PurposeThe main objective of this paper is to analyze how leadership unity (LU) within universities affects the innovativeness of faculty, with a focus on the potential moderating role of strategic sensitivity (SS).Design/methodology/approachThe conceptual model of this research shows that SS and LU of the university impact the faculty's innovativeness. Meantime, the moderating effect of SS is assessed. A 49-item questionnaire was administered to 350 respondents who were managers and faculties of the university. The hierarchical regression technique was used for analyzing data and testing hypotheses.FindingsThe findings support both a curvilinear relationship based on a concave upward pattern and a linear relationship between LU in the university and the innovativeness of faculty. In addition, the university's SS positively influences the faculty's innovativeness. SS negatively moderates the curvilinear relationship between LU and faculty's innovativeness, i.e. the U-shaped effect exists only when the level of SS is high.Research limitations/implicationsThe results of this study shed new light on the relationships between LU and SS with innovativeness in the higher education landscape. It underlines the importance of SS as a moderator in the relationship between LU and innovativeness. This study was conducted in a developing country under sanctions with an Eastern culture, Iran. Thus, it is recommended that the conceptual framework of this study be tested in different countries with cultural diversity to generalize its findings.Practical implicationsAdministrators of universities need to recognize that creating unity and cohesion among managers of various levels of the university is crucial. They should also be aware that responses to external changes can lead to new opportunities for the university. Embracing transformation within the organizational strategies of the university will have a significant influence on competition, politics, and internal operations.Originality/valueThis research contributes to the academic discussions on the importance of LU and SS and also the moderation effect of SS in driving and promoting innovativeness in among faculties by providing empirical evidence. The results present valuable insights for scholars, practitioners and policymakers seeking to understand innovativeness among faculties in the higher education setting.