Frances Nwamaka Madu, Vincent A. Onodugo and Ejikeme Emmanuel Isichei
Addressing the challenges of financial sustainability in tertiary institutions through the adoption of technology was the central motivation of this study. Hence, the authors…
Abstract
Purpose
Addressing the challenges of financial sustainability in tertiary institutions through the adoption of technology was the central motivation of this study. Hence, the authors assessed the direct effect of the adoption of electronic payment system (EPS) on financial sustainability and the indirect mediating influence of technological capabilities on this relation.
Design/methodology/approach
Sample of 223 non-academic employees in twelve higher institutions were selected. The authors used primary data through the use of a questionnaire for data collection. Partial least square structural equation model (SmartPLSv3) was used for the analysis of the study.
Findings
The adoption of electronic payment system was shown to have a significantly positive effect on financial sustainability of tertiary institutions. It was also found that technological capabilities affect financial sustainability of tertiary institutions and technological capabilities mediate the relationship between the adoption of electronic payment solution and financial sustainability of tertiary institutions.
Practical implications
The study advances the need for incorporating technology as a measure in advancing the internal financial management practices of tertiary institutions in developing economies.
Originality/value
The authors developed a model that advances a new perspective to higher education financial sustainability through advocating for technological capabilities development as a channel to ensure liquidity and solvency of higher education, most especially in developing economies.