Technical service capacity, SIMBG adoption, and public participation in SLF administration: Evidence from Malang Regency and Batu City

Abstract

This study aims to analyze the influence of technical service capacity, including human resources and communication, on SIMBG adoption, examine the effects of public participation on SIMBG use and SLF service quality, assess the mediating role of SIMBG in improving licensing outcomes, and identify institutional barriers to SLF administration in Malang Regency and Batu City, East Java. The mixed-methods approach included a quantitative survey of 200 SLF applicants (analyzed using PLS-SEM via SmartPLS) with qualitative data from interviews, focus group discussions, observations, and documents, ensuring triangulation for strong validity. The findings indicate that SIMBG implementation significantly improves SLF service quality (β=0.458, p<0.001) and mediates the relationship between capacity factors and service outcomes. Community participation has a direct effect (β=0.336, p<0.001) and an indirect effect through SIMBG (β=0.212, p=0.035), while human resources have a weak direct effect (β=0.104, p=0.222). The model's R² value is high (SIMBG: 0.653; service quality: 0.682), confirming the TOE framework. Practically, recommendations include human resources training, SIMBG improvement, intensive outreach through digital media and community forums, a flexible organizational structure, and multi-stakeholder coordination to optimize the SLF process, encourage compliance, and can be replicated in similar areas.