This research aimed to discuss the transformation of higher education showing innovation in competitiveness with the rapid development in the global era. The research used an explanatory method to analyze the relationships between variables as well as explain the effects through hypothesis testing. The population includes all higher education institutions in East Java, consisting of 55 State Higher Education (SHE) and 350 Private Higher Education (PHE) institutions. The stratified random sampling method was used to determine the sample size, accounting for 30% of the population. The result showed that the relationship between human capital can enhance good higher education governance towards innovative competitiveness in institutions. This implied that the human capital possessed by higher education institutions could be maximized to achieve competitiveness when managed effectively by the leaders. Furthermore, leaders need to be fair and capable of setting the best example for all members of the organization. Human capital can also provide an understanding of the duties and authorities of each member according to the field of work, particularly for lecturers and educational staff. In conclusion, good governance was believed to be able to develop an organizational culture that supports the achievement of objectives and facilitates competitiveness.