Value Chain Analysis for Strategic Management Accounting: Case Studies of Three Private Universities in Kupang - East Nusa Tenggara


This study aims to describe the concept of value chains as the basis for strategic management accounting design in three private universities in Kupang (East Nusa Tenggara). A qualitative approach with multiple case study methods is used in this study by focusing on the problems that arise as a result of the enactment of Law   No. 12 of 2012 concerning PTN-BH concerns autonomy and decentralization. Semi-structured interviews were conducted at three leaders of private universities, they were chosen because they were considered to have the greatest role in improving the quality of the institutions they lead. This research offers a contribution in identifying competitive advantages in an effort to improve the quality of private universities. In addition, contributions in designing strategic management accounting are also carried out in order to assess their relative position against competitors. This study found ten main themes, namely the number of new students, the ratio of lecturers to students; recruitment of new lecturers; use of technology; national and international publications; public services; quality of lectures; quality of graduates and waiting period; infrastructure development and promotion. Value chain analysis is proven to be able to breaking down the university to determine relevant strategies in order to improve sustainable quality. This research also shows that the case study method can be a powerful tool in analyzing the value chain concept.

Keywords: Value Chain, Strategic Management Accounting, Private Universities

[1] Agasisti, T., Arnaboldi, M., & Azzone, G. (2008). Strategic management accounting in universities: the Italian experience. Higher Education, 55(1), 1-15.

[2] Creswell, J. W. (2007). Qualitative Inquiry & Research Design. Thousand Oaks, London, New Delhi: Sage Publications.

[3] Dixon, R. (1998). Accounting for strategic management: a practical application. Long Range Planning, 31(2), 272-279.

[4] Dorri, M., Yarmohammadian, M. H., & Nadi, M. A. (2012). A review on value chain in higher education. Procedia-Social and Behavioral Sciences, 46, 3842-3846.

[5] Gabriel, E. (2005). An assessment of Value Co-creation and Delivery Systems in the Higher Education Sector of Tanzania. Unpublished PhD Thesis). University of Salford. The United Kingdom.

[6] Gabriel, E. (2006). Value Chain for Services A new dimension of “Porter’s Value Chain”. IMS international journal, 34.

[7] Goldsworthy, J. D. (2009). Research grant mania. Australian Universities Review, 50(2), 17.

[8] Hoque, Z. (2006). Strategic management accounting. Australia: Pearson Education.

[9] Hutaibat, K. A. (2011). Value chain for strategic management accounting in higher education. International Journal of Business and Management, 6(11), 206.

[10] Kvale, S., & Brinkmann, S. (2009). InterViews: Learning the craft of qualitative research interviewing Los Angeles, CA: Sage.

[11] Li, C. (2018). U. S. Patent No. 10,159,054. Washington, DC: U.S. Patent and Trademark Office.

[12] Makkar, D., Gabriel, E., & Tripathi, D. (2008). Value chain for higher education sector-case studies of India and Tanzania. Journal of Services Research, Special Issue (February, 2008).

[13] Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: A sourcebook of new methods (second edition) Thousand Oaks, CA: Sage.

[14] Mirfani, A. M., Sutarsih, C., & Rosalin, E. (2012). Strategi Dan Hasil Kompetisi Perguruan Tinggi. Jurnal Administrasi Pendidikan, 14(1), 182-197.

[15] OECD. (2003). Education policy analysis. Paris: OECD.

[16] Pathak, V., & Pathak, K. (2010). Reconfiguring the higher education value chain. Management in Education, 24(4), 166-171.

[17] Porter, M. (1985). Competitive Advantage-Creating and Sustaining Superior Performance. New York: FreePress (First Free): New York: The Free Press.

[18] Shank, J., & Govindarajan, V. (1992a). Strategic cost management and the value chain perspective. Journal of Cost and Management, 5(4), 5-21.

[19] Shank, J., & Govindarajan, V. (1992b). Strategic cost management: the value chain perspective. Journal of Cost and Management, 4(1), 179-197.

[20] Shank, J., & Govindarajan, V. (1993). Strategic cost management: The New Tool for Competitive Advantage. New York: Free Press.

[21] Sison, R., & Pablo, Z. (2000). Value Chain Framework and Support System for Higher Education. Paper presented at the Proceedings of the Philippine Computing Science Congress.

[22] Yarmohammadian, M. (2004). Quality in Higher Education. Encyclopedia of Higher Education. Tehran: Ministry of Science. Research, and Technology Publication.

[23] Yarmohammadian, M. H., Mozaffary, M., & Esfahani, S. S. (2011). Evaluation of quality of education in higher education based on Academic Quality Improvement Program (AQIP) Model. Procedia-Social and Behavioral Sciences, 15, 2917-2922.

[24] Yin, R. K. (2009). Case study research: Design and method Thousand Oaks, CA: Sage.

[25] Pandie, David (2017). Wouw Undana Siap Terima 10.000 Mahasiswa Baru. Teropong Nusa Tenggara Timur,

[26] Lisdiyono, Edi. (2018). Sistem Baru SMPTN Rugikan PTS. Suara Merdeka, 6 November www.