Analysis of Strategic Competency and Organization Performance: Evidence from Private Universities in Indonesia

Abstract

The competitive environment in education require private universities to be able to create competitive advantage to survive. In this circumstance, strategic competence development becomes important to improve organizational performance. Strategic competence represents the influence of organizational and individual characteristics that might impact organization's ability to recognize signals to identify organizational weaknesses that need to be changed. This study conducted to examine factors affecting organization's strategic competence, including organization service orientation, organizational learning, and external environment. Research also conducted to examine the influence of strategic competence on organizational performance at private universities in Indonesia. The research was involved 56 respondents from private universities in Indonesia. The results showed that among the three factors considered to influence strategic competence, namely service orientation, organizational learning, and external environment, only external environment has significant influence on strategic competence. The results also show that strategic competence has significant influence on organizational performance. The results of this study are expected to give contribution to the development of strategic management literature and practical contribution for decision makers as consideration to formulate appropriate strategies related to the development of strategic competence and the improvement of organizational performance.