Navigating a Path to the Entrepreneurial Community College: Strategies for Transformational Change in Organizational Culture, Presidential Competencies, and New Business Models

Community colleges increasingly face the need to engage in entrepreneurial activities to fill funding gaps created by reduced state funding and increased operational costs. The research attention given to four-year universities and colleges has not been paid to find solutions for the external challenges that community colleges face with funding deficits, increased operational costs, and increased competition for resources. Community colleges also experience internal barriers preventing them from engaging in and sustaining entrepreneurial activities including, traditional organizational cultures that are resistant to change and averse to risk taking, a lack of qualified presidential candidates for future vacancies, and outdated business and finance models and practices. Using an systematic review research methodology, this study examined the relevant literature related to the theories and concepts of organizational culture and change, the Third Wave of Entrepreneurship, transformational leadership theory, jumping the S-curve as a new business model, presidential competencies, and board models. This study resulted in a set of proven, evidence-based strategies that provide a solid foundation for guiding the transformational change in traditional community colleges needed to sustain an entrepreneurial community college capable of pursuing and sustaining revenue-generating activities. Strategies include the development and implementation of: 1) rating criteria for evaluating candidates for community college president positions; 2) new business and finance policies that incorporate the elements of Myran’s New Business and Finance Model; 3) a President’s Entrepreneurial Council; 4) an evaluation model for assessing outcomes of entrepreneurial activities: and 5) the Entrepreneurial Board Model.NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE Navigating a Path to the Entrepreneurial Community College: Strategies for Transformational Change in Organizational Culture, Presidential Competencies, and New Business Models By Susanne M. Brock Dissertation Submitted to the Faculty of the Graduate School of the University of Maryland University College, in partial fulfillment of the requirements for the degree of Doctor of Management in Community College Policy and Administration December 2015 Advisory Committee Dr. Patricia A. Keir Dr. Trudy BersNAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE ii ABSTRACT Community colleges increasingly face the need to engage in entrepreneurial activities to fill funding gaps created by reduced state funding and increased operational costs. The research attention given to four-year universities and colleges has not been paid to find solutions for the external challenges that community colleges face with funding deficits, increased operational costs, and increased competition for resources. Community colleges also experience internal barriers preventing them from engaging in and sustaining entrepreneurial activities including, traditional organizational cultures that are resistant to change and averse to risk taking, a lack of qualified presidential candidates for future vacancies, and outdated business and finance models and practices. Using an systematic review research methodology, this study examined the relevant literature related to the theories and concepts of organizational culture and change, the Third Wave of Entrepreneurship, transformational leadership theory, jumping the S-curve as a new business model, presidential competencies, and board models. This study resulted in a set of proven, evidence-based strategies that provide a solid foundation for guiding the transformational change in traditional community colleges needed to sustain an entrepreneurial community college capable of pursuing and sustaining revenue-generating activities. Strategies include the development and implementation of: 1) rating criteria for evaluating candidates for community college president positions; 2) new business and finance policies that incorporate the elements of Myran’s New Business and Finance Model; 3) a President’s Entrepreneurial Council; 4) an evaluation model for assessing outcomes of entrepreneurial activities: and 5) the Entrepreneurial Board Model.NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE iii DEDICATION To my wonderful husband, children, family, and friends, thank you so much for your love, encouragement, support, and patience as I pursued this dream.NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE iv ACKNOWLEDGEMENTS I would like to thank James, my husband of 27 years, and our children, Jessica, Chase, and Caitlyn. I appreciate your love, encouragement, and sacrifices made throughout this journey. I would like to express my appreciation to my mother for always being a cheerleader for me in everything I do. I would also like to take this opportunity to remember my late father-in-law who was like a father to me and would be so proud to have been here to celebrate this accomplishment. I would like to thank my expert reviewers for their time spent reviewing my dissertation and their feedback that enhanced the quality of my work. Having affirmation from experts in their fields was invaluable and encouraging. I am so appreciative of the faculty in the Doctor of Management in Community College Policy and Administration program at UMUC, particularly Dr. Patricia Keir. As my primary advisor, Dr. Keir continued to challenge me to transform my thinking and writing, and kept pushing me to achieve a goal that I am tremendously proud to have accomplished. NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE v TABLE OF CONTENTS ABSTRACT.................................................................................................................................. ii DEDICATION............................................................................................................................. iii ACKNOWLEDGEMENTS ........................................................................................................ iv TABLE OF CONTENTS ............................................................................................................. v CHAPTER ONE: INTRODUCTION......................................................................................... 1 Introduction.................................................................................................................................. 1 Statement of the Problem............................................................................................................. 5 Statement of Purpose.................................................................................................................... 8 Background of the Problem......................................................................................................... 9 Decreased Funding and Increased Cost and Price of Higher Education ................................... 12 Community College Leadership Development Gap ............................................................................... 14 Community College Organizational Culture and Resistance to Change .................................. 16 Impact of Shared Governance in Community Colleges ....................................................................... 23 Significance of the Study ............................................................................................................ 26 Theoretical Context .................................................................................................................... 27 Community College Organizational Culture and Resistance to Change .................................. 27 Shared Governance and the Entrepreneurial Board Model ................................................................ 29 Entrepreneurial Leadership Theory in Community Colleges ........................................................... 30 The New Business and Finance Model for Community Colleges ................................................ 32 Research Questions..................................................................................................................... 34 Definition of Terms ..................................................................................................................... 35 Chapter One Summary .............................................................................................................. 38 CHAPTER TWO: METHODOLOGY..................................................................................... 39 Introduction to the Systematic Review Methodology.............................................................. 39 Research Approach and Use of Systematic Review................................................................. 40 Literature Search and Evaluation Process ...................................................................................................... 45 Research Questions Formation ............................................................................................................................... 46 Locating Studies Relevant to Dissertation Topic ...................................................................................... 46 Approach for Filtering and Validating Evidence .................................................................... 50NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE vi Practical Screen for Inclusion ................................................................................................................................. 50 Quality Appraisal ............................................................................................................................................................ 51 Data Extraction and Synthesis of Studies................................................................................. 52 Research Validity and Reliability.............................................................................................. 54 Identification of Expert Reviewers and Use of Feedback ....................................................... 55 First Expert Reviewer Work Experience and Background ................................................................ 57 Second Expert Reviewer Work Experience and Background .......................................................... 57 Third Reviewer Work Experience and Background ............................................................................... 58 Expert Reviewers Feedback .................................................................................................................................... 58 Conclusion .................................................................................................................................. 59 CHAPTER THREE: LITERATURE REVIEW AND CONCEPTUAL MODEL............... 60 Introduction to Literature Review ............................................................................................ 60 Organizational Culture, Business Culture, and Risk in Community Colleges ..................... 62 Organizational Culture Definition and Characteristics of Community College Culture ...................................................................................................................................................................................................... 63 Business Culture of Community Colleges ..................................................................................................... 67 Risk Taking and Aversion to Risk in Community Colleges ............................................................. 71 Managerialism in Community Colleges .......................................................................................................... 73 Shared Governance on Establishing an Entrepreneurial Culture ................................................... 74 The Role of Community College Boards in Entrepreneurial Activity Engagement ........ 77 Organizational Change in Community Colleges ....................................................................................... 80 Leadership Skills, Experiences, and Competencies Gaps Impacting Entrepreneurship in Community Colleges............................................................................... 83 Skills and Challenges for Contemporary Community College Presidents .............................. 84 Transformational and Entrepreneurial Leadership Theories................................................ 90 Building on Transformational Leadership Theory ................................................................................... 91 The Emergence of Entrepreneurial Leadership Theory in Community Colleges .............. 92 Building on a Foundation of Corporate Entrepreneurial Cultures and Characteristics............................................................................................................................ 94 The Entrepreneurial Community College and Entrepreneurial Models for Engaging in Entrepreneurial Ventures...................................................................................................... 96 The Entrepreneurial Community College ....................................................................................................... 96 Workforce Development and Entrepreneurship Strategies in Community Colleges ... 114 Myran’s New Business and Finance Model for Community Colleges ................................... 116 NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE vii Cross-Industry Comparison and Contrast of Entrepreneurial Organizations .................. 120 General Electric’s (GE) Strategic Business Units (SBU) ................................................................. 121 University of Phoenix’s For-Profit Business Model ............................................................................ 122 Florida Community College at Jacksonville’s Entrepreneurial Enterprises ........................ 124 Kirkwood Community College’s Strategic Partnerships .................................................................. 127 Brazosport Colleges’ Business within the College ............................................................................... 129 Summary of Literature Review ............................................................................................... 131 Introduction to Conceptual Model for Developing Practices and Guidelines .................... 132 Barriers and Challenges for Traditional Community Colleges Seeking to Generate Alternative Sources of Revenue ......................................................................................................................... 134 Major Concepts, Theories, and Models Related to Community College Engagement in Entrepreneurial Activities ...................................................................................................................................... 138 Summary of Conceptual Model............................................................................................... 141 Literature Review Limitations................................................................................................. 142 CHAPTER FOUR: ANALYSIS AND FINDINGS................................................................ 143 Overview ................................................................................................................................... 143 The Systematic Review Research Method.............................................................................. 143 Methodology for Critical Analysis of Scholarly Research and Gray Literature .............. 144 Critical Analysis of Expert Reviewers’ Feedback ................................................................. 154 Summary of Expert Reviewers’ Feedback .................................................................................................. 156 Response to Expert Reviewers’ Feedback .................................................................................................. 160 Discussion of Findings .............................................................................................................. 162 Research Questions ..................................................................................................................................................... 162 Research Question #1 Findings ........................................................................................................................... 163 Summary of Key Findings for Research Question #1 ........................................................................ 169 Research Question #2 Findings ........................................................................................................................... 170 Summary of Key Findings for Research Question #2 ........................................................................ 182 Unanticipated Findings ............................................................................................................ 182 Conclusion ................................................................................................................................ 183 CHAPTER FIVE: IMPLICATIONS FOR PRACTICE AND SUGGESTIONS FOR FUTURE RESEARCH............................................................................................................. 185 Overview ................................................................................................................................... 185 Implications of Findings for Community College Practices ................................................. 185NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE viii Recommended Set of Strategies and Implementation Guidelines........................................ 186 Recommended Strategy #1 – Use Rating Criteria for Evaluating Entrepreneurial Community College Presidential Candidates ............................................................................................ 187 Recommended Strategy #2 – Use the New Business and Finance Model to Enhance Operations and Generate Revenue .................................................................................................................... 194 Recommended Strategy #3 – Create a Culture of Entrepreneurship and Establish a President’s Council for Entrepreneurship .................................................................................................... 200 Recommended Strategy #4 – Create an Evaluation Model for Assessing Entrepreneurial Activities ...................................................................................................................................... 202 Recommended Strategy #5 –Implement the Entrepreneurial Board Model ....................... 204 Identification of Gaps in Research .......................................................................................... 207 Gap #1 – Recent Studies on Current Entrepreneurial Community College Presidents ................................................................................................................................................................................................... 208 Gap #2 – Research on Faculty and Staff Perceptions of and Involvement in Entrepreneurship in Community Colleges .................................................................................................. 209 Gap #3 – Business and Finance Models for Entrepreneurial Community Colleges ..... 210 Gap #4 - The Entrepreneurial Board Model Adapted for Use in Entrepreneurial Community Colleges ................................................................................................................................................. 211 Suggestions for Future Research............................................................................................. 211 Conclusion ................................................................................................................................ 212 REFERENCES......................................................................................................................... 215NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE ix APPENDICES APPENDIX 1. SEARCH TERMS………………………………...……………………233 APPENDIX 2. EXPERT REVIEW EVALUATION FORM..………..………….….…236NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE x LIST OF TABLES Table 1.1. New Business and Finance Model Interlocking Elements…………..……….33 Table 2.1. Research Criteria Template for Literature Review………………..……..…..52 Table 3.1. Five Elements of Model of Institutional Entrepreneurship…..........….….…103 Table 3.2. Recommendations for Community College Best Practices…………...….…108 Table 4.1. Literature Review of Major Works and Studies………..………………..….147 Table 4.2. Expert Reviewers Rating Scores………………..………………………......157 Table 5.1. Criteria for Presidential Candidates Skills, Experiences, and Competencies.190 Table 5.2. Business Dimension Best Practices and Ideas for Implementation……....…196 Table 5.3. Finance Dimension Best Practices and Ideas for Implementation………….198 Table 5.4. Rating Criteria for Appointing or Electing Board Members………………..206NAVIGATING A PATH TO THE ENTREPRENEURIAL COMMUNITY COLLEGE xi LIST OF FIGURES Figure 2.1. Steps for Performing Systematic Reviews…………………………….…..45 Figure 3.1. Frequency of Entrepreneurial Practice by Dimension……………….…..106 Figure 3.2. Example of an Innovation Life Cycle S-Curve………………………..…118 Figure 3.3. Four Elements of the New Business and Finance Model………….…..…119 Figure 3.4. Conceptual Model for Developing Entrepreneurial Strategies………..…133 Figure 5.1. Product Model for Entr