DRIVING SATISFACTION IN MALAYSIAN HEIS: IMPACT OF INNOVATION STRATEGIES AND SERVICE EXCELLENCE ON STAKEHOLDERS

Abstract

Satisfaction of stakeholders has become a key driver in Appraisal of public and private higher education’s institutions Malaysia. This conceptual paper examines innovation strategies and service excellence in higher education institutions (HEIs) while considering stakeholder satisfaction. Inevitably, a private HEI facing financial constraints needs stakeholder satisfaction and focuses on how to balance innovation strategies with service excellence. This study identifies the primary components concerning stakeholder satisfaction within the Malaysian HEIs, considering how these components are influenced by innovation and service excellence. The results suggest that service priorities directly impact the service trade-off balance within the HE sectors. A range of elements, including the demands of individual students, tailored service provision, time pressures, and the integration of competing activities of teaching and research, undermine the academics' ability to balance the service trade-offs. The phenomena compel HEIs to build innovation strategies which align service excellence with the cultivation of stakeholder satisfaction. The findings demonstrate that HEIs must leverage their intangible resources to adapt their capabilities to the shifting strategic business environment. Considering that higher education is an intangible service and not a tangible product, the paper highlights the importance of marketing and servicing a growing pool of prospective students while accommodating the diverse and changing needs of different stakeholders.