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Title: Managing core university business performance in the wake of ‘fees must fall’ context : a legitimacy theoretical perspective
Authors: Msweli, Pumela 
Hutton, Timothy 
Keywords: Higher education;Fee income;Institutional theory;Perofrmance legitimation;Workload model
Issue Date: 2016
Publisher: Business Perspectives
Source: Msweli, P. and Hutton, T. 2016. Managing core university business performance in the wake of ‘fees must fall’ context : a legitimacy theoretical perspective. Public and Municipal Finance. 5(4): 31-40.
Journal: Public and municipal finance (Online) 
This paper uses the legitimacy theory as a lens to identify the most sustainable performance model to defend and main-tain the legitimacy of higher education institutions in the midst of ‘fees must fall’ crisis. The body of evidence pre-sented demonstrates that universities have at least seven critical stakeholders that control resources needed for survival, growth and legitimacy. Using this evidence, this study builds a model that looks at the impact of fee income and work-load on success. The model was tested using annual time series panel data for the period 2009-2013 across 23 public universities in South Africa. The model examined the effect of fee income and workload on success rate. Basing the arguments on the notion that students are a critical constituency, with a strong influence on the amount of fee income an institution may amass, the model tested the relationship between performance and fee income using success rate as a proxy for performance. The findings showed that not only is fee income a stronger predictor of success rate, but also that fee income is negatively related to success rate of students. Policy implications of the findings are discussed.
ISSN: 2222-1867 (print)
2222-1875 (online)
Appears in Collections:Research Publications (Management Sciences)

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