Findings on Economies of Scale in Higher Education: Implications for Strategies of Merger and Alliance

Abstract

Studies on economies of scale seek to establish atwhat size an institution functions at an optimal level ofefficiency. Higher education mergers produce an increase in thescale and scope of an institution, and are commonly driven on anexpectation of economic benefit. To what extent are greatervalue for money, savings in government expenditure, significantinstitutional financial benefit, achieved through the pursuit ofeconomics-of-scale-focused policies? The paper investigates thevaried findings of sixteen studies into economies of scale andscope in higher education, associated cost factors and cost/sizerelationships, and considers the strategic implications.