Market and Learning Orientation Effect through Organization Governance on Competitive Advantage of Universities in Jakarta Ridwan Siagian 1, Muhammad Zilal Hamzah 2 , Farida Jasfar 3 1 Hospitality Management Doctoral Program, Economics and Business Faculty, Universitas Trisakti, Indonesia. 2 Economics Doctoral Program, Economics and Business Faculty, Universitas Trisakti, Indonesia Sekolah Tinggi Ilmu Ekonomi Bisnis Indonesia (Indonesian Business School), Jakarta, Indonesia. 3 Economics Doctoral Program, Faculty of Economics and Business, Universitas Trisakti, Indonesia Corresponding author: [email protected] © Authour(s) OIDA International Journal of Sustainable Development, Ontario International Development Agency, Canada ISSN 1923-6654 (print) ISSN 1923-6662 (online) www.oidaijsd.com Also available at http://www.ssrn.com/link/OIDA-Intl-Journal-Sustainable-Dev.html Abstract: This research tries to examine the effects of market orientation and learning orientation toward competitive advantage through organizational governance. The population of this paper are universities under the Regional Coordinating Office for Higher Institutes (Kopertis Wilayah-III) in Jakarta. Data of this paper are collected from 3 (three) biggest private universities in Jakarta, namely: Trisakti University, Atma Jaya Catholic University (UNIKA Atma Jaya) and Bina Nusantara University (BINUS) by using 960 questionnaires and the respondents in this paper are the Head of Academic Division of Trisakti University, Deputy Chancellor I of Atma Jaya Catholic University and Vice Rector in charge of Research & Technology Transfer of Bina Nusantara University. Furthermore, the data will analyzed by using Structural Equation Modeling (SEM) through the WarpPLS 4.0 program. Computational results show that all hypotheses are acceptable, uch as follows: i).There is a negative and significant effect of market orientation towards organizational governance; ii). There is a positive and significant effect of learning orientation towards organizational governance; iii). There is a positive and significant effect of organizational governance towards the competitive advantage; iv). Market orientation negatively affect competitive advantage but insignificant; and v). There is a positive and significant effect of learning orientation towards competitive advantage. The implication of this research shows that eventhough the organizational governance is influenced negatively and significant by the market orientation, and market orientation also negatively but insignificant affect the competitive advantage, there are no matter with them because they are already have the specific market throughout their operation. Organizational governance and competitive advantage those already generated by these 3 universities are able to improve their marketing performance. This finding also proves that these three universities do have specific learning orientations and differ from each other. In the end, every new academic year, new prospective students will come by themselves to these universities. Keywords Market Orientation; Learning Orientation; Organizational Governance; Competitive Advantage; Structural Equation Modeling. Introduction igher Education (PT) is the highest level or rank in a formal education institution, including in Indonesia. This ranking will produce graduates who have high ability and multi-use, meaning that each graduate has an Haverage ability that is higher and varied than people who do not have or take this level. Benefits of PT can be directly or indirectly, considering that PT aims to prepare quality human resources who will later serve the community, country and where they will work. In the world of education (especially the issue of quality and 60 Siagian et al./ OIDA International Journal of Sustainable Development, 12:08, 2019 competitiveness) when viewed from an economic standpoint, it will show a positive correlation where the economic condition of a healthy country and proportional policies for the education sector, will make universities as the prima donna sector in promoting improved quality and competitiveness nation. Malaysia bravely provides a bigger portion of the education budget than other sectors, even making education a prime sector to drive the country's economy. So now, in terms of education and tertiary ranking, Malaysia has left Indonesia quite far. Likewise with Japan, which makes education a leading sector in spurring the country's economic growth. So that in a relatively short time, Japan was transformed into one of the countries with the strongest economy in the world. These two examples are enough to illustrate how the education and economy of the State will work together to form mutually influential relations, so that it will accelerate the creation of the nation's competitiveness. According to data from the Ministry of National Education 2015/2016, the number of PT Indonesia reaches 4,507 Universities, consisting of Universities, Institutes, Colleges, Colleges, and Polytechnics. DKI Jakarta has the second largest number of private universities (53) after Prop. East Java, which is 58 universities. However, universities in DKI Jakarta produced the most graduates from all provinces in Indonesia, in the period 2011-2015. The second place is Prop. East Java, the third is West Java, and the fourth is Prop. Central Java. As for outside the island of Java, the Prop. North Sumatra has the highest number of graduations compared to other Prop-Prop outside Java. In higher education there are three main functions, which carry out educational / teaching, research and service activities, which are called the Tri Dharma of Higher Education. If we refer to the output of this philosophy, there are three main roles that must be carried out by universities today, namely: (i). produce highly qualified human resources and able to adapt to changes in science and technology; (ii). continuously giving birth to new knowledge and knowledge; and (iii). always improving access and adaptation to science. At present, it is reflected that getting new students is still difficult. This is due to intense competition between universities and coupled with the many new study programs opened by the State University with the status of Legal Materials (PTNBH). Therefore a new breakthrough is needed in order that the university can survive. Even though the low cost strategy carried out by almost some PT in DKI Jakarta, is still considered unable to compete. In company research, according to Penrose (1959 and 2009) and Barney (1991 and 2001), competitive advantage comes from resource-based view theory. According to this theory, companies build competitive advantage by creatively applying valuable resources. Resources that help companies to build sustainable competitive advantage have four special characteristics, namely valuable, rare, inimitable, and cannot be substituted or substituted (non- substitutable) or VRIN resources (Barney, 1991 and 2001). Various studies on competitive advantage have been carried out, but still need to be studied comprehensively between the factors that influence and the presence of variables that mediate among these factors, therefore a study entitled: "Analysis of the Effect of Market Orientation and Learning Orientation Against Excellence Competing Through Organizational Governance At Universities In Jakarta ". Theoretical Background Market Orientation The concept of market orientation can be defined as the activity of gathering information about customers and competitors as well as how to distribute information to all parts of the organization in order to take action in accordance with the capacity of strategic action. The concept of market orientation proposed by Narver and Slater (1990 and 2000), Kohli and Jaworski (1990 and 2000) states that market orientation is the most effective and efficient organizational culture that can create the behavior needed to create superior value for customers. In research conducted by Kohli and Jaworski (1990 and 2000), the term "market orientation" finds broad appeal in the marketing literature. They define market orientation as the generation of market intelligence regarding current and future customer needs, the spread of intelligence between departments, and the response to the market. Thus the customer-based focus is a central element of market orientation. Learning Orientation Learning orientation is also considered as an organizational culture that influences the tendency of companies to use science and will impact on an organization that uses information and learning actively (see among others: Dey, 1992 and 2010; Hurley & Hult, 1998 and 2004; Pulendran et. al., 1999 and 2000). There are four components related to learning orientation, namely commitment to learning, sharing of vision, open-mindedness and sharing of knowledge between divisions (Moorman & Miner, 2001; Calantone et al., 2002). Learning orientation is defined as all attitudes and goals that express the individual relationship of students with study programs and universities. In organizational learning orientation, commitment to learning, the influence of open-mindedness and shared vision affect the direction of learning (Sinkula et al., 1997 and 2007). Verona (1999 and 2003) states that Siagian et al./ OIDA International Journal of Sustainable Development, 12:08, 2019 61 learning in an organization can be meaningless without a shared vision because an organization tends to have some new thoughts and ideas that might never have