The Effect of Organizational Learning, Core Organizational Competence and Diversification Strategy on Organizational Performance (Study at Private Universities in NTT Province)

This empirical research aimed to determine the organizational learning influence extent on the organizational core competencies and diversification strategy in improving the private university organizations performance in the East Nusa Tenggara province. This study was conducted in stages in order to determine the partial effect of organizational learning on the organization’s core competencies, diversification strategies and organizational performance. The aforementioned aspect contributes to further studies in the strategy management. It concerns the effect of organizational learning on core competencies, diversification strategies and organizational performance, especially in organizing private universities. Previous research was reviewed to aid variables and hypothesis development. The variables used in the research are organizational learning, organizational core competencies, diversification strategies and work performance. The following stages were conducted through the course of the research: browsing articles, separating articles, extracting data, synthesizing data, reporting data. Data analysis method used path analysis. The approach used is quantitative positivists. The populations in this study were all private universities in the scope of Region VIII LLDIKTI Bali and Nusa Tenggara, focusing in East Nusa Tenggara. The sample were university and college in East Nusa Tenggara province: 40 PTS (High Education Institutions) consisting of 12 universities and 28 college. This study focused on the phenomenon occurred in NTT province higher education. The higher education organization management has not been well standardized. It exhibited low quality organizational competency, educational qualifications, lecturer competencies, facilities and infrastructure. Offered study programs are not in accordance with the regional condition. The graduate’s competence does not suit the regional need. The local governments do not focus its effort in higher education. Regardless of this obstacle, the community keeps sending their children to higher education institutions. This is indicated by increased number of universities in NTT and high-interest rate in entering higher education. This condition encourages researchers to determine the phenomenon’s crucial aspects. This research aim to illustrate how organizational learning, core organization competencies and diversification strategies need to be developed in improving private university institutions performance in NTT province.