Fraud Prevention Effectiveness: The Moderating Roles of Cultural Values and Organizational Commitment

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DOI: https://doi.org/10.28924/2291-8639-24-2026-163
Published: May 29, 2026
Cite as:
Anggi Afnisah, Iskandar Muda, Badaruddin, Abdillah Arif Nasution, Fraud Prevention Effectiveness: The Moderating Roles of Cultural Values and Organizational Commitment, Int. J. Anal. Appl., 24 (2026), 163.

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Anggi Afnisah, Iskandar Muda, Badaruddin, Abdillah Arif Nasution

Abstract

This study examines the effectiveness of fraud prevention in village fund management in North Sumatra Province, focusing on how cultural values and organizational commitment moderate the relationship among bureaucratic competence, internal control systems, and fraud prevention outcomes. Using Partial Least Squares–Structural Equation Modeling (PLS-SEM), data were collected from 162 village officials across purposively selected villages with the largest fund allocations.Results reveal that bureaucratic competence and internal control systems alone do not directly enhance fraud prevention effectiveness. However, cultural values significantly strengthen both relationships, while organizational commitment moderates only the internal control-fraud prevention link. These findings demonstrate that technical capacity and formal controls require a supportive organizational culture and staff commitment to function effectively. The study contributes to theory by highlighting fraud prevention’s contingent nature in public sector contexts. Practically, it suggests that local governments should integrate cultural development and commitment-building strategies alongside procedural and technical capacity enhancements in the village fund management.

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