The Mediating Role of Performance Measurement System in the Relationship between Information Technology Capabilities and University Performance

Suryo Pratolo; Diandra Talita Spama; Hafiez Sofyani

doi:10.24815/jdab.v10i1.29068

The Mediating Role of Performance Measurement System in the Relationship between Information Technology Capabilities and University Performance

Suryo Pratolo, Diandra Talita Spama, Hafiez Sofyani

Abstract

To improve performance, higher education institutions (HEIs) have attempted to formulate performance measurement system (PMS) policy and information technology (IT) development. The purpose of this study is to examine the role of IT capability on financial performance and operational performance of private HEIs in Indonesia through PMS implementation as mediating variable. Using purposive sampling method, 149 questionnaire responses obtained from private HEIs located on Java Island, Indonesia. The respondents are head of human resource and finance department and person in charge of technology and information systems in the sample universities. The data were analysed using the Structural Equation Modelling (SEM) method. This study found that IT capabilities were only associated with both financial and operational performance indirectly through PMS implementation. Thus, this study confirmed that PMS played a role as mediating variable. This study contributes to the develop the body of knowledge, especially related to the role of IT capabilities and PMS role in enhancing both the financial and operational performance of HEIs. Practically, this research provides beneficial suggestions for HEI management to improve HEI performance.

Full Text:

PDF

References

Alach, Z. (2017). Performance Measurement Maturity in a National set of Universities. Journal of Productivity and Performance Management, 66(2), 216–230. https://doi.org/10.1108/IJPPM-10- 2015-0158

Alrawasdeh, T. A., Muhairat, M., & Althunibat, A. (2013). Evaluating the Quality of Software in ERP Systems Using the ISO 9126 Model. International Journal of Ambient Systems and Applications (IJASA), 1(1), 1-9.

Ansari, S., & Euske, K. J. (1987). Rational, rationalizing and reifying uses of accounting data in organizations. Accounting, Organizations & Society, 12(6), 549-570.

Arora, B., & Rahman, Z. (2017). Information technology capability as competitive advantage in emerging markets. International Journal of Emerging Markets, 12(3), 447–463. https://doi.org/10.1108/ijoem-07-2015-0127

Atkinson, A. A., Waterhouse, J. H., & Wells, R. B. (1997). A Stakeholder Approach to Strategic Performance Measurement. Sloan Management Review, 38(3), 25-37.

Asiaei, K., & Bontis, N. (2020). Translating knowledge management into performance: The role of performance measurement systems. Management Research Review, 43(1), 113-132. https://doi.org/10.1108/MRR-10-2018-0395

Bagozzi, R., & Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Sciences, 16(1), 74-94. https://doi.org/10.1007/bf02723327

Balaboniene, I., & Večerskienė, G. (2014). The Paculiarities of Performance Measurement in Universities. Procedia-Social and Behavioral-Sciences, 156(November), 605-611.

Basri, Y. M. (2013). Mediasi Konflik Peran dan Keadilan Prosedural dalam Hubungan Pengukuran Kinerja Dengan Kinerja Manajerial. Jurnal Akuntansi dan Keuangan Indonesia, 10(2), 225-242. https://doi.org/10.21002/jaki.2013.12

Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS quarterly, 24(1), 169-196. https://doi.org/10.2307/3250983

Baxter, J., & Chua, W.V. (2003). Alternative management accounting research whence and whiter. Accounting, Organizations & Society, 28(2/3), 97-126.

Cepeda, J., & Arias-Pérez, J. (2019). Information technology capabilities and organizational agility. Multinational Business Review, 27(2), 198-216. https://doi.org/10.1108/mbr-11-2017-0088

Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In Modern methods for business research 1998 (pp. 295–336). Mahwah, New Jersey: Lawrence Erlbaum Associates Publishers.

Czarniawska, B., & Genell, K. (2002). Gone shopping? Universities on their way to the market. Scandinavian Journal of Management, 18(4), 455-474.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: algebra and statistics. Journal of marketing research, 18(3), 382-388. https://doi.org/10.2307/3150980

Ganbold, O., Matsui, Y., & Rotaru, K. (2021). Effect of information technology-enabled supply chain integration on firm's operational performance. Journal of Enterprise Information Management, 34(3), 948-989. https://doi.org/10.1108/JEIM-10

Gaskin, J. (2016). "Name of Plugin or Estimand”, Gaskination’s statistics. Retrieved August 1, 2022 from http://statwiki.gaskination.com

Ghasemi, R., Habibi, H. R., Ghasemlo, M., & Karami, M. (2019). The effectiveness of management accounting systems: evidence from financial organizations in Iran. Journal of Accounting in Emerging Economies, 9(2), 182-207. https://doi.org/10.1108/JAEE-02-2017-0013

Guarini, E., Magli, F., & Francesconi, A. (2020). Academic Logics in Changing Performance Measurement System: An Exploration in a University Setting. Qualitative Research in Accounting & Management, 17(1), 109-142.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Upper Saddle River, NJ: Pearson University Press.

Harrison, J. A., Rouse, P., & De Villiers, C. J. (2012). Accountability and Performance Measurement: A Stakeholder Perspective. Journal of CENTRUM Cathedra: The Business and Economics Research Journal, 5(2), 243-258. https://doi.org/10.7835/jcc-berj-2012-0077

Hegazy, M., & Tawfik, M. (2015). Performance measurement systems in auditing firms: Challenges and other behavioural aspects. Journal of Accounting in Emerging Economies, 5(4), 395-423. https://doi.org/10.1108/JAEE-04-2012-0014

Holopainen, M., Saunila, M., & Ukko, J. (2022). Facilitating Performance Measurement and Management through Digital Business Strategy. Measuring Business Excellence, ahead-of-print(ahead-of-print), 1-15.

Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking: An International Journal, 27(4), 1289-1318. https://doi.org/10.1108/BIJ-02-2018-0034.

Irfani, D. P., Wibisono, D., & Basri, M. H. (2020). Integrating performance measurement, system dynamics, and problem-solving methods. International Journal of Productivity and Performance Management, 69(5), 939-961. https://doi.org/10.1108/IJPPM-12-2018-0456

Ittner, C. D., Larcker, D. F., & Randall, T. (2003). Performance implications of strategic performance measurement in financial services firms. Accounting, Organizations & Society, 28(7), 715-741. https://doi.org/10.1016/s0361-3682(03)00033-3

Joiner, T. A., Sarah Yang Spencer, X., & Salmon, S. (2009). The effectiveness of flexible manufacturing strategies. International Journal of Productivity and Performance Management, 58(2), 119–135. https://doi.org/10.1108/17410400910928725

Kallio, K. M., Kallio, T. J., Grossi, G., & Engblom, J. (2021). Institutional Logic and Scholars' Reaction to Performance Measurement in Universities. Accounting, Auditing & Accountability Journal, 34(9), 135-161.

Kaur, R., & Singla, S. K. (2019). Performance Measurement of Higher Educational Institution: an Empirical Study Using Student's Perception. Journal of Management, 6(2), 50-57. https://doi.org/10.34218/jom.6.2.2019.006

Kloviene, L., & Uosyte, I. (2019). Development of Performance Measurement System in the Context of Industry 4.0: a Case Study. Inzinerine Ekonomika-Engineering Economics, 30(4), 472–482.

Kurniawan, S. I., & Rinofah, R. (2016). Pengaruh Lingkungan Bisnis dan Strategi Operasi terhadap Kinerja Operasional pada UKM Kerajinan Gerabah Kasongan Bantul. Sosiohumaniora, 2(2), 6-16.

Lau, C. M., & Amirthalingam, V. (2014). The Relative Importance of Comprehensive Performance Measurement Systems and Financial Performance Measures on Employees’ Perceptions of Informational Fairness (Advances in Management Accounting, 24 ed.). Bingley: Emerald Group Publishing Limited.

Lee, J. (2008). Preparing performance information in the public sector: an Australian perspective. Financial Accountability and Management, 24(2), 117-149.

Listiyowati., Wahyudin, A., & Thomas, P. (2016). Faktor-Faktor yang Mempengaruhi Kinerja Keuangan Perguruan Tinggi Swasta di Jawa Tengah. Journal of Economic Education, 5(2), 142–153

Locke, E. (1975). Personnel attitudes and motivation. Annual Review of Psychology, 26(1), 457–480. https://doi.org/10.1146/annurev.ps.26.020175.002325

Locke, E. A., and Latham, G. P. (2013). New developments in goal setting and task performance. Routledge. https://doi.org/10.4324/9780203082744

Luo, J., Fan, M., & Zhang, H. (2012). Information technology and organizational capabilities: A longitudinal study of the apparel industry. Decision Support Systems, 53(1), 186-194. https://doi.org/10.1016/j.dss.2012.01.003

Makkonen, H., Pohjola, M., Olkkonen, R., & Koponen, A. (2014). Dynamic capabilities and firm performance in a financial crisis. Journal of Bussiness Research, 67(1), 2707-2719. https://doi.org/10.1016/j.jbusres.2013.03.020

Mandal, S. (2019). Exploring the influence of IT capabilities on agility and resilience in tourism: Moderating role of technology orientation. Journal of Hospitality and Tourism Technology, 10(3), 401-414. https://doi.org/10.1108/JHTT-01-201

Marek, L., Doucek, P., & Nedomová, L. (2021). Wages of Information Technology Professionals - A Czech and Slovak Republic Case. Quality Innovation Prosperity, 25(1), 73–87. https://doi.org/10.12776/qip.v25i1.1468

The Indonesian Ministry of Research, Technology and Higher Education. (2015). Peraturan The Indonesian Ministry of Research, Technology and Higher Education Nomor 44 Tahun 2015 Tentang Standar Nasional Pendidikan Tinggi.

The Indonesian Ministry of Research, Technology and Higher Education. (2016). Peraturan The Indonesian Ministry of Research, Technology and Higher Education Republik Indonesia Nomor 32 Tahun 2016 Tentang Akreditasi Program Studi Dan Perguruan Tinggi.

Mulyawan, B., & Christanti, T. S. V. (2022). An Application Performance Measurement Model for Higher Education in Indonesia. Advances in Social Science, Education and Humanities Research, 655(2022), 2053-2057.

Nasiri, M., Ukko, J., Saunila, M., Rantala, T., & Rantanen, H. (2020). Digital-Related Capabilities and Financial Performance: The Mediating Effect of Performance Measurement System. Technology Analysis & Strategic Management, 32(12), 1393-1406.

Ningsih, C. (2014). Pengaruh Keterlibatan Manajemen dan Teknologi Informasi terhadap Kinerja Organisasi melalui Knowledge Transfer. Jurnal Bisnis Strategi, 23(1), 21-42. https://doi.org/10.14710/jbs.23.1.21-42

Prastiwi, M. (2022). 90 Persen Perguruan Tinggi Swasta di Indonesia Kurang Sehat. available at: https://www.kompas.com/edu/read/2022/09/21/142744471/90-persen-perguruan-tinggi-swasta-di-indonesia-kurang-sehat?page=all

Pratolo, S., Sofyani, H. & Anwar, M. (2020). Performance-based budgeting implementation in higher education institutions: Determinants and impact on quality. Cogent Business & Management, 7(1), 1-22.

Pratolo, S., Mukti, A. H., & Sofyani, H. (2021). Intervening Role of Performance-Based Budgeting in the Relationship between Transformational Leadership, Organizational Commitment and University Performance. Jurnal Dinamika Akuntansi dan Bisnis, 8(1), 77-90.

Pratolo, S., Sofyani, H., & Mukti, A. H. (2021). Dampak Peran Komitmen Organisasional, Teknologi Informasi, Sistem Penghargaan dan Hukuman terhadap Pengukuran Kinerja Organisasional. Jurnal Kajian Akuntansi, 5(2), 156-175. https://doi.org/10.33603/jka.v5i2.4782

Pratolo, S., Utami, T. P., & Sofyani, H. (2022). The Influence of Intellectual Capital on the Performance of Higher Education Institutions: The Mediation Role of Performance Measurement Systems. JIA (Jurnal Ilmiah Akuntansi), 7(2), 200-216.

Pratolo, S., Yaya, R., & Sofyani, H. (2016). Akuntansi Keuangan Pemerintah Daerah (Konsep dan Implementasi untuk Akademisis dan Praktisi). Yogyakarta: LP3M UMY.

Raji, R. A., Rashid, S., & Ishak, S. (2019). The mediating effect of brand image on the relationships between social media advertising content, sales promotion content and behaviuoral intention. Journal of Research in Interactive Marketing, 13(3), 303-330. https://doi.org/10.1108/jrim-01-2018-0004

Raudeliuniene, J., Albats, E., & Kordab, M. (2020). Impact of information technologies and social networks on knowledge management processes in Middle Eastern audit and consulting companies. Journal of Knowledge Management, 25(4), 871-898. https://doi.org/10.1108/JKM-03-2020-0168

Sambamurthy, V., & Zmud, R. W. (1992). Managing IT for success: The empowering business partnership. Morristown, NJ: Financial Executive Research Foundation.

Santati, P., Sulastri, Perizade, B., & Widiyanti, M. (2022). Strategic Performance Measurement System in Higher Education in Indonesia: New Public Management Approach. Sriwijaya International Journal of Dynamic Economics and Business, 6(1), 107-130.

Sekaran, B. (2019). Research Methods For Business: A Skill Building Approach. United States: John Wiley & Sons.

Sequist, T. D., & Bates, D. W. (2010). Developing information technology capacity for performance measurement. In Performance Measurement for Health System Improvement: Experiences, Challenges and Prospects (Health Economics, Policy and Management) 2010 (pp. 552-581). Cambridge: Cambridge University Press.

Sirisomboonsuk, P., Gu, V. C., Cao, R. Q., & Burns, J. R. (2018). Relationships between project governance and information technology governance and their impact on project performance. International Journal of Project Management, 36(2), 287-300. https://doi.org/10.1016/j.ijproman.2017.10.003

Sofyani, H., Hasan, H. A., & Saleh, Z. (2022). The Moderating Role of IT Development on the Relationship between Internal Control and the Quality Performance of Higher Education Institutions. Quality Innovation Prosperity, 26(2), 167-190. https://doi.org/10.12776/qip.v26i2.1711

Sofyani, H., & Nazaruddin, I. (2019). Pengaruh Implementasi Sistem Pengukuran Kinerja Dosen dan Kejelasan Peran terhadap Kinerja Dosen: Sebuah Studi Pengujian Efek Mediasi. Jurnal Reviu Akuntansi dan Keuangan, 9(1), 34-45

Sofyani, H., Tahar, A., & Ulum, I. (2022). The Role of IT Capabilities and IT Governance on Accountability and Performance of Higher Education Institutions During the COVID-19 Pandemic. Management and Accounting Review, 21(2), 167-190. https://doi.org/10.24191/MAR.V21i02-07

Sriram, V., & Stump, R. (2004). Information technology investments in purchasing: An empirical investigation of communications, relationship and performance out comes. Omega: The International Journal of Management Science, 32(1), 41-55. https://doi.org/10.1016/j.omega.2003.09.008

Tahar, A., & Sofyani, H. (2019). Sistem Pengukuran Kinerja dan Kinerja Dosen: Pengukuran Menggunakan Instrumen Berbasis Luaran. Riset Akuntansi dan Keuangan Indonesia, 4(1), 1-12. https://doi.org/10.23917/reaksi.v4i1.6762

Tahar, A., Sofyani, H., Arisanti, E. N., & Amalia, F. A. (2022). Maintaining Higher Education Institution Performance Amid The COVID-19 Pandemic: The Role of It Governance, It Capability and Process Agility. Malaysian Online Journal of Educational Management (MOJEM), 10(1), 45 - 61.

Tahar, A., Sofyani, H., & Kunimasari, D. P. (2021). IT Governance and IT Application orchestration Capability Role on Organization Performance during the COVID-19 Pandemic: An Intervening of Business-IT Alignment. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 18(1), 1-20.

Thirumanickam, N., & Ahmad, B. (2013). Performance Measurement System in Higher Educational Institutions in Malaysia: an Exploratory Study of the Implementation of Balanced Scorecard. Asia-Pacific Management Accounting Journal, 8(2), 149-173.

Tjahjadi, B., & Soewarno, N. (2019). The mediating effect of intellectual capital, management accounting information systems, internal process performance, and customer performance. International Journal of Productivity and Performance Management, 68(7), 1250-1271. https://doi.org/10.1108/IJPPM-02-2018-0049

Tjahjadi, B., Soewarno, N., Astri, E., & Hariyati, H. (2019). Does intellectual capital matter in performance management system-organizational performance relationship? Experience of higher education institutions in Indonesia. Journal of Intellectual Capital, 20(4), 533-554. https://doi.org/10.1108/JIC-12-2018-0209

Tucker, B.P., & Parker, L.D. (2015). Business as usual? An institutional view of the relationship between management control systems and strategy. Financial Accountability & Management, 31(2), 113-149.

Turel, O., Liu, P., & Bart, C. (2019). Is board IT governance a silver bullet? A capability complementarity and shaping view. International Journal of Accounting Information Systems, 33(C), 32-46. https://doi.org/10.1016/j.accinf.2019.03.002

Turner, T., Creighton, S., Nudurupati, S., & Bititci, U. (2004). Implementing a Web enabled performance measurement system. Measuring Business Excellence, 8(2), 40-54. https://doi.org/10.1108/13683040410539427

Warner, S., Sasmoko, & Susianna, N. (2014). Introduction Investigation: Executive Information System for University. Asean Conference On Science And Technology(9th Asean Science And Technology Week), 353-363.

Wheaton, B., Muthen, B., Alwin, D., & Summer, G. (1977). Assessing reliability and stability in panel models. Sociological methodology, 8, 84-136. https://doi.org/10.2307/270754

Yaakub, M. H., Yaakub, M. H., Aziz, A. S. S., Nor, M. F. A. H., & Mohamed, Z. A. (2021). Exploring the role of technology infrastructure capability and intrapreneurship to influence higher education institutions’ performance. Journal of Physics: Conference Series, 1793(012012), 1-12.

Yeni, Y., Pujani, V., & Syahrul, L. (2021). Customers' Intention to Recommend Takeaway Food during COVID-19 Pandemic. Quality Innovation Prosperity/Kvalita Inovácia Prosperita, 25(3), 85-100. https://doi.org/10.12776/QIP.V25I3.1621

DOI: https://doi.org/10.24815/jdab.v10i1.29068

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

There are currently no refbacks.

Published by:

Accounting Department collaborated with IAI KAPd (Institute of Indonesia Chartered Accountant)
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143

Jurnal Dinamika Akuntansi dan Bisnis by Prodi Akuntansi Universitas Syiah Kuala is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.usk.ac.id/JDAB/index.