Strategy formation for higher education institutions using system dynamics modelling

Abstract

System Dynamics is the modeling technique used to understand the behavior of a complex system over time. It is particularly useful in long-term forecasting when several variables are interrelated with each other. System dynamics models are different from statistical models in the sense they not only provide forecast and control, but they also offer explanations and an understanding of the relationships between the dependent variable and numerous exogenous and endogenous variables. This research paper focuses on the strategy formation for quality improvement in Higher Education Institutions (HEI’s) using system dynamics models. Most HEI’s in developing countries are taking a strong interest to the extent that they are adopting new educational strategies for enrichment of quality in higher education. The impetus for this development is coming from internal pressure and also considerably from the outside stakeholders. This paper also provides a dynamic model that can accommodate changing economic and environmental conditions, and hence has the capability to provide various ‘what-if’ analyses to facilitate the adoption of appropriate strategy.