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A successful education system is a great asset for any society. However, what factors make an academic institution successful and how these factors interact with each other are not clear in literature. Therefore, the purpose of this paper is to develop and validate a model that explains success of private universities which entails clarification on theoretical understanding and explains the relationships among relevant variables.

Variables from information systems success models and marketing theories have been adapted in the context of private universities to theorize a conceptual model. In order to validate the model, this study employed quantitative approach. Survey data, collected from 326 respondents, were analysed using partial least squares algorithm.

The results suggest that: “curriculum quality”, “teaching competence”, “service facility”, and “service delivery” provided by a private university are positively related to “perceived value (PV)”, while students’ perceived satisfaction (SPS) is dependent on “service facility”; PV and SPS drive to students’ “intention for continued education (ICE)”, and ICE eventually improves quality of students’ lives. Additionally, PV and SPS are interrelated. The mediating roles of PV and SPS are also identified.

Empirical data analyses confirm that improving quality of life through continued education represents an insightful theoretical lens for investigating success in higher education. To become successful in education business, maintaining both academic quality and service quality are important for a private university because they lead to student satisfaction and the overall PV of education.

This study is the first initiative that develops and validates a success model of private universities. The findings provide some guidelines for top managers in higher education to maximize their abilities to understand customers’ expectations in both strategic and operational settings.