Explaining Village Fund Accountability: The Roles of Transparency, Community Participation, and Organizational Commitment

Abstract

Abstract:   

Research aims: This study aims to examine the effect of transparency, community participation, and organizational commitment on the accountability of village fund management.

Design/Methodology/Approach: This research employs a quantitative approach using survey data collected from 136 respondents across 17 villages. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to evaluate both measurement and structural models.

Research findings: The results show that transparency, community participation, and organizational commitment have positive and significant effects on village fund management accountability. The structural model explains 79.1% of the variance in accountability.

Theoretical contribution/Originality: This study contributes to agency theory by explaining how governance mechanisms—transparency, participatory oversight, and internal commitment—reduce information asymmetry and strengthen accountability in village fund management.

Practitioner/Policy implication: The findings suggest that village governments should enhance transparency mechanisms, strengthen community involvement, and foster organizational commitment to improve accountability practices.

Research limitation/Implication: This study is limited to one district and cross-sectional data; future research may incorporate longitudinal designs and additional governance variables.

Keywords: Village fund accountability; Transparency; Community participation; Organizational commitment; Agency theory.