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

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.