Management innovation in balancing technology innovation to harness universities performance in the era of community 4.0

Abstract

The Internet of things (IoT) has changed the way universities managing the people and the way of transferring knowledge. To go with the current trend, universities invest a considerable amount in technology to be acknowledged as an innovative university. However, lower productivity of lecturers, the complaint on the quality of outputs as well as the decreased enrolment requires universities to explore another arena to innovate. Academia has started accentuating that to capture the comprehensive benefits of innovation, technological innovation must be mixed with management innovation that is altering the practice of management within organizations by adopting new organizational structures, processes, and practices to generate a valuable source of competitive advantage. As most innovations are associated with product development, this study highlights management practices as a process innovation in responding to the trend. While there is a growing body of in-depth qualitative research that provides insight into the sequence of events that occurs during process innovation, these studies have not systematically analyzed the organizational capabilities that fuel management innovation mainly in an educational organization. Therefore, Structural Equation Modelling (SEM) is employed to spot the arena for further study. Finally, the model is expected to provide the model for universities wishing to promote innovation within the organization in supporting the Indonesian government’ aspire to achieve the economic growth above 7% in the years to come.