The Effect of Strategic Planning on Service Quality in the Higher Education Sector

Universities, in general, and in developing countries in particular, have faced significant challenges in recent years due to rapid global changes and developments in the business environment. High-efficiency and high-quality universities are now the ones capable of facing these challenges, competing, and staying in the market. To confront these challenges, strategic planning is essential for universities to continue providing high-quality educational services. Therefore, this study aimed to test the impact of strategic planning on service quality in the higher education context in Libya. Data was obtained through a survey of 360 employees at Sabratha University in Libya. The results showed a positive impact of strategic planning on quality service in higher education. The study included some limitations and directions for future research.

Introduction

In an unstable environment such as the Libyan situation, which is witnessing political, economic, and social changes, government institutions face difficulty in fulfilling their obligations to meet the needs of citizens (Ghumiem & Alawi, 2022), and these changes affect the education sector like other sectors because it cannot survive. It is not isolated from these changes and cannot ignore them, but the education sector should interact with them with care, wisdom, and awareness. Because most of the activities and operations of higher education institutions depend heavily on the human factor (Al-Refaei & Zumrah, 2019; Küskü, 2003), the quality of services can be improved through the ability of higher education institutions to provide an appropriate work climate that enhances employee motivation, commitment, and satisfaction with work (Al-Refaeiet al., 2023), aligns with challenges, and faces problems when any changes or crises arise in the external environment (Al-Refaeiet al., 2019a; Alsamawiet al., 2019a; Alsamawiet al., 2019b; Ghumiemet al., 2023). In this regard, higher education institutions have realized that their ability to achieve their goals depends on the attitude and behavior of employees. Dissatisfied employees, uncommitted, or absence of the desire and encouragement to put in extra effort for the benefit of the institution, this institution becomes unable to achieve its goals (Al-Refaeiet al., 2019b; Zeithamlet al., 1996; Zumrahet al., 2021). Higher education institutions in Libya today face many challenges and problems that have hindered their path towards fulfilling their role in economic and social development. One of the most important reasons for this is the following of the traditional method of management in institutions of the higher education sector and the great shortage of material capabilities and human resources. These problems may prevent achieving the required quality in the performance of higher education institutions, and thus, education outcomes are affected by this, and this is what conflicts with quality in higher education.

However, organizations constantly have to seek ways to improve their service quality to maintain a loyal customer base and gain a competitive edge, as well as the challenges of a competitive business environment. Higher education institutions cannot deal with such changes and challenges, withstand and remain competitive, and fulfill their commitments to development without strategic planning (SP). Strategic planning (SP) has a central role in shaping the service quality provided by the institution. The service sector, including the education sector, has increasingly recognized the importance of the quality of their service in enhancing the satisfaction and loyalty of their customers (Shurair & Pokharel, 2019). delivering superior service quality has been identified as a key component for institutions’ success and survival in today’s hyper-competitive business environment (Shurair & Pokharel, 2019).

However, despite the importance of SP in developing SQ, the relationship between SP and service quality has received less attention from researchers. A literature review found few studies that investigate the relationship between strategic planning and service quality in different sectors, such as the airline industry (Shurair & Pokharel, 2019). Municipalities sector (Kharroub & Mansour, 2019), banking service (Al-Shuradet al., 2014). Less attention has been paid to the consequence of SP in improving the quality of service in the education context. Therefore, more studies are needed to fill this gap, especially in the higher education sector. Thus, the current study attempts to fill this gap by exploring the possible effect of strategic planning on service quality in the higher education sector.

Literature Review

The theory of Total Quality Management (TQM) highlights how critical strategic planning is to raising the quality of services. According to this method, attaining high standards in service delivery calls for a thorough and well-organized strategic plan rather than a random or sporadic approach (Deming, 1986). In TQM, strategic planning involves determining long-term goals, understanding customer needs, and planning organizational procedures to satisfy these demands successfully (Gryna & Juran, 1999). This process includes strategies for continuous improvement and starts with a detailed analysis of the current service quality. TQM’s strategic planning ensures that every facet of service delivery is carefully planned and frequently evaluated for quality improvement (Kharroub & Mansour, 2019). This careful planning is essential for maintaining high standards of service quality because it helps organizations methodically identify areas that need improvement and put the necessary measures in place.

Organizations are always looking for ways to improve their service quality to maintain a loyal customer base and gain a competitive edge. Strategic planning has a vital role in reaching this objective by providing a framework for organizations to identify their goals, assess their environments (internally and externally), and develop appropriate approaches to complete their purposes (Georgeet al., 2019; Steiss, 2019). Understanding the effect of SP on SQ is essential for organizations to make informed decisions and effectively utilize their resources (Aliet al., 2021; Zaidet al., 2020).

The field of strategic planning has gotten research attention in the previous years as organizations identify the importance of proactively setting goals and aligning their resources and activities to achieve them. Efficient strategic planning entails examining both internal and external issues that could potentially affect an organization’s capacity to deliver high-quality services. (Priyambodo & Hasanah, 2021; Ghonimet al., 2022). This includes evaluating market trends, customer expectations, competitive forces, technological advancements, and organizational capabilities (Al-Muhramiet al., 2021; Annarelliet al., 2021; Pandeyet al., 2020). By understanding the background of strategic planning, organizations can develop a comprehensive understanding of its abilities and how it can contribute to improving service quality.

Strategic planning and service quality have garnered substantial attention due to their important implications and extensive relevance in various industry sectors. Researchers have dedicated significant efforts to shed light on the intricate dynamics and intricate mechanisms through which strategic planning influences service quality. (Zaidet al., 2020) Through rigorous investigation and meticulous examination, scholars have striven to uncover the intricate interplay between these two pivotal concepts, aiming to provide valuable insights and empirical evidence that can contribute to enhancing service quality and formulating effective strategic planning strategies (Georgeet al., 2019; Liet al., 2021).

Strategic planning is fundamental to shaping the service quality and overall organization’s performance. The service industry, which includes the education sector, has become more aware that an important way to satisfy and enhance customer loyalty is to deliver high-quality service (Shurair & Pokharel, 2019). In the airline industry, delivering superior service quality is identified as vital to organizational success and continues in the competitive market in an unstable environment (Guptaet al., 2020). However, In the education sector, Service quality and satisfaction are of greater significance in higher education as well, given that students have the option to enroll in the programs and university (Shurair & Pokharel, 2019). The perception of service quality by students is a key factor in their decision-making process, and educational institutions need to understand and measure the service quality they deliver to their customers (Shurair & Pokharel, 2019). The literature also emphasizes the role of SP in the evaluation of service quality. Various models, such as the SERVQUAL model, have been used to measure service quality levels, with criteria such as reliability, responsiveness, empathy, assurances, and tangibles being integrated into these models (Guptaet al., 2020). Therefore, based on the previous discussion, the current study assumed the following:

H₁: SP has a positive effect on SQ in the higher education sector.

Methodology

This study used a quantitative descriptive-analytical research design to investigate the impact of SP on SQ in the higher education sector in Libya. Descriptive-analytical research is a methodological approach that involves scientifically describing and analyzing phenomena to find logical explanations supported by empirical evidence. The research population includes all employees at Sabratha University in Libya, and to ensure a representative sample, a simple random sampling method was used, with 352 participants selected from various roles, including administrative staff, faculty members, department heads, and employees.

Data collection was done through a questionnaire, which is a widely accepted tool in quantitative research. The questionnaire is divided into two sections. The first section gathers demographic information from the participants, including gender, age, educational qualifications, and years of professional experience. The second section focuses on two main dimensions: educational service quality, which is evaluated through 12 items derived from scales developed by Parasuramanet al. (1988) and used by Al-Refaeiet al. (2019b), and strategic planning, which is evaluated through 7 items based on dimensions developed by Samson and Terziovski (1999). Responses to the questionnaire items were measured on a five-point Likert scale, ranging from “strongly disagree” (1) to “strongly agree” (5). All distributed questionnaires were collected manually, and the confidentiality of participants’ responses was ensured. They will only be used for research purposes.

Results

Profile of the Respondents

The total sample size was 360 respondents. Table I shows the distribution of the sample in terms of demographic variables. The percentage of males was 54.4% (N = 196), and females was 45.6% (n = 164). As for age, 8.3% (n = 30) of the participants were under 25 years old, 18.3% (n = 66) were in the age group between 26 and 30 years, 21.1% (n = 76) were in the age group between 31 and 35 years old, 20.3% (n = 73) were in the age group between 36 and 40 years old, and the remaining (31.9%, n = 115) were above 40 years old. Regarding education, 15.0% (n = 54) held a bachelor’s degree, 42.2% (n = 152) had a master’s degree, and 42.8% (n = 154) had a doctoral degree. As for years of experience, employees who worked at the university for less than 5 years accounted for 11.4% (n = 41), employees with 5 to 10 years of work experience accounted for 28.1% (n = 101), those who worked there for 11 to 15 years accounted for 27.8% (n = 100), and employees with more than 15 years of work experience accounted for 32.8% (n = 118) of the total number.

Table I. Demographic Variables of the Respondents

Measure	Years (category)	Frequency	Percentage
Gender	Male	196	54.4
	Female	164	45.6
Age	<25 Years	30	8.3
	From 26 to 30 Years	66	18.3
	From 13 to 35 Years	76	21.1
	From 36 to 40	73	20.3
	>41 Years	115	31.9
Education	Bachelor’s degree	54	15.0
	Master’s degree	152	42.2
	Doctoral degree	154	42.8
Working experience	<5 Years	41	11.4
	From 5 to 10 Years	101	28.1
	From 10 to 15 Years	100	27.8
	>15 Years	118	32.8

Measurement Model

This step aims to conduct the confirmatory factor analysis (CFA) for the measurement model of the study, which consists of the quality of education services in its four dimensions: reliability, responsiveness, empathy, and assurance, as well as strategic planning. The results of the CFA for the model showed that χ2 was 352.184 with df was 147, P-value (<0.05), the CMINDF value was 2.39, and the RMSEA index was 0.062, indicating a good fit. CFI was 0.94, TLI) was 0.93, IFI was 0.94, and NFI was 0.91, indicating that the model fit was acceptable (Hairet al., 2020). Fig. 1 illustrates the values of the overall standard model indicators for the study.

Fig. 1. Measurement model of the study.

Convergent Validity (CV)

The factor loading for all main component items of the model was acceptable as they were above 0.70 the recommended value (Byrne, 2016) and (Collier, 2020), confirming the strong correlation between each item in the model and its respective dimension. The composite reliability (CR) was 0.91 for SP and 0.87 for SQ. The maximum reliability (MaxR(H)) index also was from 0.87 to 0.91, above the suggested value. The (AVE) ranged from 0.59 to 0.63, which is greater than 0.50, demonstrating the CV of this model (Ateeqet al., 2024). Table II presents the convergent validity of the model.

Table II. Convergent Validity of the Model

Variables	Items	Loading	CR	AVE	MSV	MaxR (H)
Strategic planning	SP1	0.74	0.910	0.590	0.527	0.913
	SP2	0.82
	SP3	0.83
	SP4	0.79
	SP5	0.70
	Sp6	0.72
	SP7	0.74
Service quality	SQ1	0.77	0.874	0.635	0.527	0.877
	SQ2	0.65
	SQ3	0.82
	SQ4	0.78
	SQ5	0.62
	SQ6	0.78
	SQ7	0.85
	SQ8	0.70
	SQ9	0.75
	SQ10	0.81
	SQ11	0.77
	SQ12	0.81

Discriminant Validity (DV)

The researcher tested the DV between the components of the model two methods, first Fornell Larcker Criterion (FLC) by comparing the square root of the (AVE) for the variable with the estimated correlations between the other variables (Fornell & Larcker, 1981). In this model, the square root of AVE for each variable (indicated in bold) is higher than the correlation value between this variable and the other variables, confirming the DV between the components of the model. Table II illustrates the square root of AVE for each variable of the model and the correlations between the other variables. The next method is HTMT) recommended by Henseleret al. (2015), and used by previous studies (Al-Refaeiet al., 2024). The result shows no value of HTMT exceeding 0.85. The constructs’ FLC results, presented in Panel A of Table III, and the HTMT results in Panel B demonstrated sufficient DV.

Table III. Discriminant Validity

	Panel A: FLC		Panel B: HTMT
	Strategic planning	ServQual	Strategic planning	ServQual
Strategic planning	0.766	–		–
ServQual	0.726*	0.797		0.697

Result of Testing the Hypothesis

The study assumed a direct association between the independent variable (SP) and the quality of educational services (dependent variable) in the higher education sector in Libya. The results of testing this direct hypothesis showed a positive connection between SP and the quality of educational services in Libya, with a statistical value (t) of 10.44, which is considered high as it exceeds the recommended value of 1.96 for the significance of the connection between the variables (Byrne, 2016). This value indicates a strong positive relationship between strategic planning and the quality of educational services. The significance value (P-value) was 0.000, which is smaller than the recommended value of 0.05. Additionally, the path coefficient was 0.73, confirming a strong positive relationship between SP and the quality of educational services. However, through the values of the coefficient of determination (R2), it is evident that there is a significant and important change in the dependent variable (service quality). This change was by a percentage of 53%, which is a high effect size (Cohen, 1988). This means that when strategic planning improves, then the quality of educational services improves.

Discussion

The current study conducted a comprehensive exploration of the relationship between SP and SQ in Libya’s education sector. Through a rigorous experimental test, this study sought to uncover the dynamics of this complex relationship and shed light on its prominent importance. The results of the study strongly indicate the significant and positive impact of strategic planning on the quality of educational services. This finding is not merely an academic exercise but carries profound implications for educational policymakers, university administrators, and all stakeholders heavily invested in the pursuit of educational excellence in Libya.

Fundamentally, this study confirms that strategic planning is not just a procedural formality but an effective lever for enhancing service quality (Zaidet al., 2020). This result is consistent with the previous studies that found a positive effect of strategic planning on organization performance and service quality, such as Georgeet al. (2019) and Ghonimet al. (2022), and strategic planning on SQ in the education sector (Priyambodo & Hasanah, 2021).

Practical Implications

The practical implications of this assertion cannot be emphasized enough. Educational policymakers can benefit from this research by recognizing the critical importance of cultivating a culture of strategic planning within higher education institutions. This cultural shift can unlock efficiencies in resource allocation and lead to enhanced employee commitment (Alshuhumiet al., 2024) and then to improvements in the quality of public services, ultimately benefiting students and all those reliant on the education system (Al-Refaeiet al., 2023). Furthermore, the study reinforces the idea that strategic planning is the cornerstone of universities’ commitment to service quality. By aligning human and material resources precisely with a clearly defined vision for service excellence, educational institutions in Libya can effectively navigate the complexities of the modern educational landscape.

Limitations and Directions for Future Research

It is critical to consider the limitations of the study when interpreting the findings. The fact that this study only included the effect of strategic planning and service quality in one university, resulting in one sample size (employees), is one of its weaknesses. Future research should use two sample sizes (employees and students), including those from different universities, as the results are to be generalized. Future research may examine additional variables such as HRM practices, employee commitment, satisfaction, empowerment, transformational leadership, and organizational culture.