Driving Higher Education Performance Through Human and Relational Capital: The Mediating Role of Knowledge Absorptive Capacity

The purpose of this research is to improve the competitiveness and relevance of higher education institutions in Indonesia, examining the role of human capital, relational capital and knowledge absorptive capacity. With a strategic and integrated approach, the institution is expected to achieve its long-term vision as a center of innovation and sustainable development. This study aims to examine the extent to which human capital and relation-al capital affect educational performance through the mediating role of knowledge absorptive capacity. This research uses quantitative methods. Data is obtained from 300 people who are lecturers. Data processed using SEM-PLS 4.0. The findings indicate that human capital (β = 0.412, p < .001) and relational capital (β = 0.444, p < .001) significantly enhance knowledge absorptive capacity, which in turn exerts a strong positive influence on higher education outcomes (β = 0.664, p < .001). Moreover, knowledge absorptive capacity mediates the effects of both human and relational capital on institutional performance. These results highlight the strategic importance of leveraging intellectual resources and absorptive mechanisms to improve teaching effectiveness, research productivity, and academic reputation. The study contributes to ongoing debates on intellectual capital and absorptive capacity by offering evidence from Indonesian higher education, a context underexplored in existing literature.