Abstract
Higher education institutions are experiencing major transformation as digital technologies, data-driven management and knowledge-based economies reshape how universities create and deliver value. Universities increasingly function as complex organizational systems that coordinate knowledge resources, academic services and institutional activities across multiple stakeholders. Within this context, institutional performance depends not only on academic excellence but also on the ability to develop governance capabilities and manage innovation processes effectively. This study examines how leadership, internal control, technological capability and Total Quality Management influence organizational innovation and institutional performance in Christian faith-based higher education institutions in Indonesia. Using a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 213 academic and administrative staff members. The findings indicate that technological capability and quality management play a significant role in enhancing organizational innovation, while leadership and internal control do not have direct effects on performance. Organizational innovation emerges as a key mechanism that mediates the relationship between governance capabilities and institutional performance. These results suggest that institutional performance is achieved through the effective transformation of internal capabilities into innovation outcomes. The study offers a novel perspective by integrating governance mechanisms within an innovation-driven performance framework in faith-based higher education institutions. The study contributes to higher education management literature by demonstrating that technological capability and quality management improve institutional performance mainly through organizational innovation in Christian faith-based higher education institutions.
Keywords: Governance Mechanisms, Higher Education, Organizational Innovation, Technology Capability, Total Quality Management.