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This study investigates the impact of Academic Autonomy (AA) on strategy development (SD) and University performance (UP) in Indian public universities, using a resource-based view. Data from 130 university leaders were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that AA significantly affects SD, and both AA and SD have a positive impact on UP, specifically on research and teaching performance. These findings offer implications for theory and practice in university management.
University autonomy (UA), vital for survival and self-governance, is multifaceted and complex. Originating from four dimensions by Estermann et al., it entails academic, financial, organizational, and staffing autonomy, defined as managing internal affairs without undue external influence. Academic autonomy (AA) is crucial, allowing universities to regulate admissions, develop programs, and ensure quality. Despite its importance, there’s limited empirical evidence on AA’s impact on university performance (UP). This study aims to fill this gap by investigating whether AA affects UP and its dimensions, specifically in Indian public universities. Moreover, it explores the relationship between AA and sustainable development (SD), as well as the impact of SD on UP. Addressing these gaps contributes to a deeper understanding of higher education dynamics. The study’s objectives include examining the effects of AA and SD on UP and its dimensions through empirical analysis, which is detailed in subsequent sections of the paper.
Academic autonomy (AA) is crucial for the long-term development of public universities, enabling them to create, innovate, and disseminate knowledge. It allows universities to adapt to changing needs and excel in teaching and research. While some argue that AA can lead to conflicts and alienation among academics, others emphasize its positive impact on university performance. Measures of university performance include research, teaching, management, and financial indicators. Despite limited empirical studies, recent research suggests that higher levels of AA positively influence university performance. Based on this, hypotheses are proposed: AA positively affects overall university performance, as well as research and teaching performances individually.
Academic autonomy (AA) refers to an institution’s freedom to manage its affairs without government influence. Previous research suggests a link between AA and strategic development (SD), with AA positively impacting strategic planning in public universities. AA allows universities to strategically profile themselves, develop strategies, and achieve their goals independently. Studies indicate that AA is crucial for universities to plan academic affairs without external approval. Higher AA levels correlate with stronger strategy development and unique teaching and research profiles. Universities’ strategic capabilities largely rely on AA, providing leaders with the capacity for strategic decision-making and niche carving. Therefore, this study proposes that Hypothesis 2: AA has a positive and significant effect on strategic flexibility (SF).
Strategic development (SD) involves creating alternative plans to achieve goals. In the private sector, strategies aim to outperform competitors, while in the public sector, they focus on improving services to the public. University strategies, particularly niche-focused ones, connect values to actions, fostering problem-solving and ultimately improving university performance (UP). Previous research on the link between SD and performance in both private and public sectors shows inconsistent results, with some studies finding a positive association while others do not. Despite this, there has been less emphasis on SD in higher education institutions (HEIs). Studies suggest that effective SD can lead to superior UP if properly executed, but there’s limited research on this in public universities, particularly in India. Hence, this study hypothesizes a positive and significant effect of SD on UP, with specific effects on research and teaching performance.
This study employs the resource-based view (RBV) to examine how academic autonomy (AA) affects sustainable development (SD) and university performance (UP), as well as the influence of SD on UP. RBV suggests that tangible, intangible, and personal-based resources combine to create organizational capabilities, enabling them to assemble, combine, and distribute resources and develop strategies for better performance. It is a widely influential perspective used in academic discussions, especially regarding the relationship between autonomy and performance. The study assumes that effectively leveraging AA as a critical resource allows universities to improve their SD capabilities and thus achieve better performance. Drawing from RBV, the study argues that using existing resources to develop strategies based on internal strengths while addressing external threats and weaknesses can enhance university performance. However, there is limited research on RBV’s application in higher education institutions (HEIs). Therefore, this study examines whether both SD and UP are influenced by AA, along with the impact of SD on the performance of Indian public universities.
This study aimed to expand existing literature on Higher Education Institutions (HEIs) by examining the combined impact of Academic Autonomy (AA) on both Sustainable Development (SD) and University Performance (UP). It utilized Partial Least Squares Structural Equation Modeling (PLS-SEM) with data from Indian public universities. The findings supported the hypothesis that AA positively influences UP, particularly in research and teaching performance, echoing prior studies. Additionally, AA was found to positively affect SD, aligning with existing theoretical perspectives, empowering universities to strategically pursue academic goals. The study also revealed a positive relationship between SD and UP, indicating that strategic development positively impacts overall university performance and specific dimensions such as research and teaching.
This research contributes to the field by addressing gaps in the literature, specifically regarding how AA impacts UP and SD, and how SD affects UP. It also employs Resource-Based View (RBV) principles to explore how AA enhances SD capacity, ultimately improving UP. For policymakers and university leaders, the study underscores the importance of granting high levels of AA to achieve superior UP and strengthen SD capacities. Moreover, it encourages universities to focus on strategic development, as effective strategies are vital for navigating the complexities of higher education and enhancing performance.
The current study has limitations including a small sample size, potential selection bias due to purposive sampling, and common method bias from its cross-sectional design. Future studies should employ larger samples, diverse sampling techniques, and longitudinal data to validate and expand upon these findings. Additionally, future research could investigate additional mediators, such as Institutional Leadership and Administrative Efficiency, to gain further insights into the effect of AA on UP.
Source:
Al Gharsi, A. Y., Ali Belhaj, F., & Nirmala, R. (2024). Academic autonomy as driving change: Investigating its effect on strategy development and university performance. Heliyon, 10(8), e29536. https://doi.org/10.1016/j.heliyon.2024.e29536