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.