# Topic

Abstract

Unit of
Analysi
s

This research focused on the

internationalization of Malaysian private
higher education institutions for
increasing their higher education exports.

PHEI

The internationalization of
Malaysian private higher
education institutions for
increasing higher
education exports.
James Chin Lik Nga
(2009),
DBA Theses
Southern Cross University
Link

Findings / Keypoints
1.

2.

Largely exploratory, this research used a combination of

inductive and deductive approaches.
The emergence of the knowledge economy is creating
massive demands for internationally recognized tertiary
education qualifications and has made transnational
higher education a major and thriving export industry.
Higher educational institutions are emphasizing on the
internationalization of higher education for increasing
international enrolments by conducting offshore
programmes through overseas branch campuses,
twinning and franchised arrangements.

Growing international student mobility is driving the

internationalization of the Malaysian PHEIs by
increasing domestic and offshore student enrolments and
establishing branch campuses abroad. Malaysia is
currently the 11 th largest exporter of higher education.
Although Malaysian higher education exports are a
major source of foreign exchange earnings, there was
limited prior research on the effectiveness of
Government policies to support the
internationalization efforts of the PHEIs. The
literature was also silent on the desired strategies for
PHEIs to achieve sustainable competitive advantage
in the international higher education market. These
factors justified the need for this research.
The research tested three propositions developed
from a comprehensive literature review.
Primary data was collected from an Experience
Survey, a Focus Group meeting and a Questionnaire
Survey and the analyzed data resulted in several
findings. These revealed that the PHEIs are committed
to internationalization. However, they face several

1.

2.

The research tested three propositions developed

from a comprehensive literature review.
Primary data was collected from an Experience
Survey, a Focus Group meeting and a
Questionnaire Survey.
1.
2.
3.

The Malaysian Government, aiming to increase its

exports of higher education, has a target of 100,000
foreign students by 2010. Major educational reforms to
make the country a regional educational hub now permit
qualified PHEIs to conduct their own degree
programmes and invite reputable foreign universities to
establish branch campuses. The National Higher
Education Strategic Plan encourages PHEIs to improve
educational quality, internationalize their curriculum,
and upgrade their premises and to become high quality
educational providers.

Justification for Research

Limited prior research on effectiveness of
government policies to support the
internationalization efforts of PHEI.
Literature is silent on the desired strategies for PHEI
to sustain competitive advantage in the international
higher education market.

My Thoughts

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In this study the UoA is the PHEI industry.

Globalisation and Knowledge Economy creating
high demand for international qualification
Transnational HE is a thriving and major industry
globally
Malaysian government restructuring education
policies to make the country regional hub.
International students are becoming more mobile
HE is key instrument for human capital
development
HE monopoly of Govt from 1957 1996
Private HE is a vibrant business and foreign
exchange earner in Malaysia.(2% of international
market: Research UNESCO statistics)
Small domestic market and market saturation
Many small PHEI with financial limitation resulting
in (1) high student-staff ratio (2) poor quality
premise (3) inability to hire well qualified
academic staff to conduct high quality program.
PHEIs adopt aggressive marketing strategies to
increase paying enrollment.

This research aims to build and extend the body of

knowledge on how to craft and innovate the right
business model for private colleges in penang to ensure
sustainability and profitability using a private college to
establish this model. It can then be used as a reference
and benchmark for other institutions to model their
business.
As such. the research problem in this investigation is:
What is the right business model for a private college
in Penang to ensure profitability and sustainability?
Profit is bottom line. Sustainability is health. (refer ppt)
No preliminary study has been conducted on the business
model innovation process than can contribute to the

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The research will focus on innovating a business model for

the higher education business in Penang using a private
college as a case study (base) to study the practicality and
suitability of the proposed model.
To analyze business model innovation it must be perform for
the organization. Unit of Analysis for Business Model is
individualistic and cannot apply across all organizations in
the industry. Therefore the two unit of analysis is the private
college. The business model innovation is first proposed and
build through extensive literature review. Then the proposed
model is tested from primary data collected from an
experience survey, a focus meeting and a questionnaire
survey.
Running a business today in the global and dynamic
landscape is not easy. This is more so for the HE industry as
it is highly regulated, the student is the product and it is a
match between social responsibility and business. (research)
Private Education in Penang is different. It does not attract
good full-time students but mainly average students. It is like
a community college for working adults.
Public Universities unable to cope with increasing demand
as prior to 1996 only 5 Universities. Need time to build more
universities, polytechnics and community colleges (research
the dates of setup of the universities and polytechnics)
1996 Education act change to liberalise education to allow
PHEI to offer their own degrees and foreign campuses to
establish branch campuses. (research 1996 act) with two
aims: (1) public institutions not able to meet growing
demand (2) make country an exporter of HE
In 20012-2016 public institutions has caught up (refer
enrolments in PHEI and PHUEI statistics)
Malaysia population ratio to HE institution and household
income (research statistics) vs China vs UK
Getting a foreign degree in Malaysia without paying foreign
fees (research fee comparison)
Lack of literature review to indicate the critical factors for
the success of PHEIs (research).
Running a business is equated to building the architecture of
a business is correct to match the market. (research)
Internationalization of higher education is an emerging trend
in developed countries and transitional economies
Massification, commercialization and democratizing of HE
(research)
Elaborate on how HE is conducted in Malaysia,
transnational, own programs etc etc.(research)
Elaborate Govt policies to help increase domestic &
international enrollment & the issues / effectiveness faced;
funding (research)
Use technology to alter the pricing and engagement;
strategic thinking has changed from the cost side of the firm

challenges including the rivalry posed by Singapore and

Vietnam which also emphasise on increasing higher
education exports.
The research findings generated several
recommendations for consideration by the educational
authorities and the PHEIs. In line with the research
objectives, the findings extended the body of knowledge
on the research topic. They also contributed to new
theory development as reflected by a modified
framework for internationalizing higher education.
Finally, the research offered recommendations for
follow up research to generalise the findings.
Research question 1.
What are the challenges faced by PHEI in Penang that
threatens their survival?
Research question 2.
What is the target market for private higher education?
Research question 3.
What are the characteristics of the target market
population?
Research question 4.
What are the value they are looking for when selecting a
college?

success of higher education institution in Malaysia

especially Penang. By filling this research gap, PHEIs
will have a reference model to explore how best to model
their business mode. Academic studies is quiet on the
understanding of the value of innovating a business model
and the critical chances of survival if they do not look into
adapting their business model to challenges of continuous
change in the HE landscape.
There is a paucity of studies on how PHEI are able to
innovate their business model to move their business
further to meet competition from public institutions.

towards novel ways of engaging customer and get customers

to pay (business models and modeling business models)

Business model is about how you deliver value differently

Triadic business model (business models:ideals types) where
customers are students and employers. (refer pdf)
Traditional business tools and strategies have to be
reconsidered
Who is segi? What is their market?
PHEI previously do not have to look into strategies on how
to compete
Today having a strategy is not enough. They need a business
model
Last time PHEI has little competition, catering as last
options. Today they are partly Social responsibility partly
business.
Many business have adopted strategies but not look into
business models innovation.
Many students today are working pt
Foundation for development of a business model
Use the various theories to construct the components of the
business model and developed and test the application on
segi