governmental Organizations. In International Journal of Rural Management (Vol. 6, Issue 1). https://doi.org/10.1177/097300521100600106

Srithongrung, A. (2011). The causal relationships among transformational leadership, organizational commitment, and employee effectiveness. International Journal of Public Administration, 34(6), 376–388. https://doi.org/10.1080/01900692.2011.569917

Tavakoli, A. A., Keenan, J. P., & Crnjak-Karanovic, B. (2003). Culture and Whistleblowing: An Empirical Study of Croatian and United States Managers Utilizing Hofstede’s Cultural Dimensions. Journal of Business Ethics, 43(1–2), 49–64. https://doi.org/10.1023/A:1022959131133

DOI: https://doi.org/10.21831/economia.v18i1.40403