Assessing the impact of service tariff system implementation on financial efficiency and institutional performance

Abstract

Background: As a State University with Legal Entity (Perguruan Tinggi Negeri Badan Hukum – PTN-BH), Universitas Negeri Semarang (UNNES) is required to strengthen financial independence and institutional accountability through transparent and performance-based financial management. One strategic instrument to achieve this goal is the implementation of a service tariff system that aligns service quality with actual operational costs. However, the effectiveness of such a system in improving financial management and institutional performance remains empirically underexplored.

Purpose: This study aims to analyze the influence of the implementation of the service tariff system on budget management quality, Revenue Generating Activities (RGA) target achievement, and institutional performance at UNNES as a PTN-BH institution.

Methodology: A quantitative approach was employed using primary data collected from 15 respondents, including financial officers, service unit managers, lecturers, and administrative staff. Structural Equation Modeling – Partial Least Squares (SEM-PLS) was employed to investigate the relationships among the variables.

Results: The results show that the implementation of the service tariff system has a positive and significant effect on budget management quality, RGA target achievement, and institutional performance. These findings indicate that transparent and cost-based tariff mechanisms enhance financial discipline, optimize revenue generation through RGA activities, and strengthen institutional performance. The results also align with Public Value Theory and Stewardship Theory, demonstrating that accountable and cost-reflective tariff policies reinforce managerial responsibility and support the creation of public value.