Downward Accountability as a Tool to enhance Malaysian NPO's Effectiveness

Authors

  • Hasnatulsyakhira Abdullah Hadi Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Shah Alam, Malaysia
  • Ahmad Naqiyuddin Bakar Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Shah Alam, Malaysia
  • Nurul Hidayana Mohd Noor Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Shah Alam, Malaysia
  • Afief El Ashfahany Islamic Economics and Law Department, Universitas Muhammadiyah Surakarta, Indonesia

DOI:

https://doi.org/10.21834/ebpj.v8i24.4612

Keywords:

Information Disclosure, Participation Mechanism, NPO Effectiveness, Nonprofit Organisation

Abstract

The important role of nonprofit organisations (NPO) as service providers, they have been demanded to prove their accountability towards their stakeholders. Downward accountability mechanism is believed can improve NPO effectiveness. This paper aims to assess the relationship between information disclosure and participation mechanism with NPO effectiveness. This study will employ a quantitative research strategy, and it will be a cross-sectional survey. The instrument that will be used is a structured questionnaire that involved 214 staff from welfare NPOs in the Klang Valley, Malaysia and analysed using Structural Equation Modeling (SEM). The findings will give better insight into the Malaysian third sector.

References

Abdullah Hadi , H. ., Bakar , A. N. ., Mohd Noor , N. H. ., & Ashfahany , A. E. . (2022). The Value of Financial and Non-Financial Information towards Non-profit Organisations. Environment-Behaviour Proceedings Journal, 7(21), 349-355. https://doi.org/10.21834/ebpj.v7i21.3693 DOI: https://doi.org/10.21834/ebpj.v7i21.3693

AbouAssi, K., & Bies, A. (2018). Relationships and resources: the isomorphism of nonprofit organizations’ (NPO) self-regulation. Public Management Review, 20(11), 1581–1601. DOI: https://doi.org/10.1080/14719037.2017.1400583

Agyemang, G., O’Dwyer, B., Unerman, J., & Awumbila, M. (2017). Seeking "conversations for accountability": Mediating the impact of upward accountability processes of non-governmental organizations (NGO). Accounting, Auditing and Accountability Journal, 30(5), 982–1007. DOI: https://doi.org/10.1108/AAAJ-02-2015-1969

Ali, M. (2014). Role of effective communication to ensure community participation in NGOs' projects: A comparative study of a Malaysian and a Pakistani NGO (Doctoral dissertation, University of Malaya).

Anggita, W., & Rudianto, N. A. R. (2020). The extent of information disclosure on nonprofit organizations in Indonesia. International Journal of Advanced Research in Economics and Finance, 2(3), 39-44

Bakar, A. A. (2017, December 26). Tenaga pengajar dakwa duit tahfiz diseleweng pengurusan. Retrieved from BH Online: https://www.bharian.com.my/berita/kes/2017/12/367622/tenaga-pengajar-dakwa-duit-tahfiz-diseleweng-pengurusan

Banding, M. P., & Mayangsari, S. (2017). The Impact of Financial and Non-Financial Information Disclosure to Donation Decision in NonProfit Organization by Individual Donor (A True-Experiment Research). financial accounting, 8(16), 9-19.

Bawole, J. N., & Langnel, Z. (2016). Downward accountability of NGOs in community project planning in Ghana. Development in Practice, 26(7), 920–932. DOI: https://doi.org/10.1080/09614524.2016.1210094

Benjamin, L. M. (2021). Bringing beneficiaries more centrally into nonprofit management education and research. Nonprofit and Voluntary Sector Quarterly, 50(1), 5-26. DOI: https://doi.org/10.1177/0899764020918662

Bernama. (2020, April 14). COVID-19: KKM masih perlukan sumbangan PPE. Retrieved from Astro Awani : https://www.astroawani.com/berita-malaysia/covid19-kkmmasih-perlukan-sumbangan-ppe-238219

Byrne, B. (2006). Structural equation modeling with EQS: Basic concepts, applications, and pro-gramming. Mahwah, NJ: Erlbaum.

Cameron, K. (2014). Organizational Effectiveness. Wiley Encyclopedia of Management, 34(1), 98–100. DOI: https://doi.org/10.1002/9781118785317.weom110202

Campbell, D. T. (1960). Recommendations for APA test standards regarding, construct, trait, or discriminant validity. American Psychologist, 15, 546–553. DOI: https://doi.org/10.1037/h0048255

Chu, V., & Luke, B. (2020). A participatory approach: Shifting accountability in microenterprise development. Financial Accountability and Management, (January), 1–26. DOI: https://doi.org/10.1111/faam.12252

Conrardy, A. (2020, January 27). 2020 Nonprofit Stats: A Few Things That Might Surprise You About the Nonprofit Sector. Retrieved from Prosper Strategies: https://prosper-strategies.com/2020-nonprofit-stats/

Dewi, M. K., Manochin, M., & Belal, A. (2019). Towards a conceptual framework of beneficiary accountability by NGOs: An Indonesian case study. Critical Perspectives on Accounting, 1–15. https://doi.org/10.1016/j.cpa.2019.102130 DOI: https://doi.org/10.1016/j.cpa.2019.102130

Ebrahim, A. (2003). Accountability in practice: Mechanisms for NGOs. World development, 31(5), 813-829. DOI: https://doi.org/10.1016/S0305-750X(03)00014-7

Farouk, U. K., & Wing, M. S. (2019). Drivers and challenges of a NGO type social enterprise in Malaysia: A narrative study. Malaysian Journal of Consumer and Family Economics, 22(S1), 43–66.

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39–50. DOI: https://doi.org/10.1177/002224378101800104

France, A., & Regmi, P. (2019). Information Accountability in a Non-profit Organisation. Journal of New Business Ideas & Trends, 17(1).

Greiling, D., & Spraul, K. (2010). Accountability and the challenges of information disclosure. Public Administration Quarterly, 338-377.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th Edition). NJ: Prentice Hall.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2014). Pearson new international edition. Multivariate data analysis. Exploratory Data Analysis in Business and Economics, 23-60. DOI: https://doi.org/10.1007/978-3-319-01517-0_3

Hashim, M. H., Nawawi, A., & Salin, A. S. A. P. (2014). Determinants of strategic information disclosure-Malaysian evidence. International Journal of Business and Society, 15(3), 547–572.

Harun, M. S. (2021). The Downward vs Upward Accountability Practices: A Study of Malaysian-Palestine Non-Government Organizations (NGOs).

Iqmal, M., Kamaruddin, H., Ramli, N. M., Islam, U. S., & Sembilan, N. (2018). The Impacts of Internal Control Practices on Financial Accountability in Islamic Non-Profit Organizations in Malaysia. International Journal of Economics, Management and Accounting, 26(2), 365–391.

Johnson, E. C. (2021). Citizen Engagement. Retrieved from The World Bank: https://www.worldbank.org/en/about/what-we-do/brief/citizen-engagement

Lecy, J. D., Schmitz, H. P., & Swedlund, H. (2012). Non-Governmental and Not-for-Profit Organizational Effectiveness: A Modern Synthesis. Voluntas, 23(2), 434–457. DOI: https://doi.org/10.1007/s11266-011-9204-6

Lee, R. L., & Blouin, M. C. (2019). Factors affecting web disclosure adoption in the nonprofit sector. Journal of Computer Information Systems, 59(4), 363-372. DOI: https://doi.org/10.1080/08874417.2017.1370988

LeRoux, K., & Wright, N. (2010). Does performance measurement improve strategic decision-making? Findings from a national survey of nonprofit social service agencies. Nonprofit and Voluntary Sector Quarterly, 39, 571–587. doi:10.1177/ 0899764009359942 DOI: https://doi.org/10.1177/0899764009359942

Liket, K. C., & Maas, K. (2015). Nonprofit Organizational Effectiveness: Analysis of Best Practices. Nonprofit and Voluntary Sector Quarterly, 44(2), 268–296. DOI: https://doi.org/10.1177/0899764013510064

Littlewood, D., & Holt, D. (2018). How social enterprises can contribute to the Sustainable Development Goals (SDGs)–A conceptual framework. In Entrepreneurship and the sustainable development goals. Emerald Publishing Limited. DOI: https://doi.org/10.1108/S2040-724620180000008007

Mercelis, F., Wellens, L., & Jegers, M. (2016). Beneficiary Participation in Non-Governmental Development Organisations: A Case Study in Vietnam. Journal of Development Studies, 52(10), 1446–1462. https://doi.org/10.1080/00220388.2016.1166209 DOI: https://doi.org/10.1080/00220388.2016.1166209

Mohd Noor, N. H. (2017). The influence of organizational culture, downward accountability, and knowledge sharing on Malaysian nonprofit organizations effectiveness: From employees perspective. Doctor of Philosophy doctoral dissertation, University of Malaya. DOI: https://doi.org/10.1108/IJOA-08-2015-0893

Murtaza, N. (2012). Putting the lasts first: The case for community-focused and peer-managed NGO accountability mechanisms. VOLUNTAS: International Journal of Voluntary and Nonprofit Organisations, 23(1), 109-125. DOI: https://doi.org/10.1007/s11266-011-9181-9

Obrecht, A. (2012). Effective accountability. The drivers, benefits and mechanisms of CSO self-regulation. London: One World Trust.

Othman, R., & Ali, N. (2012). NPO, Internal Controls, and Supervision Mechanisms in a Developing Country. Voluntas, 25(1), 201–224. DOI: https://doi.org/10.1007/s11266-012-9335-4

Perai, N. A. A. (2019). Mapping the Malaysian Third Sector: using organisational data to obtain an improved account of its scope and size.

Porbeni, A. A. (2016). Leadership Turnover and Organizational Effectiveness: A Case Study of a Midwestern Nonprofit Community Health Center (Doctoral dissertation, University of Minnesota).

Roslan, N., Arshad, R., & Pauzi, N. F. M. (2017). Accountability and governance reporting by non-profit organizations. In SHS Web of Conferences, 36, 00041. EDP Sciences. DOI: https://doi.org/10.1051/shsconf/20173600041

Salamon, L. M., & Sokolowski, S. W. (2016). Beyond nonprofits: Re-conceptualizing the third sector. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 27(4), 1515-1545. DOI: https://doi.org/10.1007/s11266-016-9726-z

Saraite-Sariene, L., Alonso-Cañadas, J., Galán-Valdivieso, F., & Caba-Pérez, C. (2020). Non-financial information versus financial as a key to the stakeholder engagement: A higher education perspective. Sustainability (Switzerland), 12(1). DOI: https://doi.org/10.3390/su12010331

Singh, N., & Mthuli, S. A. (2020). The Big Picture of Non-Profit Organisational Sustainability: a Qualitative System Dynamics Approach. Systemic Practice and Action Research. DOI: https://doi.org/10.1007/s11213-020-09529-6

Sokri, S. (2017). Sumbangan pakaian dalam jangan dilupa. Retrieved from HMetro: https://www.hmetro.com.my/mutakhir/2017/11/281852/sumbangan-pakaian-dalamjangan-dilupa

Sood, J., Lynch, P., & Anastasiadou, C. (2017). Community non-participation in homestays in Kullu, Himachal Pradesh, India. Tourism management, 60, 332-347. DOI: https://doi.org/10.1016/j.tourman.2016.12.007

Taylor, D., Tharapos, M., & Sidaway, S. (2014). Downward accountability for a natural disaster recovery effort: Evidence and issues from Australia’s Black Saturday. Critical Perspectives on Accounting, 25(7), 633–651. https://doi.org/10.1016/j.cpa.2013.01.003 DOI: https://doi.org/10.1016/j.cpa.2013.01.003

Tremblay-Boire, J., & Prakash, A. (2015). Accountability. org: Online disclosures by US nonprofits. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26, 693-719. DOI: https://doi.org/10.1007/s11266-014-9452-3

Valeau, P., Eynaud, P., Chatelain-Ponroy, S., & Sponem, S. (2019). Toward a reassessment of the role of rank-and-file stakeholders in nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 48(1), 146–172. DOI: https://doi.org/10.1177/0899764018794898

Downloads

Published

2023-05-09

How to Cite

Abdullah Hadi, H., Bakar, A. N., Mohd Noor , N. H., & Ashfahany , A. E. (2023). Downward Accountability as a Tool to enhance Malaysian NPO’s Effectiveness . Environment-Behaviour Proceedings Journal, 8(24), 263–270. https://doi.org/10.21834/ebpj.v8i24.4612