Perceived effectiveness of e-governance
as an underlying mechanism between
good governance and public trust: a case
of Indonesia
Dadang Hartanto, Juhriyansyah Dalle, A. Akrim and Hastin Umi Anisah
Dadang Hartanto is based
at the Department of Public
Administration, Universitas
Muhammadiyah Sumatera
Utara, Medan, Indonesia.
Juhriyansyah Dalle is
based at the Department of
Information Technology,
Universitas Lambung
Mangkurat, Banjarmasin,
Indonesia. A. Akrim is
based at Universitas
Muhammadiyah Sumatera
Utara, Medan, Indonesia.
Hastin Umi Anisah is based
at the Department of
Management, Universitas
Lambung Mangkurat,
Banjarmasin, Indonesia.
Received 14 January 2021
Revised 13 August 2021
Accepted 7 October 2021
Funding Information: This paper
is part of a research report
collaboration with funding by
Universitas Muhammadiyah
Sumatera Utara with Grant
Number: 007-UMSU-02-2020.
Conflict of interest: The author
declares there is no conflict of
interest.
PAGE 598 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021, pp. 598-616, © Emerald Publishing Limited, ISSN 2398-5038
Abstract
Purpose – This study aims to investigate the association of perceived accountability, perceived
responsiveness and perceived transparency, and public trust in local government. Additionally,
mediation of the perceived effectiveness of e-governance was also tested between these relationships.
Design/methodology/approach – Using a quantitative cross-sectional field survey, primary data was
collected at local administration levels from two cities in Indonesia. The final data set of 355 respondents
was then analyzed using SmartPls3 and the measurement and structural models were tested.
Findings – Positive results were obtained for all the hypothesized links (direct and indirect relationships).
The study’s findings revealed useful insights for policymakers and researchers regarding the public’s
perception of good governance and their expectations from the government, which further lead toward
trust in local governments.
Practical implications – The study concluded that good governance practices develop and enhance
the public’s trust in the government, thus provided key policy directions.
Originality/value – This study contributes to the body of knowledge related to good governance
elements and their impact on public trust in the local government via the underlying mechanism of
perceived e-governance effectiveness in developing countries in general and particularly the Indonesian
context. Moreover, it is a unique study in the good governance domain while considering three good
governance elements into a single theoretical framework. Previous studies have explored these elements
individually with public trust, so this combined framework advances the body of knowledge. This
research’s findings also contributed toward validating good governance theory with e-governance
effectiveness and public trust integration in a single comprehensive framework. This research also helped
answer the questions arising from past literature about declining public trust trends in local governments.
Keywords Indonesia, Good governance, Perceived effectiveness of e-government,
Public trust in government, SmartPLS3
Paper type Research paper
Introduction
Good governance and public trust in government are directly interrelated, as the public
depends on the government’s policies, procedures and actions (Beshi and Kaur, 2020).
Public trust in government is considered the key to success for the democratic system, as it
is a vital imperative for the sustainability and legitimacy of any democratic system
(Bouckaert, 2012). Therefore, based on the variable nature and diverse decision-making
process, governments consider the majority interests while making important decisions
(Chakiri et al., 2020; Wasike, 2017). For that reason, governments with the greater trust of
the public can always work more effectively and smoothly than those with lower trust levels
DOI 10.1108/DPRG-03-2021-0046
(Sawatsuk et al., 2018). Thus, enhancing the citizens’ trust while efficiently and effectively
implementing strategies is one of the key competitive edges of governments (Houston and
Harding, 2013).
The good governance concept focuses mainly on three components (i.e. civil and private
societies and the state). However, it pays less attention to international players (Beshi and
Kaur, 2020). This shortcoming of the good governance concept further led toward an
alternative and more comprehensive concept, i.e. sound governance, as being more
comprehensive with elements of the constitutional values and responsive to international
norms, rules and regimes (Farazmand, 2017). Extensive literature search has indicated an
alarmingly decreasing trend of public trust in local governments in developed countries such
as the USA, Japan and Canada (Christopher et al., 2008). Hence, there is a need to
investigate these declining trends in public trust for local governments in general and
particularly in developing countries (Zhao and Jing, 2019; Mansoor, 2021b). Such attempts to
measure public trust in developing countries like Indonesia are scarce in academic research
literature related to public administration. This study contributed by bridging this gap to
provide empirical evidence from a developing country’s unique cultural context of Indonesia.
On the other hand, the relationship between the perceived effectiveness of e-governance and
public trust in government is a subject of immense interest nowadays (Sumathy, 2020).
E-governance is perceived better in providing quality information to the citizens (Sepasgozar
et al., 2020). It is evident from the recent literature that the use of e-governance platforms
creates a perception of fairness, resulting in a positive evaluation and ultimately leading toward
a higher level of trust among the public in local government (Hanafizadeh et al., 2020). Many
researchers have explored the association among different elements of good governance, i.e.
accountability (Farwell et al., 2019; Yang and Northcott, 2019), responsiveness (Gil de Zu ñiga
et al., 2017), transparency (Porumbescu, 2015) and the trust of citizens in local government.
However, there is a paucity of research on investigating the impact of all three elements
together along with citizens’ overall trust in local government in general and specifically in the
Indonesian cultural setting. Furthermore, primary data was collected from two important cities of
Sumatra and South Kalimantan provinces of Indonesia: quantitative analysis results are further
expected to provide key policy insights for practitioners and future scholars in governance and
public administration.
Similarly, there is a scarcity of literature exploring the mediating role of the perceived
e-governance effectiveness between these three elements of good governance and the public’s
overall trust in local government. So, this research advanced the existing literature by exploring
this unique mechanism in a single comprehensive framework. Moreover, using the good
governance theory to test the comprehensive framework related to e-governance effectiveness
and public trust is a major advance made by this research to the literature related to governance
and public administration. The current study is grounded in good governance theory, which
depicts the concerns of social science communities in changing patterns of governing styles
(Stoker, 1998). Since 1980, it has been widely cited to demonstrate diverse societies’ (Toikka,
2011). Thus, established on the good governance theory current study aims to:
䊏 Examine the impact of perceived accountability, perceived responsiveness and
perceived transparency on overall public trust in government.
䊏 Examine the impact of perceived responsiveness, perceived accountability and
perceived transparency on perceived e-governance effectiveness.
䊏 Examine the impact of perceived e-governance effectiveness on overall public trust in
government.
䊏 Investigate the mediating role of perceived e-governance effectiveness among
perceived accountability, perceived responsiveness and perceived transparency with
overall public trust in government.

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 599
 Review of literature and hypotheses development
Perceived accountability, responsiveness and transparency with overall public trust
in local government
Governance is a custom, practice, values and organization through which power in a state
is executed involving the government selection procedure, replacement of government and
accountability, honor and rights for citizens and the state’s ability to devise and use its
policies (Vaidya, 2020). Good governance does not have a single ideal model (Saich,
2007). To understand the practices of good governance, good governance theory is
commonly used. Rezaei Qadi and Shirkhani (2020, p. 27), demonstrated that “good
governance practice is one of the techniques to deploy or translate the good governance
theory.” According to the United Nations Development Program, there are five main
principles to practice good governance: legitimacy and voices, responsiveness,
accountability, transparency and fairness (Abas, 2019). According to Qudrat-I Elahi (2010),
good governance comprises multiple elements, including accountability, responsiveness
and transparency, among the most prominent ones. Therefore, this study is considering the
three principles of good governance, namely, responsiveness, accountability and
transparency and their impact on the creation of public trust among citizens.
According to Birkland and Barclay (1998, P. 23), “citizens’ trust in government can be
measured by the level to which the people have faith in the government system to work in
the best welfares of the community.” According to Macdonald (2020), the level of citizens’
confidence in their government that the government entities will perform the right actions on
an honest and effective basis in their people’s best interest is termed as citizens’ trust in
government.
Numerous studies reflected that citizens with a higher level of trust in the government are
more willing to obey the government’s rules and regulations (Porumbescu et al., 2021; Park
and Blenkinsopp, 2011). On the other hand, it is also evident from the literature that trusted
governments enjoy more democratic power and autonomy (Hickmann et al., 2017). Another
recent study by (Yang and Northcott, 2019) explained that the government’s accountability
is a significant predictor of establishing trust in governments. Furthermore, few other studies
also reported accountability as a vital part of creating citizens’ trust in the local government
(Yousaf et al., 2016; Newcomer, 2020).
The findings of Beshi and Kaur (2020) reported that perceived responsiveness leads to the
enhanced trust of citizens in the government. Likewise, Mansoor (2021a) reveals the
positive impact of perceived responsiveness on citizens’ trust in government agencies and
representatives. Moreover, perceived responsiveness is measured in the government’s
willingness to respond to public requests and complaints (Kro l and Zdonek, 2021).
Responsiveness is also critical because failure to comply with people’s demands or issues
on time can lead to uncertainty and lack of trust, resulting in riots and rebellions among
masse (Miller, 2015). Especially in today’s electronic and social media era, governments
must be attentive and responsive to meet citizens’ demands (Qiaoan and Teets, 2020).
Additionally, few more studies can be cited to support a positive association between
transparency and the level of citizens’ trust in governments (Sadeghi et al., 2018;
Porumbescu, 2015). Experimental research conducted by Porumbescu et al. (2021)
depicted that transparency is critical while expecting a higher level of trust from the
government’s citizens in multiple decisions made by the local administrations. All three
dimensions combined in a single framework have been investigated individually in past
literature. This research’s unique contribution is integrating them into a single
comprehensive framework grounded in good governance theory from public administration
literature. This theory presents that trust in government is established over time and is
dependent upon practices of good governance in the form of transparency and fairness of

PAGE 600 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021
the government entities; therefore, based on the above-cited literature support and
arguments following hypotheses are suggested:
H1. Perceived accountability is positively related to overall public trust in local
government.
H2. Perceived responsiveness is positively related to overall public trust in local
government.
H3. Perceived transparency is positively related to overall public trust in local
government.

Perceived accountability, responsiveness and transparency with perceived

effectiveness of e-governance
At the government level, a set of acts or concepts to interact with the citizens that involve
the use of information and communication technology to enhance the effectiveness and
efficiency of the public services is termed e-governance (Mudrifah, 2020). E-governance is
one of the most important opportunities that information and communication technologies
have provided worldwide by integrating good governance practices to achieve a higher
level of trust in the government (Ngonzi and Sewchurran, 2019). E-governance reflects how
governments act and share information with external and internal stakeholders via
information and communication technologies (Ullah et al., 2021). Therefore, it is convenient
for the government to be transparent and efficient while sharing information through e-
governance channels, which also reflects the government’s responsiveness to act in the
r, 2015).
citizens’ best interests (Krishnan et al., 2013; Lupu and Laza
As e-governance encompasses the utilization of information and communication
technologies to accelerate the collaboration among the government and citizens, it is,
therefore, a great medium of accountability element for the good governance system
(Mueller, 2017). Besides, transparency has been explained as the availability of information
about the social and political system and interactivity as the degree of immediate feedback
provided by government officials (Sridhar et al., 2020). Transparency also refers to
information available online at government websites, including ownership, contact
information, operational information, citizen assistance, etc (Sridhar et al., 2020). Moreover,
governments need to be responsive to accommodate individual and group needs (Kro l and
Zdonek, 2021).
Besides, in the beginning, the use of e-governance was at the information stage only
(Mudrifah, 2020). However, with time, it has become more detailed and not meant for the
publication of websites only but also for the full phase of electronic delivery of service to the
public efficiently and effectively (Mudrifah, 2020). In the same line, researchers supported
the notion that when citizens believe in the responsiveness and transparency of their
government representatives/agencies, their trust in government enhances (Saxena, 2018).
Furthermore, the literature on e-governance and three elements of transparency,
responsiveness and accountability is scarce in general and especially in the Indonesian
context. Thus, conceptualization is nascent and many citations are available to support the
conceptualizations theorized in this study. Therefore, based on the above arguments and
available literature, the following hypotheses are suggested:
H4. Perceived accountability is positively related to the perceived effectiveness of
e-governance.
H5. Perceived responsiveness is positively related to the perceived effectiveness
of e-governance.
H6. Perceived transparency is positively related to the perceived effectiveness of
e-governance.

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 601
 Perceived effectiveness of e-governance and public trust in local government
E-governance practices and the public’s trust in government have been highly significant
subjects since the past decade (Chatterjee and Kar, 2018). People have access to more
quality information based on the effective e-governance facilities available to them, resulting
in increased trust among them toward the decisions made and communicated by the local
governments (Dalle et al., 2020). Moreover, perceived e-governance effectiveness is
related to using information and communication technologies (ICTs) to support, formulate
and government policies intended for people’s welfare (Vaidya, 2020). Therefore, rooted in
good governance theory, it can be inferred that the use of e-government websites provides
effective e-governance and this perception of effective e-governance, thus building an
environment of overall trust in local governments (Haque, 2020). This research argues and
expects a positive association between perceived e-governance effectiveness and public
trust in the local government based on this limited and recent empirical and theoretical
support. Hence, the following hypothesis is suggested:
H7. Perceived effectiveness of e-governance is positively related to overall public trust in
local government.

The mediating role of perceived effectiveness of e-governance

Direct association of the elements of good governance and public trust in government has
been explained by some researchers (Moreno-Albarracı́n et al., 2020; Park and
Blenkinsopp, 2011). On the other hand, Vaidya (2020) reported e-governance as a
predictor of the public’s trust in the government. In addition, Banerjee et al. (2020) depicted
that government entities use various channels, i.e. Twitter, Facebook, Instagram, etc., to
interact with the citizens, to post important information, as well as to address and implement
various measures which are taken in usual and unusual situations resulting in enhanced
public trust in government. Besides, some studies in the literature pointed to explore the
mediatory role of e-governance on citizens’ trust in the government in the presence of
different predictor variables (Ma and Zheng, 2017; Eggenschwiler, 2020).
Moreover, researchers suggested that perceived transparency leads to increased public
trust in government (Mansoor, 2021a; Moreno-Albarracı́n et al., 2020). While overall public
trust is based on fairness and expectation from the authorities that make decisions to
safeguard people’s welfare (Houston and Harding, 2013) and technology can aid in making
this information accessible to the public. On the other hand, responsiveness is not merely
based on providing feedback but also on implementing policies that cater to citizens’ needs
which can only be possible by interacting with citizens regularly (Minard, 2015). Therefore
e-governance can ease bridge the gap between public and government officials and
increase their response rate to people’s issues. Moreover, overall public trust is affected by
how well the government responds to their complaints and issues promptly (Kro l and
Zdonek, 2021; Mansoor, 2021b; Song and Lee, 2016).
This study is particularly established to investigate whether perceived e-governance
effectiveness is the underlying mechanism between three elements of good governance
and public trust in local government. Such investigations in e-governance effectiveness
literature and public administration literature are scarce and no such empirical evidence
exists to date. Therefore, to fill the existing gap concerning e-governance effectiveness,
good governance elements and overall public’s trust in local government, the following
hypotheses are suggested:
H8. Perceived effectiveness of e-governance mediates the relationship between
Perceived accountability and overall public trust in local government.
H9. Perceived effectiveness of e-governance mediates the relationship between
Perceived responsiveness and overall public trust in local government.

PAGE 602 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021
 H10. Perceived effectiveness of e-governance mediates the relationship between
Perceived transparency and overall public trust in local government.

Theoretical framework
In accordance with the previous discussion in the literature review, the theoretical
framework in this paper is given in Figure 1.

Research methodology
This research adopted a quantitative field survey methodology by disseminating 28 items
questionnaire among the citizens of two renowned cities of Indonesia, i.e. Medan city
situated in North Sumatera Province and Banjarmasin city situated in South Kalimantan
Province. Although longitudinal studies are preferred in the literature to measure the
construct of the public trust; due to time and resource constraints, it was quite difficult for
the authors to conduct a time-lagged study. However, the recent literature also supports the
cross-sectional research design while measuring the elements of good governance and
trust in government by depicting valuable insights (Pérez-Morote et al., 2020; Arshad and
Khurram, 2020; Fridman et al., 2020). Thus, providing significant support to opt for the
cross-sectional study design in this research. Concerning the 2020 statistics, the total
population of Medan city was 2,337,958, which is among the most populated Indonesian
cities, with 55% women and 45% men. While the total population of Banjarmasin city is
732,005, out of which 57.5% are women and 42.5% are men (Yang and Northcott, 2019). A
cross-sectional random sampling technique was applied to collect the data from Medan
and Banjarmasin city citizens. Following Amoah and Addoah’s (2021) methodology for
sampling technique, the administrative units of both cities were divided into different
communities. Later with the help of Town and Country Planning’s List of Communities, the
denser educated class public locations were identified and approached. The data was
collected by a team of eight members, including authors, researchers about this job trained
all members and non-authors were paid for their work on an hourly basis. The authors and
team members then started to randomly select the respondents to have a similar chance to
participate in the survey to reduce sampling bias (Garraffoni et al., 2021). The respondents
were asked general questions to know that they are aware of government initiatives about
good governance and assess their willingness to participate in the survey. When the
selected respondents were not ready to participate in the survey, the next possible
respondent was approached. This might generate the issue of non-response bias;

Figure 1 Theoretical framework of the study

Perceived
Accountability

H1
Perceived Overall Public trust in
H2
Responsiveness Local Government
H3

Perceived
H4
Transparency
H5 H7
H6

P. Effectiveness of E-
Government
H 8, 9, 10

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 603
 therefore, authors and data collectors tried to reach as many people as possible to mitigate
the impact of non-response bias (Woolf and Edwards, 2021). Moreover, to overcome the
imbalance of respondent selection from different communities, each community was
weighted based on the population’s density and the number of public locations.
While collecting data, respondents were briefed about this survey’s purpose and anonymity
was ensured that the data would only be used in aggregate terms and no identity will be
disclosed at any stage. The team members also ensured that respondents could
understand the survey language English very well. The survey scales were adapted from
literature with good, reported reliability; the same English version was used to avoid
translation and back translation issues and procedures. English is a commonly used and
understood language in higher education institutions in Indonesia. Most of our data
respondents had a qualification of under-graduate and above, which depicts that the
respondents were able to understand the survey language fully. This screening helped the
authors overcome the response bias while ensuring that respondents can understand the
survey and report the actual response after carefully reading and understanding the survey
items Zimbalist (2021). Besides, Arshad and Khurram (2020) and Ullah et al. (2021)
adopted English language surveys in various cultural settings.
Moreover, it was also evident from the scale reliability values obtained in this study and
mentioned in this research’s analysis section. These criteria adopted by data collection
team members helped ensure that respondents belong to a targeted sample of this study to
overcome the random convenience sampling methodology (Amoah and Addoah, 2021). In
10 weeks, 500 questionnaires were distributed and collected among the citizens of two
cities in Indonesia. In total, 250 questionnaires were distributed in each city. We received
380 responses out of 500, achieving a response rate of 76%. After scrutinizing the filled
survey forms received back, 25 more were excluded based on missing values and
unengaged responses. Thus, a total of 355 responses were finally used for further analysis,
resulting in a final response rate of 71%.

Instrument of the study

Public trust in government was measured with a 5-item scale adapted from (Park and
Blenkinsopp, 2011). The authors used a 4-item scale developed by Said et al. (2015) to
measure perceived accountability. To measure perceived transparency, a 4-item scale
developed by Park and Blenkinsopp (2011) was used. Perceived responsiveness was
assessed with a 5-item scale developed by Vigoda-Gadot and Yuval (2003). Finally, to
measure the perceived effectiveness of e-governance, a 12-item scale adapted from
Reddick (2009) was used. All the items were assessed on a five-point Likert scale ranging
from 1 = strongly disagree to 5 = strongly agree. See Appendix.

Respondents’ characteristics
Respondents’ characteristics revealed that the men’s ratio (60.2%) was higher than women
(37.8%). Most of the participants were young, 55% and 27% in the age bracket of
20–30 years and 31–40 years of age, respectively. While 12% belonged to the age group of
41–50 years and only 6% were above 50-years of age. In terms of qualification, 29.5% were
undergraduates, 51.7% were graduates and the remaining 18.8% were postgraduates. Out
of the total respondents, 23% were students, 27% worked in government organizations,
30% were in private organizations, 15% were unemployed and 5% were retired citizens. As
far as income distribution and economic status are concerned, approximately 31% of the
respondents belonged to the low-income category, 49.4% belonged to the middle class
and 19.8% belonged to the upper-middle and upper class. In response to a general
question regarding their participation in political affairs, the majority (70.5%) were neutral,
representing the public without any biases or favoritism toward any specific political party.

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Data analysis and results
Control variables
SPSS 25 was used to conduct analyses such as analysis of variance (ANOVA), descriptive
statistics of the respondents and correlation analysis among the study constructs. One-way
ANOVA revealed that the respondents’ age significantly impacted the dependent variable
(overall public trust). Therefore, age was controlled during further analysis. In contrast, Smart
PLS3 was used to analyze the hypothesized paths along with reliabilities, validities, factor
loadings, etc. To assess the discriminant validity among the constructs, validity and reliability
tests were performed, whereas to assess the hypothesized links, measurement and structural
models were tested using SmartPLS (Henseler et al., 2015). Smart partial least square (PLS)
has been used to analyze the current study based on the understanding that it is an alternate
of ordinary least square regression and applies partial least square path modeling. Scholars
considered it suitable for the studies examining causal associations with hypothesis testing
(Arman et al., 2020; Mansoor and Noor, 2019). Thus, to test the hypothesized paths and check
for the results of the direct and mediation paths, the authors of the current study applied
structural equation modelling through SMART PLS 3 (Yuan et al., 2020). Serval recent studies
applied this software and data analysis technique to assess the theoretical foundations of the
constructs (Noor et al., 2021; Arman et al., 2020).

Assessment of the measurement model

A confirmatory factor analysis was performed using SmartPLS 3 to check the psychometric
properties of the instruments. “Cronbach’s a” and “composite reliability (CR)” were
extracted to check for the reliability of items of all constructs (Henseler et al., 2009). All the
reflective measures are shown in Table 1 CR and Cronbach’s (a > 0.70). In addition,
measures’ “convergent and discriminant validity” was assessed. Moreover, results revealed
that factor loadings of all the items used to assess variables were above 0.70 while
significantly loading on their respective constructs (p < 0.01). Likewise, the “average
variance extracted (AVE)” of latent variables was above 0.50 for all study variables, thus,
establishing the “convergent validity” (Hair et al., 2010; Noor et al., 2021).
Moreover, Pearson correlation was applied to check the collinearity among the variables
and establish the discriminant validity among the variables. As reported in Table 2, the
results show that all the correlation values are less than 0.70, representing no issues of
multicollinearity (Hair et al., 2010).
Furthermore, researchers reported that, while using SmartPLS3, the most appropriate
measure of discriminate validity is Heterotrait-Monotrait (HTMT) ratio (Henseler et al., 2015).
The HTMT ratio value should be less than 0.9, as depicted in Table 2 and Figure 2 that all
values were less than 0.9 for the entire model.

Assessment of the structural model

The Bootstrapping technique was performed to assess the structural paths and 5,000 sub-
samples were used to test the hypothesized links. ß-coefficient, t-value and p-value were
recorded to confirm the hypothesized relationships. Simultaneously, the coefficient of
determination (R2) was used to assess the overall model fitness. The results of the R2
depicted a 77.4% change in overall trust in the local government due to all direct and
mediating constructs. R2 for perceived e-governance effectiveness was 46.3%. R2 values
reflect good model fitness. See Figure 3.
Direct hypotheses. Table 3 depicts the results of the direct and indirect hypotheses. Results
reveal a positive and significant association of perceived accountability (ß = 0.153 , t =
2.626); perceived responsiveness (ß = 0.137 , t = 2.457) and perceived transparency (ß =
0.137 , t = 4.439) with overal public trust in local goverment. Similarly, results also showed

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 605
 Table 1 Factor loadings, reliability and validity

PAGE 606
Constructs/indicators Factor loadings AVE CR Cronbach’s a
1 2 3 4 5

Overall public Trust in local government 0.550 0.859 0.816

OPT1 0.731
OPT2 0.758
OPT3 0.784
OPT4 0.728
OPT5 0.703
Perceived e-governance effectiveness 0.637 0.933 0.853
PEEG1 0.836
PEEG2 0.710
PEEG3 0.881
PEEG4 0.890
PEEG5 0.797
PEEG6 0.765
PEEG7 0.784
PEEG8 0.701
PEEG9 0.777

j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021

PEEG10 0.784
PEEG11 0.865
PEEG12 0.814
P. accountability 0.687 0.897 0.825
PA1 0.910
PA2 0.852
PA3 0.781
PA4 0.764
P. transparency 0.652 0.881 0.820
PT1 0.849
PT2 0.852
PT3 0.852
PT4 0.661
P. responsiveness 0.651 0.903 0.845
PR1 0.878
PR2 0.754
PR3 0.757
PR4 0.880
PR5 0.757
Notes: CR, composite reliability; AVE, average variance extracted
 Table 2 Correlation matrix
Constructs OPT PEEG PA PT PR

Overall public trust in local government (OPT) –

Perceived effectiveness e-governance (PEEG) 0.627 –
Perceived accountability (PA) 0.6246 0.654 –
Perceived transparency (PT) 0.608 0.529 0.421 –
Perceived responsiveness (PR) 0.601 0.546 0.471 0.566 –

that perceived accountability is positively and significantly related to the perceived

effectiveness of e-governance (ß = 0.399 , t = 9.450), perceived responsiveness was
positively and significantly related to the perceived effectiveness of e-governance (ß =
0.210 , t = 8.194) and perceived transparency was positively and significantly related to
the perceived effectiveness of e-governance (ß = 0.231 , t = 5.129). While the positive and
significant association of perceived effectiveness of e-governance with overall public trust
in local government was found (ß = 0.414 , t = 9.739). Therefore, hypotheses 1, 2 and 3 of
the current study, which projected a positive association of perceived accountability,
perceived responsiveness and perceived transparency with overall public trust in local
government, were fully supported. Similarly, hypotheses 4, 5 and 6 of the study, which
proposed a positive association of perceived accountability, perceived responsiveness and
perceived transparency with the perceived effectiveness of e-governance, were also fully
supported. Likewise, hypothesis 7, projecting the relationship of perceived effectiveness of
e-governance and overall public trust in the local government, was also held true.
Mediation hypotheses. As shown in Table 4, the mediation hypotheses 8, 9 and 10 were
supported by the results. A positive and indirect effect of perceived accountability (ß =
0.200 , t = 7.230, p < 0.000), perceived responsiveness (ß = 0.122 , t = 2.542, p < 0.010)
and perceived transparency (ß = 0.125 , t = 2.580, p < 0.010) was found on “overall public
trust in local government” via the underlying mechanism of the perceived effectiveness of

Figure 2 Full measurement model

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 607
 Figure 3 Full structural model

Table 3 Heterotrait-Monotrait ratio

Constructs 1 2 3 4 5

Overall public trust in local government (OPT) 0.744

Perceived effectiveness e-governance (PEEG) 0.689 0.798
Perceived accountability (PA) 0.674 0.708 0.828
Perceived transparency (PT) 0.694 0.611 0.571 0.807
Perceived responsiveness (PR) 0.700 0.632 0.585 0.619 0.806
“Note: The italic diagonal values represent the square roots of AVEs”

e-governance. Further, the upper and lower limits of confidence interval with non-zero
values support the study’s findings. Moreover, the variance accounted for (VAF) values
depict that 56%, 47% and 48% of overall public trust was explained by the perceived
accountability, perceived responsiveness and perceived transparency via perceived
effectiveness of e-governance as a mediator. This condition can be considered partial
mediation, as the VAF was greater than 20% but less than 80% (Shmueli et al., 2019).

Discussion, implications, limitations and future research directions

Findings of the study
All the study hypotheses were found to be supported, which shows that perceived
accountability, perceived responsiveness and perceived transparency were significantly
and positively related to overall public trust in local government and the perceived
effectiveness of e-governance. While perceived effectiveness of e-governance mediated
the relationship between perceived accountability, perceived responsiveness and
perceived transparency with overall public trust in the local government.

PAGE 608 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021
 Table 4 Hypothesis testing results
Hypotheses Std. Beta t-value p-values Findings

H1 PA -> OPT 0.153 2.626 0.010 Supported

H2 PR -> OPT 0.137 2.457 0.010 Supported
H3 PT -> OPT 0.136 4.439 0.010 Supported
H4 PA -> PEEG 0.399 9.450 0.000 Supported
H5 PR -> PEEG 0.210 8.194 0.000 Supported
H6 PT -> PEEG 0.231 5.129 0.000 Supported
H7 PEEG -> OPT 0.414 8.412 0.000 Supported
H8 PA -> PEEG -> OPT 0.0.200 7.230 0.010 Supported
H9 PR -> PEEG -> OPT 0.122 2.542 0.010 Supported
H10 PT -> PEEG -> OPT 0.125 2.580 0.010 Supported

The results of the study reflected a positive association of perceived accountability with
overall public trust in local government, which are in line with the findings of the (Cheema,
2011; Farwell et al., 2019; Russell, 2019; Yousaf et al., 2016), depicting the importance of
accountability element while making decisions in public matters and establishing the higher
level of trust among citizens based on fair and transparent practices of the government.
Similarly, perceived responsiveness was found to be positively associated with overall
public trust in local government, as demonstrated by (Beshi and Kaur, 2020; Cheema,
2011; Yousaf et al., 2016). This reflects the importance of government responsiveness to all
certain and uncertain situations to respond promptly and immediately in the public’s best
interest. Furthermore, the findings related to perceived transparency are consistent with the
outcomes of (Bertot et al., 2010; Farwell et al., 2019; Porumbescu, 2015), stating that
transparent information dispersed by the government always results in winning the public
trust in the government decisions.
Moreover, results revealed a positive and significant association of transparency,
accountability and responsiveness with the perceived effectiveness of e-governance were
in line with the outcomes of the most recent research in this domain (Ojiagu et al., 2020;
Shvetsova et al., 2020). While the findings related to the perceived effectiveness of
e-governance on overall public trust in local government were endorsing the results
depicting the importance of e-governance platforms and their effective dissemination of
information among the public retains public trust in a sound democratic system. This can be
related to the findings of Khanra and Joseph (2019), who asserted that ICT is strategically
applied in e-governance practices to facilitate the citizens to stay updated with the
governance process and decisions which are implemented for the welfare of the citizens.
Finally, adding to the body of literature the current study also depicted the underlying
mechanism of perceived effectiveness of e-governance between the relationship of
accountable, responsive and transparent governments with overall public trust in local
governments, proving the importance of modern technologies to disseminate timely and
accurate information to the public efficiently and effectively to win the public trust.
Regardless of the available literature regarding the direct impact of perceived accountability
(Mansoor, 2021a; Arshad and Khurram, 2020), responsiveness (Mansoor, 2021b) and
transparency (Liao et al., 2020) on public trust in government, it lacks evidence of mediatory
mechanism between these associations.
In contrast, we found that transparent, responsive and accountable governments result in
the e-governance system’s effectiveness based on the people’s belief in their governments.
Moreover, these strong perceptions of e-governance effectiveness make citizens trust their
governments based on the understanding that their governments keep citizens’ interests on
priority and make responsive decisions and transparently communicate those decisions
with the public. Moreover, these findings related to confirmation of underlying mechanisms

VOL. 23 NO. 6 2021 j DIGITAL POLICY, REGULATION AND GOVERNANCE j PAGE 609
 advance existing literature and will open new avenues for future researchers to explore and
for practitioners and policymakers to focus deeply on such mechanisms while devising
policies.

Theoretical implications
This research’s theoretical contributions are manifold such as previous studies have explored
the elements of good governance individually or two in one study with public trust. For
example, Farwell et al. (2019) and Yang and Northcott (2019) reported a positive and
significant association of perceived accountability with the public’s trust in government.
However, Gil de Zu ñiga et al. (2017) depicted that perceived responsiveness is important in
enhancing citizens’ trust in government. Besides, perceived transparency was considered an
important predictor of public trust in local government by Porumbescu (2015). In contrast, the
current study is unique in this research domain that considered all three elements of good
governance into a single theoretical framework. This research’s findings also contributed
toward validating good governance theory with good governance elements, e-governance
effectiveness and public trust integration in a single comprehensive framework.
This research also helped answer the questions arising from past literature about declining
public trust trends in local governments, especially in advanced countries. Hence, scholars
from advanced countries may consider the insights provided by this research, especially
related to e-governance effectiveness mediated link between good governance elements
and public trust in local government relations. This research has also helped advance the
public administration field by integrating the technology-oriented construct of e-governance
effectiveness into a traditional, incremental theoretical framework in the existing body of
research. Another major advance of this research was a developing country context, which
provides insights for all developing nations striving for good governance to retain public
trust.

Practical implications
The current study also offers some practical implications for the practitioners, especially the
government bodies and administrative units, to consider the important aspects linked with
public trust and good governance practices and the effective role of e-governance
channels. Governments should enhance their social cohesion with the public to gain and
retain public trust. Through effective and efficient communication, public trust and
dissemination of required information to the public, especially in crises, may help
governments retain public trust in government. E-governance opens new horizons to
economic and social capital by allowing governments to work prudently, resulting in an
enhanced level of citizens’ trust in local government. It is imperative to formulate strategies
at all levels of administration along with the provision of accountable, responsive and
transparent e-governance platforms to ensure the timely delivery of important information to
the public and to foster the process of achieving the highest level of public trust in local
government in the best interest of the national government and for a sustained economy.
The higher level of trust among citizens will also foster the citizens’ investment rate, resulting
in the country’s economic development and long-term prosperity. Indonesia’s government
needs to be more responsive toward the fair demands of the citizen and for an effective
transformation, it must be embedded in the societies concerned and cannot be imposed
from the outside. As for sustainable development in Indonesia, good governance practices
are imperative, without which corporate and civil society cannot thrive. To achieve this
motive, it is vital to ensure that everyone has easy access to transparent information and the
right to use it for their best interests. This enhanced level of public trust will further result in
the following of rules and regulations devised by the government bodies resulting in a
sound law and order situation in the country.

PAGE 610 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021
Moreover, the study’s findings can be used in the post-covid-era where government
representatives and agencies can maintain the smooth functioning of the state based on
good governance practices. As for transparent and responsive governments, citizens
believe and trust governments; as a result, they perform their duties honestly and fairly,
resulting in an ideal society. Conclusively, the current study contributes to the existing body
of knowledge theoretically and empirically by combining public trust, good governance and
the perceived effectiveness of e-governance in a developing country’s cultural context,
especially the Indonesian Association of Southeast Asian Nations (ASEAN) region context.

Limitations and future research directions

Along with numerous strengths, the current study also has some limitations, including the
following: First, the data for the current study is collected from the two cities, i.e.
Banjarmasin and Medan, situated in South Kalimantan and Sumatra provinces of Indonesia,
respectively. Although the researchers tried to choose these cities from two different
provinces, it still limits the generalizability of the results throughout Indonesia. Therefore,
future researchers can collect data from other cities of Indonesia, as well as from various
countries like ASEAN countries to have a clear consensus among the citizens of developing
countries regarding good governance practices as drivers of creating an environment of
trust among citizens and the importance of e-governance effectiveness in this relationship.
Second, this research applied quantitative research methodology. In contrast, future
researchers can apply the mixed-method approach by using qualitative methods and
quantitative techniques to find other mechanisms involved in building public trust in the
local government. Third, data were collected via a traditional method (personally visiting the
respondents through data collectors). Since e-governance practices are involved as
underlying mechanisms, future researchers can collect data from the followers of e-
governance platforms to better insight into e-governance practices’ effectiveness in
fostering the public’s overall trust in local government.
The longitudinal study design is preferred to measure public trust in most past studies in the
literature. However, this study adopted the cross-sectional study design and both
perceptions of antecedents of trust and perceptions of public trust were measured
simultaneously due to limited resources and time constraints. Future scholars may also look
for some moderating or mediating variables that may influence public trust perceptions. E-
governance’s perceived effectiveness may become a recommended core area of future
studies for governance and public administration scholars.

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Further reading
Aritonang, D.M. (2017), “The impact of the e-government system on public service quality in Indonesia”,
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Corresponding author
Dadang Hartanto can be contacted at: dadanghartanto@umsu.ac.id

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 Appendix

Table A1 Measurement items used for data collection

Variable Statement Source

Overall public 1. Public authorities in the government are acting in the interest of the Park and Blenkinsopp (2011)
trust in public
government 2. Public authorities in the government are capable
3. Public authorities in the government carry out their duties effectively
4. Public authorities in the government are sincere
5. Public authorities in the government are honest
Perceived 1. The government is sensitive to public opinions Vigoda-Gadot and Yuval (2003)
responsiveness 2. The government responds to public requests quickly
3. The government is making a sincere effort to support those residents
who need help
4. The government is efficient in providing quality solutions for public
needs
5. Citizen’s appeals to the government are treated properly within a
reasonable period of time
Perceived 1. The government has a regular reporting system on the achievements Said et al. (2015)
accountability and results of the program against its objectives
2. The government recognizes its responsibility toward the public
3. The government follows treasury rules and regulations in all
circumstances
4. The government ensures proper usage of its budget in an authorized
manner
Perceived 1. The government plan and program are implemented transparently Park and Blenkinsopp (2011)
transparency 2. The entire process of the government is transparently disclosed
3. The public can clearly see the progress and situations of the
government administration
4. The government discloses sufficient information to the public about its
performance
Perceived 1. Effectiveness of the following service channels for citizens’ ability to Reddick (2009)
effectiveness of access information (Website)
e-governance 2. Effectiveness of the following service channels for citizens’ ability to
(PEEG) access information (SNS)
3. Effectiveness of the following service channels for citizens’ ability to
access information (Email)
4. Effectiveness of the following service channels for citizens’ ability to
access information (Telephone)
5. Effectiveness of the following service channels for citizens’ ability to
solve a problem (Website)
6. Effectiveness of the following service channels for citizens’ ability to
solve a problem (SNS)
7. Effectiveness of the following service channels for citizens’ ability to
solve a problem (Email)
8. Effectiveness of the following service channels for citizens’ ability to
solve a problem (Telephone)
9. Effectiveness of the following service channels for citizens’ ability to
access services (Website)
10. Effectiveness of the following service channels for citizens’ ability to
access services (SNS)
11. Effectiveness of the following service channels for citizens’ ability to
access services (Email)
12. Effectiveness of the following service channels for citizens’ ability to
access services (Telephone)

PAGE 616 j DIGITAL POLICY, REGULATION AND GOVERNANCE j VOL. 23 NO. 6 2021