Financial Sustainability of Higher Education Institutions

Abstract

Since the beginning of the XXI century, there have been clear modifications in the sector of higher education, when the institutions have moved near to the economic sector. These changes were primary introduced as the consecutive response to the transformation processes within the society, which should be embedded in the following construct: there was a clear move towards a more competitive and market-based system. Due to the changes in the operating environment financial sustainability and its management for the higher education institutions became one of the core elements. The main objective of the current paper is to discuss the practical application of the methodology for the management of higher education institutions based on the example of Latvian private higher education institutions. The author would like to argue that the paper contributes to the fundamental discussion of financial sustainability in the field of higher education institution management. Moreover, it has got practical implications for the management of the organizations not only in Latvia but also in other countries when efficiency and effectiveness are primary issues.

A Novel Green Ocean Strategy for Financial Sustainability (GOSFS) in Higher Education Institutions: King Abdulaziz University as a Case Study

“…The findings revealed that several private universities are in financial jeopardy and are unable to assure students of a top-notch education in the coming years. In 2021, Kuzmina [62] did another analysis of the financial viability of the private higher education business in Latvia. The following findings have been reached by the author: Today's higher education administration is becoming more complex, necessitating the use of extra instruments to ensure long-term financial stability.…”

A Novel Hybrid Approach for Prioritizing Investment Initiatives to Achieve Financial Sustainability in Higher Education Institutions Using MEREC-G and RATMI

“…Others have proposed and tested various indicators and benchmarks to measure and compare the financial health of different institutions [21]. Some have focused on the specific challenges and opportunities faced by universities in certain regions or countries, such as the UK [22], OECD members [23], Latvia [24], and Zimbabwe [25]. Some have explored how universities can balance their autonomy, accountability, and innovation in financial reporting and management [26].…”

Modeling the Strategic Enablers of Financial Sustainability in Saudi Higher Education Institutions Using an Integrated Decision-Making Trial and Evaluation Laboratory–Interpretive Structural Modeling Approach

“…Consequently, several research studies have concentrated on different schemes to attain financial sustainability in HEIs [6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25]. Some of these studies focused on factors affecting financial sustainability in HEIs [6,8,15,16].…”

“…Another study [12] also thoroughly reviewed the literature on sustainability funding in higher education. Other studies focused on region-specific financial sustainability challenges and opportunities in HEIs in countries and regions such as Zimbabwe [6], the United Kingdom [13], OECD country members [14], Kenya [17], Latvia [18], Malaysia [19], the Puntland State of Somalia [20], Indonesia [21], and China [25].…”