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Research Article Open access CC BY 4.0

The Existence of Govermental and Environmental Uncertainty on Competitive Advantage of Private Universities

Suhendro Saring

Asian Journal of Economics, Business and Accounting · pp. 81–95 · Published 28 Oct 2023

10.9734/ajeba/2023/v23i221138

Abstract

Aims: This study aims to illustrate empirically the impact of governance and environmental uncertainty on the quality of B-accredited private universities and their long-term competitive advantage. Study Design: The method used in this study used descriptive and causal-explanatory methods to test the research hypothesis. Place and Duration of Study: All private universities accredited by B in Indonesia. Methodology: This Research used descriptive and causal-explanatory methods. Data for this research were collected using a questionnaire and supplemented with interviews involving various university leaders. A random sampling technique was utilized to select a sample of 136 B-accredited private universities in Indonesia. The data was analyzed using the Structural Equation Modeling (SEM) approach. The study's findings show that higher education governance has a significant influence on both the quality of higher education and long-term competitive advantage, both directly and indirectly. Results: In contrast, environmental uncertainty has a major impact on higher education quality but has little effect on long-term competitive advantage. Higher education quality, on the other hand, has a strong beneficial influence on long-term competitive advantage. Furthermore, this research demonstrates that improved quality among B-accredited private institutions boosts their competitive advantage. Conclusion: This research shows that improving quality among B-accredited private institutions will increase their competitive advantage. Therefore, the results of this investigation provide a valuable contribution in addressing the problem of substandard quality in private universities in Indonesia and expand existing research on environmental governance and communication in university environments.

Higher education quality sustainable competitive advantage higher education governance private universities governance environmental uncertainty

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