Leveraging Intranet Quality for University Financial Sustainability: The Mediating Role of Enterprise Risk Management

Ummu Ajirah Abdul Rauf; Ragnar Löfstedt; Paul Bracken; Astri Ayu  Purwati

doi:10.37385/jaets.v7i1.9188

Authors

Ummu Ajirah Abdul Rauf Universiti Kebangsaan Malaysia, Graduate School of Business
Ragnar Löfstedt King's Centre for Risk Management, King's College London, United Kingdom
Paul Bracken Yale School of Management, Yale University, United States
Astri Ayu Purwati Faculty of Business, Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia

DOI:

https://doi.org/10.37385/jaets.v7i1.9188

Keywords:

intranet quality, enterprise risk management, university performance, digital infrastructure, socio-technical systems

Abstract

This study examines how intranet quality affects the financial performance of Malaysian public universities, filling a crucial gap in understanding how internal digital infrastructure supports institutional sustainability. It highlights Enterprise Risk Management (ERM) as a mediating factor translating intranet quality into measurable performance results. A cross-sectional survey was conducted with 210 participants, including risk committees, internal auditors, and top management from 20 public universities in Malaysia. This study used purposive, stratified, and census sampling methods. Intranet quality was evaluated across six key areas: collaboration tools, risk management application, access to proper risk data, interaction in risk problem-solving, communication among the risk committee, and risk management controls. ERM implementation was measured using ISO 31000-aligned standards, while university financial performance was assessed through five income sources: research projects, consultancies, public and private funding, commercialisation, and program offerings. Covariance-based structural equation modelling (CB-SEM) was employed for analysis. Findings reveal that intranet quality significantly improves ERM implementation, positively impacting financial performance. ERM partially mediates this relationship, with more substantial indirect effects than direct ones. This study emphasises the strategic importance of digital infrastructure and risk governance in boosting institutional effectiveness. It proposes a socio-technical model that helps university leaders leverage intranet systems to enhance risk resilience and long-term financial sustainability.

Downloads

Download data is not yet available.

References

Abdullah, E. M. E., Yakob, R., & Abdullah, M. H. S. B. (2024c). A Comprehensive Review of Information Technology in Enterprise Risk Management at Higher Education Institutions Journal of Advanced Research in Applied Sciences and Engineering, 61(12), 161–178. https://doi.org/10.37934/araset.61.2.161178

Abowitz, D. A., & Toole, T. M. (2009). Mixed Method Research: Fundamental issues of design, validity, and reliability in construction research. Journal of Construction Engineering and Management, 136(1), 108–116. https://doi.org/10.1061/(asce)co.1943-7862.0000026

Ahmad, A. R., Jamaludin, M. A. I., Sapry, H. R. M., & Jameel, A. S. (2023). Designing strategies framework for effective funding formula implementation at Malaysian public universities. Malaysian Journal of Social Sciences and Humanities, 8(6), e002359. https://doi.org/10.47405/mjssh.v8i6.2359

Amzat, I. H., Ali, H. M., Ibrahim, M. B., Othman, A., Salleh, M. J. B., & Najimdeen, A. H. A. (2023). Internationalization of higher education, university quality service, and international students’ loyalty in Malaysia. SAGE Open, 13(4), 1–17. https://doi.org/10.1177/21582440231210498

Antonopoulou, K., Begkos, C., & Zhu, Z. (2023). Staying afloat amidst extreme uncertainty: A case study of digital transformation in higher education. Technological Forecasting and Social Change, 192, 122603. https://doi.org/10.1016/j.techfore.2023.122603

Ariff, M. S. M., Zakuan, N., Tajudin, M. N. M., Ahmad, A., Ishak, M. F., & Ismail, S. (2014). A framework for risk management practices and organisational performance in higher education. Review of Integrative Business and Economics Research, 3(2), 99–116.

Asif, M., & Searcy, C. (2014). A composite index for measuring performance in higher education institutions. International Journal of Quality & Reliability Management, 31(9), 983–1001. https://doi.org/10.1108/IJQRM-02-2013-0023

Awang, Z. (2015). SEM made simple: A gentle approach to learning structural equation modeling. MPWS Rich Resources. Google Books+1

Bamber, C., & Elezi, E. (2024). Enterprise-wide risk management in higher education: Beyond the paradigm of managing risk by categories. Business Process Management Journal. https://doi.org/10.1108/bpmj-05-2024-0409

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Benavides, L. M. C., Tamayo Arias, J. A., Arango Serna, M. D., Branch Bedoya, J. W., & Burgos, D. (2020). Digital transformation in higher education institutions: A systematic literature review. Sensors, 20(11), 3291. https://doi.org/10.3390/s20113291

Bensi, N. L. P. (2024). Optimizing faculty management: Implementing intranet solutions in academic institutions. Global Journal of Engineering and Technology Advances, 21(1), 185–189. https://doi.org/10.30574/gjeta.2024.21.1.0200

Carton, R. B. (2004). MEASURING ORGANIZATIONAL PERFORMANCE: AN EXPLORATORY STUDY (By University of Georgia).

Casillas, J. C., Moreno, A. M., & Barbero, J. L. (2009). A configurational approach of the relationship between entrepreneurial orientation and growth of family firms. Family Business Review, 23(1), 27–44. https://doi.org/10.1177/0894486509345159

Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: The role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647–670. https://doi.org/10.1108/medar-09-2019-0549

Cooper, A. C. (1993). Challenges in predicting new firm performance. Journal of Business Venturing, 8(3), 241–253. https://doi.org/10.1016/0883-9026(93)90030-9

COSO. (2004). Enterprise risk management—Integrated framework. Committee of Sponsoring Organizations of the Treadway Commission.

Fernández, A., Gómez, B., Binjaku, K., & Meçe, E. K. (2023). Digital transformation initiatives in higher education institutions: A multivocal literature review. Education and Information Technologies, 28(10), 12351–12382. https://doi.org/10.1007/s10639-022-11544-0

Galbraith, J. R. (1973). Designing complex organizations. Addison-Wesley.

Heng, C. W. (2012). Human resource practices and organizational performance in SMEs in Klang Valley / Heng Chen Wearn. http://studentsrepo.um.edu.my/3428/

ISO. (2018). ISO 31000:2018 Risk management—Guidelines. International Organization for Standardization. https://www.iso.org/standard/65694.html

Jaafar, J. A., Latiff, A. R. A., Daud, Z. M., & Osman, M. N. H. (2023). Does revenue diversification strategy affect the financial sustainability of Malaysian public universities? A panel data analysis. Higher Education Policy, 36(1), 116–143. https://doi.org/10.1057/s41307-021-00247-9

Kimathi, M. N., & Irungu, G. (2024). Revenue diversification and financial sustainability of public universities in Kenya. Journal of Finance and Accounting, 4(3), 31–41. Retrieved from https://edinburgjournals.org/journals/index.php/journal-of-finance-and-accountin/article/view/320

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308

Lukhanda, P., & Kakanda-Sinkala, N. (2024). Adoption of the intranet in public sector service delivery in the Ministry of Education: A case study of Provincial Education Office (PEO) Copperbelt. International Journal of Research and Innovation in Applied Science, 9(8), 491–510. https://doi.org/10.51584/ijrias.2024.908043

Lundquist, A. M. (2015). Enterprise risk management (ERM) at U.S. colleges and universities: Administration processes regarding the adoption, implementation, and integration of ERM (Doctoral dissertation, Western Michigan University). ProQuest Dissertations & Theses.

Mamat, S., Ahmad, N. N. N., & Said, J. M. (2021). Financial sustainability in Malaysian public universities: Coping with or embracing change? Journal of Public Budgeting, Accounting & Financial Management, 33(5), 599–617. https://doi.org/10.1108/jpbafm-09-2020-0157

Quang, L. V., Ngoc-Long, N., & Giang, P. X. (2024). Enterprise risk management and firm performance: Exploring the roles of knowledge, technology, and supply chain. Problems and Perspectives in Management, 22(2), 150–164. https://doi.org/10.21511/ppm.22(2).2024.13

Rauf, U. A. A., Ahmed, S., Deli, M. M., Asha’ari, M. J., & Wong Abdullah, S. I. N. (2024). Empowering higher education: The tech advantage in work coordination and risk management for financial growth. Journal of Applied Engineering and Technological Science, 6(1), 641–655. https://doi.org/10.37385/jaets.v6i1.6364

Rauf, U. A. A., Jamil, A. H., Deli, M. M., Asha’ari, M. J., Reza, M. N. H., & Abdullah, S. I. N. W. (2023). Predicting Malaysian university performance through Intranet quality: A Review on Mediating Role of Enterprise Risk Management. Journal of Management Scholarship, 2(2), 160–168. https://doi.org/10.38198/jms

Rauf, U.A.A., Jabar, J., & Mansor, N. (2020). An Empirical Study of Enterprise Risk Management Implementation on Performance in Malaysian Public Higher Education. International Journal of Advanced Science and Technology, 29(9s), 962–973. https://www.researchgate.net/publication/341763512

Rauf, U.A.A., Jabar, J., & Mansor, N. (2021). A Conceptual Framework for Enterprise Risk management in Malaysian Public Higher Education: Applications of Knowledge Management. Academy of Entrepreneurship Journal, 27(2). https://www.abacademies.org/articles/a-conceptual-framework-for-enterprise-risk-management-in-malaysian-public-higher-education-applications-of-knowledge-man.pdf

Rodriguez, E., & Edwards, J. S. (2014). Knowledge management in support of enterprise risk management. International Journal of Knowledge Management, 10(2), 43–61. https://doi.org/10.4018/ijkm.2014040104

Said, J. M., Mamat, S., Ahmad, N. N. N., & Borhan, A. (2023). Financial health of the Malaysian public universities: Whither the way forward? Journal of Higher Education Policy and Management, 45(4), 442–457. https://doi.org/10.1080/1360080X.2023.2207235

Setapa, M., Mamat, M., Bakar, H. A., Yusuf, S. N., & Kazemian, S. (2020). Enterprise risk management: Impact on performance of Private Higher Educational Institutions in Malaysia. Polish Journal of Management Studies, 22(1), 485–501. https://doi.org/10.17512/pjms.2020.22.1.31

Shan, M., Chan, A. P. C., Le, Y., & Hu, Y. (2014). Investigating the effectiveness of response strategies for vulnerabilities to corruption in the Chinese public construction sector. Science and Engineering Ethics, 21(3), 683–705. https://doi.org/10.1007/s11948-014-9560-x

Shrader, R. C., & Simon, M. (1997). Corporate versus independent new ventures: Resource, strategy, and performance differences. Journal of Business Venturing, 12(1), 47–66. https://doi.org/10.1016/s0883-9026(96)00053-5

Tham, S., & Chong, P. (2023). Transforming Malaysia’s higher education: Policies and progress. Asian Economic Policy Review, 18(2), 243–260. https://doi.org/10.1111/aepr.12417

Trist, E., & Emery, F. (1960). Socio-technical systems. Tavistock Institute.

Wang, Y. (2010). Performance measurement in universities: Managerial perspectives (Master’s thesis, University of Twente). University of Twente Student Theses.

Yee, S. C., & Hassan, Z. (2024). Internationalization of student mobility for higher education Malaysia: A systematic review. International Journal of Academic Research in Progressive Education and Development, 13(4), 2292–2305. https://doi.org/10.6007/ijarped/v13-i4/23820

Yin, T., Ping, A., Nabiha, S., & Khalid, A. (2023). Does enterprise risk management influence performance? Evidence from Malaysian private higher education institutions. International Journal of Advanced Research in Economics and Finance, 5(1), 1–11. https://doi.org/10.55057/ijaref.2023.5.1.13

Zahra, S. A., & Bogner, W. C. (2000). Technology strategy and software new ventures’ performance. Journal of Business Venturing, 15(2), 135–173. https://doi.org/10.1016/s0883-9026(98)00009-3

Zhu, Y. (2010). The effect of human resource practices on firm performance in Chinese SMEs: An empirical study in the manufacturing sector (Master’s thesis, Université du Québec). Université du Québec. https://depot-e.uqtr.ca/id/eprint/1324/