Modeling Sustainable Drivers of Competitive Advantage Through Knowledge-Oriented Leadership with Mediation of Knowledge Management Capabilities in the Higher Education System

Abstract

To achieve sustainability goals in a new competitive environment and to enhance their performance and productivity, higher education institutes need to establish sustainable competitive advantage. Accordingly, this research aimed to model drivers of sustainable competitive advantage (SCA) through knowledge-oriented leadership (KNOL) with mediation of knowledge management capabilities (KNMC) in the higher education system. This research has been implemented via correlation method across the population of faculty members of the university with 177 subjects based on stratified random sampling. The research instruments included three questionnaires of sustainable competitive advantage (SCA), knowledge-oriented leadership (KNOL), and knowledge management capabilities (KNMC). The reliability and validity of all three instruments, according to the research findings, were reported as suitable. In the analysis method, SmartPLS software was used involving structural equation modeling. The results indicated that knowledge-oriented leadership (KNOL) both directly and indirectly has been effective on reputation and legitimacy from competitive advantage through structural and process capabilities of knowledge management. Meanwhile, knowledge-oriented leadership (KNOL) has been effective on the process and structural capabilities of knowledge management. Furthermore, structural and process capabilities of knowledge management affected the reputation and legitimacy from competitive advantage. Also, reputation has been effective on legitimacy of competitive advantage. It can be stated that KNOL using transformational and transactional leadership style exerts a constructive role in the reputation and legitimacy in the higher education system. Meanwhile, the structural and process capabilities of the knowledge management are affected by the styles of knowledge-oriented leaders. Also, KNOL by employing structural and process capabilities of knowledge management influences acquisition of SCA. Also, the relationship between reputation and legitimacy as instruments of SCA is of interest in the educational system.