Impact of Intellectual Capital and Dynamic Capabilities on Sustainable Competitive Advantage: Empirical Studies Private Higher Education in Indonesia
Abstract
Private higher education institutions (PHEIs) should prioritize continuous enhancement to make meaningful contributions to teaching, research and community service. Increased competition in the higher education sector and the emergence of new issues have compelled universities to improve their management. Business management techniques, leadership skills, profitability standards, investment practices, and marketing strategies have become significant in the context of higher education. This research aims to evaluate the influence of intellectual capital (IC) and dynamic capabilities (DC) on the sustainable competitive advantage (SCA). The research sample, using the probability sampling technique, consisted of 92 top management members from 10 PHEIs in Jakarta, Indonesia, which have excellent accreditation. The collected data were then analyzed using the Structural Equation Model. Research findings indicate that a combination of IC and DC PIHEs is necessary to achieve a sustainable competitive advantage. Moreover, the influence of DC strengthens the connection between the IC and SCA. The synergistic impact of both IC and DC plays a crucial role in SCA’s capacity to effectively execute Tri-Dharma higher education, drive innovation, adapt to evolving market dynamics, engage stakeholders, and leverage technological advancements. This study stands out for its theoretical improvements to the Cogwheel Model of Dynamic Capabilities and the preposition Model of Continuous Improvement Initiatives. The research findings highlight the relevance of determinant factors in analyzing the dimensions of IC, DC, and SCA, which serve as a foundation for evaluating higher education management. This will enable SCA to deliver exceptional educational services and generate novel ideas to advance its compelling vision, mission, and objectives. Consequently, PHEIs must consistently strive to uphold and enhance their organizational performance in the areas of community service, research and education.
Keywords: Dynamic Capabilities, Intellectual Capital, Private Higher Education, Sustainable Competitive Advantage.
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