Skip to main content

Performance-Based Funding in the Italian Higher Education: A Critical Analysis

  • Conference paper
  • First Online:
Digital Business Transformation

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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 179.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 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

  1. 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.

    Article  Google Scholar 

  2. 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.

    Article  Google Scholar 

  3. 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.

    Article  Google Scholar 

  4. Bartlett, W., Le Grand, J.: The theory of quasi-markets. In Quasi-markets and social policy (pp. 13–34). Berlin: Springer.

    Google Scholar 

  5. 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.

    Article  Google Scholar 

  6. 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.

    Google Scholar 

  7. Capano, G., et al. (2016). Changing governance in universities. London: Palgrave Macmillan UK. https://doi.org/10.1057/978-1-137-54817-7.

  8. 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.

    Article  Google Scholar 

  9. 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.

    Article  Google Scholar 

  10. 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.

    Google Scholar 

  11. 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.

    Article  Google Scholar 

  12. 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.

    Article  Google Scholar 

  13. 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.

    Article  Google Scholar 

  14. 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.

    Article  Google Scholar 

  15. Estermann, T., et al. (2013). Designing strategies for efficient funding of higher education in Europe. DEFINE Interim Report, Brussels.

    Google Scholar 

  16. 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.

    Article  Google Scholar 

  17. 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.

  18. 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.

    Article  Google Scholar 

  19. 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.

    Article  Google Scholar 

  20. 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.

    Article  Google Scholar 

  21. 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.

    Article  Google Scholar 

  22. Harnisch, T. L. (2011). Performance-based funding: A re-emerging strategy in public higher education financing, 12.

    Google Scholar 

  23. 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.

  24. 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.

    Article  Google Scholar 

  25. 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.

    Article  Google Scholar 

  26. 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.

    Article  Google Scholar 

  27. Jongbloed, B.: Funding Higher Education: A Comparative Overview. (2008).

    Google Scholar 

  28. Jongbloed, B. (2004). Funding higher education: options, trade-offs and dilemmas.

    Google Scholar 

  29. 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.

    Article  Google Scholar 

  30. 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.

    Article  Google Scholar 

  31. Le Grand, J.: Quasi-Markets and Social Policy. The Economic Journal. 101, 408, 1256 (1991). https://doi.org/10.2307/2234441.

  32. Liefner, I. (2003). Funding, resource allocation, and performance in higher education systems. Higher Education, 46(4), 469–489.

    Article  Google Scholar 

  33. McKeown, M.P.: State Funding Formulas for Public Four-Year Institutions. (1996).

    Google Scholar 

  34. 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.

    Article  Google Scholar 

  35. Pfeffer, J., Salancik, G. R. (2003). The external control of organizations: a resource dependence perspective. Stanford University Press.

    Google Scholar 

  36. 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.

    Article  Google Scholar 

  37. Rossi, P. (2015). Il Punto Organico: una storia italiana. RT. A Journal on Research Policy and Evaluation, 3, 1.

    Google Scholar 

  38. 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.

    Article  Google Scholar 

  39. Smethurst, R. (1995). Education: a public or private good? RSA Journal, 143(5465), 33–45.

    Google Scholar 

  40. 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.

    Article  Google Scholar 

  41. 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.

    Article  Google Scholar 

  42. 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.

    Article  Google Scholar 

  43. van Vught, F. (2007). Diversity and differentiation in higher education systems, 22.

    Google Scholar 

  44. 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.

    Article  Google Scholar 

Download references

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

Authors

Corresponding author

Correspondence to Alberto Ezza .

Editor information

Editors and Affiliations

Rights and permissions

Reprints 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

Check for updates. Verify currency and authenticity via CrossMark

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

Publish with us

Policies and ethics