The Impact of Service Innovation on Student Satisfaction in the Higher Education Context

Abstract

The purpose of this research aimed to study the impact of service innovation on student satisfaction in the context of higher education in major of technology and innovation and to propose guideline for develop the strategic issues in service innovation in order to enhance in effectiveness and competitiveness in higher education. This research is conducted in the quantitative manner. The methodology consists of literature and empirical studies. The data used in this research was derived from questionnaire survey conducted with postgraduate students studying of technology and innovation faculty of top five Universities. A total of 302 responses were received (78.03 percent). The collected data was analyzed by using exploratory factor analysis and structure equation modeling analysis. The findings indicate that the relationship between service innovation and the student is satisfaction to university is positively influenced by Beta amount 0.625, which is able to explain the impact of service innovation on the student’s satisfaction amounting to 39 percent (R2 = .39). The sequences of service innovation are composed social - organisational innovation, curriculum innovation, student care innovation, business model innovation, technology innovation and research network innovation. Therefore, the institutes should focus on develop strategic issues in service innovation in order to enhance effective and competitive advantage of higher education.