Is academic innovation need of an hour? The role of intellectual capital and dynamic capabilities in driving academic performance

Purpose This study aims to explore the connections between intellectual capital and academic performance in Lahore, Pakistan’s higher education institutions (HEIs). The research delves into the mediation effect of dynamic capabilities, such as acquisition and exploitation, between intellectual capital and innovation within these educational institutions. Design/methodology/approach Grounded in the insights from a comprehensive literature review, the methodology uses a pre-tested questionnaire. Faculty members from private universities in Pakistan were chosen as the study's unit of analysis. Using a convenience sampling technique, data was gathered from 342 teachers and then analyzed using Smart (PLS) 3.3.3. Findings The results demonstrate that intellectual capital positively affects innovation. Acquisition and exploitation further mediate this influence, improving academic performance. Applying the knowledge-based view theory, the study confirmed the significance of all the posited hypotheses, underlining the positive interrelationships within Pakistan’s academic institutions. Originality/value The novelty of this research lies in its specific focus on the HEIs in Pakistan, demonstrating how intellectual capital and dynamic capabilities foster innovation, thereby enabling these institutions to maintain a competitive edge in a rapidly evolving educational landscape.