<![CDATA[Private universities in Medan City, Indonesia, have experienced a notable decline in the number of institutions, approximately 15.7% between 2020 and 2025, amid rapid advances in science and technology that have transformed how prospective students search for, evaluate, and select higher education institutions through digital platforms. In this increasingly competitive environment, Digital Marketing Capability has emerged as an important strategic asset for enhancing institutional visibility, engaging prospective students, and strengthening competitive advantage. However, empirical evidence explaining how Digital Marketing Capability is associated with students’ university selection decisions through Perceived Competitive Advantage remains limited, particularly in the context of private higher education. This study examines the association between Digital Marketing Capability and University Selection Decision, with Perceived Competitive Advantage serving as a mediating variable. An explanatory quantitative approach was employed using cross-sectional survey data collected from 363 new students enrolled in private universities in Medan City, Indonesia. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that Digital Marketing Capability is positively and significantly associated with both Perceived Competitive Advantage and University Selection Decision. Furthermore, Perceived Competitive Advantage is positively and significantly associated with University Selection Decision and partially mediates the relationship between Digital Marketing Capability and University Selection Decision. These findings suggest that digital marketing should be viewed not merely as a promotional tool but as a strategic organizational capability associated with stronger perceived competitive advantage and more favorable university selection decisions. This study contributes to the higher education marketing literature by highlighting the mediating role of Perceived Competitive Advantage in explaining the relationship between institutional Digital Marketing Capability and students’ University Selection Decision. Practically, the findings provide insights for private universities seeking to strengthen their digital capabilities and competitive positioning in an increasingly competitive higher education market.]]>
