The Role of Al-Jawdah Innovation Capability in Enhancing the Performance of Private Schools

Abstract

This study aims to analyze the influence of Al-Jawdah's innovation capabilities on the performance of private school organizations, both directly and through the mediation role of competitive advantage. Al-Jawdah's innovation capabilities are understood as the school's ability to design and implement innovation in three main dimensions: service, process, and market, which are integrated with Islamic values such as sincerity, honesty, and commitment. The research method used an explanatory quantitative approach with variation-based structural modeling techniques (PLS-SEM), and data were collected from 250 private school principals in Indonesia and Malaysia. The results of the study show that all dimensions of Al-Jawdah's innovation capabilities have a positive and significant influence on organizational performance, both directly and indirectly through competitive advantage. Process innovation is proven to contribute the most to organizational performance, followed by service innovation and market innovation. Competitive advantage has also proven to be an effective mediator in strengthening the influence of innovation on improving operational efficiency, institutional reputation, and customer satisfaction. The implications of this study emphasize the importance of developing an organizational culture that supports innovation based on Islamic values, transformational leadership, and strategic adaptation to the needs of the education market. This research contributes to the development of contemporary Islamic education management models. It encourages private schools to continue to innovate in a structured and valuable manner in the face of increasingly complex educational competition dynamics.