Enhancing Tax Compliance Performance: How Commitment Mediates Innovation and Partnerships

This study aims to examine the effects of innovation and interagency partnerships on tax compliance performance, with leadership commitment serving as a mediating variable in government institutions. A quantitative approach employing an explanatory survey design was adopted. Data were collected through questionnaires administered to 183 officials and employees directly involved in tax administration within the Semarang City Government and the Central Java Provincial Government, operating within the jurisdiction of the Semarang Tengah Primary Tax Office. Respondents were selected using purposive sampling, and the data were analyzed using Covariance-Based Structural Equation Modeling (CB-SEM) with AMOS software. The findings reveal that interagency partnerships have positive and significant effects on both leadership commitment and tax compliance performance. Leadership commitment also has a positive and significant effect on tax compliance performance and significantly mediates the relationship between interagency partnerships and tax compliance performance. In contrast, innovation does not significantly affect either leadership commitment or tax compliance performance, directly or indirectly through mediation. The originality of this study lies in its integrated examination of interagency partnerships and leadership commitment in explaining organizational tax compliance performance within the public sector. These findings highlight the importance of strengthening interagency coordination, leadership support, and the effective implementation of innovation to improve tax compliance performance in government institutions.