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The Quest of Australian Public Universities for Competitive Advantage in a Global Higher Education Environment Department Of

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The Quest of Australian Public Universities for Competitive Advantage in a Global Higher Education Environment Department Of The Quest of Australian Public Universities for Competitive Advantage in a Global Higher Education Environment A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Donald J. Bradmore B.A., MEd (Melb), M.A. (Syd) Department of Management Business Portfolio RMIT University August 2007 The Quest of Australian .... ii Declaration I certify that, except where due acknowledgment has been made, the work is that of the author alone; the work has not been submitted previously, in whole or in part, to qualify for any other academic award; the content of the thesis is the result of work which has been carried out since the official commencement date of the approved research program; and, any editorial work, paid or unpaid, carried out by a third party is acknowledged. D. J. Bradmore Date: The Quest of Australian .... iii Acknowledgments Special thanks are due to Professor Kosmas Smyrnios, Director of Research, School of Management, RMIT University, for the invitation to undertake this work under his supervision, and for his good counsel and patience during its completion. Special thanks, also, to RMIT University, through its School of Management and Graduate Degrees Office (Research Development Unit), for scholarship support and funding for data collection purposes. I would also like to express my sincere appreciation to the following: Suzie and Rebecca, for their love and generous hospitality. Margaret Young, for her many kindnesses. Dr Karen Young, for her sound advice, encouragement and assistance, especially in the preparation of this thesis for final submission. Dr Caroline Tan and Dr Adeline Ong, much-admired PhD colleagues, for their inspiration and valued friendship. Barbara and Steve, for their interest and concern - and for their refusal to allow me to make excuses in difficult circumstances. My family and friends who, on many occasions during the past three years, have seen me staring distractedly off into the middle distance, and to whom I can now return. The Quest of Australian .... iv Table of Contents Declaration ii Acknowledgments iii List of Tables vi List of Figures vii List of Appendices viii Summary ix Chapter 1 Australian Universities in Increasingly Competitive Environments 1 Chapter Overview 1 Introduction 1 Higher Education in Australia 4 Trends and Developments in Global Higher Education 8 Rapid Intensification of Competition 26 Thesis Structure 27 Conclusion 28 Chapter 2 Literature Review 30 Chapter Overview 30 Introduction 30 Universities in a Global Environment 31 The Quest for Competitive Advantage 39 Strategic Management 39 Marketing 47 Interrelationships between Strategic Management and Marketing 52 Strategic Management and Marketing Concepts 53 Conclusion 55 Chapter 3 Study 1: Content Analysis of Strategic Plans of Australian Public Universities 56 Chapter Overview 56 Introduction 57 Objectives and Research Questions 59 Assumptions 60 Anticipated Outcomes 61 Method 62 Results 71 Discussion 94 Implications 105 Limitations 107 Conclusion 109 The Quest of Australian .... v Chapter 4 Study 2: Interview-Based Multiple-Case Study 110 Chapter Overview 110 Introduction 110 Theoretical Underpinning 111 Justification of Qualitative Methodology 114 Propositions 115 Method 117 Case 1: University of Queensland 122 Case 2: University of New South Wales 135 Case 3: University of Technology, Sydney 148 Case 4: Murdoch University 161 Case 5: University of Southern Queensland 175 Cross Case Analysis 186 Presentation and Analysis of Findings 186 Extension of Insights into Competitive Behaviour 193 Generalisability of Findings 197 Implications 199 Limitations 202 Conclusion 204 Chapter 5 Study 3: Conceptual Framework to Guide Strategy Development 206 Chapter Overview 206 Introduction 206 Method 207 Explanation and Justification of Model of Competitive Advantage 211 Conceptual Framework 225 Discussion 225 Implications 229 Limitations 231 Conclusion 232 Chapter 6 Implications for Research, Policy, and Practice 233 Chapter Overview 233 Introduction 233 Implications for Research 234 Implications for Policy 237 Implications for Practice 239 Conclusion 240 References 242 Appendices 260 The Quest of Australian .... vi List of Tables Table Page 1.1 Classification of Australian Public Universities 5 2.1 Strategic Management and Marketing Concepts 54 3.1 Documentation for Content Analysis 64 3.2 Concept of Competition in Aggregated Strategic Plans 71 3.3 Concept of Competition in Strategic Plans by Category 72 3.4 Concept of Competition in Strategic Plans of Sandstones Category 73 3.5 Concept of Competition in Strategic Plans of Redbricks Category 74 3.6 Concept of Competition in Strategic Plans of Unitechs Category 75 3.7 Concept of Competition in Strategic Plans of Gumtrees Category 75 3.8 Concept of Competition in Strategic Plans of New Category 76 3.9 Concept of Competition in Strategic Plans of Individual Universities 78 3.10 Most Prominent Concepts in Strategic Plans of Universities Collectively 79 3.11 Most Prominent Concepts in Strategic Plans by Category 85 3.12 Most Prominent Concepts in Strategic Plans: Individual Universities 88 4.1 Selected Universities 118 4.2 List of Interviewees 118 4.3 Levels of Concern and Specific Competitive Concerns 187 4.4 Strategic Responses to Rapid Intensification of Competition 190 4.5 Models and/or Frameworks Guiding Competitive Strategy Development 192 5.1 Key Dimensions of Strategy for Universities 208 5.2 Key Dimensions of Strategy and Corresponding Operational 210 Elements 6.1 Major Implications for Research, Policy, and Practice 235 The Quest of Australian .... vii List of Figures Figure Page 2.1 Classic Strategic Management and Planning Sequence 41 2.2 Hypothetical Market Structure 48 3.1 Concept Map: University of Melbourne 70 4.1 University of Queensland Case Summary 132 4.2 University of New South Wales Case Summary 145 4.3 University of Technology, Sydney Case Summary 159 4.4 Murdoch University Case Summary 173 4.5 University of Southern Queensland Case Summary 185 4.6 Differences in Competitive Strategy as Evidenced by Cases 194 5.1 Model of Competitive Advantage 212 5.2 Assets, Resources, and Capabilities in University Contexts 215 5.3 Interrelationship of Distinctive Competencies and Competitive 218 Advantage 5.4 Interrelationship of Distinctive Competencies and Competitive 222 Advantage 5.5 Framework to Guide Development of Competitive Strategy 226 in University Contexts 5.6 Propositions Relating To Framework for Development 228 of Competitive Advantage The Quest of Australian .... viii List of Appendices a Appendix Page 1.1 Abbreviations 260 1.2 Segmentation of Australian Public Universities 262 2.1 Competitive Marketing Strategies and Tactics 266 3.1 Example: Leximancer Log Book Extract (UMelb) 268 3.2 Example: List of Concepts in Order of Frequency (UMelb) 270 3.3 Example: Concepts Related to Concept of Competition 271 4.1 RMITU‟s Plain Language Statement 273 Note: a Appendices are numbered according to relevant chapters of this thesis. The Quest of Australian .... ix Summary Overview Adopting a triangulated approach, this thesis consists of three separate but related qualitative studies, the collective objectives of which are (i) to gauge current concern of universities with rapid intensification of competition in the global higher education sector; (ii) to identify and evaluate strategies developed by universities in response to increasing competition; and (iii) to develop a conceptual framework to guide competitive behaviour in universities. Study 1 is a systematic content analysis of published strategic plans of Australian public universities using Leximancer (Version 2.20). Concepts identified by content analysis give rise to propositions relating to levels of concern of universities with increasing competition and strategies currently being implemented to maintain and build competitive position. In Study 2, propositions arising from content analyses are tested by means of interview-based case studies in a sample of universities. These case studies also allow for extended insights into current competitive behaviour. Study 3 draws upon findings of the previous studies to develop a conceptual framework to guide future strategy formulation. Context In recent years, competition between providers of higher education has intensified rapidly in Australia. (Coaldrake & Stedman, 1997; Corden, 2005; a, 2004; Marginson & Considine, 2000). The coming decades are likely to see an escalation in intensity of competition as the pace of globalisation and technological change quickens, as deregulation of the domestic sector continues, as per capita funding is further reduced (Bradley, 2003; O‟Keefe, 2005), and as even greater elements of competition and contestability are introduced in the interests of productivity and efficiency (Brett, 2000, Maiden, 2005a, 2005b). Exacerbating this situation are reports of slackening demand in traditional markets for overseas students whose fees are keeping many universities afloat (Illing, 2005d; Rood, 2005b). Already, strong rivals from overseas are looking for new opportunities in Australia (Chubb, 2005; Cohen, 2005; Davis, 2005, 2006a), and new providers are emerging to offer education and training in non- traditional forms (AVCC, 2005; Coaldrake & Stedman, 1997; Maiden, 2005a; Yerbury, 2005). As Australian public universities manoeuvre for market position, there is doubt about the capacity of all to survive and prosper (Brown, 2005a; Davis, 2006a; Peacock, 2005). The Quest of Australian .... x Those
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