The performance of XYZ, a Government Higher Educational Institution (GHEI) in Indonesia is assessed through two unintegrated applications. The 2023 target performance was missed due to miscalculations outside applications while transforming large data amounts. Thus, business intelligence (BI) serves as a knowledge management (KM) tool to integrate those applications to achieve XYZ's target. Because BI is costly and 70% failure rate of development plans, a research model was evaluated to look at current XYZ innovation capability for successful BI adoption from the KM foundation and KM solutions implementation. This study used a quantitative method, employing a questionnaire for 94 civil servants and the partial least squares-structural equation model (PLS-SEM) for data analysis. Results indicate in the KM foundation, organizational (O) negatively influences KM process application (KMP) (β =-0.292, Pv = 0.010) while KM infrastructure (I) and process (P) positively influence KMP, but KM technology (T) does not. In KM solutions, KMP is proven linked to innovation capability when KM systems are lacking. Hence, several activities are suggested to activate T through T, O, P, and I. The model validated 80% of the hypotheses, laying the groundwork for future studies into which aspects of T strengthen innovation capabilities in GHEI. © 2024, Ikatan Ahli Informatika Indonesia. All rights reserved.