Society

The effect of information technology innovation on good public governance: a case study in Indonesia

Economic Annals-XXI

Economic Annals-ХХI: Volume 188, Issue 3-4, Pages: 15-22

Citation information:
Ferina, I. S., Afiah, N. N., & Poulus, S. (2021). The effect of information technology innovation on good public governance: a case study in Indonesia. Economic Annals-XXI, 188(3-4), 15-22. doi: https://doi.org/10.21003/ea.V188-02

View Full-TextDownload PDF

Ika Sasti Ferina
Lecturer,
Sriwijaya University
Jl. Masjid Al Gazali, Bukit Lama, Kec. Ilir Bar. I, Kota Palembang,
Sumatera Selatan 30128, Indonesia
ikasastiferina@fe.unsri.ac.id
ORCID ID: https://orcid.org/0000-0002-5343-4772

Nunuy Nur Afiah
PhD (Accounting),
Professor, Dean,
Faculty of Economics and Business,
University Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah, Jatinangor,
Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
nunuy@unpad.ac.id; 
nnafiah@yahoo.com
ORCID ID: https://orcid.org/0000-0001-5895-7436

Sugiono Poulus
Senior Lecturer,
Department of Accounting,
Faculty of Economics and Business,
University Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah, Jatinangor,
Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
sugiono.poulus@unpad.ac.id;
sugiono.poulus@yahoo.com
ORCID ID: https://orcid.org/0000-0001-8579-5778

The effect of information technology innovation on good public governance: a case study in Indonesia

Abstract. This study touches upon fraud prevention at the Regional Public Hospital (RSUD) in Sumatra Region in 2021. The authors used a quantitative approach to conduct the study. This research is based on a survey of 421 respondents, namely the personnel of the Medical Recording Department, the Internal Inspection Unit, the Medical Committee, the Coder, and the Accounting Department at RSUD. Sumatra was chosen to be the region under research because, according to data from the Indonesia Corruption Watch (ICW), Sumatera Region has 6 provinces where most cases of fraud have been reported in government hospitals. The data analysis technique uses Structural Equation Modelling (LISREL). The results of the study show that: (1) information technology innovation has a positive and significant impact on public governance; (2) fraud prevention has a positive and significant impact on public governance; (3) information technology innovation has a positive and significant impact on public governance in terms of fraud prevention.

Keywords: Fraud Prevention; Information Technology Innovation; Public Governance; Health Coverage; SEM; LISREL

JEL Classifications: K00; H82; I15

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V188-02

References

  1. Abraham, S. E. (2012). Information technology, an enabler in corporate governance. Corporate Governance, 12(3), 281-291.
    https://doi.org/10.1108/14720701211234555
  2. Azis, H. A., Mulyani, S., & Marjulin. (2017). Business Strategy of Success Factors of Enterprise Resource Planning System (ERP) and the Impact Towards the Quality of Accounting Information. International Journal of Economic Research, 14(12), 1-8.
    https://serialsjournals.com/abstract/25229_22.pdf
  3. Cashore, B., Knudsen, J. S., Moon, J., & van der Ven, H. (2021). Private authority and public policy interactions in global context: Governance spheres for problem solving. Regulation & Governance.
    https://doi.org/10.1111/rego.12395
  4. Ciborra, C. (2005). Interpreting e-government and development: Efficiency, transparency or governance at a distance? Information Technology & People, 18(3), 260-279.
    https://doi.org/10.1108/09593840510615879
  5. Ciborra, C., & Navarra, D. D. (2005). Good governance, development theory, and aid policy: Risks and challenges of e-government in Jordan. Information Technology for Development, 11(2), 141-159.
    https://doi.org/10.1002/itdj.20008
  6. Daily, I. (2019, October 11). Improve governance of the JKN investor program.
    https://Investor.Id/Editorial/Benahi-Tata-Kelola-Program-Jkn (in Indonesia)
  7. Doig, A. (1995). Good government and sustainable anti-corruption strategies: A role for independent anti-corruption agencies? Public Administration and Development, 15(2), 151-165.
    https://doi.org/10.1002/pad.4230150206
  8. Ferina, I. S., Mulyani, S., Afia, N. N., & Poulus, S. (2021). The Zero Fraud Implementation through the Innovation of Information Technology and Organizational Culture. Journal of Southwest Jiaotong University, 56(1), 324-334.
    https://doi.org/10.35741/issn.0258-2724.56.1.30
  9. Graycar, A., & Villa, D. (2011). The loss of governance capacity through corruption. Governance, 24(3), 419-438.
    https://doi.org/10.1111/j.1468-0491.2011.01535.x
  10. Hasti, N., Mulyani, S., Wahyuni, Gustiana, I., & Hastini, L. Y. (2018). Information system of a web-based wedding organizer. IOP Conference Series: Materials Science and Engineering, 407, 1-5.
    https://doi.org/10.1088/1757-899X/407/1/012137
  11. Ismail, T. H., & Abdelmoniem, Z. (2013). Stock option fraud prevention in an Islamic country: Does corporate governance matter? Journal of Financial Reporting and Accounting, 11(1), 4-28.
    https://doi.org/10.1108/JFRA-03-2013-0013
  12. Kalsi, N. S., & Kiran, R. (2015). A strategic framework for good governance through e-governance optimization: A case study of Punjab in India. Program: Electronic Library and Information Systems, 49(2), 170-204.
    https://doi.org/10.1108/PROG-12-2013-0067
  13. Khalid, M. A., Alam, M. M., & Said, J. (2016). Empirical assessment of good governance in the public sector of Malaysia. Economics and Sociology, 9(4), 289-304.
    https://doi.org/10.14254/2071-789X.2016/9-4/18
  14. Lee, G., & Xia, W. (2006). Organizational size and IT innovation adoption: A meta-analysis. Information and Management, 43(8), 975-985.
    https://doi.org/10.1016/j.im.2006.09.003
  15. Lukito, A. S. (2015). Fostering and enhancing the role of the private sector: A prevention way towards corruption eradication in Indonesia. Journal of Financial Crime, 22(4), 476-491.
    https://doi.org/10.1108/JFC-06-2014-0029
  16. Marota, R., Mulyani, S., Sukmadilaga, C., Kamilah, Z. N. A., & Mauludina, M. A. (2020). Rural fund supply chain monitoring system: Evidence from Indonesia and lesson experiences from South Korea and Malaysia. International Journal of Supply Chain Management, 9(2), 11-17.
    https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/3152
  17. Mulyani, S., & Endraria. (2017). The empirical testing for the effect of organizational commitment and leadership style on the implementation success of enterprise resource planning (ERP) Systems and its implications on the quality of accounting information. Journal of Engineering and Applied Sciences, 12(20), 5196-5204.
    https://medwelljournals.com/abstract/?doi=jeasci.2017.5196.5204
  18. Mulyani, S., & Fettry, S. (2016). The influence of audit committee composition, authority, resources, and diligence toward financial reporting quality. International Business Management, 10(9), 1756-1767.
    https://medwelljournals.com/abstract/?doi=ibm.2016.1756.1767
  19. Mulyani, S., & Rachmawati, R. (2016). The influence of the Quality of Management Accounting Information System, Quality of Management Accounting Information, and Quality of Service of Accounting Information System on the Information System User Satisfaction. International Journal of Economic Research, 13(3), 975-988.
    https://serialsjournals.com/abstract/12471_19.pdf
  20. Mulyani, S., Hassan, R., & Anugrah, F. (2016). The critical success factors for the use of information systems and ist impact on the organizational performance. International Business Management, 10(4), 552-560.
    https://www.medwelljournals.com/abstract/?doi=ibm.2016.552.560
  21. Mulyani, S., Kasim, E., Yadiati, W., & Umar, H. (2019). Influence of accounting information systems and internal audit on fraudulent financial reporting. Opción, 35(21), 323-338.
    https://produccioncientificaluz.org/index.php/opcion/article/view/24701
  22. Shim, D. C., & Eom, T. H. (2008). E-Government and anti-corruption: Empirical analysis of international data. International Journal of Public Administration, 31(3), 298-316.
    https://doi.org/10.1080/01900690701590553
  23. Sukirman, Hidayah, R., & Suryandari, D. (2018). Fraud prevention: Information technology and internal control perspective. International Journal of Economics, Commerce and Management, 6(10), 329-337.
    http://ijecm.co.uk/wp-content/uploads/2018/10/61022.pdf
  24. Sumarto, H. S. (2009). Innovation, participation and good governance. Jakarta: Yayasan Obor Indonesia.
  25. Supriadi, T., Mulyani, S., Soepardi, E., M., & Farida, I. (2019). Influence of auditor competency in using information technology on the success of e-audit system implementation. Eurasia Journal of Mathematics, Science and Technology Education, 15(10), 1-13.
    https://doi.org/10.29333/ejmste/109529
  26. Wahyuni-TD, I. S., Haron, H., & Fernando, Y. (2021). The effects of good governance and fraud prevention on performance of the zakat institutions in Indonesia: A Sharīah forensic accounting perspective. International Journal of Islamic and Middle Eastern Finance and Management, 14(4), 692-712.
    https://doi.org/10.1108/IMEFM-03-2019-0089
  27. Wescott, C. G. (2001). E-Government in the Asia-Pacific region. Asian Journal of Political Science, 9(2), 1-24.
    https://doi.org/10.1080/02185370108434189

Received 12.02.2021
Received in revised form 22.03.2021
Accepted 26.03.2021
Available online 10.05.2021

View Full-TextDownload PDF
In, , , , , , ,

More Papers