Institutional Performance in Higher Education: The Influence of Service Quality and Innovation via Reputation

This study explores the role of service quality and innovation in shaping institutional reputation and how these factors collectively enhance the performance of Politeknik Negeri Jember (POLIJE). Employing an explanatory research design, the study targets external stakeholders, specifically alums and industry partners, as key informants. Out of a total population of 1,661 individuals, a proportionally representative sample of 121 respondents was selected. The research utilizes quantitative methods, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3.0. The findings reveal that service quality and innovation significantly influence the institution's reputation. Furthermore, each of these variables—service quality, innovation, and reputation—directly and positively impacts institutional performance. Notably, reputation also serves as a significant mediating variable in the relationship between service quality and institutional performance, as well as between innovation and institutional performance. These results highlight the strategic importance of fostering high service standards and continuous innovation to build reputation and ultimately strengthen institutional outcomes.