The impact of human resources functions on institutional excellence in UAE universities: the mediating role of institutional innovation

Institutional excellence in higher education is a critical objective for universities aiming to enhance their competitiveness and societal contributions. This study investigates the impact of Human Resource Management (HRM) practices on institutional excellence in UAE universities, emphasizing the mediating role of institutional innovation. The research aims to assess how HRM practices such as recruitment, training, compensation, and performance appraisal influence institutional innovation and excellence. While UAE universities are striving to achieve institutional excellence across all academic fields, limited research has focused on the role of HRM practices in this pursuit. Additionally, the purpose behind choosing recruitment, training, compensation, and performance appraisal is that these are the most crucial HRM practices for employees of higher educational institutions of UAE. Moreover, to achieve excellence, institutional innovation is critical but hardly addressed in the literature and seldom practiced in higher educational institutions of UAE. Using a quantitative research design, data were collected from university presidents, vice chancellors and deputy vice chancellors in Emirati universities via structured questionnaires. A total of 139 respondents were targeted to analyze the relationships between HRM practices, institutional innovation, and institutional excellence. The study employed structural equation modeling to test the proposed hypotheses as it is a contemporary technique well-suited for theory building or model testing. Findings reveal a significant positive relationship between HRM functions and institutional excellence, mediated by institutional innovation. These results highlight that innovative HR strategies foster employee creativity and contribute to excellence in higher education. Moreover, the research underscores the role of institutional innovation as a critical intermediary in aligning HR practices with organizational objectives. The study has theoretical implications by enriching the Resource-Based View (RBV) framework, incorporating institutional innovation as a mediating factor. Practically, it offers valuable insights for policymakers, university leaders, and HR practitioners to optimize HR strategies that foster a culture of innovation and drive institutional excellence. Future research could extend this model to explore other mediators and institutional settings.