The Application of Stakeholder Theory in a Small Public Sector Accountability Unit: An Indonesian Village Government Case

Abstract

This paper aims to provide a comprehensive understanding of the accountability model in a small unit of public sector organization. Hence, it elaborates on the elements that should be considered in developing an accountability model by reviewing the literature on accountability in general, its practices in the public sector organization, and the numerous regulations covering the village administration in Indonesia. The accountability of village administration in Indonesia is related to the village community and the upper-level government entities. As the lowest-level government unit, the leader and his/her administration should be accountable to the village community and the upper-level government entities, such as districts/cities, provinces, and related ministries at central governments with various needs. Thus, village administration focuses more on meeting the needs of the upper-level government entities rather than fulfilling the needs of the village community as primary stakeholders. The strategies in developing the accountability model for a small unit of public sector organization need to consider the relation between village administration as an agent and other primary stakeholders as principals. The study adds to the theoretical knowledge of the accountability model for a small unit of public sector organization, particularly in Indonesian village administration.