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Determinants of Economic Sustainability in Higher Education Institutions

Author

Listed:
  • Juraj Cheben

    (University College of Business in Prague, Czech Republic)

  • Drahoslav Lancaric

    (Slovak University of Agriculture in Nitra, Slovakia)

  • Michal Munk

    (University of Constantine the Philosopher in Nitra, Slovakia)

  • Peter Obdrzalek

    (Comenius University in Bratislava, Slovakia)

Abstract

Despite the attention being paid to the environmental and social dimension of sustainability of Higher Education Institution (HEI) in the literature, little empirical research has focused on economic sustainability considering the HEI as an entity depending on financial funds provided by students, research, strategic partners, effective and efficient financial management. The conducted empirical survey deals with the link between the performance of HEI (number of students and the research productivity) and its economic sustainability measured as the average share of government subsidy. Furthermore, based on the 4678 students´ questionnaires, the paper explores the perception of the quality of study and the capabilities of graduates of public HEIs in Slovakia. The authors have used Multivariate Tests of Significance to evaluate the influence of above-mentioned variables on the economic sustainability of HEIs. Based on the results it can be concluded the HEIs´ economic sustainability is directly determined by the number of enrolled students and research productivity, while the effect of the quality of study and the capabilities of graduates was not confirmed. Many HEI funding systems are based on the number of enrolled students. The funding system in Slovakia is one of them. Therefore, the results (even if drawing from the specific context) are widely applicable. The study theoretically contributes to the sustainability of HEI by proposing a general and a specific conceptual model of sustainability in HEI. Some HEI funding systems based on the number of enrolled students are planning to base their funding system on capabilities of graduates and their employability (e.g. Slovakia). This fact even highlights the real-life importance of our study. Research results also tell that the quality of study and the capabilities of graduates are perceived differently at the altered types of HEI. Several HEIs were identified and therefore, HEIs need to adopt different strategies to satisfy diverse stakeholders’ expectations.

Suggested Citation

  • Juraj Cheben & Drahoslav Lancaric & Michal Munk & Peter Obdrzalek, 2020. "Determinants of Economic Sustainability in Higher Education Institutions," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(54), pages 462-462, April.
    • Handle: RePEc:aes:amfeco:v:22:y:2020:i:54:p:462
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    References listed on IDEAS

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    1. Ana Alexandra Gora & Simona Cătălina Ștefan & Ștefan Cătălin Popa & Cătălina Florentina Albu, 2019. "Students’ Perspective on Quality Assurance in Higher Education in the Context of Sustainability: A PLS-SEM Approach," Sustainability, MDPI, vol. 11(17), pages 1-21, September.
    2. Massimiliano Bratti & Abigail McKnight & Robin Naylor & Jeremy Smith, 2004. "Higher education outcomes, graduate employment and university performance indicators," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(3), pages 475-496, August.
    3. Daša Farčnik & Polona Domadenik, 2012. "Has the Bologna reform enhanced the employability of graduates? Early evidence from Slovenia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 51-75, March.
    4. Pavel Ciaian & Drahoslav Lancaric & Jan Pokrivcak, 2018. "The Productivity of Economics Research in Slovakia," Eastern European Economics, Taylor & Francis Journals, vol. 56(2), pages 168-200, March.
    5. Mladen Čudanov & Ondrej Jaško & Gheorghe Săvoiu, 2012. "Public and Public Utility Enterprises Restructuring: Statistical and Quantitative Aid for Ensuring Human Resource Sustainability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 307-322, June.
    6. Dan-Cristian Dabija & Catalin Postelnicu & Nicolae Al. Pop, 2014. "Methodology for Assessing the Degree of Internationalization of Business Academic Study Programmes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(37), pages 726-726, August.
    7. Brown, William O., 2001. "Sources of funds and quality effects in higher education," Economics of Education Review, Elsevier, vol. 20(3), pages 289-295, June.
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    Cited by:

    1. Maria-Silvia Fota & Nicoleta-Elena Cristea & Alexandru Ureche & Nadia Albu, 2024. "Accountants' Competencies for Sustainability Reporting: An Exploratory Study," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 23(2), pages 446-460, June.

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    More about this item

    Keywords

    Higher Education Institution (HEI); sustainability; number of students; research productivity; quality of study; capabilities of graduates;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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