Session Information
99 ERC SES 07 L, Research in Higher Education
Paper Session
Contribution
The purpose of this study is to investigate the process of revenue diversification at the universities of Kazakhstan what challenges they are facing, and how they are dealing with them. It seeks to explore the understanding, practices, and results of revenue diversification from the perspective of university leadership and faculty and to propose solutions supported by an analysis of the strengths and weaknesses found in the existing literature.
Given this purpose, this study aims to address the following question: How do two (public and private) universities in Kazakhstan implement revenue diversification to enhance their financial sustainability?
To address the research question and achieve the study’s objectives, two theoretical frameworks are employed: cost-sharing theory (Johnstone, 2002) and resource dependence theory (RDT) (Pfeffer & Salancik, 2003). According to cost-sharing in higher education costs are divided among four parties: students, parents, industry, and government. The costs paid by these parties contribute to HEIs as income. There are both internal and external factors that motivate universities to generate income from various sources. RDT asserts that the ability of organizations to survive is contingent upon acquiring and sustaining resources (Pfeffer & Salancik, 2003). However, this task is challenging due to environmental conditions marked by scarcity and uncertainty. Organizations must adapt to the requirements of key resource providers, and an open-systems perspective underscores the necessity for organizations to interact with those who control resources (Katz & Kahn, 1966). The degree of autonomy an organization experiences is influenced by the significance and concentration of its resource sources. This theory explains external forces faced by HEIs which encompass both global and national contexts. Furthermore, RDT analyzes the results of revenue diversification. As discussed in the previous section, there are some risks to the core mission of HEIs, which involves teaching and research, when they increase the amount of income generated from diverse sources.
Using these theories as a foundation and based on the literature reviewed, a conceptual framework for analyzing revenue diversification and the impact of diversification on student satisfaction was developed. The given theories and concepts discussed in the following sections will be synthesized to construct a framework for capturing a complex structure of revenue diversification. The internal setting of HEIs plays a crucial role in the process of revenue diversification. Factors such as a university’s mission, status, strategic development, organizational structure, history, size, location, teaching and research activities, and other related aspects contribute to the quality of revenue diversification. The internal parameters of the universities selected as research sites will be discussed in future chapters. By combining cost-sharing theory and RDT, the motivations, incentives, barriers, and possible outcomes of revenue diversification in HEIs are explored. In the context of HE in Kazakhstan and beyond, this research will contribute to our understanding of how institutions manage the challenges of resource dependencies and institutional goals.
Method
This study employs a qualitative multiple case study research design. Conducting multiple case study allows for an in-depth examination of two different types of universities as cases. In addition, this design provides opportunities for the triangulation of data sources, which can increase the validity and reliability of the results. According to Stake (1995), validity and reliability of the findings can be achieved by gaining the same results from multiple data sources. Moreover, the complex phenomenon can often be better understood through multiple case study, allowing a researcher to examine various situations, contexts, and perspectives (Yin, 2009). Two universities (one state and one public) are units of analysis in this case study. Multiple case study with two cases has several advantages for this research. The validity of the research findings can be enhanced by conducting multiple case study and comparing and contrasting them to identify shared patterns or themes (Miles et al., 2014). Patterns that emerge across multiple cases are more likely to apply to other situations, increasing the generalizability of the research. A significant rationale for conducting a multiple case study is investigating how a program or phenomenon operates in diverse environments (Stake, 2013). Although multiple case study is advantageous in various terms, Merriam (2014) points out that managing it can be difficult. This is because working on multiple sites can be confusing, with diverse data to keep track of. Once the first case study is completed, subsequent cases become more manageable. However, the various statuses of selected universities in this study may be an obstacle in using the same framework for two cases. In this research, the purposeful sampling process targets university leadership members, including rectors or vice-rectors, financial managers, deans, and other officials responsible for financial and strategic decision-making in HEIs for semi-structured interviews. Participants for the second data collection instrument – focus group discussions will be selected among faculty members in different departments. In selecting the faculties, it is important to cover a different range of schools and departments. For this reason, in this process, Biglan’s (1973) classification of scientific disciplines will be utilized. Data collection is planned to be conducted in February and March 2024, with initial findings expected to be ready by May 2024.
Expected Outcomes
The findings of this study will contribute insights into the complex process of revenue diversification in universities, shedding light on the unique dynamics and practices in the Kazakhstani context. This study aims to articulate the primary challenges, opportunities, potential outcomes, and policy recommendations emerging from the research findings. This research serves as a valuable resource for university leadership, middle management, and policymakers seeking effective strategies to enhance financial sustainability in higher education institutions in Kazakhstan.
References
Johnstone, B. D. (2002). Challenges of financial austerity: Imperatives and limitations of revenue diversification in higher education. The Welsh Journal of Education, 11(1), 18–36. https://doi.org/10.16922/wje.11.1.3 Katz, D., & Kahn, R. L. (1966). The social psychology of organizations. John Wiley and Sons, New York. Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative data analysis. SAGE. Pfeffer, J., & Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford, CA: Stanford Business Books.
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