| Abstract: | This paper explores revenue generation strategies in Sub Saharan African
(SSA) Universities. It argues that almost all higher education systems in SSA
countries are increasingly under pressure due to rising student populations
and mounting costs of teaching and research activities. The study attempts
to analyze the enablers for and barriers to revenue generation within SSA
universities. A resource dependence theory complemented by a stakeholder
theory was used as a theoretical lens of the research. These theories promote
that any action of the focal organization is aimed at acquiring resources from
its environment. Universities, as active actors in the environment, may
implement various strategies either to comply with the environmental
demands in ways close to their individual mission, to avoid and/or alter
these demands. A case study method grounded in a qualitative research
approach was employed in this study. Four universities in three African
countries; viz., Haromaya University and Adama Science and Technology
University from Ethiopia, Jomo Kenyatta University of Agriculture and
Technology from Kenya, and Nelson Mandela Metropolitan University from
South Africa were selected using purposive sampling technique. The case
studies were based on interview checklist with open-ended questions and
desk review. A content analysis, an analysis at the individual case study
university, and a comparative analysis across the case study universities
were employed as techniques for data analysis on the basis of the research
model derived from the theories. A rich set of data was obtained from
almost 70 interviews held with university staff (from senior university
leadership to frontline actors) and documentary evidences. The study has
shown that with varying levels of success, the case study universities have
all diversified their revenue structure by formulating adaptation and
altering strategies. The proportion of external revenues in the Kenyan and
South African universities even exceeds the recurrent budget from their
respective national governments. The case study universities acquired
resources from a variety of sources, of which tuition fees obtained from
students were prominent one. In particular, one can observe a
diversification in the courses offered; particularly in social sciences,
business, and management, because these had relatively limited investment
requirements and were also greatly in demand from students. In order to
link up with outside organizations and groups, a number of academic and
administrative units were set up. The case study universities have alsoimplemented incentives and professional approaches towards revenue
generation in order to deal flexibly with the demands from (potential)
stakeholders. This study identified a number of enablers for and barriers to
revenue generation within and outside the universities. Externally, the types
and nature of stakeholders, the regulatory framework, and funding and
incentive schemes influence the capacity of universities to generate revenue.
In particular, the limited degrees of financial and staffing autonomy granted
to the universities negatively affect revenue generation efforts. Another
barrier is lack of a research capacity at the Ethiopian and Kenyan case
universities due to the limited or almost full absence of research funding. In
the case of South Africa, however, we see a range of targeted support funds
for research, including funds for graduate students and rewards for research
publications. Internally, leadership commitment to revenue generation,
internal governance and management processes, absence of sufficiently
qualified and motivated academic staff and professional managers, and
inadequate non-human resources of the universities influence revenue
generation. Big obstacles are the lack of sufficiently qualified personnel and
research infrastructure. With the exception of the South African case study
university, I must conclude that the case study universities have not yet
diversified their revenue base to a level of ensuring financial sustainability.
Finally, this study provides some policy and legal recommendations that
will help universities in Sub-Sahara Africa improve their revenue generation
abilities and increase their financial sustainability. |
