Institutional Governance Mechanisms: Corruption Risks Mitigation in State-Owned Enterprises

Abstract

Corruption risks within State-Owned Enterprises continue to challenge institutional governance effectiveness and public accountability. This study aims to examine how institutional governance mechanisms mitigate corruption risks through accountability, integrated internal controls, and transparent oversight. A qualitative multiple-case study was employed using semi-structured interviews, observations, and document analysis involving board commissioners, directors, internal auditors, compliance officers, government regulators, and governance experts. The findings reveal that institutional accountability strengthened ethical decision-making, integrated internal controls improved governance effectiveness through coordinated supervisory mechanisms, and transparent oversight reinforced organizational integrity through documented monitoring and whistleblowing systems. This study proposes an integrated institutional governance framework explaining the interaction among governance mechanisms in mitigating corruption risks. The findings offer practical guidance for strengthening governance systems, improving organizational integrity, and supporting sustainable corruption prevention within public enterprises.