From Engagement to Competitive Advantage: How Dynamic Academic Capability Emerges in Higher Education Institutions
Higher education institutions face increasingly complex challenges due to digital transformation, the development of artificial intelligence, changes in learning models, and increasing global competition. These conditions require higher education institutions to strengthen their adaptability and competitiveness. This article aims to synthesize the literature on the role of academic engagement capability in building institutional competitive advantage through institutional dynamic academic capability. The study uses a Narrative Literature Review approach to Scopus-indexed articles from 2020–2026 that discuss academic engagement, knowledge creation capability, academic innovation capability, research collaboration capability, dynamic capability, and higher education competitiveness. The synthesis results indicate that academic engagement capability is a strategic resource that drives the formation of knowledge creation capability, academic innovation capability, and research collaboration capability. These three capabilities collectively form institutional dynamic academic capability that enables higher education institutions to identify changes, exploit opportunities, and reconfigure resources sustainably. This article proposes a conceptual framework that explains the process of transforming academic engagement capability into institutional competitive advantage through capability building mechanisms. These findings expand the application of Dynamic Capability Theory in the context of higher education and provide implications for strengthening the competitiveness of higher education institutions.