Employee Well-Being as a Strategic HRM Driver of Competitive Advantage in Higher Education

This study examines how organizational performance and quality improvement influence competitive advantage through employee well-being in higher education institutions. A quantitative method was used, drawing on survey data gathered from 200 academic and administrative personnel at private universities located in the Bekasi area of Indonesia. The analysis was conducted utilizing Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings reveal that organizational effectiveness as well as improvement in quality have a notable impact on competitive edge, both in direct and indirect ways, with the well-being of employees serving as a crucial mediating factor. Furthermore, organizational performance and quality improvement significantly enhance employee well-being, which in turn strengthens institutional competitiveness. This research adds to the literature on strategic human resource management by framing employee welfare as an essential tool that transforms organizational strengths into a lasting competitive edge, thus broadening the Resource-Based View (RBV). The findings emphasize the significance of combining quality enhancement, performance management, and employee well-being strategies to enhance institutional effectiveness and long-term competitiveness in higher education.