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This study aims to determine the influence of knowledge-oriented leadership (KOL) on innovation capability (IC) and internationalization of higher education (IoHE) and examine the role of IC as a mediating variable.

Following a quantitative and cross-sectional research design, data were collected through self-administered questionnaires by the vice-rectors, and heads of international affairs from 120 public and private universities in Indonesia. Partial least squares structural equation modelling data analysis techniques were applied to test the hypothesized relationships.

The study’s results indicate that KOL directly influences IC and IoHE. In addition, the study’s findings reveal that IC can mediate the relationship between KOL and IoHE.

This study highlights the importance of the role of KOL in IoHE. The findings of this study suggest that by demonstrating knowledge-oriented behaviors, higher education (HE) managers can effectively manage their knowledge assets, and ensure increased innovation leading to IoHE.

This is the first study to examine the relationship between knowledge-oriented leadership, IC, and IoHE. So far, research linking leadership to IoHE has been rare, because each has a broad scope.