Hybridization of financing as a transition strategy to transparent, accountable, and efficient university management: The case of Ukraine

Nataliia Pohribna,Yuliia Petlenko,Tetiana Chervinska,Ganna Kharlamova

doi:10.21511/ppm.20(1).2022.15

Abstract

The development of universities in Ukraine requires explicit proposals for the financial component under the hybrid forms of management. A hybrid form is created by combining functional and product divisions, i.e. university staff are required to work on many projects, study programs, and report to multiple managers under a hybrid organizational structure, but not only to the chief of department and the vertical managers over them. The development of universities as public state institutions or as public institutions with the prevailing private financing requires a detailed examination and justification of the possible concourse ways. The study aims to present the theoretical analysis of the hybridization of financing in Ukraine, its ways, abilities, and benefits. This paper presents the findings of a systematic review of the academic literature, as the extant literature has seldom explained what hybridity signifies when it occurs and how it is shown, nothing to say about the practical case, especially in counties like Ukraine. The paper suggested a fine-grained understanding of what constitutes the hybrid nature of financing for a Ukrainian university. Practical use of hybridization of financing in university allows creating a reliable institutional framework for the development of financial autonomy, which is confirmed by analysis of the six largest universities in Ukraine in 2010–2020. Accordingly, this study suggests ways forward by revealing questions toward a better understanding of the hybridization in the higher education of Ukraine. AcknowledgmentThis paper is done in the framework of the grant project “Financial stabilization of classical universities in the context of the global consequences of the COVID-19 pandemic” funded by the National Research Foundation of Ukraine “Science for Human Security and Society” (2020-2021).

Highlights

Ukrainian universities understood, at last, the existence of new trends in organization, accountability, and transparency on their way to the high ranks and modified development (Shandruk & Shatrova, 2015; Shevchenko, 2018; Zhykhor et al, 2021)
Even though most top management of universities is not aware and eager to look for new methods and applications to adapt to new trends, Stavytskyy et al (2019), Bugrov et al (2021), Kapustian et al (2021), and Petlenko et al (2021) claim the high necessity of changes in management and financing models of the universities
The most discussed models of financial autonomy include the creation of business universities, the development of dual education, the establishment of decentralized financial management based on existing departments – faculties, colleges, and institutes

Summary

Introduction

At last, the existence of new trends in organization, accountability, and transparency on their way to the high ranks and modified development (Shandruk & Shatrova, 2015; Shevchenko, 2018; Zhykhor et al, 2021). Public financing remained the key source, which enhances the inefficient financial governance of universities. The government and academia in Ukraine are increasingly discussing ways to reform the university governance system for the further strategic development of higher education in the country, including the real launch of financial autonomy. The most discussed models of financial autonomy include the creation of business universities, the development of dual education, the establishment of decentralized financial management based on existing departments – faculties, colleges, and institutes. The educational reforms carried by the government resulted in the hybridization of universities, where the latter is driven by the competing logics of academic (public capital) and business (private capital). The hybridization of universities can provide greater flexibility and autonomy, with the capacity for diversification of the sources of financing reaching the goal of financial stability in the long run (Gomilko et al, 2016)

Results

Discussion

Conclusion