Success and failure factors of foreign direct investment in transnational education

This study identifies the success and failure factors of foreign direct investment in transnational education. With western tertiary education markets becoming more saturated, it becomes essential for higher education institutions (HEI) to pursue new and lucrative opportunities internationally. One approach to internationalisation is the establishment of international branch campuses (IBC). This method provides the highest level of control but incurs the most risk, and failure can result in irrecoverable damage to reputation and substantial loss of resources. A review of the literature shows that numerous facets should be considered when establishing an IBC, but there are limited studies that holistically address what makes them successful or how success can be measured. Three research questions were devised to address the gaps in the extant literature. A three-stage exploratory mixed methodology is implemented consisting of expert surveys, case studies and a quantitative survey. The results show five factors that contribute to the success of an IBC. Additionally, eight classifications of success measures and a framework for establishing an IBC were identified. A key finding is the importance of the HEI factor; the remaining factors should be considered once it has been established that the HEI is able to open and operate an IBC efficiently. Furthermore, this study is one of few that presents a holistic view of how to operate an IBC successfully. The results of this thesis present HEI managers with the key considerations when developing an IBC and academicians with scope to further understand what makes IBCs successful.