The Impact of Government Transparency and Accountability on Community Trust: Evidence from Local municipalities in KwaZulu Natal, South Africa

2.1 Local municipality governance in south africa

Local are catalyst of community development and economic growth when they are accountable and transparent in their operations. Regrettably, Benito et al. (2021) notes that local municipalities in South Africa generally demonstrate poor transparency and accountability in the governance, especially with regards to finance, which is key to service delivery. Some of the troubling accounts Benito et al. (2021) mentions include a case where local municipality finances were exclusively administered by the local municipality leader and thirty-three representatives of the local municipality consultation council, without allowing for citizen engagement in the administration process. Moreover, the local municipality member vote was executed in a non-democratic manner, according to centralised (inherited) principles. Such cases would undoubtedly jeopardise local municipality governance, potentially leading to loses of revenue and financial mismanagement. Naraidoo and Sobhee (2021) made similar reports, asserting that local municipality administrations are often not transparent in how they handle the local municipality budget and growth program, resulting in the community’s ignorance regarding the budget quantity and its utilisation. Masuku et al. (2022) discovered that the monitoring mechanism operated by a specific local municipality advisory council, intended to supervise the local municipality administration, was highly ineffective, and that community engagement was absent, suggesting that the local populace is hardly included in the formulation of municipal policies. Furthermore, regarding accountability, the local municipality ‘s accounting process was conducted solely to fulfil formal legal obligations rather than to ensure authentic accountability to the small community.

Ngqobe et al. (2021) states that skills capacity is also often an issue in local municipality workforces, including local municipality heads, which is a significant impediment to the effective implementation of policy and the formulation of strategic initiatives. This, in turn, contributes to inadequate oversight and transparency in local municipality reporting of finances. Masiya et al. (2021) made a similar observation, stating that the prevalence of financial mismanagement was largely due to the inadequate expertise of staff. Thusi et al. (2023) similarly identified this problem when examining local accountability in several local municipality administrations in East Java.

Maleka and Moeti (2021) stated that the primary constraints hindering the execution of effective governance in local municipality administration is the proficiency of human resources and the organisational dedication of the local municipality head and personnel. These factors were used as predictors of transparency and accountability in this governance: competency and organisational commitment of local municipality personnel.

Furthermore, we investigated the influence of accountability and transparency on trust in the community, as proposed by Mohammed et al. (2024) in their research. Sethunya and Mlambo (2022) discovered that principles of accountability and transparency fostered community trust in the local municipality administration, which in turn motivated people to actively engage in the local municipality ‘s growth strategy. The partnership involving the local municipality and the community has resulted in certain local municipality being designated as exemplary and serving as standards for another local municipality in South Africa.

2.2 Organisational commitment, accountability, and transparency

According to Mojapelo and Ngoepe (2021), organisational commitment is characterised as a personal stake in a company’s success. In the public sector context, governmental institutions are fundamentally dedicated to implementing effective governance, necessitating organisational commitment for success. A substantial amount of research reveals that organisational commitment; encompassing performance, responsibility, and transparency is a crucial determinant of an organisation’s ability to attain its objectives. Boboyeva (2025) discovered a favourable correlation between relational governance and oganisational commitment in privately owned firms. Hofisi and Chigova (2023) assert that accountability and transparency in local municipalities in particular are significantly improved when senior management demonstrates complete commitment. In such contexts, both government officials and the community often collaborate towards the shared aim of fulfilling the local municipality’s programming and governance objectives.

The subsequent hypothesis was proposed based on these findings:

2.3 Exhibiting trustworthiness, transparency, and accountability

According to Boufounou et al. (2024), government organisations are held responsible for providing information regarding their operations, programs, and performance, encompassing both financial and non-financial elements. The local municipality administration must prepare financial and performance reports with accuracy and integrity to mitigate information asymmetry about financial management. The local municipality serves its communities through open processes if accountability is established, and robust accountability and transparency are anticipated to enhance the community’s trust. Local municipality administration is perceived to have fulfilled its commitments if it met the expectations of the residents as well as the federal, provincial, and regency governments that provided funding.

Communities will exhibit greater trust in the local government when its websites, announcements, and information boards proficiently communicate accountability to the public. According to McKenzie and Marx (2024), accountability enhances the transparency of local administrations. Jung (2022) observed that public stakeholders’ trust in local government is enhanced by the openness and accountability of regional financial management.

Therefore, the following hypothesis was proposed:

Xin et al. (2023) assert that equitable access to information between the government and the community will result in diminished opportunistic conduct by the government and reduced community confidence in governmental trustworthiness. The preparation of high-quality financial reports with enhanced openness signifies successful corporate governance procedures in public companies. The public’s trust in the government is seen to increase with greater transparency. Research by Tshuma et al. (2024) indicates that governmental transparency is a crucial determinant of community trust. Individuals trust government institutions more when they exhibit transparency and integrity, since they perceive these entities to be less prone to unethical conduct. Maramura and Shava (2021) discovered that individuals’ faith in local governments augmented when they felt heightened transparency, accountability, and responsiveness.

In light of these data, the subsequent hypothesis appears to be a plausible option:

To clarify, accountability and transparency are only standard exogenous variables, despite their appearance as intervening factors inside the conceptual framework. The lack of substantial references and support hindered the formulation of the interim hypothesis. Only the arrows are necessary to discern the sequence in which the variables are interconnected.

2.4 Conceptual framework

The theoretical framework for this research was developed using “new” institutional theory, particularly concerning institutional isomorphism and stakeholder theory. Isomorphism denotes the tendency of organisations to act uniformly due to their acceptance of particular policies, which in this context is local municipality governance policies. This process of convergence can be categorised into three mechanisms: coercive, mimetic, and accepted, which delineate how policies are adopted and the responses elicited by these policies within companies (Hutete and Sibanda, 2022). Coercive isomorphism refers to pressures imposed by external entities, whereas mimetic isomorphism involves organisations adopting policies by emulating other organisations perceived as effective. Normative isomorphism transpires when organisations endeavour to apply certain policies in attempts to improve organisational performance due to demand from professionals or academics within the entity (Thusi and Selepe, 2023). Consequently, normative isomorphism arises from two fundamental elements: formal education and professionalism, both linked to competence.

From an institutional standpoint, the local municipality administration, as a subordinate body of the central government, inherently faces pressure in the institutionalisation of governance procedures as stipulated by several statutes. Nonetheless, institutionalising of effective governance practices, particularly accountability and transparency, would not enhance organisational value if the isomorphic process ceases at the stage of compulsion (Mohangi and Nyika, 2023). Therefore, normative isomorphism in public institutions is essential for ensuring that the measures taken, result in the desired qualities. Literature suggests that challenges of good governance in local municipality administration are intricately linked to human resource matters, particularly ability and loyalty, which might be correlated with normative isomorphism concerns. Consequently, this particular form of isomorphism is the central focus of our research. Mamokhere (2022) discovered that managerial commitment contributes is an element of competence and is positively correlated with ethical isomorphism, which relates to the formulation of novel public administration policies, namely performance assessment systems in local government.

Furthermore, Mamokhere and Kgobe (2023) found that the acceptance of new policies for adopting performance assessment systems in local government in South Africa was influenced by employee competency linked to normative isomorphism. In a different research context, Chiwawa and Wissink (2024) discovered that the intensity of the company’s dedication to partnership exhibited a stronger correlation with normative isomorphism, manifested through managers’ professional engagement and the extent of collaboration with proximate “flagship” news organisations and rivals.

Stakeholder theory underlies the connection between accountability, transparency (publication), and trust among community members. Stakeholder theory is a prominent framework in accounting and transparency research introduced by Gasela (2022). In the discipline of accounting studies, stakeholder theory is intricately linked to the role of transparency as a mechanism for signalling legitimacy to stakeholders.

Disclosing social activities in the firm’s finance and annual reports is a vital tactic to demonstrate the company’s dedication to ethical business conduct. According to stakeholder theory, organisations are inextricably linked to their social contexts. Organisations must uphold stakeholder legitimacy and integrate stakeholders into the policy and decision-making framework to facilitate the attainment of corporate objectives, including financial viability with assurances of continuity (Gasela, 2022). While stakeholder theory originates from a private sector perspective, several researchers extend its application to the public sector. Public-sector administrators undertake their responsibilities for many motivations, such as the greater good, in contrast to their private-sector colleagues, who are primarily driven by the company’s continued existence or profit. Nonetheless, their decisions possess are equally significant in influencing people or groups striving to achieve their companies’ goals. Similarly, citizens may influence public managers and governmental companies, as they do in the business community.

Stakeholder scenarios in the public sector are analogous to those in the private sector from both instrumental and normative viewpoints (Grawe et al., 2023). During an election, the communities may select a new leader based on the administration’s transparency about both financial and non-financial performance metrics. Maintaining community trust is essential for the incumbent local municipality head’s legitimacy and electoral viability in the forthcoming election. Consequently, instruments employed in the private sector may be adapted for application in the public sector, especially in domains such as transparency and accountability. Accountability and Competence (2.4) institutional policy, especially on transparency and accountability, is founded on knowledge acquired via formal education and extensive professional experience.

According to Nkgapele (2024) and Nyalungu et al. (2025), the financial accountability of government institutions is positively influenced by proficient employees. This aligns with Nyalungu et al. (2025) assertion that organisations may enhance their preparedness to meet accountability demands by acquiring competencies through HRD programs. Consequently, the subsequent theory is justifiable to propose: Accountability is positively correlated with individual competence. The conceptual framework below shows that: Competency → Accountability (H1 – Supported): The skills and capabilities of municipal personnel enhance their accountability in service delivery.

Organisational Commitment → Accountability (H2 – Supported): Employees exhibiting commitment to their organisation are more inclined to demonstrate accountability in their positions.

Organisational Commitment → Transparency (H3 – Not Supported): Despite being hypothesised, no significant direct correlation was found between commitment and transparency.

Accountability does not inherently result in transparency, as indicated by the study’s findings.

Accountability → Community Trust (H5 – Not Supported): Accountability, in isolation, did not markedly enhance community trust in this research. Transparency fosters community trust; when municipal activities are clear, residents are more inclined to trust the government. As shown in Figure 1, the study’s conceptual framework links competency and organisational commitment to accountability and transparency, which in turn influence community trust.

Figure 1. Conceptual framework.

Source: Self-generated.

3.1 Data, Population and Sample

The population in this study consisted of municipal officials from various local municipalities from the KwaZulu Natal Province of South Africa. The South African Statistics Centre reports that the province of KwaZulu natal comprises 44 local municipalities. The optimal sample size is 28, as per the methodology established by Pasipamire and Muroyiwa (2024) for selecting sample sizes. The municipalities selected included Mtubatuba, Umdoni, Ndwedwe, and Mandeni, largely influenced by geographical factors. The local municipalities were also categorised by their developmental status as advanced, middle, or disadvantaged, based on the infrastructure and revenue.

Respondents were ordered into two groups, based on their roles and responsibilities within municipal governance structures. The first group comprised local municipality head, secretary, treasurer, and unit head were among the authorities who received the initial survey, which encompassed elements such as responsibility, proficiency, and commitment to the organisation. These respondents were selected because of their expert knowledge on governance processes. The second group consisted of members of the local municipality consultative councils who completed a survey on trust, transparency, and accountability. These respondents were chosen for their neutrality, as their independence would have been compromised if local official had been surveyed on both sets of constructs.

3.2 Data collection process

This study was framed under the positivist paradigm and employed a quantitative, cross-sectional survey design with hypothesis testing. This design was deemed appropriate because it enabled the collection of perception-based data from multiple participants groups at a single point in time, with correlational analysis done for constructs such as organisational commitment, trust, transparency, and accountability.

The survey data was collected over a period five months, from September 2023 to January 2024. 150 questionnaires were sent to members of local municipality consultative councils and 150 to local government officials throughout 150 localities. The selected respondents were approached at their workplaces, so assuring a high response rate. Upon the elimination of incomplete surveys, we retained a viable sample of 120 couples, constituting 65.65% of the population, sourced from 32 municipalities administrations.

A sample size of 128 was deemed enough for this investigation. The research instruments were derived from three sources: Fourie and Van der Waldt (2021) for organisational commitment, Al-Naser and Hamdan (2021) for municipal government personnel competency, and Paranata (2022) for transparency, accountability, and community trust. All components were included in the research questionnaire. The initial segment of the study examined demographic data and responder attributes concerning the educational qualifications and training of all municipality’s council and administration workers.

To ensure validity and reliability, we followed a rigours multi-stage. First, the survey instruments were reviewed by five senior survey researchers, whose feedback informed revisions to the wording, sequence, and structure of questions. Secondly, the questionnaire underwent a pilot test including 27 municipalities administrations in Mtubatuba municipalities to confirm clarity and content validity. We requested the pilot responders to complete the survey and provide their feedback. After data collection, we enhanced the questionnaire by modifying the phrasing, organisation, and sequence of questions according to their complexity.

Thirdly, the psychometric soundness of the final questionnaire was tested statistically, ensuring construct validity and internal reliability prior to hypothesis testing. Each survey item was converted into a sequence of statements. This enabled the utilisation of a five-point Likert scale, with 1 signifying strong disagreement and 5 indicating strong agreement, to assess all parameters. Gatekeeper permission were obtained from municipal authorities prior to data collection. Informed consent was obtained from all participants for the purpose of procedures and voluntary participation in the study. Anonymity was ensured with all data securely stored and reported in aggregate from only.

3.3 Analysis technique

The analysis utilised Partial Least Squares (PLS), an appropriate method for this study owing to its minimal sample size requirements, low data assumptions and flexibility for research without robust theoretical foundations (Fosu and Hlungulu-Feketshane, 2025). Finally, ethical consideration was strictly observed. A minimum sample size of ten times the highest number of inner or outer model links aimed at any latent variable inside the model is necessary for partial least squares (PLS) analysis, as stated by Abbasov (2025). Due to organisational commitment being a latent variable with up to ten potential manifestations, Cifuentes-Faura et al. (2023) advises a minimum sample size of one hundred (10 x 10).

The indicators of the research variables were the emphasis of the questions in the latter section of the questionnaire. In accordance with the recommendations of Fosu and Hlungulu-Feketshane (2025), we sought the insights of five expert survey researchers prior to executing the field survey. We solicited their feedback on potential enhancements to the questionnaires. We amended the instructions, terminology, syntax, quantity of questions, and the length of each question in response to their input, so enhancing the questionnaire.

4.1 Sample characteristics

Table 1 presents the demographics of the sample and respondents, categorising each group based on their role, educational attainment, and participation in structured training. Table 1 presents the proportions of local municipality officials with bachelor’s degrees 581 (29.35%) and master’s degrees 33 (1.67%). Individuals possessing master’s and bachelor’s degrees are seeking employment inside the local municipality. Although these figures constitute a little fraction of the workforce, 999 individuals (50.48%) have attained merely a high school education, reflecting an enhancement compared to the conditions of the previous local municipality law period (Grawe et al., 2023). The demand for more educated and proficient local municipality personnel emerged due to modifications in legislation regarding local autonomy and governance.

To meet policy mandates regarding qualifications, local municipality administrations have employed recent college graduates and facilitated further education for current personnel at various institutions. The quantity of necessary training opportunities for local municipality personnel attained a flawless score of 100%. The choices encompassed subjects like information technology, budget management, financial reporting, and local municipality administration. Additionally, in various locations, one may encounter other supplementary classes. These findings indicate that initiatives are underway to enhance the administration and governance of the local municipality by elevating the competencies of its personnel (Gasela, 2022).

4.2 Descriptive statistics

This study employed descriptive statistics to illustrate the present condition of managing the five aspects: competence, organisational commitment, accountability, transparency, and community trust. The data may have been influenced by common method variance (CMV) due to its self-reported nature. To ascertain the magnitude of this phenomenon, the Harmanone-factor test was conducted. According to Ismail et al. (2022), if a single latent variable accounts for over 50% of the explained variation, common method bias emerges as an issue. The first component represented just 18.15% of the variance, as indicated by the findings of the CMV test and the un-rotated component analysis. Consequently, the current investigation did not substantially concern itself with prevalent procedural bias. Notwithstanding assertions that this does not undermine the conclusions, other studies have indicated CMV rates ranging from 23 to 26%.

Moreover, Table 2 reveals that the mean values of the five variables demonstrate a good level, as they approximate a scale value of 4. The clarity variable has the greatest value of 3.79. It indicates that nearly all local municipalities in KwaZulu natal disseminate details regarding their duties, money, and accomplishments using diverse media, such as local municipalities websites, advertisements, and verbal communication at community gatherings.

The competency variable has a low average value, barely surpassing four on the rating system. We discovered that, in the present period, several individuals had undergraduate and graduate degrees in local municipality governance, either through official education or efforts to recruit. Notwithstanding extensive training, the average competency score of local municipality workers is just 2.73. The limited education of most local municipality officials, mostly at the senior and junior high school levels, suggests that the training programs have not effectively improved the competency of local municipality personnel.

These results should be an important priority for local municipality, lawmakers, and legislators in their efforts to improve the proficiency of local government personnel (Mamokhere et al., 2022). The research intends to investigate the stated theories. We evaluated the data with PLS. Despite the survey being piloted to guarantee robust outcomes, we reassessed the validity and reliability of the instrument prior to hypothesis testing. It sought to enhance the trust in the validity and reliability of the measures.

4.3 Validity testing

4.3.1 Construct validity

Construct validation seeks to evaluate the extent to which the outcomes derived from the measurement align with the theoretical frameworks for which the test was developed. Consequently, we examined the loading and the cross-loading scores, employing 0.5 as a heuristic standard. In the initial assessment, we discovered that many concept scores did not conform to the established guideline. Consequently, we eliminated the following: Comp1, Comp3, Comp4, Orgcom1, Orgcom2, Orgcom3, Orgcom4, Orgcom5, Acc1, Acc2, Acc5, Acc6, and Trust3. Subsequent to their removal, we re-evaluated the data. Table 3 indicates that all the other items associated with a specific construct had strong loadings for that construct and lower loadings for alternative constructs, hence affirming construct validity.

4.2.2 Convergent validity

Subsequently, we assessed convergent validity, which refers to the extent to which many items intended for assessing the same construct are in concordance. According to Hair et al. (2010), we employed factor loading and average variance extracted (AVE) for testing. According to Table 4, the load values for every component are above the suggested threshold of 0.5. Every single item had an AVE score that conformed to the established criterion of exceeding 0.5 (Fosu and Hlungulu-Feketshane, 2025).

4.2.3 Discriminatory validity

The discriminant validity of the measurements, defined as the extent to which elements distinguish across constructs or evaluate distinct notions, was evaluated by analysing the correlations among the metrics, which is of possibly overlapped constructs. According to Table 5, the correlation value of the construct with itself is superior than that of other constructs; thus, this criteria is also satisfied (Molina Rodríguez-Navas et al., 2021).

4.4 Reliability testing

To evaluate the variability between each of our measuring items, we employed Cronbach’s alpha and combined reliability ratings. As observed in Table 6, all alpha scores above 0.6 as stipulated. Furthermore, the combined reliability values varied from 0.720 to 0.750. A combined reliability score of 0.70 or above is deemed satisfactory. Consequently, it was determined that the measurements provided were dependable.

4.5 Hypothesis testing

Table 7 offers the results of the hypothesis testing. It can be observed that three hypotheses, specifically H1, H2, and H6, have been confirmed with same degrees of significance.