Performance-based Funding Research Articles

Research on financial autonomy and financial management in public higher education

This article examines financial autonomy and management in public higher education, focusing on its definition, significance, key factors, benefits, and challenges. It emphasizes the importance of institutions' control over their financial resources, with factors such as revenue diversification, efficient resource allocation, strategic partnerships, and performance-based funding contributing to financial autonomy. The article discusses the benefits of financial autonomy, including increased flexibility, entrepreneurial culture, and financial sustainability, while also addressing challenges like tuition affordability, marketization concerns, and accountability issues. It explores financial resource management through budgeting, resource allocation, cost control, transparency, and revenue generation. The methods and tools for financial management encompass financial planning, performance metrics, cost analysis, risk management, and technology utilization. The article concludes by offering recommendations for Vietnam, such as strengthening financial planning, diversifying revenue sources, enhancing accountability and transparency, adopting technology, and promoting collaboration. Overall, it provides valuable insights for policymakers and institutions to effectively manage financial resources and ensure the sustainability and quality of public higher education.

A Systematic Review of the Impact of Performance-Based Funding in the US

A Systematic Review of the Impact of Performance-Based Funding in the US

Steering the Direction of Research through Organizational Identity Formation

Public research organizations respond to external pressures from national research evaluation systems, performance-based funding systems and university rankings by translating them into internal goals, rules and regulations and by developing organizational identities, profiles and missions. Organizational responses have primarily been studied at the central organizational level, and research on the steering of research has primarily focused on the impacts of performance-based funding systems. However, research evaluation exercises may also have a formative impact, especially below the central organizational level. This paper uses a case study of a research unit of a biomedical research school in the Netherlands to explore the organizational response to a relatively critical external assessment report. It shows that the participation in the Dutch research evaluation cycle legitimated the formation of a new organizational identity for the research unit, which functions as a frame that suggests to staff members a new interpretation of the type of research that is at the core of what the research unit does. We identify three additional steering mechanisms that support the enactment of the organizational identity: steering by resource allocation, by suggesting and by re-organizing. We, furthermore, explore the epistemic effects – the direction and conduct of research – of the organizational response, through interview data in combination with a bibliometric analysis.

Government funding incentives and study program capacities in public universities: theory and evidence

Abstract Objectives aimed at increasing higher education productivity, for instance, measured by credits per student, have stimulated the use of performance-based funding (PBF) by higher education institutions (HEIs). On theoretical grounds, PBF is expected to speed-up study program capacity adjustments through (re)allocations of study places. We conclude from analyses of Norwegian data that study places are adjusted efficiently if there are binding capacity restrictions at the institution level, or competition for students. Strengthened PBF does not affect long-run adjustments. Instead, admissions seem to adjust to secure full enrollment. The results provide an explanation of why very few positive effects of PBF in higher education are found in the literature. Given continued use of PBF to enhance productivity, a likely policy implication is to impose tighter restrictions on the total number of study places allocated to HEIs, or to change the price structure of the PBF model.

Performance-based research funding: Evidence from the largest natural experiment worldwide

A performance-based research funding system (PRFS) is a nationwide incentive scheme that promotes and rewards university research performance through competition for government funding. The UK’s PRFS, currently the Research Excellence Framework (REF), is considered the oldest, largest and most developed payment-by-results system in academia worldwide. Surprisingly, and despite the strong criticisms, little has been done to quantitatively and casually evaluate the intended and unintended effects of the PRFSs. In this paper, we evaluate the incremental impact of the REF 2014 in the fields of Economics and Business. We use a synthetic control method to compare the performance of UK universities with their artificial counterfactual units constructed using data from US universities. Our analysis shows, on the whole, that the introduction of the REF had a significant and positive impact on the quantity and quality of the scientific research produced at UK universities. However, we do not find a significant effect on the per author measures, suggesting that the REF did not result in an increase in research productivity. We also show that the effects are more heterogeneous across universities than across academic disciplines. We do not find evidence of a shift of research focus from Economics to Business topics, as some feared. But our analysis indicates that the REF 2014 may have contributed to the concentration of research excellence in elite institutions.

Short-term incentives of research evaluations: Evidence from the UK Research Excellence Framework

We document incentive effects of the evaluation deadlines in the UK’s performance-based research funding system. Studying 3,597,272 publications by UK researchers, we find that publications just before assessment deadlines obtain substantially fewer citations and are published in venues with lower impact factors. These trends reverse abruptly after the deadlines. We discuss different factors that contribute to this observation and provide evidence that evaluation deadlines are likely to set incentives against investment in research quality and long-term topics. We conclude that where such shifts in research incentives are not intended, they might require balancing by additional incentives for exploratory, long-term oriented research.

From R&D Innovation to Academic Capitalism in Finland

Higher education policy in Finland has shifted toward academic capitalism as an extension to new demands for competitiveness placed on higher education institutions. The Finnish Ministry of Education has been involved for some time in reforming the Finnish higher education system with the aim of increasing outputs in research innovations and laying the groundwork for academic capitalism. In other words, political guidance has sought to reform research as a qualitative change, rather than commit to increasing investment. Looking at the statistical indicators of Finnish research and development, particularly in the context of Finnish universities, shows how in practice Finland has introduced ideas of academic capitalism locally by moving away from basic funding into a more competition-driven funding system. Competitive logics are filtered down from the level of national higher education policy to university level through policy tools, such as performance-based funding. Furthermore, the Finnish system shows a relatively high susceptibility to political control, which can be viewed as a challenge to substantive academic autonomy.

Applying climate reparative finance toward water security

Water insecurity is increasing globally as one of the first perceivable effects of climate change. While water management is typically a local challenge, climate finance mechanisms offer the potential to switch climate-damaging capital toward climate reparative water infrastructure and create a sustainable, performance-based funding stream to incentivize safe water services globally.

Funding and University Performance: An Econometric Analysis of the Indian Public Universities

Underpinning the aim of India’s National Education Policy, 2020 to devise a performance-based funding mechanism, it is pertinent to examine the impact of existing financial support on the university’s performance. Using a fixed panel data analysis, the present study investigates the influence of funding on the performance of Indian public universities over the period 2016-2020. The funding is considered in terms of the plan and non-plan grants received by universities from the central government, while performance is measured using performance parameters given by National Institutional Ranking Framework, 2021. Controlling the age, size and ownership type of university, findings reveal a significantly positive impact of funding on teaching performance, research performance and graduation outcomes of government-owned universities. Surprisingly, university’s outreach, inclusivity and peer perception have been observed to be indifferent towards central grants. Overall, the study provides valuable insights to university practitioners and policymakers for future development of the performance-funding mechanism.

Psychometrics as performance indicator: new modes of governance of universities?

In Danish universities, like elsewhere, there is an increased concern for students’ mental health and well-being. In 2018 the Danish government implemented a new biannual national student survey that focuses on well-being as a new indicator in the performance-based funding model. In this article we explore the survey, which is similar to surveys from other national contexts, and discuss the possible effects on students and universities. We draw on a Foucauldian post-disciplinary conceptual framework that asks us to consider how the “psy-disciplines” play out in educational institutions and contexts. We show how the survey mobilises psychometrics based on positive psychology and argue that the survey, as a new form of governing at a distance, normalises a figure of the “positive” student, which may counteract the intention of addressing the lack of well-being. Further it responsibilises universities for how students “feel” rather than what they learn, which constitutes a significant change.

The Impact of Performance Funding Policy Design on College Access and Selectivity

This study draws on a comprehensive performance-based funding (PBF) dataset and up-to-date difference-in-differences econometrics to examine the impacts of specific policy features (e.g., share of institutional revenue at stake and equity metrics) on college access and selectivity. We find suggestive evidence that increases in the share of revenue at stake are associated with decreases in racially minoritized student enrollment. Meanwhile, equity metrics may not be enough to boost enrollment among underserved students. Ultimately, however, our conclusions are limited due to various potential sources of bias, unconvincing pre-trends, and wide confidence intervals. While findings offer limited insight into the impacts of specific design features, they point to limitations of PBF—regardless of design—in expanding access and reducing inequities at 4-year colleges.

Investing in the Workforce: The Impact of Performance-Based Funding on Student Earnings Outcomes

ABSTRACT A growing number of states use performance-based funding (PBF) systems to tie appropriations to student outcomes. Yet while many studies have examined the effects of PBF on enrollment and completion outcomes, no research has considered whether PBF affects post-college outcomes. This is of particular importance as more states directly incentivize colleges to improve student earnings and have students major in high-demand fields. We used the first detailed longitudinal dataset of state PBF policies to examine the effects of PBF on student earnings and found some modest positive effects concentrated among students who were already enrolled in college when PBF was first implemented. However, these small increases could also reflect other trends occurring prior to the implementation of PBF and analyses show this increase was not sustained among later cohorts.

A National Analysis of the Impact of Performance-Based Funding on Completion Outcomes Among Underserved Students

The majority of states in the U.S. have adopted a performancebased funding (PBF) policy, but we know very little about how PBF adoption affects completion outcomes among underserved subgroups of students or whether specific design elements of PBF policies exacerbate inequities facing traditionally disadvantaged students. In this study, we show that high-dosage PBF policies had a negative impact on bachelor’s degree production among racially minoritized students but a positive impact on bachelor’s degree production among white students. We also report a positive impact on bachelor’s degree production among adult students when the PBF policy included a targeted incentive for graduating adult students, suggesting that PBF policy design represents a critical but understudied area of study with implications for underserved students.

The Unequal Impacts of Performance-Based Funding on Institutional Resources in Higher Education

The Unequal Impacts of Performance-Based Funding on Institutional Resources in Higher Education

The effects of state performance funding policies on student loan debt

Performance-based funding (PBF) policies are an increasingly common way for states to tie funding for public colleges and universities to student outcomes. Yet amid growing concerns about student debt, the potential exists for PBF to affect student debt and ability to repay loans in both intended and unintended ways. In this paper, we use the first comprehensive dataset of PBF policies to examine the effects of PBF on student debt. We found no effects of PBF on student debt in the two-year sector and some evidence of increased debt among university students from more affluent families.

Program-level assessment planning in Australia: the considerations and practices of university academics

Quality assessment in higher education needs to drive learning to produce graduates with disciplinary knowledge and employable skills. Performance-based funding requires universities to focus on graduate outcomes and future employment status. Research was conducted to investigate how program-level assessment planning is occurring within Australian universities, to determine academics understanding what aspects they consider and the assessment practice they identify as essential at the program-planning level. Constructivist grounded theory underpins the methodological approach and 18 academics were interviewed. Participants included Associate Deans and Program Directors (or equivalent roles) from seven Australian universities, in the accredited disciplines of dietetics and physiotherapy and non-accredited degrees in biomedical science and science. The results indicate that academics consider a myriad of factors including policies, curriculum, skills, and accreditation. Assessment practices identified as essential incorporate constructive alignment, a range of assessment tasks, authentic, and continuous assessments. The goal of program-level assessment planning is to holistically sequence assessment tasks to enhance students’ employability, so they become successful graduates and secure employment, which enables universities to acquire future funding.

A Bibliometric Exploration of Events Literature In and Outside the Core Journals

There are various positions on what literature represents "core" event management research and to what degree "peripheral" tourism and hospitality (T&H) literature influences and overlaps with this field. Previous literature reviews have made progress but methodological challenges remain. The influences of journal lists, performance-based research funding systems, and selective databases are discussed regarding the journal selection of events researchers. An exploratory approach to charting the core and periphery of events-related research was taken. Firstly, the relevance of a wide range of journals to event management research was tested using a measure of interrater agreement. Twenty-four of the 53 journals reviewed were selected as relevant. Secondly, a bibliometric analysis of highly cited articles was carried out. Two hundred seventy-two of 480 articles from 2008–2018 were selected and further examined using citation analysis. Three, four-star journals accounted for 60% of all references within the sample, despite only accounting for 23% of the total article volume. Quantitative research and articles about festivals or sports events were predominant in the sample, although the research methodology used and types of events chosen by individual articles had limited or no effect on the number of citations received. Most (77%) authors were based in Australia, Europe, New Zealand, and North America. Future reviews are advised to investigate blended approaches, open data, nonselective databases, and international perspectives.

Institutional collaboration recommendation: An expertise-based framework using NLP and network analysis

The shift from ‘trust-based funding’ to ‘performance-based funding’ is one of the factors that has forced institutions to strive for continuous improvement of performance. Several studies have established the importance of collaboration in enhancing the performance of paired institutions. However, identification of suitable institutions for collaboration is sometimes difficult and therefore institutional collaboration recommendation systems can be vital. Currently, there are no well-developed institutional collaboration recommendation systems. In order to bridge this gap, we design a framework that recognizes the thematic strengths and core competencies of institutions, which can in turn be used for collaboration recommendations. The framework, based on NLP and network analysis techniques, is capable of determining the strengths of an institution in different thematic areas within a field and thereby determining the core competency and potential core competency areas of that institution. It makes use of recently proposed expertise indices such as x and x(g) indices for determination of core and potential core competency areas and can toss two kinds of recommendations: (i) for enhancement of strength of strong areas or core competency areas of an institution and (ii) for complementing the potentially strong areas or potential core competency areas of an institution. A major advantage of the system is that it can help to determine and improve the research portfolio of an institution within a field through suitable collaboration, which may lead to the overall improvement of the performance of the institution in that field. The framework is demonstrated by analyzing the performance of 195 Indian institutions in the field of ‘Computer Science’. Upon validation using standard metrics for novelty, coverage and diversity of recommendation systems, the framework is found to be of sufficient coverage and capable of tossing novel and diverse recommendations. The article thus presents an institutional collaboration recommendation system which can be used by institutions to identify potential collaborators.

The impact of Italian performance-based research funding systems on the intensity of international research collaboration

Abstract The study of national research assessment exercises serves to evaluate the effectiveness of policies versus their objectives and to improve the formulation of future initiatives. The aim of the current study is to verify whether the introduction of the first performance-based research funding in Italy, based on the 2004–10 VQR assessment, achieved the intended objective of inducing greater international collaboration on the part of researchers. For this, we apply a bibliometric approach based on the observation of coauthorships in Italian and worldwide scientific publications over a 14-year period, beginning in the target years of the VQR assessment. Through an Interrupted Time Series Analysis, we compare the expected and observed patterns of international coauthorship for Italy and the rest of the world. Although the rate of internationalization of Italian research is seen to be increasing, whether this is a consequence of the VQR incentives, or rather part of a global phenomenon of recourse to international collaboration in response to the increasingly complex scientific challenges, it is open to interpretation.

Evaluation capacity building in response to the agricultural research impact agenda: Emerging insights from Ireland, Catalonia (Spain), New Zealand, and Uruguay

Performance-based funding and calls for public-funded science to demonstrate societal impact are encouraging public research organisations to evaluate impact, the so-called impact agenda. This paper explores evaluation methods of four fully or partially public-funded agricultural research organisations and how they are building evaluative capacity to respond to the impact agenda. Drawing on cross-organisational comparison of the readiness of each organisation to implement evaluation, the implications for improving evaluative capacity building (ECB) are discussed. This study extends the current literature on ECB, as very little has focussed on research organisations in general, and particularly agricultural research. Driven by the impact agenda, the organisations are beginning to emphasise summative evaluation. Organisational leaders valuing the demonstration of impact and commitment to building evaluation capacity are important precursors to other aspects of organisational readiness to implement evaluation. However, organisational emphasis remains on using evaluation for accountability and to improve efficiency and allocation of funding. The organisations have yet to systematically embed evaluation processes and capabilities for learning at programme and organisation-levels. There is, therefore, an opportunity to develop organisation and programme-level evaluation processes that inform each other and the pathways to impact from science. To realise this opportunity, organisations could strengthen internal and external networks of evaluation practitioners and academics to bridge the gap between the theory and practice of monitoring and evaluation for learning (MEL) and to begin to reshape organisational culture by using evaluation methods that are grounded in co-production and integrated scientific and societal values.