The Regulatory Environment of Non-Profit Higher Education and Research Institutions and Its Implications for Managerial Strategy

Abstract

The concept of strategy in non-profit higher education is a contested issue. It is argued that strategy, in the business sense, does not apply to a substantially public and more institutionalized sector such as higher education and is not achievable in complex, loosely coupled organizations such as universities. Additionally, strategy does not sit easily with organizations operating in regulated contexts limiting competitive market pressures. This chapter discusses the regulatory environment of non-profit higher education by focusing on one of the most highly regulated disciplines: medical education and research. The chapter will begin by developing a context for discussion by firstly mapping the landscape of Australian medical education and research. Subsequently, the chapter argues that medical schools and research institutes need to exercise as much discretion as they can in the area under their control, develop sound strategies to deal with their changed circumstances, and develop a coherent and defensible basis for decision making through assessing their environment.