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Local government performance as a mediator between institutional capacity and community welfare in Jambi Province

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah · Vol. 14 No. 2 (2026) · hlm. 177–204

DOI
10.22437/ppd.v14i2.55950
ISSN
2355-8520, 2338-4603
Terbit
2026-06-30
Penerbit
Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi
Bahasa
en
Lisensi
creativecommons.org/licenses/by/4.0

Abstrak

Fiscal decentralization is intended to improve community welfare by strengthening local governments' fiscal capacity, organizational characteristics, and bureaucratic human resources. However, the mechanisms through which these institutional factors influence welfare remain insufficiently understood. This study investigates the direct and indirect effects of regional financial conditions, government size, and State Civil Apparatus (ASN) conditions on community welfare through local government performance in the district and municipal governments of Jambi Province, Indonesia. The analysis is based on balanced panel data from 11 local governments covering the 2014–2024 period and employs Partial Least Squares Structural Equation Modeling (PLS-SEM) using WarpPLS 8.0. The results indicate that regional financial conditions negatively affect government performance but positively affect community welfare. Government size has no significant effect on government performance but negatively affects community welfare. In contrast, ASN conditions positively influence both government performance and community welfare. Government performance, however, neither significantly affects community welfare nor mediates the relationships between regional financial conditions, government size, ASN conditions, and community welfare. These findings suggest that fiscal capacity and ASN quality contribute to community welfare primarily through direct mechanisms rather than through formal administrative performance. The study contributes to the literature on fiscal decentralization, Public Financial Management Theory, and Public Value Theory by demonstrating that administrative performance alone is insufficient to translate institutional capacity into improved welfare outcomes. The findings further underscore the importance of strengthening expenditure quality, enhancing ASN professionalism, and adopting outcome-oriented performance management to maximize the welfare benefits of fiscal decentralization.

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  • Hasanuddin University
  • Universitas Halu Oleo
  • University of Brawijaya
  • IPB University
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Rekan penulisOrganisasiArtikel bersama
Subyantoro SubyantoroAfiliasi tidak diketahui9
Yudi YudiAfiliasi tidak diketahui9
RAHAYU RAHAYUUniversitas Halu Oleo7
Dheny WahyudhiAfiliasi tidak diketahui6
Rustono RustonoAfiliasi tidak diketahui5
Etik UmiyatiAfiliasi tidak diketahui5
Tri Imam MunandarAfiliasi tidak diketahui5
Sri WidyartiAfiliasi tidak diketahui5
Muhaimin Rifa’iUniversity of Brawijaya5
Herry LiyusAfiliasi tidak diketahui4
Sry RositaAfiliasi tidak diketahui4
Aris SoewondoAfiliasi tidak diketahui4
Misni ErwatiAfiliasi tidak diketahui4
Wiwik TiswiyantiAfiliasi tidak diketahui4
Asnath Maria FuahAfiliasi tidak diketahui3
Runjati RunjatiAfiliasi tidak diketahui3
Muhammad RidwanHasanuddin University3
Yuliusman YuliusmanAfiliasi tidak diketahui3
Dheny WahyudiAfiliasi tidak diketahui3
Fikriya Novita SariAfiliasi tidak diketahui3
Mukhzarudfa MukhzarudfaAfiliasi tidak diketahui3
Amri AmirAfiliasi tidak diketahui3
Rita FriyaniAfiliasi tidak diketahui3
Salman JumailiAfiliasi tidak diketahui3
Luki AbdullahIPB University2
Rachmat SomanjayaAfiliasi tidak diketahui2
Mohamad Agus SetiadiAfiliasi tidak diketahui2
Hari Bakti MardikantoroAfiliasi tidak diketahui2
Bambang HartonoAfiliasi tidak diketahui2
Mijil SetyasihAfiliasi tidak diketahui2
Imam BaehaqieAfiliasi tidak diketahui2
Agus NuryatinAfiliasi tidak diketahui2
Nas Haryati SetyaningsihAfiliasi tidak diketahui2
Rizal Adi SaputraUniversitas Halu Oleo1
Sutardi SutardiUniversitas Halu Oleo1

Afiliasi berasal dari OpenAlex; metadata OAI-PMH jurnal tidak memuatnya. Penulis tanpa ID OpenAlex dicocokkan berdasarkan nama, sehingga dua orang bisa tergabung atau satu orang bisa terpisah.

Sumber metadata: OAI-PMH (metadata jurnal) https://online-journal.unja.ac.id/index.php/JES/oai, pertama di-harvest 6 Nov 2026, terakhir terlihat 8 Nov 2026.
Metadata asli (oai_dc) 
<oai_dc:dc xmlns="http://www.openarchives.org/OAI/2.0/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:oai_dc="http://www.openarchives.org/OAI/2.0/oai_dc/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/  http://www.openarchives.org/OAI/2.0/oai_dc.xsd">
	<dc:title xml:lang="en">Local government performance as a mediator between institutional capacity and community welfare in Jambi Province</dc:title>
	<dc:creator xml:lang="en">Sam, Iskandar</dc:creator>
	<dc:creator xml:lang="en">Haryadi, Haryadi</dc:creator>
	<dc:creator xml:lang="en">Rahayu, Sri</dc:creator>
	<dc:creator xml:lang="en">Putra, Wirmie Eka</dc:creator>
	<dc:creator xml:lang="en">Sumarni, Sumarni</dc:creator>
	<dc:subject xml:lang="en">Community welfare</dc:subject>
	<dc:subject xml:lang="en">Fiscal decentralization</dc:subject>
	<dc:subject xml:lang="en">Government performance</dc:subject>
	<dc:subject xml:lang="en">Government size</dc:subject>
	<dc:subject xml:lang="en">Regional financial</dc:subject>
	<dc:subject xml:lang="en">State Civil Apparatus (ASN)</dc:subject>
	<dc:description xml:lang="en">Fiscal decentralization is intended to improve community welfare by strengthening local governments' fiscal capacity, organizational characteristics, and bureaucratic human resources. However, the mechanisms through which these institutional factors influence welfare remain insufficiently understood. This study investigates the direct and indirect effects of regional financial conditions, government size, and State Civil Apparatus (ASN) conditions on community welfare through local government performance in the district and municipal governments of Jambi Province, Indonesia. The analysis is based on balanced panel data from 11 local governments covering the 2014–2024 period and employs Partial Least Squares Structural Equation Modeling (PLS-SEM) using WarpPLS 8.0. The results indicate that regional financial conditions negatively affect government performance but positively affect community welfare. Government size has no significant effect on government performance but negatively affects community welfare. In contrast, ASN conditions positively influence both government performance and community welfare. Government performance, however, neither significantly affects community welfare nor mediates the relationships between regional financial conditions, government size, ASN conditions, and community welfare. These findings suggest that fiscal capacity and ASN quality contribute to community welfare primarily through direct mechanisms rather than through formal administrative performance. The study contributes to the literature on fiscal decentralization, Public Financial Management Theory, and Public Value Theory by demonstrating that administrative performance alone is insufficient to translate institutional capacity into improved welfare outcomes. The findings further underscore the importance of strengthening expenditure quality, enhancing ASN professionalism, and adopting outcome-oriented performance management to maximize the welfare benefits of fiscal decentralization.</dc:description>
	<dc:publisher xml:lang="en">Program Magister Ilmu Ekonomi  Pascasarjana Universitas Jambi</dc:publisher>
	<dc:date>2026-06-30</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://online-journal.unja.ac.id/JES/article/view/55950</dc:identifier>
	<dc:identifier>10.22437/ppd.v14i2.55950</dc:identifier>
	<dc:source xml:lang="en">Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; Vol. 14 No. 2 (2026): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; 177-204</dc:source>
	<dc:source>2355-8520</dc:source>
	<dc:source>2338-4603</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://online-journal.unja.ac.id/JES/article/view/55950/24804</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Iskandar Sam, Haryadi Haryadi, Sri Rahayu, Wirmie Eka Putra, Sumarni Sumarni</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by/4.0</dc:rights>
</oai_dc:dc>