Surabaya, 6 September 2008
AUTHOR:
Benedictus Karno Budiprasetyo
ABSTRACT:
The implementation of the competitive advantage development in the resource-based theory depends on the human capital factor, specifically on the knowledge level as a key variable that influenced the resource of the firms to gain the positional advantage within the industry and to achieve the sustainable competitive advantage in the long-term. Knowledge as a competitive asset and a value factor of the higher education services industry should be explored in the context of internationalization strategy implementation. Hence, this empirical research explores how the knowledge management development influences the management behavior of the higher education institution and the implementation of the internationalization strategy. Using PLS model estimation, it founded that the knowledge management development influence the implementation of the internationalization strategy (OSE:.50 and R2:.28) indirectly through the management behavior (OSE:.54 and R2:.29). This research result was a new phenomenon, since the previous research results shows a direct influence of the knowledge management development to the internationalization strategy implementation. This result directing the conclusion that internationalization behavior of a higher education services industry was quite different that the manufacturing or trading industry.
Keywords : knowledge management, sustainable comptitive advantage, higher education management, resource-based approach.
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