The Impact of Financial Management Information Systems on Financial Performance: A Field Study at the University of Saba Region

Abstract

This study investigates the impact of system quality and information quality on financial performance in the University of Saba Region, Yemen based on the Information Systems Success (ISS) Model. Although the use of Financial Management Information Systems (FMIS) in higher education is on the rise, there is still a lack of empirical evidence on the impact of these dimensions on the financial performance of public universities in developing countries. A quantitative approach was employed through a structured questionnaire administered to employees in financial and administrative positions. Descriptive statistics, Pearson correlation and multiple linear regression were used to analyse data. The results show the moderate of system quality, information quality and financial performance. System quality and information quality have a significant positive effect on financial performance. System quality is a better predictor of financial performance. The findings point to the need to improve FMIS functionality, reliability and information quality to enhance financial planning, control and decision making. The study adds to the scarce FMIS literature in the higher education in developing countries by providing empirical evidence from a Yemeni public university and offers practical guidance for university administrators and policy makers interested in improving financial performance through continuous FMIS improvement and digitalisation.