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  • P-ISSN1738-3110
  • E-ISSN2093-7717
  • SCOPUS, ESCI

Distribution of Income Diversification on Financial Sustainability of Indonesian Private Universities; Empirical Studies

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2023, v.21 no.3, pp.71-82
https://doi.org/10.15722/jds.21.03.202303.71
HANDAYANI Erna (Universitas Muhammadiyah Yogyakarta)
SHOLIHIN Mahfud (Universitas Gadjah Mada)
PRATOLO Suryo (Universitas Muhammadiyah Yogyakarta)
RAHMAWATI Alni (Universitas Muhammadiyah Yogyakarta)

Abstract

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.

keywords
Financial sustainability, Income Diversification, IT Capability, Higher Education, Financial Sustainability Instruments, Distribution

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