THE EFFECT INFORMATION TECHNOLOGY SYSTEM ON SERVICE QUALITY AND PRIVATE UNVERSITY IMAGE

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1 THE EFFECT INFORMATION TECHNOLOGY SYSTEM ON SERVICE QUALITY AND PRIVATE UNVERSITY IMAGE Hotman Panjaitan 1, Muhamad Firdaus 1, Anton Breva Yunanda 1 1 Universitas 17 Agustus 1945 Surabaya hotman_pp@yahoo.com 1, firdausnabila@yahoo.com 1, antonby@yahoo.com 1 ABSTRACT The result of model test in this study can explain the relationship between the application of information technology and online academic information system on service quality and private university image in East Java. Using proportional random sampling, structural equation model (SEM) analysis and with the assistance of Amos software, the study shows that the application of Information Technology (IT) System on on-line academic information system increases service quality for student (0.514), particularly on information accuracy, information transfer, efficiency and real time. Information technology system may also indirectly increase the university image by service quality (0.399). With communication technology, information distribution and spread may be done in rapid and accurate manner, without boundary of time and space. Keywords: IT System, Service Quality, University Image 1. INTRODUCTION A Companies that have a high level of quality service, specifically developed two information systems that greatly enhance their service capabilities, namely: information system that collects service performance for management purposes and employee motivation, and information systems that disseminate information deemed useful for customers. With the use of information technology at an online academic information system, then the quality of services received by students will be increased, especially in terms of accuracy of the information, the transfer of information, efficiency and real time. IT System will also raise the image of the universities. Through communications technology, distribution and dissemination of information can be done quickly, accurately, without limit of time and space. Ingleson (2000) explained that the IT System can be built through communication links between consumers (students) and the management of universities. Two-way information distribution service can be done quickly, so that every consumer the opportunity to submit an evaluation, aspiration (critics suggested), which then generates consumer perception that every consumer can meet leaders of universities (the management) directly, without long and complex bureaucracy. The attraction offered by each private universities are generally associated with service quality, which in its application varies from one to another private universities. With the high quality service, it is hoped will be able to affect the image of private universities. The image of a private university formed from the impressions and feelings based on experiences of service quality experienced by a person against the university. Based on the description mentioned above, the research problem can be formulated as follows: 1. Is the use of information technology at an online academic information system has positive and significant impact on service quality of private universities? 2. Does use of information technology at an online academic information system has positive and significant effect on the image of private colleges? 2. LITERATURE REVIEW 2.1. IT Systems Information systems can represent any combination of regular people, hardware, software, network communications, and data resources that collect, transform, and distribute information within an organization (O'Brien, 2004). The system utilizes computer hardware and computer software, procedures, model analysis, planning, decisionmaking techniques and databases. So information systems should be using the computer. An academic information system is an information system that is used to improve the performance of academic system and improve the quality of academic information services. IT System provides five major roles in the organization, namely to improve; a) efficiency b) effectiveness; c) communication; d) collaboration, and e) competitive. At first, the information technology system used for transaction processing. The objective of transaction processing to replacing V-39

2 V-40 The 6th International Conference on Information & Communication Technology and Systems transaction processing by the human with the technology of information systems. In the world of higher education, the efficiency conducted by utilizing of IT System on the making of the reports, summary of study results of its students, a list of all students, list of students per department, list of participants per course, and making other reports with the help of computers. This IT System iprovide information for managers in organizations to support their decision making process more effectively. More effective because it is based decision making with accurate information, timely and relevant. With the existence of academic information systems at universities, then the data on new admissions process, the number of students accepted per-period, the number of students who re-register, the number of graduates per-period, and other information, can be presented quickly, so that productivity of higher education can be found quickly as well. Graph admissions process as input and graphics output can be presented the graduates as quickly, and all this information can be obtained quickly, accurately and in real time. All the information available to support the management (foundations owner and rectorate) to establish a policy for the good of university. The reports also can be used as supporting strategic policy making, to be able to compete with other universities, who become rivals. By using the IT system at an online academic information system, then the quality of services received by students will increase, especially in terms of accuracy of the information, the transfer of information, efficiency and timeliness. An univesity that uses IT System at an online academic information system, are farsighted universities, universities that can keep up with technology, universities can take advantage of advances in information technology, and can utilize the facilities provided by information technology. With the use of IT Systems at the academic process, it will raise the image of this college. No less important role of the IT System is to improve competitiveness. This role can be achieved with the use of strategic information systems. IT System is any system used in the organization to implement strategies for improving their competitive advantage University Image If the consumers buy something, he not just need the stuff, but there was something else he had hoped. Something else is fit with the image formed in him. Therefore it is very important to give information to public organizations in order to establish a good image. Levit states (in Buchari. 2000), that: The Marketing Imagination is the starting pont of success in marketing. Kotler states that the image is a person impression ideas and beliefs about something (Kotler, 2000). Crompton states that the image is an impression, feelings or conceptions that exist in public about the company, concerning an object, person or institution. The image can not be printed as articles on the plant, but the image is an impression that is obtained in accordance with one's knowledge about something. The image formed from how the company conducts its operational, which have a basis in terms of service. the image is formed based on the knowledge experienced by someone about something, so that eventually build up a mental attitude. This mental attitude will then be used as consideration for the decision. The image is considered to represent the totality of one's knowledge of something. Components that create the image of the university can include: academic reputation of a university, campus appearance, cost, location, distance, possible future career and social activities campus Service Quality In the service industry, quality product that is measured is the quality of service. Management must understand the overall service offered from the point of the customer. Quality of service which was formed from the viewpoint of customers can provide more value to the products offered. Companies should realize that quality in accordance with the terms of customer demands. In other words, quality is the most consistent and efficient way to provide what customers wanted and expected by customers. Quality of service based on a comparison between what should be offered and what is provided (Parasuraman et al., 1985). According to Zeithaml et al., (1998), quality of service is depicted as a form of attitude, associated with the satisfaction derived by comparing expectation with performance. Service quality dimensions according to Engel et al., (1995) include tangibles, reliability, responsiveness, performance and empathy, while according to Zeithaml et al., (1998), quality of service include tangibles, reliability, responsiveness, assurance and empathy 2.4. Research Hypothesis 1. The use of information technology at an online academic information system has a positive

3 The Effect Information Technology System on Service Quality Hotman Panjaitan V-41 and significant influence on the service quality of private universities 2. The use of information technology at an online academic information system has a positive and significant effect on the image of private universities 3. RESEARCH METHOD This research is descriptive research, conducted by survey method about the effect of the use of IT System on the service quality and image in universities, especially private universities. The sample in this study was students of private universities in East Java which has applied information technology in academic information system, with proportional random sampling method. Estimates are used in this research are the Maximum likelihood estimation (ML), and the number of samples to be investigated for 200 samples which were determined using a reference (Hair et al., 1998) 4. RESULTS AND DISCUSSION Validity Test Validity test results (with the help of Amos version 6.0) show significant for all indicators or items of questions. Result shows that all indicators of the critical ratio variable has a value which is two times larger than the standard error. Therefore it can be concluded that all indicators of the variables used in the study is valid. Reliability Test Reliability test results show that all variables of the study was reliable, because the entire value of the construct reliability of the construct variables (latent) research is greater than or equal to the value of a standardize ( 0,7), so that each indicator indicates the research constructs. Values of variance extracted from each study variable constructs are greater than or equal to the value of a standardize ( 0,5), so that each indicator has represented the latent constructs in both studies. Construct Variable STI SQL IMG Construct Reliability 0,771 0,916 0,710 Source: Prepared researchers Results Table 1. Result of reliability test and constructs extracted variant Construct Variant Variant Reliability Extracted Extracted Standard Standard 0,7 0,7 0,7 0,544 0,690 0,541 0,5 0,5 0,5 Conclusion Valid & Reliable Valid & Reliable Valid & Reliable Measurement Model Subsequently, conducted confirmatory factor analysis / measurement of the construct validity of the model (measurement model) system of information technology (STI), quality of service (SQL), and the image of college (IMG). This is shown in Figure 1. The contribution of each indicator (loading factor), shown in Table 2. Based on the results of statistical tests in AMOS version 6.0. the value of CR (crical ratio) retrieved for each indicator forming STI, SQL and IMG is greater than 2 (Joreskog and Sorbom, 1996), therefore these indicators are significant indicators shape the variable of STI, SQL, and IMG e1 e2 e TSI1 TSI2 TSI STI e SQL SQL SQL5.11 e4 SQL2 SQL3 SQL4 e e5 e6 e Figure 1. Model Test dan Construct Validity. UJI HIPOTESA Chi-Sqr = Probabilitas =.057 GFI =.962 AGFI =.919 TLI =.982 CFI =.990 RMSEA = e13 IMG e IMG IMG2 e IMG e11 Variable TSI1 STI TSI2 STI TSI3 STI SQL1 SQL Table 2. Indicator regression coeffisient variable STI, SQL, and IMG Standard Critical Ratio Coefisien Probability Error (SE) (CR 2) Regression ( ) 0,492 0,106 5,798 0,952 0,058 3,692 0,703 0,089 10,255 0,664 Explanation Strong Strong Strong

4 V-42 The 6th International Conference on Information & Communication Technology and Systems SQL2 SQL SQL3 SQL SQL4 SQL SQL5 SQL IMG1 IMG IMG2 IMG IMG3 IMG 0,084 0,076 0,072 0,106 0,058 15,426 17,817 14,817 9,824 3,641 0,873 0,907 0,842 0,848 0,805 0,758 0,283 Weak Source: Results analysis Analysis of the Effect Testing the model above shows the influence of TSI on the SQL variable, and IMG as shown in Table 3 as following: Table 3. indicates that there is a direct effect of variable IT System (STI) to the variable quality of service (SQL) of or 51.44%, and on the image of college (IMG) of That means using information technology in academic information system, it will improve the quality of services to students at 51.44%. Table 3. Direct Effect Standardized Direct Effects STI SQL IMG SQL IMG Source: Results analysis Table 4. showed that the total of variable IT System (STI) to the variable image of college (IMG) of or 39.9%. That means using IT System on academic information system, it will enhance the image of universities through the eyes of service quality for 39.9% of respondents. Source: Results analysis Table 4. Total Effect Standardized Total Effects STI SQL IMG SQL IMG DISCUSSION Information Technology Systems (IT Systems) The greatest contribution in shaping the IT System is an indicator of accuracy the distribution of academic information (0.952). This shows that private univeristies students prefer the accuracy of the distribution of academic information from the campus that includes the accuracy of the information received, the accuracy of information access, and accuracy of presentation of information. With the dominance dimension of accuracy the distribution of academic information, in the forming variable of IT System, then the universities should be more seriously to improve the distribution of academic information, so that the distribution of academic information more quickly, precisely and accurately. On the other hand private universities should also pay more attention to hardware and software support information systems for both the dominant factor for consumers (students) in the case of IT System. For that purpose, the private universities are required to perform the distribution of academic information via the Internet, via mobile phone (sms, mms, etc) using the latest computer technology, and software appropriate to the distribution of information more smoothly and quickly. When IT System is connected with the image of universities (corporate image) there is a direct negative correlation (-0.344) and significant. This shows that with the use of information technology in academic information systems do not directly impact on the image of universities. This is understandable because in this study, the respondents were students who are already using IT System on academic information system, so that private universities that use the IT System is common / general. Naturally private colleges use IT System. On the other hand policies which made by the management of private universities is also not directly related to the existence of the IT System, therefore the use of the IT System is in the campus does not significantly affect the image of universities directly. Service Quality Based on the results of studies testing the importance of the value of CR (crical ratio) for each indicator forming service quality is greater than 2 (Joreskog and Sorbom, 1996), thus, the five indicators are indicators that significantly proven to form a variable service quality, (Bebko, 2000; Zeithaml et al., 1996; Cronin, 2000). The greatest contribution in shaping the service quality is an indicator responseveness of This means that students of private universities prefer the responsiveness of the campus, which includes prompt delivery, responsive service and innovative services for its service quality of private universities.

5 The Effect Information Technology System on Service Quality Hotman Panjaitan V-43 With the dominance of the responsiveness dimension in forming the variable quality of service, then the universities should be more serious to improve services in terms of speed of response, positive feedback and always perform repair services (innovative) from time to time so that students feel at ease and happy the response given by the college. On the other hand private universities should also pay more attention to reliability as the dominant factor both for consumers universities in terms of service quality in this study. For that purpose the private universities claimed to always realize all the things that were promised to consumers. This means also conduct classes on time and quality, which provides services with accurate, consistent and satisfying. In this research, there is a significant and strong relationship between quality of service with the image of universities (0.842). This indicates to the management to be more serious in implementing and improving the quality of service to the respondents, which results directly on the image of universities. With good quality care will lead to rising universities image in the eyes of universities consumers. The university Image In this study, the university image is measured by three variables: academic reputation, career future, and the appearance of the campus. The results showed that the three dimensions of these variables found to significantly shape the corporate image, where this is indicated by its critical value ratio of each dimension (loding factor) is greater than 2. Dimensional regression coefficient academic reputation; future career 0.758, campus appearances. This means that students of private universities prefer a future career that includes recommended the other hand, cooperation with others, and in accordance with the standards required the user (link and match), this shows the desire of respondents (students) so that each universities more serious conduct private partnership with the users (private or government agencies), resulting in positive impact on future students. On the other hand private universities should also pay more attention to his academic reputation as the second dominant factor for consumers (students) in the case of university image. For that private universities are required to be more serious about improving his performance so that more get the award from outside the Universities. Universities are also forced to be more serious in terms of maintaining and raising the quality of graduates, this can be done with implementing and improving activities which has of national and international scale and also enhance the ability of students so that they can compete with graduates of other universities. From the analysis of research that has been described previously, the results indicate briefly as follows: 1. Information technology at an online academic information system has positive and significant impact on service quality of private universities 2. Information technology at an online academic information system which is directly negative and no significant impact on the image of private universities 3. Information technology at an online academic information system has positive and significant influence indirectly through quality of service on the image of private universities CONCLUSION From the results of testing the model in this study, could explain the relationship between information technology implementation in online academic information system on the level of service quality and image of private universities in East Java. Other conclusions can be drawn from this research are: 1. The use of information technology at an online academic information system, can improve the quality of college services. 2. The use of information technology at an online academic information system, can improve the image of higher education through quality service. REFERENCES Buchari, Alma, 1998, Manajemen Pemasaran dan Pemasaran Jasa, Edisi kedua, ALFABETA, Bandung. Bebko, Charlene, P., 2000, Service Intangibility Driver of Bank Loyalty: The Complex Relation Between Image, Service Quality and Satisfaction, Journal of Marketing, Vol. 57, pp Bennet, Bloemer, dan Ruyter, 2001, Investigating Driver of Bank Loyalty: The Complex Relation between Image, Service Quality and Satisfaction, Jurnal of Marketting, Vol. 57, pp Engel, James, Roger D. Blackwell & Paul W. Miniard, 1995, Consumer Behaviour, Eihgt Edition, The Dryden Press, Forth Worth.

6 V-44 The 6th International Conference on Information & Communication Technology and Systems Hair, J.F., Anderson, R.E., Tatham, R.L., and Black, W.C.,1998, Multivariate Data Analysis, 5 th Edition, Prentice Hall, Inc, Upper Saddle River, New Jersey. Ingleson M., 2000, The Role of Management Consultant in Information Management, International Journal of Information System, Vol. 20, pp Jogiyanto HM, 2007, IT System, Edisi Pertama, ANDI, Yogyakarta Joreskog, K.G, and Sorbom, D., 1996, LISREL 8, A guide to the Program and Application, Second Edition, SPSS Inc., Chicago. Kotler, Philip, 2000, Principles of Marketing, Prentice Hall, Inc. Kotler, Philip, 1997, Marketing Managemen : Analysis, Planning, Implementation and Control, 8 th Edition, Prentice Hall International, Inc., Englewood Cliffs, New Jersey. O Brien, James A., Management Information Systems, 6th edition, McGraw-Hill, USA, 2004 Parasuraman, A., Zeithaml, V. A., and Berry, L. L., (1985), A Conceptual Model Of Service Quality and Its Implication For Future Research, Journal Of Marketing, Vol. 49, pp Segars, Albert H., and Grover, Varun, 1998, The Industry Level Impact of Information Technology: An Empirical Analysis Of Three Industries, Decision Sciences, Vol. 26, pp Zeithaml, Valarie, A., Leonardo L., anqud Parasuraman A., 1998, The Behavioral Consequences of Service Quality, Journal of Marketing, Vol. 60. April, pp

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