STRATEGIC MANAGEMENT OF PRIVATE POLYTECHNIC AS A HYBRID ORGANIZATION

A private polytechnic is established by community who set-up an Organizing Body as a
legal entity based on non-profit principles (article 8, PP.RI no. 4, 2014). A nonprofit organization
does not prioritize financial gain but emphasizes environmental and social responsibility’s interests.
A hybrid organization is market-oriented, focusing on common interests and operating an
integration of a for-profit and non profit enterprise. Management of higher education tend to
manage education commercially-oriented, which is profit-and-loss nuanced. Meanwhile,
management of higher education is faced with intensive competition and rapid development of
information and communication technologies, affecting the development of curriculum and the
increasing companies’ demand for quality graduates. These need to be supported by management
resources and relatively large costs.
To overcome it, polytechnic as a nonprofit organization must be managed like a business
organization, so it can be highly competitive, survive and develop for the sake of common interests.
The research conducted upon private polytechnics in West Java using the Partial Least
Square (PLS) shows that achievement of polytechnics’ performance is influenced by successful
strategy execution and competitive advantage building, which is determined by the accuracy and
alignment between organization strategy and organization competencies developed by the
polytechnic.