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      Franchising: An adequate Business Model for the "Proactive University"? A Public-Private Perspective on German HE

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          Abstract

          Public higher education institutions (HEIs) are experiencing circumstantial changes due to increasing financial pressure, higher autonomy and diversified actors on an increasingly challenging "market". These changes have led to forms of "entrepreneurial behavior" in public HEIs, such as franchising arrangements, which have become prominent in the context of internationalization and the export of study programs. Over the last decade, a growing number of franchising arrangements on an intrastate level can be observed between public universities as franchisors and private, non-state recognized HEIs as franchisees in the German HE sector. The German situation is of special interest because the HE system is traditionally state-run and emphasizes the university as a prestige and sound institution. Students pay almost no tuition fees for a public university degree except those students enrolled in a franchise model, where the fees are about 9 times higher. Special organizational structures like intermediary stock companies and either the lack of or not commonly interpreted regulatory instruments lead to critical discussions of these models. The most crucial assumptions are that financial motives dominate decision making rather than pedagogical considerations and that public services are exploited to mask the interests of individuals. Although these presumptions cannot be rejected through the empirical results of case study analyses, the opportunities of such strategic alliances are not to be underestimated. With adequate external and internal quality assurance mechanisms, franchising models can be used to strengthen the market position of public universities through a higher number of students and an extended portfolio of products and services. Additionally, HE programs can be offered more flexibly in regions with minimal HE infrastructure and / or with programs particularly designed for "non-traditional students".

          Translated abstract

          Las instituciones de educación superior (IES) públicas están experimentando cambios en virtud de las crecientes presiones financieras, la autonomía y la diversidad de actores en un "mercado" que impone grandes retos. Estos cambios han conducido a que las IES adquieran formas empresariales, como la concesión de franquicias o licencias, que han alcanzado relevancia en el contexto de internacionalización y en la difusión de programas de estudio. Durante la década anterior, este fenómeno creció en Alemania, donde las universidades públicas empezaron a vender franquicias a instituciones de educación superior privadas y no reconocidas por el Estado. Esta situación es de especial interés porque el sistema de educación superior alemán es, tradicionalmente, estatal y concibe la universidad como una institución de prestigio y sólida.

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          Most cited references47

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          Power-Dependence Relations

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            The economics institutions of capitalism

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              Strategies for Diversification

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                Author and article information

                Journal
                sine
                Sinéctica
                Sinéctica
                Instituto Tecnológico y de Estudios Superiores de Occidente, Departamento de Educación y Valores (Tlaquepaque, Jalisco, Mexico )
                1665-109X
                2007-7033
                June 2011
                : 36
                : 1-11
                Affiliations
                [01] orgnameUniversity of Southern Denmark
                Article
                S1665-109X2011000100008 S1665-109X(11)00003600008
                01a6b639-af0c-4d38-902e-40ee7eba2b03

                This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

                History
                : 18 February 2011
                : 08 June 2010
                Page count
                Figures: 0, Tables: 0, Equations: 0, References: 27, Pages: 11
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                SciELO Mexico

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