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Working Paper Series 2016/77/FIN Multicampus Internationalization of Higher Education Institutions Gabriel Hawawini INSEAD, [email protected] Forthcoming in Univer-Cities Conference Volume III (2016) October 10, 2016 This chapter examines the process of internationalization through the opening of campuses abroad by higher education institutions. After defining this process and explaining how and why it takes place, the chapter identifies and examines three models of multicampus institutions (the branch model, the federal model and the global model), with a closer look at the global model adopted by INSEAD, the international business school with campuses in France, Singapore and Abu Dhabi. It then presents four host-country models (the educational model, the academic model, the business model and the internationalization model) and illustrates these models with the cases of Qatar, Singapore, Dubai and Abu Dhabi. Keywords: Internationalization of Higher Education Institutions; Multicampus Higher Education Institutions; Models of Multicampus Institutions; Host-country Models Electronic copy available at: http://ssrn.com/abstract=2860633 A Working Paper is the author’s intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Find more INSEAD papers at https://www.insead.edu/faculty-research/research Multicampus Internationalization of Higher Education Institutions Gabriel Hawawini INSEAD ([email protected] ) October 10, 2016 Forthcoming in Univer-Cities Conference Volume III (2016) This chapter examines the process of internationalization through the opening of campuses abroad by higher education institutions. After defining this process and explaining how and why it takes place, the chapter identifies and examines three models of multicampus institutions (the branch model, the federal model and the global model), with a closer look at the global model adopted by INSEAD, the international business school with campuses in France, Singapore and Abu Dhabi. It then presents four host-country models (the educational model, the academic model, the business model and the internationalization model) and illustrates these models with the cases of Qatar, Singapore, Dubai and Abu Dhabi. 1. Introduction Leaders of higher education institutions (HEIs) around the world rank the internationalization of their institutions among their highest priorities. 1 What does internationalization refer to in the context of higher education? How do HEIs internationalize their activities and why is it a priority for leaders of HEIs? We review the answers to these questions before turning to the examination of one particular channel through which HEIs internationalize: the establishment of campuses abroad. 2 We identify and describe three models of multicampus institutions we call the branch model, the federal model and the global model. We follow this with a closer look at the global model adopted by INSEAD, the international business school with campuses in France, Singapore and Abu Dhabi. We then present four host-country models we refer to as the educational model, the academic model, the business model and the internationalization model. These models are illustrated with the cases of Qatar for the educational model, Singapore for the academic model, Dubai for the business model and Abu Dhabi for the internationalization model. 1 See AACSB (2011), De Meyer et al (2004), Hawawini (2016), Spring (2009), Stearns (2008) and Wildavsky (2010). 2 See ACE (2009). 1.1 What is meant by the internationalization of higher education institutions? Internationalization has been defined as ‘the process of integrating an international and intercultural dimension into the teaching, research and service functions of the institution. ’3 This standard definition, however, emphasizes the inward dimension of the phenomenon. It calls for bringing the world into the institution instead of taking the institution out into the world. A more outward-looking perspective defines internationalization as ‘an ongoing process of change whose objective is to integrate the institution and its key stakeholders (its students and faculty) into the global knowledge economy .’ 4 Inward and outward internationalization are usually complementary. An HEI would typically start its internationalization process by introducing an international dimension into some of its teaching and research activities on its home campus. The process may stop at that stage or move to a second phase that calls for the adoption of outbound activities such as joint programs delivered abroad and the opening of foreign campuses. Outbound activities rarely take place without some prior internationalization at home. 1.2 How do higher education institutions internationalize? There is an array of initiatives an HEI can adopt to internationalize. They range from internationalizing the curriculum and the student body to establishing academic joint-ventures with foreign institutions and opening campuses abroad. 5 The focus of this chapter is on outward internationalization through the establishment of foreign campuses, a move that does not preclude the adoption of other international initiatives. As pointed out earlier, most institutions that have opened campuses abroad have also internationalized their home campuses by offering international courses and programs and attracting foreign students and faculty on their home premises. 1.3 Why do higher education institutions internationalize? What motivates an HEI to establish a campus outside its home territory? This type of internationalization initiative is clearly riskier to implement than, say, an international exchange 3 See Knight (2003). 4 See Hawawini (2016) for a critical review of alternative definitions of the process of internationalization by HEIs. 5 Academic joint ventures include student and faculty exchange programs as well as joint-degree or dual-degree programs. See Hawawini (2016) for a more extensive list of internationalization initiatives. Gabriel Hawawini 2 Multicampus Internationalization program or a dual-degree program with a foreign institution. The former requires a larger investment and mobilizes more institutional resources than the launch of the latter two programs. It is also more complex to manage because of the geographical distance, the scale and size of the operation and the differences in cultures and business practices between the home and the host countries. It also carries significantly more reputational risk because the closing of a foreign campus would be a more visible indicator of a failed internationalization strategy than the termination of an unsuccessful exchange program or a dual-degree program. There are several reasons for an HEI to venture abroad. They can be classified by at least three distinct categories: academic, economic and, for some state-controlled HEIs, political. 6 Academic motives. These are primarily driven by a desire to fulfill the institution’s mission to educate potential students not only at home but around the world, especially those students who could not come to the home campus. In addition there is a need for the institution to remain academically relevant in an interconnected world, an objective that is easier to achieve if the institution has a physical presence abroad where its faculty and students can study and learn. Finally, there is the need to attract qualified students and faculty from around the world, a goal that is facilitated by a foreign presence and a broader international visibility. Economic motives. These are mostly prompted by a desire to increase revenues by offering programs to foreign students unable to travel to the home campus for financial or cultural reasons. One example of the latter is when some parents in the Middle East do not wish to send their daughters to study abroad. Another reason is to reduce the institution’s operating risk via geographical diversification. This effect occurs when stronger demand for education in developing countries (where most foreign campuses are established) offsets weaker demand at home. 7 The stronger demand for education in developing countries stems from their faster economic growth rates and their large pool of younger students seeking a tertiary education. Another economic motive is the financial support from the host country that the guest institution could use to fund activities on its home campus. Finally, note that economic and academic 6 See Hawawini (2016) and Stier (2004). 7 We show later that most foreign campuses are established in developing countries by HEIs located in developed countries (see Exhibit 1 and Exhibit 4). Gabriel Hawawini 3 Multicampus Internationalization motives are not mutually exclusive: an institution may open a foreign campus to satisfy both motives. A political motive to go abroad is usually associated with state-controlled HEIs and dictated by national interests. This motive is well illustrated with the case of Russian HEIs which have established campuses in countries that are located in Russia’s sphere of influence such as Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan. 1.4 Alternative models The next two sections identify alternative models of multicampus HEIs with a closer look at the model adopted by INSEAD, the international business school with campuses in France, Singapore and Abu Dhabi. The following section explores