China has witnessed a considerable expansion of private higher education institutions (HEIs) over the last two decades, and research has shown that teacher leadership (TL) is an essential aspect of providing quality higher education. This study proposed a model to explain TL and the factors that contribute to it in private HEIs. A sample of 4,152 participants responded to an 11-item questionnaire using a 5-point scale designed to measure three variables: TL, teacher self-efficacy (TSE), and teacher competence (TC). The results showed that the three variables were valid in explaining TL and the factors that contribute to it. Hypothesis tests revealed that both hypotheses were supported. Finally, the results revealed that TSE and TC are both significantly associated with TL. The practical and theoretical implications of these findings and the scope for future research are discussed.