Fostering organisational innovation in higher education: The mediating role of human resource competency in linking self-development and self-efficacy

Abstract

Orientation: In an increasingly competitive global landscape, innovation is critical for the sustainability of higher education institutions. This study investigated the human-centric factors that drive organisational innovation, moving from individual potential to institutional capability.
Research purpose: This study aime to examine the mediating role of human resources (HR) competency in the relationship between individual-level factors (self-development and self-efficacy) and organisational innovation within a private Islamic university in Indonesia.
Motivation for the study: The study is motivated by a measurable innovation deficit at the case study institution, which reflects a broader challenge for universities in developing nations to build sustainable innovation capabilities from within their HR.
Research design, approach and method: This research employed a quantitative survey method, with data collected from 293 academic and administrative staff. Path analysis was used to test the hypothesised structural model and the significance of the mediation pathways.
Main findings: All 11 hypotheses were supported. Self-development and self-efficacy have a significant direct influence on both HR competency and organisational innovation. Crucially, HR competency was confirmed as a significant partial mediator, translating the positive influence of individual factors into organisational outcomes.
Practical/managerial implications: University leaders should implement integrated strategies that simultaneously foster individual growth (self-development and self-efficacy) and build systemic HR competencies. This provides a practical framework for converting individual potential into measurable organisational innovation.
Contribution/value-add: This study addresses a significant literature gap by developing and validating an integrated, human-centric innovation model that uniquely emphasises individual psychological and behavioural factors in fostering organisational innovation. Applied in an Indonesian Islamic university context, the model demonstrates how HR competency mediates the relationship between self-development, self-efficacy, and organisational innovation, providing actionable insights for university leaders.