Influence of IS adoption and IS capability to IS innovation and IS strategic planning and its implications to competitive advantage of private higher education institution

The increased growth of higher education institution (HEI) in Indonesia led to greater competition. On the other hand, the researchers say the use of information systems is assessed to be able to increase the competitive advantage for the organization. This research aimed to analyze the influence of IS adoption and IS capability toward IS innovation and IS strategic planning as well as its implication for the competitive advantage of private HEI. The research method used is explanatory survey and analysis technique of the research is structural equation modeling (SEM) with SmartPLS software. The research was conducted on private HEI in Kopertis Region III and Kopertis Region IV with more than 10000 students. The sample of research is 151 respondents consisting of management of the private HEI from Rector / Chairman, Dean, Head of Department, Chief of Bureau / Technical Implementing Unit / Lab. Research result showed that the adoption of IS did not give a direct influence on the competitive advantage of private HEI, but it can influence when reinforced with IS innovation and IS strategic planning. Variable of IS capability, IS innovation and IS strategic planning give an influence on the competitive advantage of private HEI. Based on the research result, it can be concluded that IS innovation becomes a fundamental element in creating a competitive advantage of private HEI.