STRATEGIC DIGITAL TRANSFORMATION IN HIGHER EDUCATION AND ITS EFFECT ON ORGANIZATIONAL AGILITY AND INNOVATION PERFORMANCE
STRATEGIC DIGITAL TRANSFORMATION IN HIGHER EDUCATION AND ITS EFFECT ON ORGANIZATIONAL AGILITY AND INNOVATION PERFORMANCE

Summary/Abstract: Higher education institutions (HEIs) have adopted digital transformation strategies to keep pace with rapid digitalinnovation and enhance competitiveness, efficiency, and academic standards. This study examined the effects ofdigital transformation on educational governance and the potential for innovation using a combined theoreticaland statistical approach. Key digital technologies, including data analytics, cloud computing, AI tools, and LMS,are considered enablers that make an institution more agile and improve decision-making. The hypothesizedrelationships were tested empirically using structural equation modelling (SEM). The reliability studies of thequestionnaires showed good internal consistency, with Cronbach's Alpha, Composite Reliability, and AVEexceeding the acceptable levels. According to the structural model, digital transformation significantly enhancesacademic governance. Innovation capability can also be improved directly through digital transformation.Combined, the academic governance should also play a mediating role, with an indirect impact of 0.27, adding tothe overall effect of digital transformation in this regard. The overall impact of digital transformation oninnovation capability (0.85) shows the extent to which it has in the institutional context of HEIs. We alsodetermined predictive accuracy, with R2 values of 0.41 for academic governance and 0.62 for innovationcapability. On the whole, the sources of information presented in this research indicate that digital transformationcan be considered a significant catalyst for enhancing the agility, innovation, and sustainable competitiveadvantage of HEIs.

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