Unraveling Technology Components on the Financial Performance of Malaysian Public Higher Education: CB-SEM Approach

Abstract

The technology component refers to the need for information systems to support various activities in Public Higher Education (PHE) especially activities that require coordination and knowledge sharing. However, the financial performance of Malaysian PHE has been reported to be unsatisfactory after being granted autonomous status. This paper aims to address this issue by validating an instrument that examines the technology component under knowledge management that influences the financial performance of Malaysian PHE. This cross-sectional study collected 107 responses for a pilot study, which were subjected to exploratory factor analysis (EFA) using SPSS. Subsequently, 210 responses were gathered from the actual data collection, and the data were subjected to confirmatory factor analysis (CFA) by utilizing the CB-SEM approach. The results concluded that the technology component instrument fulfils the requirements of the CFA and is valid for measuring the financial performance of Malaysian PHE. The technology component is crucial in Malaysian PHE as it allows the people to connect and access the data, communicate the knowledge, and exchange strategic resources as it is more structured, reliable, and understandable. Therefore, this paper will expose the Malaysian PHE to the components of technology that need to be considered so that their financial performance can be improved.