Abstract
University performance is playing an increasingly important role in financing public institutions. This has resulted in higher competitiveness and stronger emphasis on efficiency and effectiveness and a propensity to hold universities directly accountable. However, assessment tools are not consistently able to measure the achievements of universities in a reliable way due to the lack of indicators that can assess performance objectively. Furthermore, the formulas that are frequently used to determine achievements are complex, and the raw data that feeds such formulas are not unfailingly reliable. The aim of this theoretical study is underlining the potential criticalities of the performance-based approach in the Italian higher education system by critically analysing three of the main mechanisms that are employed to determine resource allocation. The paper also highlights the derived effects that influence the strategic choices and consequent actions that are implemented by universities.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Type B research fellow (from now RTD-B), as regulated by the L. 240/2010 is a three-year contract that can lead to a tenure-track to became associate professor for those who achieved the national qualification.
References
Agasisti, T. (2009). Market forces and competition in university systems: Theoretical reflections and empirical evidence from Italy. International Review of Applied Economics., 23(4), 463–483. https://doi.org/10.1080/02692170902954783.
Agasisti, T., & Catalano, G. (2006). Governance models of university systems—towards quasi-markets? Tendencies and perspectives: A European comparison. Journal of Higher Education Policy and Management., 28(3), 245–262. https://doi.org/10.1080/13600800600980056.
Agasisti, T., & Pérez-Esparrells, C. (2010). Comparing efficiency in a cross-country perspective: The case of Italian and Spanish state universities. Higher Education, 59(1), 85–103. https://doi.org/10.1007/s10734-009-9235-8.
Bartlett, W., Le Grand, J.: The theory of quasi-markets. In Quasi-markets and social policy (pp. 13–34). Berlin: Springer.
Behn, R. D. (2003). Why measure performance? Different purposes require different measures. Public Administration Review, 63(5), 586–606. https://doi.org/10.1111/1540-6210.00322.
Burke, J. C., Minassians, H. P.: Performance reporting: real. Accountability or accountability “lite”: Seventh annual survey 2003. Nelson A. Rockefeller Institute of Government, State University of New York.
Capano, G., et al. (2016). Changing governance in universities. London: Palgrave Macmillan UK. https://doi.org/10.1057/978-1-137-54817-7.
Cattaneo, M., et al. (2017). University spatial competition for students: the Italian case. Regional Studies, 51(5), 750–764. https://doi.org/10.1080/00343404.2015.1135240.
Chan, S.-J., & Lin, L.-W. (2015). Massification of higher education in taiwan: shifting pressure from admission to employment. Higher Education Policy, 28(1), 17–33. https://doi.org/10.1057/hep.2014.33.
Degli Esposti, M., & Geraci, M. (2010). Thirty years of higher-education policy in Italy: Vico’s Ricorsi and beyond? Bulletin of Italian Politics, 2(2), 111–122.
Dill, D. (1997). Markets and higher education: an introduction. Higher Education Policy, 10(3–4), 163–166. https://doi.org/10.1016/S0952-8733(97)81764-3.
Donina, D., et al. (2015). Higher education reform in Italy: Tightening regulation instead of steering at a distance. Higher Education Policy, 28(2), 215–234.
Donina, D., & Paleari, S. (2018). New public management: global reform script or conceptual stretching? Analysis of university governance structures in the Napoleonic administrative tradition. Higher Education. https://doi.org/10.1007/s10734-018-0338-y.
Dougherty, K. J., et al. (2014). Performance Funding for Higher Education: Forms, Origins, Impacts, and Futures. The ANNALS of the American Academy of Political and Social Science, 655(1), 163–184. https://doi.org/10.1177/0002716214541042.
Estermann, T., et al. (2013). Designing strategies for efficient funding of higher education in Europe. DEFINE Interim Report, Brussels.
Ezza, A., et al. (2019). Il “grande gap”: gli effetti del performance budgeting sulle politiche di reclutamento delle Università italiane. Management Control, 2, 99–121. https://doi.org/10.3280/MACO2019-002005.
Ezza, A., et al. (2017). Performance-based funding in public competition. lights and shadows in the Italian higher education system. Journal of International Business and Economics, 17(2), 5–22. https://doi.org/10.18374/JIBE-17-2.1.
Farhan, B. Y. (2016). Competitive behaviour in publicly funded academic institutions. Interchange., 47(4), 357–373. https://doi.org/10.1007/s10780-016-9283-9.
Fowles, J. (2014). Funding and focus: Resource dependence in public higher education. Research in Higher Education, 55(3), 272–287. https://doi.org/10.1007/s11162-013-9311-x.
Geuna, A. (2001). The changing rationale for european university research funding: Are there negative unintended consequences? Journal of Economic Issues, 35(3), 607–632. https://doi.org/10.1080/00213624.2001.11506393.
Geuna, A., & Martin, B. R. (2003). University research evaluation and funding: an international comparison. Minerva, 41(4), 277–304. https://doi.org/10.1023/B:MINE.0000005155.70870.bd.
Harnisch, T. L. (2011). Performance-based funding: A re-emerging strategy in public higher education financing, 12.
Herbst, M. (2007). Performance-based budgeting or funding. In Financing public universities (pp. 65–94). Dordrecht: Springer Netherlands. https://doi.org/10.1007/978-1-4020-9503-0_4.
Hicks, D. (2012). Performance-based university research funding systems. Research Policy, 41(2), 251–261. https://doi.org/10.1016/j.respol.2011.09.007.
Hillman, N. W., et al. (2014). Performance funding in higher education: Do financial incentives impact college completions? The Journal of Higher Education, 85(6), 826–857. https://doi.org/10.1080/00221546.2014.11777349.
Jeon, J., & Kim, S. Y. (2018). Is the gap widening among universities? On research output inequality and its measurement in the Korean higher education system. Quality & Quantity, 52(2), 589–606. https://doi.org/10.1007/s11135-017-0652-y.
Jongbloed, B.: Funding Higher Education: A Comparative Overview. (2008).
Jongbloed, B. (2004). Funding higher education: options, trade-offs and dilemmas.
Jongbloed, B. (2003). Marketisation in higher education, Clark’s triangle and the essential ingredients of markets. Higher Education Quarterly, 57(2), 110–135. https://doi.org/10.1111/1468-2273.00238.
Jongbloed, B., & Vossensteyn, H. (2001). Keeping up performances: An international survey of performance-based funding in higher education. Journal of Higher Education Policy and Management, 23(2), 127–145.
Le Grand, J.: Quasi-Markets and Social Policy. The Economic Journal. 101, 408, 1256 (1991). https://doi.org/10.2307/2234441.
Liefner, I. (2003). Funding, resource allocation, and performance in higher education systems. Higher Education, 46(4), 469–489.
McKeown, M.P.: State Funding Formulas for Public Four-Year Institutions. (1996).
Nisar, M. A. (2015). Higher education governance and performance based funding as an ecology of games. Higher Education, 69(2), 289–302. https://doi.org/10.1007/s10734-014-9775-4.
Pfeffer, J., Salancik, G. R. (2003). The external control of organizations: a resource dependence perspective. Stanford University Press.
Rabovsky, T. M. (2012). Accountability in higher education: Exploring impacts on state budgets and institutional spending patterns. Journal of Public Administration Research and Theory, 22(4), 675–700.
Rossi, P. (2015). Il Punto Organico: una storia italiana. RT. A Journal on Research Policy and Evaluation, 3, 1.
Rothschild, M., & White, L. J. (1995). The analytics of the pricing of higher education and other services in which the customers are inputs. Journal of Political Economy, 103(3), 573–586.
Smethurst, R. (1995). Education: a public or private good? RSA Journal, 143(5465), 33–45.
Thornton, Z. M., & Friedel, J. N. (2016). Performance-based funding: State policy influences on small rural community colleges. Community College Journal of Research and Practice, 40(3), 188–203. https://doi.org/10.1080/10668926.2015.1112321.
Tilak, J. B. G. (2008). Higher education: a public good or a commodity for trade?: Commitment to higher education or commitment of higher education to trade. Prospects, 38(4), 449–466. https://doi.org/10.1007/s11125-009-9093-2.
Volkwein, J., & Tandberg, D. (2008). Measuring up: Examining the connections among state structural characteristics, regulatory practices, and performance. Research in Higher Education, 49, 180–197. https://doi.org/10.1007/s11162-007-9066-3.
van Vught, F. (2007). Diversity and differentiation in higher education systems, 22.
Widiputera, F., et al. (2017). Measuring diversity in higher education institutions: A review of literature and empirical approaches. IAFOR Journal of Education, 5(1), 47–63.
Acknowledgements
This study contributes to the developmental project of the Department of Business and Economics of the University of Sassari (“Dipartimenti di Eccellenza 2018–2022”) financed by the Italian Minister of Education.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Ezza, A., Fadda, N., Pischedda, G., Marinò, L. (2020). Performance-Based Funding in the Italian Higher Education: A Critical Analysis. In: Agrifoglio, R., Lamboglia, R., Mancini, D., Ricciardi, F. (eds) Digital Business Transformation. Lecture Notes in Information Systems and Organisation, vol 38. Springer, Cham. https://doi.org/10.1007/978-3-030-47355-6_11
Download citation
DOI: https://doi.org/10.1007/978-3-030-47355-6_11
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-47354-9
Online ISBN: 978-3-030-47355-6
eBook Packages: Business and ManagementBusiness and Management (R0)