Internal control and financial viability: the moderating role of leadership qualities on management of income-generating activities at Indonesian higher education
Journal of Applied Research in Higher Education
ISSN: 2050-7003
Article publication date: 21 April 2023
Issue publication date: 5 March 2024
Abstract
Purpose
The implementation of income-generating still faces problems, such as the lack of well-established internal control and differences in implementation in each unit. This study aims to analyze internal controls, financial viability (FV) and leadership qualities (LQ) in the implementation of income-generating in Indonesian higher education.
Design/methodology/approach
This study is quantitative and uses a causal approach. The population of this research is the unit leader and the person in charge of the activity that generates income, with a total sample of 111 people. The sampling technique used is simple random sampling. Data were analyzed using moderation regression analysis (MRA) with the WrapPLS (partial least square) analysis tool.
Findings
The results indicate that internal control and FV significantly affect the management of income-generating. The existence of LQ as a moderating variable can moderate and weaken the influence of internal controls and FV on the management of income-generating. In this finding, the unit leader and the person in charge of activities that generate income in higher education need to improve managerial skills, including ethics, uphold integrity, clear vision, quick adaption, honestly and trust so that the management of income-generating can achieve higher education goals more effectively and efficiently.
Research limitations/implications
This research shows that universities need to create a good environment to build an ecosystem that can improve the management. The university encourages the good management by strengthening the leadership. However, the research has a limitation: the study was only conducted in one state university.
Originality/value
The implementation of income generation in the public financial management system of legal entity universities requires accountability for sources of income so that internal controls and the role of finance are needed to ensure the continuity of universities.
Keywords
Acknowledgements
The author would like to thank the Institution of Research and Community Service of Universitas Negeri Semarang to obtain the data to carry out this study and funding.
Citation
Mahmud, A., Susilowati, N., Anisykurlillah, I., Aeni, I.N. and Sari, P.N. (2024), "Internal control and financial viability: the moderating role of leadership qualities on management of income-generating activities at Indonesian higher education", Journal of Applied Research in Higher Education, Vol. 16 No. 2, pp. 358-377. https://doi.org/10.1108/JARHE-05-2022-0162
Publisher
:Emerald Publishing Limited
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