Intellectual Capital For Higher Education Competitiveness

Abstract

Just like those around the world, the higher education institutions in Indonesia also face the issues of accreditation, ranking, and requirements by the public and the government to participate in the improvement of community welfare through the implementation of research and community service for the society. Thus, the role of intellectual capital is very important in supporting higher education competitiveness. Based on a resource-based theory, this study aims to empirically examine the implications of an intellectual capital on higher education competitiveness. This study applies an explanatory design with a quantitative-descriptive-and causality analysis. We use secondary data sourced from public universities in Indonesia with at least “Good” institutionally accredited category, comprising in total of 74 universities. We apply the saturated sampling technique. The study concludes that a human capital has no significant effect on the competitiveness of higher education institutions. On the other hand, structural and relational capitals have a positive and significant effect on the competitiveness of universities. Thus, higher education management needs to provide stimuli and encouragement to the existing human resources to increase their capabilities. This research contributes to identifying the intellectual capital variables that affect the competitiveness of higher education institutions in Indonesia. Keywords: human capital, structural capital, relational capital, higher education, competitiveness