IT capability for increasing revenue generating activities of private universities

Abstract

Studies examining the role of IT capability in supporting revenue-generating activities (RGA) in private universities remain limited. In many private universities in Indonesia, revenue-generating activities are still treated as secondary activities outside the core academic mission and are often managed without adequate technological support. This situation may increase managerial risks and reduce the effectiveness of income diversification initiatives. This study aims to examine the role of IT capability in strengthening the relationship between revenue-generating activities and the financial sustainability of private universities. A survey method was employed by collecting data from financial leaders of private universities. A total of 468 valid responses were obtained from private universities located across three major islands and ten provinces in Indonesia. Prior to hypothesis testing, validity and reliability tests were conducted, and the data were examined to ensure that they met the classical assumption requirements. Regression analysis using SPSS was then applied to test the proposed hypotheses. The results show that revenue-generating activities significantly influence financial sustainability. In addition, IT capability has a direct positive effect on financial sustainability and strengthens the relationship between revenue-generating activities and financial sustainability. These findings suggest that private universities should pay greater attention to developing IT capability to support institutional financial sustainability. This includes investing in IT infrastructure, improving the IT competencies of human resources, and strengthening IT operations that support university development activities, particularly in managing revenue-generating initiatives

Keywords: {'name': 'IT Capability, Revenue Generating Activities, Financial Sustainability, Private Universities, Moderation Analysis'}

Authors & affiliations

Erna Handayani
Muhammadiyah University Purwokerto

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