The Moderating Role of IT Development on the Relationship between Internal Control and the Quality Performance of Higher Education Institutions

Abstract

Purpose: This study examines the extent to which IT development for internal control purposes has been implemented. Also, it investigates the moderating effect of IT development on the relationship between internal control implementation and Higher Education Institution (HEI) quality performance. Methodology/Approach: This research employed a survey method by distributing questionnaires to HEIs in all 34 provinces of Indonesia. As a result, 191 HEIs participated in this study. A Partial Least Squares (PLS) with the second-order analysis was utilised to test the relationship among the variables. Findings: The results revealed that the IT development for internal control purposes was generally moderate. Additionally, IT development was positively associated with internal control implementation and strengthened the relationship between internal control and HEI quality performance. Research Limitation/Implication: This study was based solely on a weak survey study regarding depth and breadth of exploration. Additionally, it did not cross-validated by re-testing the proposed model with secondary data. Originality/Value of paper: This study adds to the body of knowledge on the moderating role of IT development. Also, the results of this research can be a meaningful input for HEI management since many consider internal control carried out manually to be sufficient without the role of IT. In fact, IT development can strengthen (be a moderator) the positive relationship between internal control and HEI quality performance.

Does internal control contribute to quality management in higher education institutions? Indonesia's adoption experience of the COSO integrated framework

“…In this study, internal control might improve organisational capability in governance practices (Sofyani et al. , 2022a, b), aiming to pursue HEI quality. According to some literature, good governance practices will enhance organisational performance (Kaufmann and Lafarre, 2021; Wahyuni-TD et al.…”

“…In the Kaizen internal quality assurance implementation, all programs and activities, either academic or non-academic, must follow quality standards, key performance indicators and strategies formulated to promote continuous quality improvement. Additionally, at the same time, the issue of strengthening internal control in HEIs is also being promoted by the Indonesian government (Sofyani et al. , 2002b).…”

“…, 2019). The latest study on internal control in HEIs by Sofyani et al. (2022b) also implied internal control's role in improving HEI quality.…”

“…On the other hand, while concern about internal control practices in the not-for-profitorganisations (NFPOs) sector, including HEIs, has risen, related studies in that sector still receive limited attention from academics rather than similar studies in companies (Chalmers et al, 2019). The latest study on internal control in HEIs by Sofyani et al (2022b) also implied internal control's role in improving HEI quality. However, how internal control benefits quality management and improvement at HEIs has not been explored sufficiently in their study; thus, they suggested addressing this gap.…”

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“…Meanwhile, determining the validity of the higher-order constructs can be seen from the outer weight value and its significance value (Hair et al, 2021;Sofyani et al, 2022). The outer weight test results in the Table 7 demonstrate that the construct values all contributed positively and were significant.…”