The Moderatoring Role of Digital Transformation Strategy on the Relationship between Intellectual Capital and Competitive Advantage in Private Universities in South Sumatra, Indonesia

Abstract

Aims: The increment of Indonesian higher education institutions has intensified competition,. After the global pandemic created pressure to accelerate digital transformation, changes in the global economy have also triggered some institutions to prioritize the high quality of service for their clients. The aims of this to investigate the moderating effect of a digital transformation strategy on the relationship between intellectual capital and competitive advantage in private universities in South Sumatra. Indeed, intellectual capital is generally an essential aspect and one of the most conducive to innovative and unrestrained competition. Study Design:  Explanatory Study. Place and Duration of Study: Sample: 300 respondents from ten private universities took part in the survey in April 2022 to June 2022. Methodology: The respondents from ten selecting private universities implementing the digital transformation strategy. Using the quantitative and Partial Least Square (PLS) to analyze the data and test the hypotheses. Results: Digital Transformation Strategy (DTS) significantly impacts the competitive advantage of private universities in South Sumatra. The results mean that the higher the digital transformation strategy, the higher the competitive advantage. Digital transformation strategy as the moderator to significantly increase the effect of intellectual capital on competitive advantage. Conclusion: The variable of intellectual capital significantly affects the competitive advantage of private universities in South Sumatra. This result means that the higher the intellectual capital with the dimensions of human capital, organizational capital and relationship capital (collaboration), the higher the competitive advantage. Furthermore, Digital transformation strategies have a quasi-moderating role (Quasi Moderator). It means the higher the digital transformation strategy, the higher the competitive advantage. The digital transformation strategy is to significantly increase the effect of intellectual capital on competitive advantage.