Exploring the Business Model and Organizational Innovation of Vocational Schools: A Case Study of Development Units

Abstract

Since 2015, the Skills for Jobs (S4J) project, funded by the Swiss Development Cooperation (SDC) and implemented by Swisscontact, has actively promoted private sector engagement in skills development. The project's primary objective is to facilitate ten public Vocational Education and Training (VET) providers in innovating their offerings, delivery methods, and organisational practices through close collaboration with the private sector. Under the leadership of national actors, these VET providers would become national-level transfer agents of innovations introduced to enhance employability. Development Units (DUs) were established at the VET provider level to facilitate this innovation and to lead technically various functions, including labour market intelligence, curricula development, business relations, continuous professional development, marketing, and career development. Their purpose is to ensure that the newly introduced functions align with the strategic objectives of the VET providers, provide technical support to staff members involved, and coordinate and steer the implementation activities. This research employs a comparative case study approach to illuminate DUs' preconditions and multilevel effects as organisational innovation and draws upon theoretical frameworks such as business models, organisational design, innovation, VET governance, and private sector engagement. It reveals that DU as an organisational innovation led to VET providers' shift of the business model towards novelties in the value proposition, creation and capturing and higher performance. As a result of Dus, VET providers become more powerful actors in the VET system governance in general and centres of the ecosystem at the regional level. The research revealed key organisational capabilities that should be enhanced to allow for effective DUs and high performaning innovative VET providers.