Higher educational package in Indonesia need advancement in educational design and delivery, the educational “supply chain” in Indonesia as a whole and therefore includes relationships with feeder schools, from which students come, and employers, to which graduates go need seriously improvement due to the high competitiveness amoung higher education. With the high number of high education in Indonesia, moreover in capital city, the performances not fulfilled the criteria of good quality, only few that have been reach good quality in accreditation held by Indonesia Ministry of Education. To improve competitiveness on education industry, management is needed, both internally or externally. The relationship between suppliers, the student, and the higher education itself, must well managed. How to order suppliers partly responsible for education quality, good and long-term relationship with suppliers and student, as well as distribution order educational input from upstream to downstream on time get to the end user. Inovation and supply chain management practices in higher education is the very thing needed for the education industry sector in Indonesia, in in order to improve the competitiveness of industries which will have an impact on higher education performance. This research aim to analyze how competitive Advantages mediating relationship between innovation, value chain and higher education performances. Data collection taken from 166 higher education as samples in quatitative research using partial least square as method in data processing. The result shown that innovation and value chain effect on higher education performances mediated by competitive advantages.