Psychological factors: self- and circumstances-caused fraud triggers

Abstract

Purpose This paper aims to provide new understanding of fraudulent behaviour by offering different theoretical discussion on the fraud causation. Design/methodology/approach The authors interviewed 15 executive managers in one of Indonesia local governments, by using semi-structured questions. Findings The authors explored the dynamics of both self- and other-directed factors in the spread of fraudulent behaviours, by focusing on the public-sector fraud landscape in local government. As a basis of analysis, the authors applied the theory of planned behaviours. In this study, “a concept of fraud triangle” substantially provides little help in elucidating the causation of fraudulent behaviours in local government. The theoretical and managerial implications are discussed. Originality/value This study offers new direction on broadening and deepening fraud literature and theories about the root causes of fraudulent behaviours.

Understanding the Micro-Foundations of Administrative Corruption in the Public Sector: Findings from a Systematic Literature Review

“…The absence of explicit formalization can lead to organizational goal ambiguity, sending mixed signals regarding the underlying principles of governance to civil servants (Tidey 2016). Nuswantara and Maulidi (2021) show that bureaucratic fraud happens when authority and processes of delegation are unclear, opening space for the abuse of discretion and negotiation spaces by both leaders and followers, particularly in public procurement and contracting (Porter and Graycar 2016;Castillo 2018). Furthermore, procedural and goal ambiguity may reduce compliance and work motivation (Oliveros and Schuster 2018) because it hinders the effectiveness of accountability mechanisms (Tambulasi 2009).…”

An embezzler test for norms, standards and regulations

“…Nonetheless, the occurrence of embezzlement is difficult to predict with certainty (Dittenhofer, 1995; Walden, 2014; Shaw and Bologna, 2000, p. 11; Everett et al , 2007; Pedneault, 2010; Rezaee, 2005). The classic type of embezzler can display a range of different motivations, such as economic, egotistic, ideological and psychotic ones (Ali, 2021; Nuswantara and Maulidi, 2020; Maulidi, 2020; Shaw and Bologna, 2000; Pedneault, 2010; Walden, 2014; Vousinas, 2019). In addition, embezzlers can act alone, or as a group (Ali, 2021; Nuswantara and Maulidi, 2020; Maulidi, 2020; Shaw and Bologna, 2000; Pedneault, 2010; Walden, 2014; Vousinas, 2019).…”

“…The classic type of embezzler can display a range of different motivations, such as economic, egotistic, ideological and psychotic ones (Ali, 2021; Nuswantara and Maulidi, 2020; Maulidi, 2020; Shaw and Bologna, 2000; Pedneault, 2010; Walden, 2014; Vousinas, 2019). In addition, embezzlers can act alone, or as a group (Ali, 2021; Nuswantara and Maulidi, 2020; Maulidi, 2020; Shaw and Bologna, 2000; Pedneault, 2010; Walden, 2014; Vousinas, 2019). As noted above, although potential embezzlers might be a minority, the fact of the matter is that they exist.…”

“…Not by any means are we suggesting that every insider of an organization is a potential embezzler, as, in reality, only a minority of people may undertake such practices. However, such people do exist (Ali, 2021; Attanasi et al , 2019; Dittenhofer, 1995; Dodge, 2007; Greve et al , 2010; Gullkvist and Jokipii, 2013; Lindquist and Goldberg, 2009; NMakowsky and Wang, 2018; Nuswantara and Maulidi, 2020; Ozili, 2020; Pedneault, 2010; Walden, 2014; Zhong and Robinson, 2020). Furthermore, in complex entities such as large organizations, embezzlement might not merely result from individual decisions by some organizational insiders who are in charge, such as, for example, an executive.…”

Behind the Law of Goods/Services Procurement Implementation during Covid-19

“…And (2) What role played by the laws and regulations in a pandemic that may cause this fraud? The previous research already unveil factors influencing fraud in normal situation both in private and public sectors(Maulidi, 2017); (Nuswantara, Maulidi, & Pujiono, 2017); (Nuswantara & Ach, 2020).This study tries to explore in a very different situation where the emergency decision become priority so that welcome the fraudulent action. The result of this study will benefit not only in emergency situation but also may apply in regular one in a better way.…”