University Business Models and Online Practices: A Third Way

March 17, 2013

Higher Education is in a state of change, and the existing business models do not meet the needs of stakeholders. This article contrasts the current dominant business models of universities, comparing the traditional non-profit against the for-profit online model, examining the structural features and online teaching practices that underlie each. It then offers a third option for existing non-profit universities that would enable them to continue offering multiple value propositions while increasing efficiency and quality of outcomes. This involves emphasizing online instruction, separating research from teaching, and adopting a more complex structure based on differentiated faculty roles that would enable economies of scale along with the benefits of research-informed instruction.

Online Journal of Distance Learning Administration

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