Determinants of the Intention to Whistleblow as a Means of Mitigating Fraud Risk in Energy Companies: The Moderating Role of Risk Culture

Abstract

Fraud remains a major governance risk in the energy sector due to complex operations, high transaction values, and multiple parties involved in business processes. This study aimed to examine the effects of opportunity, capability, rationalization, pressure, and risk culture on whistleblowing intention, including the moderating role of risk culture, and to identify the dominant determinant among employees of Indonesian energy companies. A quantitative explanatory design was employed using survey data from 123 valid respondents selected through purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS. The findings showed that opportunity had a positive and significant effect on whistleblowing intention, while pressure also had a significant positive effect. In contrast, capability, rationalization, and risk culture had no significant direct effects. Risk culture also failed to significantly moderate the relationships between the four Whistleblowing Diamond dimensions and whistleblowing intention. The model explained 41.5% of the variance in whistleblowing intention, with opportunity emerging as the most dominant determinant. These results indicate that employees are more likely to report misconduct when reporting channels are accessible, trustworthy, and protected from retaliation. Therefore, energy companies should strengthen whistleblowing mechanisms, transparent follow-up procedures, anti-retaliation protection, and employees’ moral responsibility within their organizations.