Good University Income Generating Governance in Indonesia: Agency Theory Perspective

Ely Siswanto, Djumahir ., Ahmad Sonhadji K.H., M. Syafi’i Idrus


The objective of this study aims to comprehend and portray the management opinions of the three Public Service Board (PSB) universities in Indonesia dealing with the good university income generating governance. Furthermore, this study applies epistemological subjectivism, interpretivism paradigm with multi-site design. The findings were analyzed using agency theory perspective. Therefore, the finding results show that the principles of good university income generating governance is law-abiding, academic oriented, accountable, professional, independent and transparent. The emergence of the principle of law-abiding indicate hierarchical relations agency that is purely between the government and the universities in income generation. The principle of academic orientation, accountability, independence and autonomy suggests that the goal synergy of both principal and the agent are the essence of agency relationship. Meanwhile, the professionalism demonstrated that the agent fully realizes which the principal requires certain tasks to be implemented by the agents because agents have the skills required. Yet, independence gained through wide autonomy both on academic as well as non-academic matters. The principle of transparency demonstrates the importance of the information factor in agency relationship. Agent transparency is necessary for the principal due to the difficulty in obtaining information dealing with the headway of the agent itself.

Keywords: Good University Governance, Income Generating, Agency Theory


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