The Effect of Good University Governance and Strategy Toward the Performance of Higher Education Institution

Muktiyanto, Ali and Rossieta, Hilda and Hermawan, Ancella A. (2014) The Effect of Good University Governance and Strategy Toward the Performance of Higher Education Institution. In: 2nd International Conference on Economic Business Innovation-ICBE 2015, 19-20 Agustus 2015, Copenhagen Denmark.

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Abstract

Good University Governance (GUG) becomes an important element that universities are able to anticipate, design, implement, monitor, and assess the effectiveness and efficiency of policies (Henard and Mitterle, 2010). In addition, the presence of GUG expected performance can be increased (Muhi, 2010). This study seeks to prove alignment between GUG and performance directly and indirectly through mediating variable: choice strategy. In the context of higher education in Indonesia, through the testing of structural equation models, proved the presence of alignment GUG models on the performance of higher education as evidenced by R2 = 0.72 and the total estimated value of GUG on the performance of 85.10%. Through the choice of strategy is evident that the fit as mediation in the form of marginal partial mediation model (Venkatraman, 1989). Mediating role of marginal gave a strong signal that the universities in Indonesia have not been optimizing the role of the choice of strategy to improve performance. In contrast, the role of universities still rely on the implementation of the principles of the GUG; Fairness, Responsibility, Governance Structure, Accountability, Transparency, Autonomy, Credibility, Ethics, Mission and Vision; to produce superior performance.

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