Distribution of Income Diversification on Financial Sustainability of Indonesian Private Universities; Empirical Studies

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (beta=0.337) and profitable financial management (beta=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (beta=0.337), Commercial Intellectuals (beta=0.161), Commercial Contracts (beta=0.103), and Profitable Financial Management (beta=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (beta = 0.290), Endowments (beta = 0.158), and Commercial Contracts (beta = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.