Procurement governance in reducing corruption in the indonesian public sector: a mixed method approach

Abstract

Implementing procurement governance to combat corruption in the public sector is challenging. This study investigates this implementation across several procurement phases. It proposes how governance based on state principles and global recommendations can reduce corruption during the procurement planning, preparation, and implementation phases. For this purpose, the study employs a mixed research approach, distributing questionnaires and conducting interviews with ministries, institutions, provincial governments, and suppliers. This study gathered primary data from 744 institutions and performed a multigroup analysis of the government and suppliers. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypothesis. A sequential qualitative analysis with NVivo was performed to confirm the results. The results prove that procurement governance significantly negatively affects procurement corruption. The results imply that the state principles and dimensions of integrity, capacity, competition, fairness, as well as monitoring and control, are more correlated with the implementation of procurement governance. Moreover, the preparation phase of procurement is more related to corruption. This study contributes to Indonesian government procurement regulations and corruption prevention.

Keywords

• Procurement
• governance
• corruption
• public sector
• Business, management and accounting
• Asian studies