Integration of Academic and Institutional Governance and its Impact on Mitigating Credit Risks of Yemeni Universities through Decision Quality: An Applied Study on Yemeni Universities

Abstract

This study aimed to examine the impact of the integration of academic and institutional governance on mitigating credit risks in Yemeni universities, while testing the mediating role of decision quality within this relationship. The study adopted a mixed-methods approach employing an explanatory sequential design. Quantitative data were collected via a survey questionnaire administered to 158 academic, administrative, and financial leaders distributed across 14 Yemeni universities (7 public and 7 private). In addition, 15 semi-structured interviews were conducted with a sample of university leaders. Quantitative data were analyzed using SPSS and SmartPLS to apply structural equation modeling and to test mediation effects.The findings revealed a low level of implementation of academic and institutional governance in Yemeni universities (with means ranging between 2.61 and 2.84 out of 5), whereas the level of credit risks was high (mean of 3.78 out of 5). The results uncovered statistically significant negative relationships between governance and credit risks, and positive relationships between governance and decision quality. Furthermore, the findings confirmed the role of decision quality as a partial mediating variable in the relationship between integrated governance and credit risks, with a Variance Accounted For (VAF) ratio of 62.9%. The proposed model explained 35.7% of the total variance in credit risks. The results also demonstrated that credit risks are higher in public universities compared to private universities.The study recommended adopting an integrated national model for university governance, improving decision quality at the academic, administrative, and financial levels, issuing a binding national guideline for governance implementation, and linking government funding and external support to the actual degree of compliance with governance standards.