This research is motivated by the dynamics of Islamic boarding school management amidst demands for improving graduate quality and increasingly complex institutional competition, including the emergence of institutional oligopsony patterns in alumni absorption. In this context, Islamic boarding school management based on local wisdom becomes an important strategy to maintain the identity, sustainability of the institution, and quality of graduates. This study aims to analyze the role of local wisdom as the foundation of Islamic boarding school management, examine the contribution of local wisdom-based management strategies to graduate quality, and examine the influence of institutional oligopsony on graduate orientation and competitiveness. This study uses a qualitative approach with a case study design, through in-depth interviews, observation, and documentation techniques, which are analyzed thematically and interpretively. The results show that local wisdom functions as a core value that guides management practices, decision-making, and human resource development. Local wisdom-based management strategies have been proven to contribute significantly to the formation of graduate quality, especially in aspects of character, work ethic, institutional loyalty, leadership, and social adaptability. Furthermore, the findings reveal that institutional oligopsony shapes graduate orientation that tends to focus on service within internal networks, while simultaneously encouraging Islamic boarding schools to strengthen graduate competitiveness through the integration of values and competencies. The contribution of this research lies in enriching the perspective of Islamic education management by placing local wisdom and institutional structure as strategic factors in improving the quality of graduates.
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