Factors that Influence the Organizational Performance in Private Universities: A Review of Literature

Abstract

This paper presents a review literature of the factors that influence organisational performance in organisations in private universities. This study focuses on internal control variables, budgeting processes and organisational characteristics as moderating variables. Many private universities in Indonesia are closed or no longer operating due to a lack of internal control in managing universities and inadequate budgeting processes. So, the universities lack funds to carry out their operational activities. The characteristics of higher education leaders are less professional in managing higher education institutions. He/she carried out his leadership so that many universities went bankrupt. Finally, these universities had to be closed due to a shortage of students as the main source of higher education funding. From previous research, many researchers are still researching profit organisations, which is rarely done for non-profit organisations. Besides that, the previous research on organisational performance was measured only from the financial part, while for finance, it was still rare to investigate as a benchmark for organisational performance.