The Effect of Strategic Innovation Inclusion In the Ethiopian Higher Education Institutions Performances

Abstract

ABSTRACT
This investigation aims to investigate the association among strategic innovation predictors—specifically Strategic Alignment, Human Capital, Customer Focus, and Technological Capabilities and their influences on Institutional Performance. This investigation utilizes KMO, EFA, CFA, and SEM techniques through AMOS software to investigate the underlying structure of a set of variables. The Kaiser-Meyer-Olkin (KMO) measure manifested that the sample was suitable for factor analysis. Exploratory Factor Analysis (EFA) uncovered important dimensions within the data. Confirmatory Factor Analysis (CFA) then validated the factor structure, confirming model fit and reliability. Finally, Structural Equation Modeling (SEM) was employed to evaluate the association among the latent variables. The findings manifested that Technological Capabilities and Customer Focus have significant positive influences on Institutional Performance, while Human Capital has a moderate positive relationship. Conversely, the connection among Strategic Alignment and Institutional Performance is relatively weak. These findings hold important implications for managerial decision-making. Organizations should focus their resources on enhancing technological capabilities and adopting customer-centric approaches, in addition to investing in the development of human capital. It is also essential for organizations to assess their strategic alignment, prioritize talent management, and consistently evaluate their performance.