The role of community governance as main and moderating variable in testing the fraud triangle theory in village-owned enterprises in West Java province
List of Authors
  • Sri Ambarwati , Suratno

Keyword
  • BUMdes, Social Enterprises, Community Governance, Fraud Triangles

Abstract
  • BUMdes was an economic unit in rural areas expected to align with the government's ideals, "Building Indonesia from the Edge". The existence of corruption cases published on news channels has impacted the performance of BUMdes. It was hoped that this case of fraud would decrease and not spread to other BUMdes. This study aimed to create a model that examined the triggering factors of fraud and initiated a Community Governance governance model that would be by the characteristics of BUMdes as Social Entreprises, which in this study was used as a moderating variable that was expected to reduce fraud. The research data used was BUMdes in West Java using sampling based on the Slovin formula yielding 183 respondents, this study's data testing and analysis were carried out Partial Least Square (PLS) and Path Analysis. The research results indicate that factors such as pressure, opportunities, rationalization, and community governance influenced fraud indications. However, human resources factors did not show any influence on fraud indications. Additionally, the Community Governance variable could not the ability to moderate the impact of opportunity pressure on fraud indications, while it could not moderate the impact of rationalization and human resource competency variables.

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