Confirmatory Factors Analysis on the Latent Variables Indicators of E-Government, Organizational Culture, Good Governance, and Public Trust in Transfer Fund Management

Abstract

This article describes how to measure the accuracy and consistency of indicators in constructing e-government latent variable constructs, organizational culture, good governance, and public trust in managing transfer of funds from the central government to provinces, districts, and cities in East Kalimantan, Indonesia. The aim is to identify valid factors that can be used to measure the latent variable constructs under study. The method used is confirmatory factor analysis with structural equation modeling on the data of 400 respondents from the East Kalimantan community. Four constructs of latent variables were tested based on 19 indicators. Data were obtained through questionnaires and arranged on a 1-5 Likert scale. The results of the analysis show that the indicator groups are valid, consistent, and dominant to measure the latent variable constructs: 1) e-government, namely the quality of systems, information, and services; 2) organizational culture including innovation and risk-taking, attention to detail, people-orientation, result orientation, team orientation, aggressiveness, and stability; 3) good governance implying efficiency, transparency, fairness, participation, and effectiveness; 4) public trust comprising dispositional trust, institutional trust, and interpersonal trust. Meanwhile, the accountability indicator in this study was found not valid for measuring the construct of the latent variable for good governance, as opposed to previous researchers. The implications of the research results provide enrichment for empirical studies of the appropriate variable indicators used and can be used as the basis for further research.