The Role of Intellectual Capital in Fostering Innovation Capability in Higher Education Institutions

Abstract

In today's dynamic knowledge economy, higher education institutions (HEI) must emphasize recognizing and assessing their innovation capability to gain a competitive edge in the education industry. This strategic approach allows HEIs to set themselves apart from their competitors. To address this imperative, this study proposes a framework for evaluating HEIs' innovation capability among academicians, focusing on key indicators within human capital, structural capital, and relational capital. Using this proposed framework, the research seeks to gauge the relative importance of the indicators of intellectual capital and innovation capability and establish a prioritized ranking that aligns with higher education goals. The proposed framework will guide future researchers to propose a multilevel research framework and extend it to all stakeholders in building a robust innovation capability foundation for HEIs. Providing valuable guidance empowers decision-makers to prioritize critical resources effectively and enables performance measurement, fostering advancements in higher education objectives. In embracing this approach, HEIs can enhance their adaptability and relevance in an ever-evolving educational landscape.