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Article
Publication date: 3 May 2016

Hendi Yogi Prabowo

The purpose of this paper, which is based on the author’s study, is to explore the potential use of behavioral analysis in predicting corruption among public officials in…

1414

Abstract

Purpose

The purpose of this paper, which is based on the author’s study, is to explore the potential use of behavioral analysis in predicting corruption among public officials in Indonesia as part of the corruption prevention measures.

Design/methodology/approach

This study examines major corruption cases in Indonesia in the past three years through reports from various institutions regarding fraud-related issues to gain a better understanding of corrupt leaders in Indonesia and how to predict their occurrence by means of observing and analyzing visible behavioral red flags.

Findings

The author establishes that in addition to the financial perspective, corruption can be detected and thus prevented by means of behavioral observation and analysis. The discussions in this paper suggest that bad leadership is a major cause of corruption in the Indonesian Government. However, a main reason corrupt leaders are elected into office is because the people failed to recognize them in the first place and accidentally voted for them. Among the signs of bad leadership visible enough for the people to see is the so-called “narcissism” which has four core dimensions: authority, self-admiration, superiority and entitlement. The four core dimensions are often visible in leader candidates in Indonesia which should have been early warning signs of bad leadership which may lead into, among others, corruption. Furthermore, the need for excessive compensation, exposure and power has been a common trait in many corruption offenders in Indonesia and each can be associated with the four core dimensions of narcissism. It is because of such a need that pressure/motivation to commit fraud among Indonesian public officials occurred. Society’s awareness of the signs of narcissism will help them decide who will become their future leaders and diminish the risk of corruption in the country.

Research limitations/implications

This study is self-funded. Therefore, due to the limited resources available, the discussions and analysis on visible behavioral red flags of corruption in this study are built upon secondary data from agencies such as the Corruption Eradication Commission (KPK), the Constitutional Court (MK), the Supreme Audit Board (BPK) and the election Supervisory Committee (Bawaslu). For future studies, primary data from the public regarding their opinions toward the past, present and future leadership in Indonesia will offer a more accurate view into visible behavioral red flags of corruption.

Practical implications

This paper contributes to the development of corruption prevention strategy in Indonesia by empowering the society to monitor potentially corrupt leaders so as to prevent them from controlling the country.

Originality/value

This paper demonstrates how the seemingly small and insignificant behavioral clues may become effective tools to predict and prevent the occurrence of corruption in the future.

Details

Journal of Financial Crime, vol. 23 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 2 October 2017

Hendi Yogi Prabowo, Kathie Cooper, Jaka Sriyana and Muhammad Syamsudin

Based on the authors’ study, the purpose of this paper is to ascertain the best approach to mitigate corruption in the Indonesian public sector. To do so, the paper uses three…

Abstract

Purpose

Based on the authors’ study, the purpose of this paper is to ascertain the best approach to mitigate corruption in the Indonesian public sector. To do so, the paper uses three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory.

Design/methodology/approach

This paper is part of the authors’ study to examine corruption patterns in Indonesia in the past 10 years through examination of reports from various institutions as well as other relevant documents addresses corruption-related issues to explore various options for mitigating corruption through behavioral re-engineering. For the purpose of gaining various perspectives on anti-corruption measures, this study also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues.

Findings

The authors establish that despite the fall of the New Order regime nearly two decades ago, corruption remains entrenched within the post-Suharto Governments. The normalized corruption in Indonesia is a legacy of the New Order regime that shaped societal, organizational and individual schemata in Indonesia. The patrimonial style of leadership in particular within the regional governments resulted in increasing rent-seeking activities within the decentralized system. The leadership style is also believed to have been supporting the normalization of corruption within the public sector since the New Order era. The three-decade-old systematic normalization of corruption in the Indonesian public sector can only be changed by means of long and systematic de-normalization initiatives. To design the best intervention measures, decision makers must first identify multiple factors that constitute the three normalization pillars: institutionalization, rationalization and normalization. Measures such as periodical reviews of operational procedures, appointment of leaders with sound morality, anti-corruption education programs, administering “cultural shocks”, just to name a few, can be part of multifaceted strategies to bring down the normalization pillars.

Research limitations/implications

The discussion on the options for de-normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A better formulation of strategic approaches can be developed by means of interviews with incarcerated corruption offenders from the Indonesian public institutions.

Practical implications

This paper contributes to the development of corruption eradication strategy by suggesting options for de-normalizing corruption in the Indonesian public sector so that resources can be allocated more effectively and efficiently to mitigate the problem.

Originality/value

This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.

Details

Journal of Financial Crime, vol. 24 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 18 December 2023

Hendi Yogi Prabowo

The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues…

Abstract

Purpose

The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues associated with consumerism.

Design/methodology/approach

This paper examines the relationship between excessive consumption activities and corrupt acts, drawing upon existing literature on corruption, consumerism and consumption, as well as multiple reports and cases of corruption and money laundering in Indonesia. With regard to corruption networks, this paper analyses the associated behavioral patterns and social dynamics by using the Fraud Triangle and the Fraud Elements Triangle frameworks to examine the phenomenon of living beyond one’s means. This paper also addresses the notion of sacredness in the context of consumer activities and how such sacredness plays a role in causing otherwise honest individuals to engage in corrupt acts.

Findings

The author established that corruption represents a complex societal issue that extends across several dimensions of society, encompassing both horizontal and vertical aspects. Consequently, addressing this problem poses significant challenges. Excessive consumption has been identified as one of the various behavioral concerns that are implicated in the widespread occurrence of corruption in many nations. Individuals who partake in excessive consumption play a role in shaping ethical norms that serve to legitimize and rationalize immoral behavior, therefore fostering a society marked by corruption. The act of engaging in excessive consumption is also associated with cases of money laundering offenses that are connected to corruption and several other illicit activities. The lifestyle of corrupt individuals is one of the primary behavioral concerns associated with corruption, as “living beyond means” is the most common behavioral red flag among occupational fraud offenders worldwide. The phenomenon of consumerism may also shape the minds of individuals as if it were an “implicit religion” due to the fact that it may generate human experiences that elicit highly positive emotions and satisfy certain sacredness-associated characteristics. The pursuit of transcendental experiences through the acquisition and consumption of sacred consumption objects may heighten the incentive to commit fraudulent acts such as corruption.

Research limitations/implications

This self-funded exploratory study uses document analysis to examine the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former offenders and investigators of corruption.

Practical implications

This exploratory study contributes to advancing corruption prevention strategies. It does this by introducing a novel analytical framework that allows for the examination of several behavioral issues associated with consumerism, which have the potential to foster the proliferation of corruption.

Originality/value

This exploratory study highlights the importance of comprehending the intricacies of consumerism, namely, its adverse effects on the proliferation of corruption.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 3 October 2016

Hendi Yogi Prabowo and Kathie Cooper

Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives…

1928

Abstract

Purpose

Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory.

Design/methodology/approach

This paper examines corruption trends and patterns in the Indonesian public sector in the past decade through examination of reports from various institutions as well as other relevant documents regarding corruption-related issues to gain a better understanding of the behavioral mechanisms underlying the adoption of corruption into organizational and individual schemata. This paper also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues.

Findings

The authors establish that the rampaging corruption in the Indonesian public sector is an outcome of cumulative decision-making processes by the participants. Such a process is influenced by individual and organizational schemata to interpret problems and situations based on past knowledge and experience. The discussion in this paper highlights the mechanisms of corruption normalization used to sustain corruption networks especially in the Indonesian public sector which will be very difficult to break with conventional means such as detection and prosecution. Essentially, the entire process of normalization will cause moral degradation among public servants to the point where their actions are driven solely by the fear of punishment and expectation of personal benefits. The three pillars of institutionalization, rationalization and socialization strengthen one another to make the entire normalization structure so trivially resilient that short-term-oriented anti-corruption measures may not even put a dent in it. The normalization structure can be brought down only when it is continuously struck with sufficient force on its pillars. Corruption will truly perish from Indonesia only when the societal, organizational and individual schemata have been re-engineered to interpret it as an aberration and not as a norm.

Research limitations/implications

Due to the limited time and resources, the discussion on the normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A more complete picture of corruption normalization in Indonesia can be drawn from interviews with incarcerated corruption offenders from Indonesian public institutions.

Practical implications

This paper contributes to the development of corruption eradication strategy by deconstructing corruption normalization processes so that the existing resources can be allocated effectively and efficiently into areas that will result in long-term benefits.

Originality/value

This paper demonstrates how the seemingly small and insignificant behavioral factors may constitute “regenerative healing factor” for corruption in Indonesia.

Details

Journal of Financial Crime, vol. 23 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 3 January 2023

Hendi Yogi Prabowo

This paper aims to explore various cultural and behavioral issues associated with the problem of investment fraud in Indonesia.

Abstract

Purpose

This paper aims to explore various cultural and behavioral issues associated with the problem of investment fraud in Indonesia.

Design/methodology/approach

By examining multiple cases of investment fraud in Indonesia as well as reviewing publicly available government reports, this study highlights several important cultural and behavioral issues associated with the susceptibility of Indonesian financial services consumers to investment fraud to understand better the dynamics of the victimization process. By using multiple cultural and behavioral theories, this study demonstrates how such issues shape the interactions between investment fraudsters and investment fraud victims.

Findings

This study demonstrates that multiple cultural and behavioral factors have created and shaped an environment where fraudsters can exploit people’s behavioral loopholes for their fraudulent schemes. In particular, the high power distance and high collectivism have been identified by this study as contributing to the high level of materialism in the country, which in turn makes people more susceptible to the temptation of get-rich-quick schemes. Investment fraudsters, being students of human behavior, use their behavioral knowledge to devise various means to deceive their victims. They use multiple psychological principles to stimulate target victims “gullibility to make them more vulnerable to fraudulent persuasion. In many cases, even financially literate people are not immune to fraudsters” deceitful messages. This study highlights gullibility production as a foundation for investment fraudsters to devise their means by which victims are manipulated to accept certain beliefs that depart from facts and evidence.

Practical implications

This paper contributes to the innovation in anti-fraud practice by building a better understanding of multiple cultural and behavioral issues associated with investment fraud victimization.

Originality/value

This paper brings a new perspective into the field of anti-fraud to stimulate innovation, in particular in investment fraud prevention.

Details

Journal of Financial Crime, vol. 31 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 27 September 2022

Hendi Yogi Prabowo

The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues…

Abstract

Purpose

The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues associated with quantification culture.

Design/methodology/approach

This paper is part of the author’s exploratory study into the complex corruption phenomenon in Indonesia from a variety of viewpoints to obtain a better understanding of its nature and dynamics. By building on previous literature on quantification culture, audit culture and the corruption phenomenon, this paper explores the different issues related to overreliance on numbers and how they may have led to increased corruption, particularly in Indonesia. Using the Fraud Decision Scale framework, this paper also demonstrates how the quantification culture affects the cost-benefit analysis of corruption offenders. To develop the best anticorruption strategy and lay the groundwork for future anticorruption studies, this paper presents a fresh perspective on how to analyze and evaluate the corruption issue.

Findings

The author established that despite the benefits that quantification practices – such as indicators, scores, ratings and rankings – bring to societies and organizations, there is evidence that these practices can have unfavorable effects when used excessively or incorrectly. One of the adverse effects of quantification practices is over-quantification, which manifests as various inappropriate behaviors, including an excessive desire to acquire riches and material belongings. Additionally, the worship of ranks and status derived from quantitative evaluation processes has led many people to prioritize short-term objectives above long-term improvements. Eventually, these will cause organizations to lose productivity and make them susceptible to fraud and corruption. Future studies are needed to determine the most effective approach for mitigating over-quantification issues. In this exploratory paper, the author proposes balancing quantitative practices with qualitative knowledge to gradually alter people’s behavior by broadening their perspectives in perceiving various phenomena in the world, not only by describing and explaining them but also by comprehending their underlying meanings.

Research limitations/implications

This exploratory study is self-funded and relies primarily on documentary analysis to explore the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former corruption offenders and investigators.

Practical implications

This exploratory paper contributes to the development of a sound corruption prevention approach by presenting a novel analytical framework for examining various behavioral problems linked with quantification culture that may lead to the escalation of corruption.

Originality/value

This study emphasizes the significance of understanding the structure and dynamics of quantification culture and their negative behavioral impacts on people to comprehend the corruption phenomenon better.

Details

Journal of Financial Crime, vol. 30 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 2 January 2018

Hendi Yogi Prabowo, Jaka Sriyana and Muhammad Syamsudin

Based on the authors’ study, the main purpose of this paper is to ascertain a systematic long-term solution for the corruption problem in the Indonesian public sector from the…

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Abstract

Purpose

Based on the authors’ study, the main purpose of this paper is to ascertain a systematic long-term solution for the corruption problem in the Indonesian public sector from the knowledge management perspective. To achieve its objectives, this paper applies multiple perspectives and theories of corruption and knowledge management on the corruption problem in Indonesia.

Design/methodology/approach

This paper is based on the authors’ study to assess the corruption problem in the Indonesian public sector in the past decade through the examination of reports from various institutions and other relevant documents to highlight various behavioral issues in knowledge management in the Indonesian public sector and how they relate to corruption.

Findings

The authors establish that a major factor behind corruption’s ability to regenerate over time in the Indonesian public sector is the fact that it has become part of knowledge conversion in Indonesian public institutions for so long that removing it would be a very challenging task. To remove corruption from Indonesian public institutions is to remove it from the existing knowledge conversion spiral within these institutions by means of organizational unlearning and re-learning. The primary focus of the unlearning and re-learning process should be to eliminate the knowledge of corruption, in both tacit and explicit forms, and replace it with the knowledge of good governance, accountability and integrity. Through systematic organizational unlearning and re-learning along with other more repressive measures, the risk of corruption in public institutions in Indonesia will gradually diminish over time.

Research limitations/implications

This study is relying on documentary analysis to highlight the trend in behavioral problems in relation to knowledge conversion in the Indonesian public sector. Future studies should incorporate interviews with corruption offenders and local leaders to gain a more accurate view of how knowledge conversion plays its role in the growth and regeneration of corruption in the Indonesian public sector.

Practical implications

This paper contributes to the development of corruption eradication strategy by proposing a framework for systematically removing corruption knowledge from an organization. With this, framework resources can be allocated more effectively and efficiently to achieve the objectives of corruption prevention.

Originality/value

This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.

Details

Journal of Financial Crime, vol. 25 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 28 January 2020

Hendi Yogi Prabowo

The purpose of this paper is to explore the potential of computer-assisted qualitative data analysis software (CAQDAS) to support qualitative evaluation of corruption prevention…

408

Abstract

Purpose

The purpose of this paper is to explore the potential of computer-assisted qualitative data analysis software (CAQDAS) to support qualitative evaluation of corruption prevention initiatives, especially those focusing on behavioral changes. To achieve this objective, this paper applies the principles of qualitative inquiries to establish a foundation for developing effective means for evaluating behavior-oriented corruption prevention initiatives in Indonesia.

Design/methodology/approach

Through exploratory study, this paper assesses current corruption prevention evaluation practice in the Indonesian public sector to highlight major deficiencies thereof primarily through examination of publicly available documents on anti-corruption practice in Indonesia. Furthermore, this paper also discusses how qualitative methods using CAQDAS may strengthen the existing anti-corruption regime by aiding decision-makers to better evaluate the success or failure of their corruption prevention initiatives in particular those aiming for behavioral changes. To illustrate how a qualitative data analysis application can support anti-corruption evaluators, NVivo will be used as a reference from which multiple analytical tools will be discussed to highlight their potential for qualitative qualitative analysis analysis in corruption prevention evaluation.

Findings

The author establishes that the existing quantitative measures of evaluation are insufficient in generating a comprehensive picture of the success or failure of the existing anti-corruption initiatives in Indonesia. Evidences suggest that the existing quantitative measures appear to be unable to cope with the growing complexity of various corruption problems in the country in particular to those related to organizational culture and behavior. Despite the numerous behavior-oriented initiatives to reduce the risk of corruption in the Indonesia public sector, it is still unclear if such initiatives actually have made a difference in preventing corruption, as many of their elements cannot be measured quantitatively. Therefore, the author believe that deeper insights into corruption problems can be obtained through proper qualitative assessments in which evaluators play the role as the primary analytical instrument. To enhance evaluators’ capability in obtaining and analyzing qualitative data, the author proposes the use of CAQDAS and the evaluation of corruption prevention initiatives. With a special reference to NVivo, the author argues that using CAQDAS will enable evaluators to conduct qualitative analysis more efficiently to identify patterns within the data, as it offers various tools to look deeper into context, diversity, nuance and process so as to gain deeper understanding of the meaning of human action and how it may affect the risk of corruption within organizations.

Research limitations/implications

This study is self-funded and is relying primarily on documentary analysis in assessing the existing corruption prevention evaluation measures in Indonesia. Future studies may benefit from in-depth interviews with anti-corruption evaluators in particular from the country’s anti-corruption agency.

Practical implications

This paper contributes to the development of corruption prevention strategy by proposing a framework for systematically performing qualitative evaluation on behavior-oriented corruption prevention initiatives.

Originality/value

This paper highlights the importance of qualitative measures in evaluating behavior-oriented corruption prevention initiatives in the Indonesian public sector.

Details

Journal of Financial Crime, vol. 27 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 29 October 2021

Hendi Yogi Prabowo

The purpose of this paper is to propose a new analytical framework in examining corruption from the social ontology perspective by using the Schatzkian practice theory to assess…

Abstract

Purpose

The purpose of this paper is to propose a new analytical framework in examining corruption from the social ontology perspective by using the Schatzkian practice theory to assess the interconnectedness among social practices constituting the social reality.

Design/methodology/approach

This exploratory paper is part of the author’s study to assess the complex corruption phenomenon in Indonesia from multiple perspectives to gain a better understanding of its nature and dynamics. By drawing from the existing literature on the Schatzkian practice theory, the COVID-19 pandemic and the corruption phenomenon, this study investigates the potential changes of the new constellation of practice-arrangement bundles within the social reality and how such changes may alter corruption practices in the future. Furthermore, this study also uses publicly available reports from several national and international agencies to explore possible future scenarios from the interconnectedness of corruption, anti-corruption and pandemic practices. This paper constructs a new analytical framework for assessing the corruption phenomenon and designing the most appropriate anti-corruption strategy from such an exploration. The framework also serves as a reference for future anti-corruption research.

Findings

The author establishes that all social phenomena are constructed by an interconnected, dynamic and ever-changing constellation of practice-arrangement bundles within the social reality. As a largely social phenomenon (at least in Indonesia), corruption is also constructed by webs of practice-arrangement bundles. For decades, corruption practices in Indonesia have always been interconnected with anti-corruption practices in ways that changes in one group of practices will drive changes in the others. With the adoption of the pandemic practices centered around social distancing, social restriction and social safety net, corruption practices appear to transform to adapt to the new environment. Therefore, future anti-corruption research should aim to examine the structure and dynamics of corruption, anti-corruption and pandemic practices to highlight changes or potential changes within the three groups of practices to determine the most appropriate intervention measures and anti-corruption strategy.

Research limitations/implications

This exploratory study is self-funded and relies primarily on documentary analysis to explore the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former corruption offenders and corruption investigators.

Practical implications

This exploratory paper contributes to developing a sound corruption prevention strategy by proposing a new analytical framework for assessing various social practices, particularly those associated with corruption and the COVID-19 pandemic.

Originality/value

This paper highlights the importance of understanding the structure, interconnectedness and dynamics of social practices, particularly associated with the COVID-19 pandemic, to better understand the corruption phenomenon.

Details

Journal of Financial Crime, vol. 29 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 October 2018

Hendi Yogi Prabowo and Suhernita Suhernita

Based on the authors’ study, the purpose of this paper is to establish a foundation for assessing and deciding the most feasible corruption prevention activities with significant…

Abstract

Purpose

Based on the authors’ study, the purpose of this paper is to establish a foundation for assessing and deciding the most feasible corruption prevention activities with significant impact in reducing corruption in the Indonesian public sector. To accomplish this objective, this paper applies multiple theoretical perspectives simultaneously to better understand the behavioral aspects of corruption prevention strategy in Indonesia.

Design/methodology/approach

This paper is part of the authors’ study to assess the corruption problem in the Indonesian public sector in the past decade primarily through examination of major corruption cases to highlight various behavioral issues that became the root causes of rampaging corruption in the country. This paper also discusses how such issues undermine the effectiveness of the existing corruption prevention strategy as well as how to properly address them.

Findings

The authors establish that there are numerous overlooked behavioral issues that have rendered existing corruption prevention measures in the Indonesian public sector ineffective in hampering the regeneration of corruption. Gaining sufficient understanding on how public officials’ view on corruption is shaped by their culture and society is crucial in ascertaining what needs to be done to prevent corruption from reoccurring in the future. This study demonstrates that transformative learning needs to be systematically carried out to re-engineer organizational mindset to make it intolerant to corruption which includes unlearning the embedded knowledge of corruption. To support the execution of organizational unlearning discernment must be exercised to enable anti-corruption messages to be sent to the target groups. Nevertheless, due to various inherent behavioral issues within the Indonesian public institutions stimulating anti-corruption discernment is in itself a profound challenge. To promote anti-corruption discernment in the Indonesian public sector, this study proposes the Shame-oriented Anti-corruption Discernment Stimulation (SADS) which focuses on the “management of shame” in stimulating anti-corruption discernment within public institutions in Indonesia.

Research limitations/implications

This study is self-funded and is relying primarily on documentary analysis in highlighting the behavioral issues that determine the success and failure of corruption prevention strategy in Indonesia. Future studies may benefit from interviews with experts in Indonesian culture as well as indigenous people who can offer a broader view on how self-conscious emotions such as shame and guilt are actually experienced in different regions in Indonesia.

Practical implications

This paper contributes to the development of corruption prevention strategy by proposing a framework for systematically stimulating anti-corruption discernment within organizations that are part of collectivistic societies.

Originality/value

This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.

Details

Journal of Financial Crime, vol. 25 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

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