An Innovative University Governance Strategy for Improving Competitiveness in the Higher Education Industry

Abstract

The aim of this research was to provide a scientific explanation of human capital management as a strategic asset for universities, serving as a primary means to enhance their competitive advantage. The population consisted of all universities in East Java, comprising 47 State Universities (SU) and 330 Private Universities (PU). A sample of 113 universities was selected using stratified random sampling. Data were collected through the distribution of questionnaires and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS software. Consequently, the results showed that both human capital and effective university governance directly influenced competitive advantage. Additionally, the positive impact of human capital on competitive advantage was strengthened by good university governance. Theoretically, these results contributed to enriching scientific knowledge in the field of strategic management, specifically in the subtopic of strategies for achieving competitive advantage.