Determining Factors Sustainable Competitive Advantage in Private Higher Education

Abstract

Private higher education institutions (PHEIs) should continuously enhance their organizational performance for innovation and society. The aim of the research is to assess the impact of knowledge management and intellectual capital on a sustainable competitive advantage in private higher education. This study creates a research model by generating instrument dimensions that are appropriate for the settings of private universities in Indonesia. The research sample included 92 leaders from ten private institutions in Jakarta, Indonesia. Respondents were selected through a probability sampling method employing random sampling techniques, and the data were analyzed utilizing SEM-PLS. The research findings, knowledge management and intellectual capital may strengthen PHEI's long-term competitiveness. Furthermore, the causal link between competitive advantage and knowledge management is strengthened by the mediating function of intellectual capital. The synergistic effect of knowledge management and intellectual capital has a significant effect on education, research, and community service to achieve sustainable competitive advantage, encourage creativity, adjust to shifting market conditions, involve stakeholders, and take advantage of technology breakthroughs.