Innovative Marketing (Nov 2023)

Determinants influencing fraud prevention in e-procurement: Empirical evidence from Indonesia

  • Sempaulus Silalahi,
  • Rheny Afriana Hanif,
  • Supriono Supriono,
  • Eka Hariyani,
  • Meilda Wiguna

DOI
https://doi.org/10.21511/im.19(4).2023.16
Journal volume & issue
Vol. 19, no. 4
pp. 199 – 206

Abstract

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Electronic procurement of government products and services strives to promote good governance by enhancing internal control and fraud prevention. This study aims to assess how e-procurement and internal control can prevent fraud in purchasing goods and services in Indonesia. Participants in the regional work units (SKPD) in Riau’s procurement of goods and services make up the study’s population. The sample included 85 respondents with the requirements for a position relating to the successful procurement of goods and services from December 2021 to December 2022. The paper used a purposeful sampling technique. This study employed a quantitative method and SmartPLS 3.0 to evaluate the data. The results concluded that the implementation of e-procurement (β = 0.231; p < 0.05) and internal control (β = 0.231; p < 0.05) have a substantial impact on fraud prevention during the procurement of goods and services. By absorbing the capital expenditure budget and limiting fraud, it is envisaged that the Indonesian government may maximize its fraud prevention. It is desired that persons involved in procuring products and services constantly broaden their understanding of and perspectives on procurement, particularly those on other crucial aspects of procurement.

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