The Regulatory Environment of Non-Profit Higher Education and Research Institutions and Its Implications for Managerial Strategy

Abstract

The concept of strategy in non-profit higher education is a contested issue. It is argued that strategy, in the business sense, does not apply to a substantially public and more institutionalized sector such as higher education and is not achievable in complex, loosely coupled organizations such as universities. Additionally, strategy does not sit easily with organizations operating in regulated contexts limiting competitive market pressures. This chapter discusses the regulatory environment of non-profit higher education by focusing on one of the most highly regulated disciplines: medical education and research. The chapter will begin by developing a context for discussion by firstly mapping the landscape of Australian medical education and research. Subsequently, the chapter argues that medical schools and research institutes need to exercise as much discretion as they can in the area under their control, develop sound strategies to deal with their changed circumstances, and develop a coherent and defensible basis for decision making through assessing their environment.

The competitive forces that shape Australian medical education

“…Additionally, the use of simulation in medical education is increasing in an attempt to reduce the number of safety concerns (Issenberg et al, 2001) as well as provide realistic scenarios for student engagement (Khan et al, 2011). Consequently, technology has the potential to replicate much of the education experience at marginally lower cost, and hence reduce entry barriers (Mahat and Pettigrew, 2017). As higher education becomes more complex, the old hierarchical model that depended mostly on only a few people at the top for leadership simply does not work anymore.…”

“…From a review of websites, some faculties of medicine in Australia have annual revenues larger than some universities, or larger than all faculties put together within their university. Managing medical schools is a task complicated by complex, multistage regulatory processes (Mahat and Pettigrew, 2017). Many organizations, including governments, professional bodies, funding and accreditation agencies play important roles and provide various levels of input or control.…”

“…Like any other organizations, medical schools need to learn more about the opportunities that it may be positioned to take advantage of and conditions and events that threaten its performance and survival (Bourgeois, 1980;Lang et al, 1997). Despite being a public and non-profit organization, strategic thought and action are increasingly important to the continued viability and effectiveness of medical schools (Mahat and Pettigrew, 2017).…”