Business models and higher education

The researcher believes that the wide ranging use of the term business model in academic and practitioner arenas suggests that the clarification of its use rhetorically, strategically or managerially or lack of use would be of interest to both academics and management practitioners. Universities face increasingly challenging economic conditions and the identification of the use within higher education of business models using interview data, cross-referenced to institutional success, measured by a variety of metrics, may allow inferences to be drawn about the relationship of the relative success of institutions and the role, if any, of business models which may then inform future decision making. The researcher suggests that a business model approach, whilst not introducing new concepts is a useful descriptive and analytical tool for both practitioners and academics. In a discursive sense the term can act as a useful short hand whilst as a framework for value propositions it can aid the identification and development of the underlying economic reality of business activity. Furthermore, business models when viewed in the context of competing value propositions and business model innovation provide a link to and an aid in, the development of strategy. The researcher found that the term business model was frequently described in interview as inappropriate and no evidence of significant explicit usage of the term business model was found in university strategic plans. Further evidence from interview and the analysis of strategic plan documentation highlights the use of business-like language and practices suggesting that implicit, rather than explicit, business model approaches are being adopted in universities for decision making purposes