A study on the responses of the Hong Kong higher education sector to the changes in funding and higher education policies using an institutional perspective theory

The process of globalisation and internationalisation of higher education are intimately linked. Yet in many countries, due to fiscal austerity measures, government funding of the higher education sector is not sufficient to meet the increasing numbers of students wanting to pursue higher education. Consequently, acquisition of adequate funding has become a priority for university management. After the 1997 handover to China, Hong Kong (HK) adopted a series of education reforms and new policies, such as new funding schemes and aspirations to develop into an international education hub. This dissertation investigates the institutional responses of the HK higher education sector to these changes to funding and higher education policies. The following questions are addressed: 1) What are the driving forces of the changes of funding and higher education policies in HK; 2) how has the HK higher education sector responded to changes to funding and higher education policies; and 3) by using institutional theory (IT) as an analytical tool, what are the coercive, normative and mimetic pressures on the HK higher education? If HK higher education institutions do display isomorphism by imitating Western institutions, then what is the reason for this? Using a qualitative research methodology, this study focuses on eight institutions funded by the University Grants Committee (UGC) of the HK Special Administrative Region (HKSAR) government from 1997 to 2013. The main findings reveal a significant transformation of higher education institutions based in HK. The fundamental driving forces are internationalisation and massification, which themselves are outcomes of globalisation. In HK’s case, China’s rise as a global power has a direct impact on domestic policies and funding. The nature of this transformative process is analysed using the lens of IT. Government funding for research projects has increased whereas government grants for the UGC-funded institutions decreased and only recurrent grants increased. With funding becoming fiercely competitive, financing from other sources diversified and grew significantly, particularly from outside of HK. The UGC-funded institutions acquired other sources of research funding from industry and government. Research linkages with China have been actively developed. Most UGC-funded institutions have expanded their capacity for students and staff. They have recruited non-local students, whose numbers increased by 14% between 2002 and 2013. The analysis using IT reveals institutional isomorphism and partnership. Institutions not only imitate each other but also collaborate for various research projects in order to leverage resources and strength. Isomorphism means similarity of forms (DiMaggio & Powell, 1983). HK institutions are not forging a unique identity; rather they are emulating Western prestigious institutions. The reason is that by persisting in emulation of the perceived ‘world leader’, eventually reputation and quality of the institution will be established. The name of the university becomes a brand name that instills a sense of trust and confidence with the students and industry stakeholders.