Yesi Mutia Basri

The high number of fraud cases in governments has increasingly become a concern among academics and practitioners. Many approaches can be used to minimize fraud cases. However, the role of education in the influence of personality on fraud in the Indonesian government has not been considered. Thus, this study aims to analyze the influence of morality and Machiavellianism as personality factors leading to fraud. Education was tested as a moderating variable. This quantitative study involved a sample of Pekanbaru City government officials. To collect data, questionnaires were sent directly to the respondents. Through the purposive sampling technique, 251 samples were collected. A structural equation with partial least squares was used to test the hypotheses. The test results show that all the proposed hypotheses are accepted. Morality affects fraud with a p-value < 0.001, less than 0.05. Machiavellianism affects fraud with a p-value < 0.001. Education moderates the relationship between morality and fraud with a p-value of 0.048, less than 0.05. Moreover, education moderates the relationship between Machiavellianism and fraud with a p-value < 0.001, less than 0.05. In conclusion, this study contributes to shaping government officials’ behavior to prevent fraud. Character building and high education standards for officials must be integrated to reduce the risk of abuse in Indonesian government.

The existence and performance of enterprises in rural areas become an interesting phenomenon as a solution for community welfare. The purpose of this study is to examine social capital and transformational leadership as factors that influence village-owned enterprises’ performance and the ability to innovate as a mediator. The research population consists of 216 village-owned enterprises. Riau Province in Indonesia is the place of research focus. This study used probability sampling with area sampling or cluster sampling. Respondents were managers, secretaries, treasury, or heads of business units of each village-owned enterprises. A total of 120 respondents participated in this analysis. The research hypotheses were tested using the partial least squares-structural equation modeling. The outcomes demonstrate that social capital and transformational leadership significantly positively affect enterprises’ performance with a p-value < 0.05, and the ability to innovate is proven to be a mediator with a p-value < 0.05. This study is relevant to the government program related to community welfare and offers implications for rural enterprises to improve social capital, leadership capabilities, and innovation.