From Leadership to Brand Equity: The Mediating Roles of Virtuousness and Online Learning Readiness in Indonesian Higher Education

Abstract

Amid increasing competition from foreign universities and rapid digital transformation, Indonesian higher education institutions must align leadership, organizational values, and digital readiness to strengthen internal brand equity. This study examines how Servant Leadership (SL) influences Employee-Based Brand Equity (EBBE) through Organizational Virtuousness (OV) and Online Learning Readiness (OLR). Drawing on internal branding and broaden-and-build theories, the research tested a structural model using Partial Least Squares Structural Equation Modeling (PLS-SEM) with data from 84 academic and administrative staff across higher education institutes in LLDIKTI Region III. Results show that SL significantly enhances EBBE both directly and indirectly through OLR, while OV does not exhibit a significant mediating effect when readiness is included. SL also strongly predicts both OV and OLR, underscoring its central role in cultivating ethical culture and digital capability. The model explains 53.8% of the variance in EBBE. Overall, the findings highlight that leadership-driven readiness, rather than values alone, most effectively translates institutional purpose into brand-consistent employee behavior. This study contributes to leadership and internal branding literature in higher education and offers practical insights for university leaders and policymakers seeking to build capable, ethical, and competitive institutions.