International Student Revenue and International Rankings Success: A Case Study of Australian University Research Strategies

Abstract

Abstract The publication of the first major international university rankings in 2003 opened up a new era in the internationalization of higher education, with universities around the world reorienting their research efforts toward securing success in international (as opposed to domestic) ranking systems. This has generated a potential principal-agency problem, as nationally-funded universities increasingly seek international validation. This opens up the possibility that a focus on rankings success might actually lead universities to implement policies that undermine their educational missions. This paper examines Australian universities’ pursuit of international rankings over the first two decades of the twenty-first century as a case study in the internationalization of higher education, with a focus on the behavior of Australia’s Group of Eight (Go8) research-intensive universities. Two major findings emerge. First, many Australian universities seem to have excessively expanded their international student enrolments as a way to generate the funds needed to compete in the ‘rankings game’. Second, many Australian universities seem to have prioritized research in fields that yield higher returns in rankings outcomes. These findings provide circumstantial evidence that Go8 universities may have compromised their educational missions in the pursuit of rankings success.