Optimizing intellectual capital for good governance implementation in village government to enhance performance and reduce corruption

This study examines the role of intellectual capital (human, structural and relational capital) in promoting the implementation of good governance principles (accountability, participation and transparency) and its subsequent impact on performance and fraud reduction in Indonesian village financial management. The research model was based on the Resource-Based View (RBV) and Agency theory. A survey method was adopted, and the data were collected through a structured questionnaire distributed to village government officials, consultative body members and community leaders from 185 villages in South Kalimantan, Indonesia. The Data were analyzed using the Partial Least Squares (PLS) method. The results showed that intellectual capital significantly impacted the implementation of good governance principles in village government. Furthermore, transparency and accountability improved performance and reduced fraud. Participation also enhanced performance but did not significantly reduce fraud.