Transparency in Village Fund Management and Public Trust: The Mediating Role of Management Quality
DOI:
https://doi.org/10.65336/WJEBM.2026.31105Keywords:
Management quality, public trust, transparency, village fundAbstract
Background: Residents need village fund information that is clear and understandable to assess how public funds are managed. Objective: This study examines the effect of transparency in village fund management on public trust and tests whether management quality mediates this relationship. Method: Questionnaire data were collected from 138 residents of Sungai Jelai Village, selected through proportionate random sampling from an accessible population of 210. Responses used a four-point Likert scale and were analyzed with Partial Least Squares Structural Equation Modeling in SmartPLS 4.0. Results: Transparency had a positive but insignificant direct effect on public trust (β = 0.016, p = 0.869). It had a positive and significant effect on management quality (β = 0.510, p < 0.001), which in turn had a positive and significant effect on trust (β = 0.523, p < 0.001). The indirect effect was significant (β = 0.267, p < 0.001), indicating full mediation. Conclusion: Transparency is associated with stronger public trust when it is accompanied by orderly, appropriate, and accountable management of village funds.
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