THE INFLUENCE OF INTELLECTUAL CAPITAL ON UNIVERSITY PERFORMANCE: THE MEDIATING ROLE OF GOOD UNIVERSITY GOVERNANCE IN INDONESIAN PRIVATE UNIVERSITIES
Purpose: This research was conducted based on the conditions of intellectual capital and university governance that were not yet ideal in assisting institutions in Indonesia to achieve their projected performance. It examines how intellectual capital influences university performance by applying Good University Governance (GUG) mediation in private universities. Design/methodology/approach: This study used a survey method by distributing questionnaires to top management who played a role in policymaking in private universities in the LLDIKTI (The Higher Education Service Institute) area 2. The data in this study were analyzed using structural equation Modeling (SEM) with the partial least squares (PLS) approach. Findings: The research findings showed that intellectual capital positively affected Good University Governance (GUG), but it did not directly impact university performance. This result contradicted some previous studies in which intellectual capital affected university performance. Another finding was that GUG played a significant mediating role in the relationship between intellectual capital and university performance. Research limitations/implications: The findings of this study may not be generalizable to quasi-public organizations in other countries, especially Western countries, due to differences in academic culture, performance, and the ability and competence of educational resources that may not meet the competencies and qualifications required for the position or role held. Practical implications: To improve performance and business sustainability, leaders of Private Higher Education (PTS) can use this research as material for study and consideration. Originality/value: This study develops a model of the influence of exogenous intellectual capital variables on university performance by including Good University Governance as a mediating variable. The research object was a quasi-public organization, with private universities taken as a sample, whereas previous researchers took samples only from public universities in Indonesia.
Intellectual Capital, Good University Governance (GUG), University Performance, Private Universities, Quasi-Public Organizations, Indonesia.