Leadership and Effective Institutional Economics Design in the Context of Education Reforms

Abstract

Nowadays, the most typical reforms in higher education are conducted through the reorganization of universities either in the form of a merger, acquisition, or new status attainment. As a result, universities which educate local leaders for their respective national economies and have a profound impact on the regional economic development, as well as the composition of the labor market and intellectual potential, often encounter negative economic outcomes. The reforms that are imposed by the policymakers “from above” often hamper the development of universities and prevent them from fulfilling their roles described above. The process of reforming higher education in Russia is in many ways similar to the changes in the higher education systems of other European countries, in particular in post-Communist transition economies. Firstly, this process went through the integration into the global market of educational services. Secondly, it proceeded with the rethinking of the role of the university as a self-sustainable business organization. Thirdly, it was concluded by an increase in the demand and accessibility of education using the advancements offered by the digital technologies. Our paper argues that focused and well-balanced economic institutional design might be required for the sustainable development of reorganized leading universities. The project perspective implies that it is necessary to develop an institutional design in relation to what the organization seeks to achieve (either as its regulator or reformer) and how it intends to achieve these goals. In connection with the foregoing, we propose the following principles of designing effective institutions for the sustainable development of reorganized universities: (i) preservation of education as a “mixed” good (i.e., one that has the features of both public and private goods); (ii) transparency of decision making; (iii) complementarity of institutional change; and last but not least (iv) reduction in transaction costs.

CYBER ISLAMIC UNIVERSITY: Development of Digital Technology for Learning and Creative Economy at IAIN Syekh Nurjati Cirebon

“…The demand for higher education on a global scale has affected all education systems and countries around the world due to the economic downturn and the rise of digital education (Strielkowski et al, 2020;Williamson, 2019). The current digital upheaval in the education sector is motivated by rising costs, increasing competitiveness, and increasing expectations, so organizations need to prepare for the future by using new technology and data to change processes and modernize systems (Strielkowski, 2022).…”

Institution of Higher Education and Science as a Factor of Economic Development

“…The higher education system in Russia is changing like those in Western countries earlier (Loomis, Rodriguez, 2009;Tahar, Boutellier, 2013;Holmberg, Hallonsten, 2015). It is a globally unified education system based on a cost-benefit approach with a focus on engaging consumers of educational services through digitalization and distance learning (Strielkowski, Volchik, Maskaev, Savko, 2020). Changing demographic characteristics of students, needs, technological progress, and the digital economy require a revision of existing ideas about organizational mechanisms, commercial activities, directions, and quality of education.…”

Relationship between globalization and internationalization of higher education

“…Scientists claim that the globalization process is a force as powerful as industrialization, urbanization and secularization grouped together. The higher education system and individual higher education institutions are now being called upon to strike a delicate balance between respecting national priorities and local needs while adapting to operate in an international environment [4,5].…”