Empowering knowledge management in enhancing the performance of higher education institutions in the era of industrial revolution 4.0: A mediating role of innovation

Education is the most important element of economic growth and development, Pakistan is full of resources, but improper use of resources leads to it being underdeveloped. Where appropriate education standards can help Pakistan overcome economic problems. Therefore, Pakistan has failed to establish new universities in the last two decades. On the other hand, the performance of the education sector of Pakistan is insignificant and nowhere exists in international rankings. Higher education institutions (HEIs) are progressively incorporating modern technologies and creative approaches to improve their performance in the context of Education 4.0. This study uses innovation as a mediating variable to examine the relationship between knowledge management (KM) and HEI performance. (KM), which includes the organized administration of an organization's knowledge resources, is essential for creating an atmosphere that supports ongoing education and development. Educational paradigms and operational efficiencies are being reshaped by innovation, which is defined by the application of technologies. This study aims to use knowledge management as a construct in enhancing HEIP, where innovation plays a contributing factor as a mediator. The unit of analysis was organization; therefore, the current study targeted 88 universities in Pakistan. The samples were selected via a stratified random sampling technique, and the data were analyzed via SMART PLS 4.0. The findings of the current study revealed that knowledge management in the era of Education 4.0 is a significant construct in enhancing HEIP. Similarly, the results of the mediation also revealed that innovation is a significant contributing factor to the progress of HIEIP. Furthermore, the research explores optimal methodologies and obstacles linked to the amalgamation of knowledge management and innovation, furnishing HEIs with an all-encompassing framework designed to prosper in the context of Education 4.0.