Adaptability and risk management as drivers of sustained performance in private higher education institutions

Purpose This study aims to examine the role of adaptability on sustained performance in private higher education institutions (HEIs) through effective risk management as a mediating variable. Design/methodology/approach The study uses a survey method. Data were gathered from 92 private HEIs in Indonesia and analyzed using partial least squares with a second-order approach. Findings Adaptability is negatively associated with sustained performance. At the same time, it demonstrates a positive relationship with effective risk management, which, in turn, contributes to enhanced sustained performance in HEIs. The findings further confirm that risk management plays a positive mediating role in the relationship between adaptability and sustained performance. In addition, the control variables (accreditation status and HEI type) do not appear to have a significant contribution to the implementation of risk management or to the sustained performance of HEIs. Originality/value This study contributes to the limited literature on risk management in HEIs, particularly in developing countries. Drawing on Dynamic Capabilities Theory, this study shows that risk management serves as a crucial mediator through which adaptability enhances sustained institutional performance.