Essentials of Intellectual Capital to Create Higher Education Sustainable Competitive Advantage: Environment Uncertainty as a Moderating Variable in Indonesia Private Universities

Abstract

Purpose: The objective of this paper is to ascertain the influence of intellectual Capital on sustainable competitive advantage and to analyze environmental uncertainties that will strengthen or weaken to achieve of sustainable competitive advantage. Design/Approach/Methodology: To achieve the stated objective, the study used survey research design, with 151 samples from a population of 234 private higher education in Indonesia. A validated questionnaire was used to collect data and structural equation modelling was used to analyze the data. Findings: Results showed that the intellectual capital has a significant effect on sustainable competitive advantage. Meanwhile, environmental uncertainty has not been shown to strengthen or weaken university's competitiveness. Practical Implication: The results can be used in efforts to improve the quality of private university in Indonesia and to suggest that intellectual capital management is the key to success and triggers for university value creation and the environmental uncertainty must be faced and anticipated in order to continue sustainable competitiveness. Originality/Value: This study is an original study and conducted interviews to obtain information the condition of private university and describe how intellectual capital can create sustainable competitive advantage and still must pay attention on the effect of environment uncertainty.