Measuring organisational capabilities in the higher education sector

Purpose – Drawing on the resource-based view (RBV), the purpose of this paper is to develop a framework and instrument to measure the organisational capabilities of university schools/ departments. In doing so, this study provides evidence of the way competitive resources are bundled to generate organisational capabilities that give university schools/departments a sustainable competitive advantage. Design/methodology/approach – A questionnaire to measure the resources that contribute to the capabilities of university schools/departments was developed. Constructs were determined, and the questionnaire was refined based on an analysis of responses from 166 Heads of schools/departments across all 39 Australian public universities. Findings – Heads conceive of the development of capabilities within their schools/departments along the core operating functions of research, teaching, and networking. Reliability and supplementary analysis confirm these constructs have strong convergent and discriminant validity as well as internal consistency. Research limitations/implications – The findings confirm that effective management and coordination of research, teaching, and networking with important stakeholders are keys to success. The framework and instrument developed in this paper also provides the opportunity to investigate university performance through the perspective of the RBV, which will enhance the understanding of the determinants of universities’ performance. Practical implications – The framework and questionnaire developed in this study can be utilised by Heads as a diagnostic tool to gain an understanding of their department’s/school’s organisational capabilities in the areas of research, teaching, and networking. Originality/value – This paper is the first study to develop a framework and questionnaire to measure organisational capabilities for university academic schools/departments

Uses of management control and performance measurement systems by Deans and Heads in Australian universities: their effects on research, teaching and networking capabilities

Invoking a resource-based view (RBV), this study investigates relationships between management control systems (MCSs) use, including information use from performance measurement systems (PMSs), and organisational capabilities in the context of academic units of Australian universities. Increased competition and attention to distinctive capabilities amongst universities, particularly at their strategic operating unit level of a Faculty1 or School2, provides the setting for application of this theoretic perspective. Based on a questionnaire survey of all Faculty Deans and Heads of Schools in all 39 universities in Australia, evidence is provided on relationships between diagnostic and interactive use of MCSs, attention given to imposed and discretionary types of PMS information, the strength of capabilities of the academic unit and, in turn, overall performance of the academic unit. Highlights of findings are that Heads/Deans conceived capabilities of their unit in functional dimensions, not in generic dimensions as found in prior literature; interactive MCS use and imposed performance measures, respectively, direct relate to several types of capabilities and indirectly to performance of the academic unit, but diagnostic MCS use does not. The findings have practical implications for styles of control systems use and performance information use by management in universities