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The online learning tools and management also known as Learning ManagementSystem (LMS) have been adopted by higher education as it allows convenient andflexibility in learning process between students and instructors or tutors withminimal cost. The adoption of online learning tools in university has allowedusers (students and instructors) to interact, share and discussanytime-anywhere conveniently. Many students nowadays rely on online resourcesbased using their mobile devices, substituting traditional learninginteractions. Universities need strategy to sustain in providing intensiveinteractions and spreading word out mouth of good services through onlinelearning tools by focusing on niche markets and creating close relationshipwith their stakeholders. The study presented in this paper analyses howuniversities design best practices in adopting LMS and evaluate its currentstate for future improvement. In fact, with proper strategies of LMS,universities have opportunities to sustain their business by offeringinteresting packages and to improve their services through intensiveinteractions with their users. In this study, we deploy Transaction CostEconomics (TCE) to understand the change business environment and to constructa model for higher institution to regulate their scenario on online learningstrategies in fast changing and threatening business environment.

Constructing Strategy of Online Learning in Higher Education: Transaction Cost Economy