Development of Strategy Model for Organizational Innovation through Information Systems in Higher Education in Indonesia

Abstract

The promotion of innovation by means of information systems based on business process reengineering (BPR) and enterprise resource planning (ERP) has become a major trend in recent decades in organizations aiming to achieve performance improvements. To facilitate the formulation of a strategy for higher education innovation driven by strategic management, research needs to be done on organizational innovation models, information systems, and strategic innovation measures. However, no studies have focused on these areas up to now. This research used expert judgment and structural equation modeling (SEM) to obtain the variables of the designated model. The factor that most affects organizational innovation performance is organizational change, which showed values of 0.619, 0.679, and 0.679 for Jakarta, Bandung, and Bogor, respectively. Specifically, coordination improvement was the most affected aspect of organizational innovation performance. The current research shows that in higher education, the most significant factor in improving organizational innovation performance is organizational change, and in Bandung, this change relied more on ERP implementation than was the case in Jakarta and Bogor.