THE ROLE OF INFORMATION TECHNOLOGY (IT) FOR FINANCIAL SUSTAINABILITY IN HIGHER EDUCATION INSTITUTIONS (HEIS)

Abstract

Higher educational institutions (HEIs) are increasingly faced with financial pressures from rising operational costs, reduced public funding and greater demand for digital transformation. Information Technology (IT) technology has been the golden egg for financial sustainability in which operations of colleges and universities can now become cost-effective, the revenue can be diversified, and good governance can be established. Yet, IT use gaps, security threats, and institutional barriers continue to hinder its full potential. Utilizing a narrative literature review approach between 2020 and 2024, this study draws on the Resource-Based View (RBV), Technology Acceptance Model (TAM), and Institutional Theory as a foundation to explore IT’s benefits on the financial sustainability of HEIs. A study comprising a thematic analysis presented findings across five major themes: Models of financial sustainability and IT integration, Digital transformation in financial management, Obstacles to IT adoption, Governance and policy frameworks, and Emerging trends. The Nigerian, Saudi and UAE case studies EPS, AI financial analytics, and ERP have all aligned to drive the improved efficiency of financial work. New forms of online education models and digital learning platforms have all contributed to revenue diversification, whereas smart campus technologies have helped reduce operations costs. In contrast, under-funded HEIs face risks from the limited IT infrastructure and security vulnerabilities that could cost money. Such an approach needs structured IT integration, faculty, training, and digital by stage. Governments should ensure an increase in cybersecurity and funding investment to underpin infrastructural IT for the marginalised HEIs, and future work must consider a long-term ROI evaluation project longitudinal study and the application of ethical AI in financial governance and scalable IT solutions.  If HEIs globally are to use IT to ensure financial sustainability, IT must be aligned strategically with financial goals.