Exploring Village Fund Accountability through the Lens of Institutional Isomorphism: The Tension between Norms and Regulations
Keywords:
Accountability, Institutional isomorphism, Norms and RegulationsAbstract
Village fund accountability is a critical issue in Indonesia’s fiscal decentralization, particularly in contexts where tensions arise between local social norms and formal state regulations. This study aims to examine village fund accountability practices through the lens of institutional isomorphism, focusing on the influence of coercive, mimetic, and normative pressures on village financial governance. The study adopts a qualitative case study approach conducted in several villages. Data were collected through in-depth interviews with key informants, including village officials, members of village consultative bodies, and other local stakeholders, and were analyzed using thematic analysis. The findings indicate that coercive isomorphism plays a dominant role through government regulations and formal supervision mechanisms, encouraging villages to comply rapidly with standardized administrative procedures. Mimetic isomorphism is evident in the replication of financial reporting practices and the adoption of similar financial management systems across villages. Meanwhile, normative isomorphism emerges from efforts by village officials to align accountability practices with prevailing social values and community expectations. These dynamics reveal a practical dilemma where formal accountability mandates do not always align with informal cultural norms. This study contributes to a deeper understanding of how institutional dynamics shape public accountability at the lowest level of government and highlights the need for accountability policies that are responsive to local social contexts.
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