Fraud Tendency: The Role of Financial Pressure and Permissive Organizational Culture
DOI:
https://doi.org/10.38035/dijefa.v7i4.7392Keywords:
financial pressure, permissive organizational culture, fraud tendency, asset misappropriation, Zakat Management Organizations, Fraud Pentagon TheoryAbstract
This study analyzes the effects of financial pressure and permissive organizational culture on the tendency toward fraud, specifically asset misappropriation, among Zakat Management Organizations (ZMOs) in Central Java, Indonesia. The study employs a quantitative approach with a cross-sectional survey design. Data were collected through questionnaires distributed to employees of ZMOs affiliated with the Zakat Forum (FOZ) in Central Java. Using purposive sampling with a minimum employment tenure of six months as the eligibility criterion, 102 respondents met the research criteria. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that financial pressure positively and significantly affects fraud tendency, with a path coefficient of 0.337 and a p-value of 0.004. Permissive organizational culture also positively and significantly affects fraud tendency, with a path coefficient of 0.332 and a p-value of 0.003. The R-square value of 0.324 indicates that financial pressure and permissive organizational culture jointly explain 32.4% of the variance in fraud tendency. This implies that ZMOs should reduce employees' financial pressures and strengthen an organizational culture that does not tolerate unethical behavior to prevent fraud more effectively. This study extends the application of Fraud Pentagon Theory to faith-based nonprofit organizations, particularly those involved in zakat fund management.
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