COMPETITIVE ANALYSIS OF PAKISTAN HIGHER EDUCATION AND STRATEGIC RESPONSE (A Case Study of Khyber Pakhtunkhwa Private and Public Sector Institutions) (Ph.D Thesis) By: SAMINA GUL Supervised By: Dr. Shahid Jan Kakakhel Co-Supervised By: Dr. Qadir Bakhsh Balouch DEPARTMENT OF MANAGEMENT SCIENCE ABASYN UNIVERSITY PESHAWAR 2017 ACKNOWLEDGMENT Starting with the name of Allah Almighty I want to dedicate this research thesis to the most beautiful and charming lady on the earth, my mother, Nusrat Jehan, the most handsome and caring man on the earth, my father, Haji Muhammad Riaz Khalil and the most supporting and perfection oriented man, my husband, Syed Waleed ul Hassan. .I would like to express my special thanks to my parents who supported me emotionally, morally and financially. I would like to pay deepest gratitude to my supervisor Dr. Shahid Jan Kakakhel, and my co-supervisor Dr Qadar Bakhsh Baloch for supporting me through the harsh times of my P.hD. thesis. Their continuous guidance, intellectual in sights and motivational attitude enabled me to complete the research in time. Let me acknowledge that I am really indebted to the management of Abasyn University that made the university environment learning and research friendly, their provision of quality teachers, library and staff. At last I would like to thank all my siblings specially my brothers Engg. Zeeshan Khalil and Faizan Khalil for believing in me and giving me the confidence to fly above the sky. And thanks to all the people who put efforts in my achievement. SAMINA GUL [i] ABSTRACT The research study aimed to investigate the prevailing competitive environment of higher education sector of Khyber Pukhtunkhwa with a view to identify existing threats, opportunities and suggest befitting strategies. Most of the researches conducted have not explored both service quality and competitiveness in the context of Higher Education in KPK specifically. The research population was students for measuring service quality and faculty and non faculty staff for measuring competitiveness. The sample was 1000 people including 650 students and 350 respondants (university management and faculty) of the 10 universities (five each from public and private sector) selected randomly. Three different set of questionnaires were administered. The first and second questionnaire aiming to measure students‟ satisfaction and education service quality, was distributed among 650 students, out of which 520 were returned, having response rate 80%. The third questionnaire, measuring competitive environment was administered to 350 respondents, out of which 306 were returned, with the response rate of 87%. The research study is a descriptive while the research approach is dedcutive. The statistical reliability and validity of each questionnaire was tested through cronbatch‟s Alpha and factor analysis with positive responses. The research applied t-test, correlation and regression to predict the results. The service quality of both sectors universities was measured on the basis of student responses where universities competitiveness was analyzed through administrative staff responses. The t-test results reported significance mean difference of service quality i.e tangibility, assurance, responsiveness and reliebility dimension of service quality in public and private sector universities, however, empathy dimension of service quality showing insignificance mean difference in both public and private sector universities. The results report strength for public sector universities in term of tangibility and assurance, whereas private sector universities showing strength in their responsiveness and reliebility dimension. The impact of service quality on student‟s satisfaction show a positive impact of the service quality dimensions on the students‟ satisfaction. The universities competitiveness was tested through T-test which predict a significant mean difference in, height of barrier to [ii] entrants, bargaining power of suppliers, bargaining power of buyer and threats of substitute. However, rivalry is showing insignificant difference. The study will provide awareness among the national policy makers, it will facilitate universities to develop well structured design of competiveness and quality. The originality of work of this research work holds a lot of academic and organizational value. The current research study contributes significantly to the existing literature as the majority of previous studies did not focus Khyber Pakhtunkhwa on the whole. Thus, it expands the body of knowledge in this particular field. Contextual approach regarding its investigation in developing country i.e. Pakistan. It will help the policy makers to develop strategies to get competitive advantage in the current competitive environment Similar studies can be conducted using the data of professional colleges in both private and public sector set up. The study can be widened to other areas of Pakistan as well. Service Quality and competitiveness can also be measured using other models as well. [iii] TABLE OF CONTENTS ACKNOWLEDGMENT................................................................................................. i ABSTRACT ................................................................................................................... ii TABLE OF CONTENTS .............................................................................................. iv LIST OF FIGURERS .................................................................................................... ix LIST OF TABLES ......................................................................................................... x Chapter-1........................................................................................................................ 1 INTRODUCTION ......................................................................................................... 1 1.1 Background of the Resaerch .................................................................................... 6 1.2 Statement of the Research Problem ......................................................................... 9 1.3 Research Objectives .......................................................................................... 11 1.4 Research Questions ................................................................................................ 12 1.5 Contributions of the Research ........................................................................... 12 1.6 Justification and rationale of the study: ............................................................ 13 1.7 Limitation of the study ...................................................................................... 14 1.8 Outline Organization of the Thesis ................................................................... 14 Chapter-2...................................................................................................................... 16 LITERATURE REVIEW ............................................................................................ 16 2.1 Services, Service Quality and Service Quality Models ......................................... 16 2.2 Higher Education as a Service and dimensions of service quality in higher education 29 2.3 Studies linked with Service quality in higher education ........................................ 37 2.4 Students as customers‟ satisfaction and related theories ....................................... 39 2.5 Service quality and Students‟ Satisfaction in higher education institutions .......... 42 2.6 Market competitiveness and competitive analysis ................................................. 44 2.7 Market Competitiveness and copetetiveness model for Service Quality in Higher Education ..................................................................................................................... 48 2.8 Value Chain Analysis in Higher Education ........................................................... 51 2.9 Industry analysis through five forces model .......................................................... 51 2.10 Porter‟s Competitive Framework (industry Analysis) ......................................... 58 2.11 Implication of Porter Five Forces in Higher Sector ............................................. 60 2.12Related Empirical Studies ..................................................................................... 60 [iv] 2.13 Conceptual Framework ........................................................................................ 64 2.14 Hypotheses .................................................................................................... 65 Chapter-3...................................................................................................................... 67 RESEARCH METHODOLOGY................................................................................. 67 3.1 The Research Philosophy ....................................................................................... 67 3.2 Introduction to Research Methodology ............................................................ 69 3.2.1 Aim of the Research ...................................................................................... 70 3.3 Nature and Type of Research ................................................................................. 70 3.4 Research Population............................................................................................... 71 3.5 Sampling Plan .......................................................................................................