Information technology adoption in Islamic higher education institutions in Indonesia

Business in the higher education sector in Indonesia, especially in the environment of private Islamic higher
education, has been showing a significant increase. The winner is largely determined by the business strategies
designed, supported by organizational resources, rarity, difficulty to imitate the product, and difficulty to
substitute the product, in order to create a sustainable competitive advantage. According to the existing
research, support for ERP (enterprise resource planning) information system plays an important role in
realizing organizational capabilities towards a sustained competitive advantage (SCA). This research focused
on the extent of information technology adoption to encourage Islamic higher education institutions—
especially NU Universities—to realize a competitive advantage in order to win the competition. The results
show that IT Adoption did not have any significant effect on Organizational Capabilities and Sustained
Competitive Advantage, but Organizational Capabilities had a significant effect on Sustained Competitive
Advantage. Implications of the research findings will be discussed.