Abstract
This paper discusses the relevant literature on higher education rankings and its impact on higher education institutions across the globe. The literature suggests that global university rankings impact higher education institutions both in advanced economy and developing countries to build competence to race and exist. Universities in an advanced economy are building institutional competitive competence to race in the global university rankings under the umbrella term of ‘World Class University,’ whereas universities in developing countries are building institutional competence by pursuing to build research intensive universities. The essay argues that global university rankings are shaping the field of higher education institutions, and the capacity of resources dictates universities the type of competence to build to exist: institutional competitive competence and institutional competence.
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