PPIA Doctoral Promotion, Sutarti: The Effect of Diversity of Directors on the Adoption of E-Banking Technology Innovations
Nino Eka Putra – Public Relations of FEB UI
DEPOK – (11/8/2020) Postgraduate Program in Accounting (PPIA), Faculty of Economics and Business, Universitas Indonesia, held an open online session for the Doctoral Promotion of Sutarti (1406590860) , on Tuesday (11/8/2020).
The Doctoral Promotion Session was chaired by Dr. Beta Yulianita Gitaharie; with supervisors, Prof. Akhmad Syakhroza, Ph.D. (Promoter), Dr. Vera Diyanty (Co-Promoter 1), and Setio Anggoro Dewo, Ph.D. (Co-Promoter 2). The examiners consisted of Prof. Siddharta Utama, Ph.D. (Chief Examiner), Dr. Ancella Anitawati Hermawan, Dr. Siti Nurwahyuningsih Harahap, Dr. Setyo Hari Wijanto, and Dr. Irwan Djaja.
The dissertation written by the Promovendus entitled “The Effect of Diversity of Directors on the Adoption of E-Banking Technology Innovations that Impacts Performance with the Effectiveness of the Board of Commissioners, Information Technology Governance and Internal Control as Moderation Variables (Commercial Banks in Indonesia 2010-2016)” .
This study aims to conduct empirical test on the effect of the diversity of directors as a top management team (TMT) in a bank on performance through strategic mediation variables, namely the adoption of e-banking technology innovation with the effectiveness of the board of commissioners, the effectiveness of information technology governance and the effectiveness of internal control as moderation variables. The population in this study were commercial banks in Indonesia during the 2010-2016 period.
The sample in this study consists of 54 banks with 324 observations. In this study, data observations are carried out by utilizing a panel data set with the estimation of the direct influence model parameters using the Generalized Least Square (GLS) while the indirect effect testing used the Two Stage Least Square (TSLS).
Several contributions of this research are: (i) the first study that explores the variable of e-banking technology adoption as a variable that mediates the relationship between TMT diversity and performance in a bank with the effectiveness of the board of commissioners, effectiveness of information technology governance and effectiveness of internal control as moderation variables. ; (ii) developing a measure of the adoption of e-banking technology innovation; (iii) developing a measure of the diversity index using principle component analysis (PCA).
The results show that high gender diversity in directors had a positive effect on bank performance, on the other hand, tenure diversity, educational background and high diversity index had a negative effect on bank performance, while age diversity and education level had no effect on bank performance.
High level of gender diversity on the board of directors also affects the high number of the adoption of e-banking technology innovation in banks, on the other hand, banks that have a high level of age diversity and a high diversity index on the board of directors have a low adoption rate of e-banking technology innovation. Meanwhile, the diversity of educational levels, educational backgrounds and tenure of directors does not affect the adoption of e-banking technology innovation. The effectiveness of the board of commissioners is proven to have a positive effect on the decision on the number of e-banking technology innovation adoptions, but it is not proven to strengthen the positive influence between the diversity of directors on the adoption of e-banking technology innovation.
In addition, the results show that the adoption of e-banking technology innovation has a negative effect on bank performance. The estimation results of the moderation model find evidence that the effectiveness of internal control weakens the negative effect of the number of e-banking technology innovation adoptions on bank performance.
The effectiveness of information technology (IT) governance is not proven to strengthen the positive influence between the number of adoptions of e-banking technology innovations and performance; however, sensitivity testing shows that the effectiveness of information technology governance is proven to strengthen the positive effect of using e-banking technology innovation adoption on bank performance. The results of the regression model using the TSLS method show that age diversity, diversity of educational specialization backgrounds on directors and diversity indexes have a positive effect on performance through the adoption of e-banking technology innovations.
The Executive Board of the open session for the doctoral promotion decided that Sutarti (1406590860) has passed with honors and succeeded in obtaining the 77th Doctorate in Accounting. Congratulations to Dr. Sutarti! (hjtp)
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