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28 Probability of Firm’s Bribery Behavior:
Business Obstacles as a Pressure

Element of Fraud Triangle

Dariyah, Nanda Ayu Wijayanti

ABSTRACT

The purpose of this research examines the relationship between business obstacles and probability of firm’s bribery
behavior related import and operation license. This study use logistic regression to test it’s hypothesis with a sample
of companies in Indonesia which took a survey conducted by the Enterprise Survey World Bank in 2015. This research
proven that the element pressure or Fraud Triangle Theory has significant positive relation with probability of firm’s
bribery behavior.

Keywords
Bribery, business obstacles, fraud, fraud triangle

2.1 Introduction
Corruption may wear many faces, from extortion to embezzlement to bribery. The eradication of corruption at all levels
both government and private companies. The government and private companies implement good governance, one
of which is to avoid fraud. But, the case of corruption still alive, why it is seem difficult to deter corruption.

Therefore, the purpose of this research examines the relationship between business obstacles and probability of firm’s
bribery behavior related import and operation license. Based on the recent research conducted by Uribe-Toril, Ruiz-
Real, Ceresia, & de Pablo Valenciano (2019) this research show that topic regarding corruption and entrepreneurship
as attractive topic for scholar. They use bibliometric method to explore the topic with keywords “corruption” and
“entrepreneurship”. They get 180 selected document except document of 2019 and 2020.

Further, the result of that study direct us to sub-topic such as corruption related to bureaucratic. Previous studies
examined regarding bureaucratic corruption. ‘Corruption reduces the performance of institutions in a democratic
system, suppresses economic growth, exacerbates income disparities and causes government instability. Other studies
focused in topic regarding bureaucratic reformation.

Bureaucracy is a system run by government employees to serve the community. Furthermore, they are referred to as
bureaucrats. In general, bureaucracy is interpreted as regulations made by officials. So that the good and bad of the
bureaucracy depends on how the behavior of the bureaucrats who run it.

This is where the public doubts about the achievement of the GDRB target. It is noted that the bureaucracy of public
services in Indonesia is still poor. The corruption perception index (CPI) score for Indonesia in 2019 is still below the
average of 40 (Transparency International, 2019). Where the assessment used is getting closer to 100, meaning that the
country is getting clean from corruption, on the other hand, closer to 0, the more corrupt it is. Likewise, according to
the World Governance Indicator (WGI), the government’s effectiveness is 0.18 and corruption control is -0.25 for 2018.
The WGI assessment index is between -2.5 and 2.5. The closer to -2.5 indicates that the performance of each global
governance indicator in that country is considered poor and vice versa, approaching 2.5 indicates that the performance
of each of the worldwide governance indicators in that country is considered good.

This shows that there are still problems in the internal bureaucracy. Maulidi (2020) conducted research on fraud that
occurred in the bureaucracy. With 33 government elites as respondents, on average they said they were cheating
because they imitated their leaders. There is cooperation in committing fraud, so there is pressure for others to do the
same (Maulidi, 2020; Rustiarini, Sutrisno, Nurkholis, & Andayani, 2019). Ryvkin and Serra (2020) conduct a bribery game
experiment which result in competition for public services increasing the demand for bribes. The possibility of bribery
can be an obstacle to bureaucratic reform.

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