The Mediation Effects of Business Strategy on the Relations between Industrial Competition and Performance
This study aims to examine the mediation effects of differentiation strategy and cost leadership strategy on the relationship between industrial competition and the performance of the higher education industry in Timor-Leste. The total of 157 departments of 11 accredited tertiary institutions in Timor-Leste were chosen to fill in the questionnaires, while SMART-PLS 3.0 was used to test the hypothesis. The results of this study show that industrial competition does not significantly influence industrial performance, while both the differentiation and the cost leadership strategies fully mediate the relationship between industrial competition and the performance. This research contributes to the debate on competitive strategic fitness to sustain competitive advantage in regard to pure strategy or combined strategy which is still unsettled among researchers. This research also contributes to developing strategic policies in the higher education industry for improving competitive advantages which lead to superior performance. The higher education industry can also benefit from this research by considering a combined differentiation and cost leadership strategy as a competitive strategy to improve industrial performance.