College Rankings as an Interorganizational Dependency: Establishing the Foundation for Strategic and Institutional Accounts

Abstract

Higher education administrators believe that revenues are linked to college rankings and act accordingly, particularly those at research universities. Although rankings are clearly influential for many schools and colleges, this fundamental assumption has yet to be tested empirically. Drawing on data from multiple resource providers in higher education, we find that the influence of rankings depends on constituencies’ placement in the higher education field. Resource providers who are vulnerable to the status hierarchy of higher education––college administrators, faculty, alumni, and out-of-state students––are significantly influenced by rankings. Those on the periphery of the organizational field, such as foundations and industry, are largely unaffected. Although rankings are designed largely for stakeholders outside of higher education, their strongest influence is on those within the higher education field.